Please remember the auction schedule can change at any time. We are not responsible for any continued or canceled auctions and apologize for any inconvenience they may cause you.

For up to the minute status of any auction, please visit the website or call the office at 617-350-7700. During normal business hours we are available to assist you or call us after hours to hear a recording of our next day’s auction schedule.

But is one worse than the other overall?

What are the differences?

How do they compare?

Here is a quick breakdown of what it looks like to have a short sale vs. a foreclosure….

Short Sale

• Typically an 85-160 point drop to your credit score
• Average time short sale-ers wait to buy a home: 2 years
• However, you are immediately eligible to purchase another home
• You are viewed as a more responsible homeowner (versus someone who had to go through foreclosure)
• Could qualify for $3000 for relocation through HAFA (Home Affordable Foreclosure Alternatives)

Foreclosure

• Typically an 85-160 point drop to your credit score
• On average, it takes people 7 years to buy a new home
• You are not eligible for immediate purchase of a new home
• Creditors view you as irresponsible
• Cannot qualify for relocation funds

While neither of these represent an ideal situation, we hope this information gives you a little insight on your options. If you have further questions, please contact us. We are happy to help!

To read the original article on short sale vs. foreclosure, CLICK HERE.

In general terms, inventory is down, sales are up, foreclosures are down and confidence is up. And that word confidence, and all that it implies, may be the most important change to how we stood last year at this time. Increased confidence in potential buyers means more transactions and more closed sales. The loan money has been dirt cheap for a long time now. But just lately buyers have been more confident.

Possibly the reason for the bloom is that the downside of home prices and values seems now to have passed. While even a year ago there was still plenty of fear that a home might continue to lose value, those fears seem to have evaporated. I am not saying that some of the huge ugly gorillas in the room (can you say… fiscal cliff – or Euro crisis?) might not yet change the course of history, but unless the world ends as some students say the Mayans predicted, we are likely to continue to see improvements in housing overall.

Some areas are selling rather briskly, while others must wait for overall levels to rise to help them hit the sales mark. The same most popular areas are still most popular. List two identical homes, on Palace Ave and also on Richards Ave, and count the phone calls for each. You get to pay extra to be a short walk from the Plaza.

Homes in the lower price ranges also get lots of attention for the reason that affordable and bargain are two words now permanently embedded in our real estate vocabulary. It might be 10 or 20 years before home buyers stop putting “good price” at the top of their list.

As always, I am available to talk with you about your real estate needs and observations. Once you and I chat for a few minutes, you can decide whether to risk meeting me in person and testing my real estate professionalism. email AlanBall2@gmail.com or phone 505-470-7153

Can we also please all get together and do a group hug and prayer for some snow on the mountains? Let’s put our collective minds and spirits to the task!

Please remember the auction schedule can change at any time. We are not responsible for any continued or canceled auctions and apologize for any inconvenience they may cause you.

For up to the minute status of any auction, please visit the website or call the office at 617-350-7700. During normal business hours we are available to assist you or call us after hours to hear a recording of our next day’s auction schedule.

The following is a summary of an article from YOU Magazine.

Housing has a significant impact on other aspects of the economy that goes beyond just creating jobs related to building homes.  When people purchase a home, they have reasons to spend money in new places that pertain to owning a home.  The transfer of wealth and the taxes that go along with that help to bolster the economy overall.

The following examples shed light on how the housing market is faring, as well as the impact that the market is having on the economy.

New Construction and Housing Starts Improve
Housing Starts bumped up 15% from August to September of this year, and are at their highest volume since July of 2008.  Washington, Iowa, Nebraska, Texas and South Carolina are all showing strength in new home construction.

New and Existing Home Sales on the Rise
Existing home sales in September have jumped up 11% from the same time last year, and over the last 15 months sales have consistently been higher than the same month a year prior.  Also, new home sales in September were up 8% from June.  Again, the new home sales, especially, indicate the potential for those households to purchase new furniture and appliances.  This also has a positive effect on the economy.

“Shadow Inventory” Declining
The numbers of homes that are in some phase of foreclosure but not yet on the market is declining.  This is good, because when the shadow inventory is high in volume, the overall prices of homes are depressed while forced to stay weak.  Also, new construction is stalled as a result of too much shadow inventory.

Fortunately, RealtyTrac, a website that specializes in foreclosure analysis, has discovered a 7% decrease in foreclosure filings down from August.  These foreclosure filings include default notices, scheduled auctions, and repossessions.  Furthermore, foreclosure filings have fallen 16% from September of last year and are at the lowest level since 2007.

32 of 50 states have realized a drop in their percentage of foreclosure inventory compared to last year.  However, some states have seen an unfortunate increase in foreclosure inventory, such as Florida, New Jersey, and Illinois.

The Bottom, and the Bottom Line
On October 24th, after the Federal Open Market Committee Meeting, the Fed stated that “economic activity has continued to expand at a moderate pace in recent months”, and that “the housing sector has shown some further signs of improvement, albeit from a depressed level.”  This is good news, but it’s crucial to understand that our recovery in the housing market as well as the economy in general is likely to improve incrementally at a slow pace.

Home loan rates are at record lows, which makes buying or refinancing a home that much more desirable.  If you have any questions regarding your own mortgage, or would like to get more involved in today’s housing market, contact Connie White @ (781) 659-2500 or connie@conniewhite.com

You can read the complete article here.

Terms of Sale

All auctions take place on the property. All deposits are specified in each listing. All deposits must be in cash, certified or bank check and will be required at the time and place of sale & balance will be due in 30 days. All other terms will be announced at the auction. The Auctioneer makes no representations as to the accuracy of the information contained herein.

Please remember the auction schedule can change at any time. We are not responsible for any continued or canceled auctions and apologize for any inconvenience they may cause you.

For up to the minute status of any auction, please visit the website at or call the office at 617-350-7700. During normal business hours we are available to assist you or call us after hours to hear a recording of our next day’s auction schedule.

Terms of Sale

All auctions take place on the property. All deposits are specified in each listing. All deposits must be in cash, certified or bank check and will be required at the time and place of sale & balance will be due in 30 days. All other terms will be announced at the auction. The Auctioneer makes no representations as to the accuracy of the information contained herein.

Please remember the auction schedule can change at any time. We are not responsible for any continued or canceled auctions and apologize for any inconvenience they may cause you.

For up to the minute status of any auction, please visit our website
or call the office at 617-350-7700. During normal business hours we are available to assist you or call us after hours to hear a recording of our next day’s auction schedule.

Photo from The Washington Post

This is a summary of an article by Katherine Reynolds in the Washington Post. 

With an upcoming Presidential election, there is a crisis still looming regarding the nation’s real estate market.  And no matter whom you prefer, the health of the housing market and the price of home mortgages will have to be addressed by whomever wins the seat in the Oval Office.

President Obama’s administration has a plan already in place that will continue to inject new housing rules and protections to homeowners under the Dodd-Frank Act.  Conversely, Mitt Romney would repeal the Dodd-Frank Act and replace it with streamlined regulations for the private sector that will allow smaller banks to re-enter a more competitive mortgage market.

Mortgage market

As of right now, federal entities are backing 90% of the U.S. home mortgages written since the housing meltdown of 2008.  However, the next administration will have to decide how much of the housing market should remain subsidized by Washington.

Both candidates would lessen the portfolio of Fannie Mae and Freddie Mac, but neither one has proposed an alternative as of yet.  Nevertheless, Obama will support a continued federal tax deduction for mortgage interest to homeowners, while Romney supports eliminating tax breaks to make way for a revamped tax code and lower rates.

Foreclosures 

Foreclosures are another problem that plagues the economy.  One-quarter of American homeowners owe more than their property is actually worth.  However, the Obama administration has proposed selling some of the 200,000 foreclosed homes owned by Fannie, Freddie and the Federal Housing Administration to convert them into rental housing.  Romney, desiring also to turn those foreclosed properties into rental housing, similarly said, “Let’s get them out of the government’s hands and put them back into the hands of the public.”

The current administration’s mortgage modification program has helped more than 5 million homeowners avoid foreclosure, while the refinancing program in place has assisted over 1.3 million homeowners between April 2009 and May 2012, according to government reports.

Down payments

Since the fallout of 2008, lenders have steadily increased the amount of down payments.  This has resulted from a combination of financial institutions tightening their lending standards, as well as required down payment amounts being set by the government.

Currently, mortgage rates are very low, while housing prices are also affordable.  Unfortunately, most potential buyers don’t have access to the credit they need to make a new home purchase.  This is thought to be due to the continued strict standards that lenders have implemented following the housing market crash.

Consumer protections

A significant contribution by the Obama administration is the implementation of the Consumer Financial Protection Bureau (CFPB).  This arm of the administration serves to protect consumers from exploitation by lenders in regards to home mortgages and other financial products.

Romney, on the other hand, opposes this amount of regulation at the federal level, and if elected, will push to reduce the bureau’s involvement in the market, at the same time rolling back the Dodd-Frank Act.

Repairing the economy

At the end of the day, the next administration is faced with a continued difficult economic climate closely tied in with the housing market.  The stronger the U.S. middle class fares economically, the more the housing market can absorb the burden of the houses that are upside down.

The key for the future President and his administration will be to focus on the overall national debt and federal deficits.  Any improvement there will help to inject more financial resources back into the housing market.

Finally, while Obama and Romney are in line on a few points regarding the mortgage market, it’s clear that their varying ideals will significantly affect the future of home mortgages no matter what.

To read this article in its entirety, click here.  

Or more precisely what not to expect.

Don’t expect to be able to negotiate anything other than price.

Think $150 to re-key a door is high? Too bad. There’s no way around it and you won’t get the key at closing. It may be left in your mail box. Or on the electrical box. Or in the mud under the electrical box.

Furnace doesn’t work? Don’t expect it to be fixed or replaced.

Your attorney doesn’t like the wording in the bank addendum? Too bad. If you change it the seller will back out (or not sign it- same thing).

Want the by-laws which are required to be supplied to a potential buyer in Michigan? In fact if the property is a condo or site condo the buyer can legally walk until they are received and approved. But in the case of a bank owned property you will probably end up at the county building getting them to the tune of $.50/page because neither the seller nor listing agent will have them.

Buying a foreclosure on a private road? You may need to walk door to door getting signatures on a private road agreement or you may not get your mortgage. The seller won’t do it, and heaven forbid the listing agent actually do his or her job.

The seller’s agent may or may not make sure the utilities are on and the house un-winterized prior to your home inspection.

The seller’s agent may or may not make sure the driveways are cleared (in the winter) so bring your boots.

The listing agent may have the utilities on- but if we’re looking in the dark bring a flashlight because there’s no guarantee there will be lights.

The sad facts are, the banks and government (many foreclosures are government owned) don’t care. If the sale falls apart they can just put it back on the market and unlike a normal seller they can afford to keep reducing their price.

It’s a sad fact that most foreclosure listing agents in Oakland County MI and Lapeer County MI don’t even look at their listings let alone service them.

Want to buy a foreclosure listing in Oakland County or Lapeer County MI? You MAY get the house for a good price, but is the discount worth the stress, lack of protections, and probably hidden defects you will need to correct later worth the discounted price?

One other thing to consider- the re-salability of the house. Right now I have 2 listings that were previously bought as foreclosure listings. I have title issues on one and trying to track down the private road agreement for the other before we get an offer. The advangage of using an agent who specializes in NON Distressed sales.

Buying a Distressed Listing

Search the MLS

Jackie Hawley
ReMax Encore, Clarkston MI

Cell: (248)736-6407

Jackie@JackieHawley.com

www.MiRelocation.com

One of the most popular trends in real estate recently has been the purchase of foreclosures. When the economy dropped, many homeowners were forced out of properties they couldn’t afford, which led to deeply discounted prices for buyers. Now, with the trend heading back in the sellers’ direction, purchasing one of the remaining foreclosure properties could be a good idea and a wise investment. But only if you use your head and follow the rules.

We recently read a great article in the Liberty Tribune that outlined five rules for purchasing a foreclosure. The first was to position yourself for success by getting pre-approved for a mortgage and working with a highly experienced real estate agent. We agree! Both of these will help you in purchasing a foreclosure, as time is always of the essence and a deal has to be snatched up right away. If you’ve got the right team and the bank already on board, you’ll be in good position to act quickly.

The second rule was to do thorough research. We believe that having a sharp real estate agent will help with this, but there are a few things you can find out on your own in the meantime including whether or not the property has undisclosed liens and if the city has any permit records on file. Perhaps most importantly, always make sure that you won’t be responsible for any delinquent taxes the seller left behind. Do your homework!

The Tribune’s third and fourth rules were to get a home inspection and to budget for repairs. We think these go hand-in-hand. Because a foreclosure property’s previous owners were not in a position to fix up the house, there will likely be some need for repairs. When you are setting your budget, be sure to factor that into the cost. Then, have an ASHI-certified inspector review the property to help you determine the extent of the damage. This will let you know whether or not the property and its flaws are something you can or want to handle.

The final rule just made sense: Always assess the neighborhood. Yes, a foreclosure may be a great bargain, but is it worth the price you’ll pay for noisy, rowdy areas or being at a high risk for vandalism or theft? We’re guessing the answer is no. Make sure you do your research on the total package; not just the house.

Yes, foreclosures can be an amazing find. While we certainly don’t wish them on anyone, we are happy when our customers are able to afford a nice property that otherwise wouldn’t have fit their budget. So take advantage of the buyers’ market while you still can and hunt down the foreclosures in your area of choice. Just make sure you have all the pieces in place and follow the rules.

Mayor Goodman was joined by representatives from the Las Vegas Housing & Urban Development Office, NAACP, Community Services of Nevada, Fannie Mae, Housing for Nevada, Financial Guidance Center, Legal Aid of Southern Nevada, Nevada Housing Division, local homeowners and financial institutions.

KXNT talked with Dr. Lisa Morris-Hibbler about how things continue to change in the foreclosure and refinance process. ” The biggest change is that the loan to value, which before was a barrier, because we have substantial loss here. That has been removed and people who are underwater can qualify for refinancing.”

Following the discussion, Mayor Goodman sent a letter to the White House Office of Intergovernmental Affairs and the Nevada federal legislative delegation, urging them to implement plans that will increase access to refinancing for homeowners with non-Fannie Mae or Freddie Mac mortgages, and any other needed changes.

Appraisal challenges continue to increase as the market struggles; 10 percent of the nation’s Realtors said they had sales canceled because appraisals came in below the prices buyers agreed to pay, according to a recent survey by the National Association of Realtors. Another 15 percent said contracts were renegotiated after appraisals came in below contract; sellers dropped prices or buyers put up more cash. 33 percent of home builders said they lost sales because of low appraisals, according to an August survey by the National Association of Home Builders. That was up from 26 percent in a 2009 survey. If you’re on the receiving end of a low appraisal, how do you challenge it?

Think like an appraiser
If you want to challenge an appraisal then think and act like an appraiser. That starts with understanding how to measure a home, what constitutes living area, positives and negatives…. A few things to know

-Always meet the appraiser at the property

-Have some comparables and give them  a copy

-Learn about how and why adjustments are made to comparables

- No improvement returns dollar for dollar

- Appraisers measure the outside of homes; some use lasers, some tapes, some wheel, some round…others don’t. No two appraisers will measure a home the same way

- Condition and maintenance level matter, good condition is expected, poor condition will be detailed
If your home was listed for 100K and failed to sell, the appraiser will see that. Don’t expect a 100K appraisal since the market has already told you otherwise

- If your home has been on the market for a longer than usual time, the appraiser will see that and wonder why

Their estimate of value is based upon comparable sold homes (comps) in your area that meet certain criteria. Ideally, this includes:

- Closed within six months! Although some want 90 days

- Be located within the defined competing area, typically under a mile

- Be physically similar to your home – style, bedroom count, size, age, lot, location

- They should be a “reasonable alternative purchase” to your home; the comparables should be functionally equivalent to yours with similar appeal. If your home were offered for sale, the comps would be other purchase options to it.

Once you are ready contact the lender and ask to challenge the report. It’s called an appraisal rebuttal. Once rebuttal is ordered it can take between 3-5 days for a resolution. Know the odds are against you, but I will tell you I have won my share of challenges.  So if you feel the report doesn’t add up, go ahead and challenge it. Good luck!

We drove to the area where the lot was located and had a difficult time finding it.  There was a curb cut in the street and beyond that you could see that the adjacent property owner had taken over what would have been a right of way to the lot with swings, logs, junk and in the trees, a burned out automobile!  There was no way to get to the lot that was for sale!  Another RED FLAG!  Nevertheless, thinking it was the right price, the buyers insisted that I submit an offer on their behalf immediately.   I had never written a land contract before, so after a quick lesson, I prepared the offer.  However, I warned the buyer that he had a short amount of time to determine whether he could build on the land, what it would cost to bring the utilities in to the property and what it would cost to add an access road.

Although I didn’t have any experience with land purchases, I knew where to go for answers . . . . down to the Fairfax County government land records offices.    After a wait of about 10 minutes, this is what I found out.

Although the county records say that the lot is “buildable”, you cannot build on it!  A sewer line goes straight through the lot, along with a nice creek!  You can’t build a house on top of a sewer line and you can’t build  over a creek either.  Not to mention that a road to the property would probably cost $100,000 anyway.  Furthermore, the lot is within a larger piece of land owned by someone else.  How the county allowed this lot to be separated from the larger property is  something I don’t understand.  And how a bank financed the property is another issue!  Clearly, there was something shady here!

Suffice it to say, the buyers withdrew their offer.   But guess what??  As of this date, the property is still for sale,  see FX7591195.  The new price is $84,000.   Good luck with selling this .25 acre of land.  This is truly a case of Buyer Beware!

Before you make an offer for land in Fairfax County, just stop on buy the land records office and have a little chat with one of the specialists there. It may save you a lot of time.

Short Sales vs Foreclosures: the Prices.

For the past few years, the housing market in the United States has certainly seen its ups and downs. While recent news indicates a turning market for the better, there is still a significant surge of distressed-homes in the market.

According to a report released by RealtyTrac, more than 1 in 4 homes sold during the first quarter of the year were in foreclosure. Additionally, we are starting to notice a surge in short sales across the states.

Homes sold in the pre-foreclosure phase are often referred to as short sales. In light of the economic climate, banks have significantly cut the asking price for homes that are delinquent on their mortgage payments.

This is beneficial for both parties, as the homeowners can escape the burden of what seems like a never-ending mortgage payment. In addition, the banks are able to quickly lure in new buyers with low interest rates and a significantly lower asking price.

Since borrowers essentially owe more on their mortgage than their home is actually worth, a short sale allows the bank to sell the home at a fraction of its market value. While the bank is still at somewhat of a loss, short sale transactions are usually a quicker process when compared to homes in foreclosure.

The average price for short sale homes sold in the first quarter of 2012 was $175,461. According to RealtyTrac, this is a record low since the company started recording foreclosure rates back in 2005.

Lenders are approving more aggressively priced short sales, which in turn is resulting in more successful short sale transactions.

Click here to read the original article by Juanita Simkins.