Short Sale Negotiations|Seller Cash Contribution

by Bill Gassett on January 23, 2012 · 8 comments

Negotiation With Short Sale Lenders

Short sale negotiationsIn working in the short sale arena for the last five plus years, I have seen lenders do just about everything when it comes to negotiating short sales with home owners. There really is no “standard” in short sales. The way one short sale file at one particular lender is handled can be totally different on the next.

One of the biggest reasons for this is that every lender has different investors that actually own the loans. There could be more than twenty five different investors that have interests in loans at one lending institution. So for example just because Bank of America may have done something for a home owner in one circumstance does not mean they would do the same thing for another home owner in the exact same circumstance.

More often than not this is because one investor may not have the same needs or requirements as another investor.

There are basically three scenarios for a seller when completing a short sale. They are a:

  • Cash contribution to the lender at closing.
  • Signing a promissory note to pay back some portion of the short sale debt.
  • A combination of these two things.
  • A complete debt removal.

The biggest consideration for most home owners completing a short sale is debt removal. My goal of course in any short sale is to get the most favorable terms and conditions for the seller which is a complete debt removal. Going back five years ago getting complete short sale debt removal was a lot easier than it is today. Many lenders today want sellers to have some kind of  “skin in the game” if they are going to grant a short sale.

In my experience the terms that most home owners get from short sale lenders is very favorable. Home owners are typically asked to bring a cash contribution or sign a note that basically amounts to pennies on the dollar compared to what they owe.

A typical scenario could be a home owner being substantially under water…..for argument sake let’s say $100,000. It would not be unusual for a lender to ask the seller to bring $5000 to the closing and letting the short sale take place. Another possibility if the seller does not have $5000 is to work out a promissory note. Maybe the lender asks for a$15,000 note to be paid back over the next five years at an attractive interest rate. As mentioned previously it could be a combination of these two options. These are just quick examples to give you an understanding of what happens in the short sale world on a daily basis.

There can be circumstances although not real often, where the lender will only accept a cash contribution in order to close. The short sale lender may have this requirement for one of the following reasons:

  • The seller has money in liquid accounts.
  • The seller has not been late with any mortgage payments.
  • The cash contribution is a requirement of waiving the deficiency (debt removal).
  • The seller has a good credit score and are current with other debt.
  • The residence is an investment property.

One of the most difficult parts of going through a short sale as a seller is the long wait involved from the time you get an offer from a buyer until the time you actually begin negotiations with the lender. Sometimes there can be months in between the two. As a seller it is easy to feel in the dark and helpless. There can be times where you will be in this waiting game wondering what the lender is going to require of you and then their request finally comes. They ask you for a cash contribution that you just don’t have.

I have an outstanding short sale attorney that works on behalf of the seller with all of my short sale transactions. In a circumstance where the lender asks for a cash contribution that the seller just can’t come up with the first course of action will be to try to work out an amicable compromise with the lender/investor. This would typically be one of the following:

  • Negotiate to get the cash contribution lowered to something the seller was able to bring to closing.
  • See if the seller can get the funds from a family member or borrow from them.
  • Try to get the lender to accept a promissory note instead.
  • Ask the buyer to pay the cash contribution if lender allowed this to occur.

Short sale cash contributionIn the vast majority of the short sales I have been involved in we have been able to work it out so a compromise was reached and everyone got what they wanted. Should sale negotiations can be difficult at times but if you know what your doing common ground can often be reached.

What would you need to do in the rare instance where a large cash contribution was required that the owner just did not have and the lender would not budge? If all else fails what you would need to do in the scenario above is to put the home back on the market and build in a cash contribution to the lender right into the transaction.

So for example you would add a cash contribution for the lender on behalf of the seller on line 104 of the buyer’s side of the HUD settlement statement. You would also place the same contribution on line 404 of the seller’s side of the HUD as a “Cash Contribution To The Lender”. The  payoff amount would then go to the lender.

This is how short sale negotiations work with lenders. If you know what you are doing you can usually find common ground. Of course there are numerous things to look for in a short sale contract which I have covered in a number of articles I have written.

Other short sales articles worth a look:

If you are need to short sale your home or condominium in Ashland, Bellingham, Blackstone, Douglas, Framingham, Franklin, Grafton, Holliston, Hopkinton, Hopedale, Medway, Mendon, Milford, Millbury, Millville, Natick, Northboro, Northbridge, Shrewsbury, Southboro, Sutton, Wayland, Westboro, Whitinsville, Worcester, Upton and Uxbridge MA.

I am successfully completing short sales through out the Metrowest Massachusetts and Worcester County areas. So far, knock on wood, I have a 100% success rate for short sale approval! Short sales are specialized transactions that are critical to have the right Realtor representing you. Do not make the mistake of picking an agent that does not understand how to get to the closing table on a short sale. Nationally less than 30% of all short sales close!

If you are outside of the Metrowest Massachusetts area and need to do a short sale please feel free to contact me and I would be happy to refer you to a Realtor in your location that handles short sales and knows what they are doing! I have referred short sales to other Realtors all around the country.

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About the author: The above Real Estate information on Short sale negotiations – seller cash contributions was provided by Bill Gassett, a Nationally recognized leader in his field. Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-435-5356. Bill has helped people move in and out of many Metrowest towns for the last 25+ Years.

Thinking of selling your home? I have a passion for Real Estate and love to share my marketing expertise!

I service the following towns in Metrowest MA: Ashland, Bellingham, Blackstone, Douglas, Framingham, Franklin, Grafton, Holliston, Hopkinton, Hopedale, Medway, Mendon, Milford, Millbury, Millville, Natick, Northboro, Northbridge, Shrewsbury, Southboro, Sutton, Wayland, Westboro, Whitinsville, Worcester, Upton and Uxbridge MA.

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What is Real Estate Title Insurance

by Bill Gassett on November 29, 2011 · 8 comments

Real Estate Title Insurance Explained

Real Estate Title InsuranceWhen purchasing a home one of the things that buyer’s will be asked is whether or not they want Real Estate title insurance. Often times I find that home buyer’s lament over this decision because of the expense involved. Real Estate title insurance is certainly not cheap!

While title insurance is a one time expense, it can be disturbing for a buyer tight on cash to have to come up with such a large unexpected expenditure. Real Estate title insurance can easily run into thousands of dollars in a home purchase. Unlike other insurance policies there is no monthly premiums with title insurance. It is a one time expense covering the owner until the property is sold.

One of the questions I get asked a lot by my clients is “should I purchase title insurance’?

Let me first explain what title insurance is and what it covers. Real Estate title insurance is a type of insurance that covers financial loss from defects in title to real property and from the invalidity of mortgage liens.

A title policy is put in place to protect an owner’s or lender’s financial interest in a property against loss due to title defects, liens or other matters. The insurance will defend against a lawsuit attacking the title as it is insured, or reimburse the insured for the monetary loss incurred, up to the dollar amount of insurance provided for in the policy.

In my experience all major lenders require title insurance to protect their interest in the mortgage secured by real estate. This is called a lenders insurance policy.  An owner’s insurance policy is not required but in my opinion is a highly valuable insurance that is risky not to have.

There is an opportunity for a buyer to get a substantial discount when they purchases both a lenders and owner’s policy at the same time. This is called a simultaneous issuance. For an enhanced policy, it runs about $4.00 per thousand based on purchase price + $175.00 in Massachusetts. This is a one time premium paid at closing which lasts the lifetime of the property ownership.

The Real Estate Title Search

Prior to a buyer taking title to a property or completing the “closing”, the lender through which the borrower is getting the mortgage will have a title search done on the Real Estate.

The purpose of the title search is to find any defects in the title. There could be any number of defects including liens, unpaid Real Estate taxes, judgments, unpaid condo fees, or others.

If title defects are found the buyer’s or lender’s lawyer will inform the buyer of such defects and then work towards getting them removed so that a clean and marketable title is given to the buyer.

Title insurance becomes of great value when something is discovered in the future that was not found when the initial title search was done.

A Title search starts with the most recent deed searching the grantees name (the person who holds title) back in time until the deed from which the grantee acquired the property is found.

That grantors name is then searched back in time in the grantees book to find when the grantor acquired the title as grantee. The typical title examination goes back fifty years but title insurance would cover beyond the fifty year search.

Anyone who has not purchased title insurance could surely tell you what a nightmare it can become without it!

Common Reason For Title Insurance Claims

Example of some of the more common reasons for claims against a Real Estate title insurance policy are as follows:                                                                   Real Estate Fraud

  • False impersonation of the true owner of the property
  • Forgery of the deed, releases, or wills
  • Real Estate fraud
  • Missing or undisclosed heirs to the property
  • Any Instruments executed under invalid or expired power of attorney
  • Mistakes in recording legal documents
  • Deeds by someone of unsound mind
  • Deeds by a minor
  • Misinterpretations of wills
  • Deeds with misrepresentation of marital status
  • Liens for unpaid estate, income, inheritance,  or gift taxes

For an astute buyer who really thinks about the expense of title insurance the follow up question I get is why do I need it if the lender is going to have a policy anyways?

The easiest way to answer this question would be to ask is what would you do if one of the above title defects were discovered and the attorney who did the title search was no longer in business? While you could certainly sue the attorney for negligence if he was still around practicing; what if he was not? You would have a very large issue on your hands! To be clear an attorney would only be responsible for negligence not the issues outlined above. This is why it is important to have title insurance!

One other important note about Real Estate title insurance:

A federal law called the Real Estate Settlement Procedures Act (RESPA) allows the individual homeowner to choose a title insurance company when buying or refinancing residential property. Most of the time, homeowners do not make title insurance decisions for themselves.

They are typically handled by their lender’s or attorney’s choice; however, the homeowner does retain the right. RESPA makes it unlawful for any lender, attorney, or Real Estate agent to mandate that a certain title insurance company be used. Doing so is a violation of federal law and any person or business doing so can be heavily fined or lose their license.

Section 9 of RESPA denies a seller from mandating a home buyer to use a specific title insurance company, as a condition of the sale. Buyers may sue a seller who violates this provision for an amount equal to three times the cost of all charges related to the title insurance.

Some of the most prevalent title insurance companies are Fidelity National Financial, First American, Land America, Stewart and Old Republic.

In my mind having an owners insurance title policy is a no brainer and is certainly something you should consider unless you absolutely can not afford it! A title policy can be purchased in the future should you not have the funds available at closing time.

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About the author: The above Real Estate information on Real Estate title insurance was provided by Bill Gassett, a Nationally recognized leader in his field. Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-435-5356. Bill has helped people move in and out of many Metrowest towns for the last 25+ Years.

Thinking of selling your home? I have a passion for Real Estate and love to share my marketing expertise!

I service the following towns in Metrowest MA: Hopkinton, Milford, Southboro, Westboro, Ashland, Holliston, Medway, Franklin, Framingham, Grafton, Hopedale, Mendon, Upton, Northbridge, Shrewsbury, Northboro, Bellingham, Uxbridge, Millbury, Worcester, Sutton and Douglas.

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Credit Scoring Impacts Short Sale vs Foreclosure

by Bill Gassett on October 11, 2011 · 19 comments

Short sale or foreclosure?It is probably safe to assume that most consumers like to work with folks they know can be trusted. In Real Estate, like some other businesses there are those that can always be counted on for delivering great advice and others that only care about their own pocket book.

I always tell people some of the best Real Estate agents are those that don’t NEED to make a sale! It makes perfect sense because an agent that NEEDS business is far more likely to tell a buyer or seller something they want to hear rather than the truth.

Short sales unfortunately are a specialized Real Estate transaction where information is often times bandied about with no basis of fact. Many Realtors blindly go around telling people in financial distress that a short sale is better for their financial future because their credit score will not be impacted like going through a foreclosure.

Folks this could not be further from the truth! While there are certainly advantages of pursuing a short sale vs foreclosure, credit scoring is NOT one of them. There will be plenty of Realtors that will read this and argue with me telling me I am wrong.

As a Realtor who is tech savvy and social media connected you will see many of my articles in places such as Linkedin, Twitter and other Real Estate forums.

They will see some of my short sale articles and flat out tell me that I have incorrect information. When I mention the credit scoring impact of a short sale compared to a foreclosure is just about the same they scowl in disbelief. They will tell me I don’t know what I am talking about because they just learned differently at some short sale course their local Real Estate board was putting on. At this point I will be laughing because the people that teach these courses are usually Realtors that couldn’t make it in the business. They teach this nonsense because it is propaganda that helps get Realtors more business.

By now you are probably thinking how do I know the credit scoring impact is similar in these two financially stressful events. You have every right to be wondering! I know because I go right to the source. My FICO is the governing body for credit scoring including what happens in both a short sale and foreclosure.

Short sale vs foreclosure credit scoring impacts

Since I am often getting challenged on the credit scoring impacts by other Realtors and get asked all the time by my clients, I am going to share a very interesting study that was conducted by Fair Issac corporation.

The FICO study took various types of mortgage delinquencies on three credit bureau profiles of consumers that had scores of 680, 720 and 780, respectively. The study focused on consumers whose credit characteristics (e.g., utilization, delinquency history, age of file) were typical of the three score points considered. All of the consumers had an active currently-paid-as-agreed mortgage on file.

Results of this credit scoring study are shown below. The first chart shows the impact on the credit score for each stage of delinquency and the second shows how long it takes the score to fully “recover” after the fact including a short sale or foreclosure.

Credit Scoring Short Sale vs ForeclosureWhat you can easily see by this  study is that there is a negligible difference in credit scoring when comparing a foreclosure or short sale. While it seems unfair, those that had a higher credit score to start will see a greater scoring drop. In addition, the higher starting score, the longer it takes for the score to fully recover.

While there is a minimal difference in scoring impact between moderate and severe delinquencies, there may be a significant difference in time required for the score to recover completely.

These statistics are right from the guys that make credit scoring. They are not opinions. This is actual data that was put together and sourced by FICO themselves.

Benefits of a short sale vs foreclosure

So what are the benefits of going through a short sale rather than letting a lender foreclose on your property? The biggest advantage is that you will be able to buy another home in the future a lot quicker than you would with a foreclosure. Generally speaking the turnaround time for getting another loan after completing a short sale is two to three years. In a foreclosure it is typically five to seven years. There are a number of circumstances that can affect the time frame including whether the loan is FHA, Fannie Mae or Freddie Mac. For a complete financing guide see buying a home after short sale or foreclosure.

One of the other big factors you need to consider is your employment status. There are a number of large companies that will not hire a new employee that has a foreclosure on their resume. While this may not seem fair with all the financial turmoil that has taken place over the last five years, employers look at a foreclosure as a black mark on your record. In other words when you short sale a property you are owing up to a financial commitment. In a foreclosure you are walking away and taking no responsibility for your debt.

The last reason why more and more will choose a short sale over a foreclosure is just the sheer embarrassment of going through a foreclosure proceeding. In some states an auction is held right on the front lawn of the property. Who wants to lose their home and then have salt rubbed in the wound by watching a bunch of buyers compete over it. This is an unsettling experience for most.

The goal of almost anyone that goes through a short sale or foreclosure will be to improve their financial stability moving forward. Of course improving the impact a short sale or foreclosure had on their credit scores will typically be one of the first areas that people look at once they are back on their feet. There are certain things you can do to help fix your finances after a short sale or foreclosure that are covered in this helpful article.

Unfortunately, sometimes people just don’t realize they have options and just lose their home to foreclosure. Many have never taken the time to do any research and just assume there are no alternatives. A short sale can be a great alternative for some home owners – best of luck if you are one of them!

If you are need to short sale your home or condo in Ashland, Bellingham, Framingham, Franklin, Grafton, Holden, Holliston, Hopedale, Hopkinton, Medway, Mendon, Millbury, Milford, Southboro, Westboro, Natick, Northboro, Northbridge, Whitinsville, Upton, Uxbridge, Shrewsbury, Sutton, or Worcester get in touch! I would love to interview for the chance to represent your short sale transaction.

I am successfully completing short sales through out the Metrowest Massachusetts and Worcester County areas. So far, knock on wood, I have a 100% success rate for short sale approval! Short sales are difficult transactions that are critical to have the right Realtor representing you. Do not make the mistake of picking a Real Estate agent that does not have experience closing short sale transactions.

If you are outside of the Metrowest/Worcester Massachusetts area and need to do a short sale please feel free to contact me and I would be happy to refer you to a Realtor in your location that handles short sales and knows what they are doing! I have referred short sales to other Realtors all around the country.

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About the author: The above Real Estate information on Credit scoring impacts of short sale vs foreclosure was provided by Bill Gassett, a Nationally recognized leader in his field. Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-435-5356. Bill has helped people move in and out of many Metrowest towns for the last 25+ Years.

Thinking of selling your home? I have a passion for Real Estate and love to share my marketing expertise!

I service the following towns in Metrowest MA: Ashland, Bellingham, Blackstone, Douglas, Framingham, Franklin, Grafton, Holliston, Hopkinton, Hopedale, Medway, Mendon, Milford, Millbury, Millville, Natick, Northboro, Northbridge, Shrewsbury, Southboro, Sutton, Wayland, Westboro, Whitinsville, Worcester, Upton and Uxbridge MA.

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A Guide To Mortgage Equity Loan Options

by Bill Gassett on September 19, 2011 · 1 comment

Mortgage Equity Loan OptionsWhen looking to take money out of an existing home or other Real Estate borrowers often have a decision to make on what is the best method to do so.

There are basically three financing options that are available to home owners. These include a cash out re-finance, home equity loan or a home equity line of credit (HELOC). Determining which of these type of loan options will work best basically comes down to what purpose the money is going to be used for.

Unfortunately being in the Real Estate field, I often come across folks who have over extended themselves and find that they have created undue hardships. Going back ten years ago this was not so much of a problem as Real Estate markets around the country were booming and a home was an investment windfall.  Every few months the value of homes would continue to rise and did so for over a decade. Of course all good things must come to an end eventually and now we are left with property values decreasing in most areas.

When the economy and Real Estate values are soaring it is hard not to look at a home as a giant piggy bank from which you can tap at a moments notice. When times are tough however, you may regret taking your equity for granted by pulling it out of the home.

Below is a guide to help you determine whether borrowing against the equity in your home via a home equity line of credit (HELOC), home equity loan or a cash out refinance makes the most sense.

Home Equity Line of Credit (HELOC)

Home equity lines of credit work much like credit cards do. As a borrower you are given a credit limit up to which you are allowed borrow. Also similar to credit cards is the fact that the loan is open ended and carries an adjustable interest rate. Home equity lines of credit are tied to the prime rate as a basis to lend money.

Typically borrows can expect to pay the prime rate plus 2% as an example. Like credit cards HELOC’S can be closed by lenders at any point in time. Like any other loan it is prudent to shop around for the best rate and terms. Make sure you only borrow what you can afford as this loan is directly tied to your home and if you can not afford to make payments you could potentially lose your home to foreclosure.

The biggest advantage to a home equity line of credit is you can borrower whatever you need, up to whatever amount the lender has set, whenever you need it. The big draw back however is the lender can shut off the line of credit if the value of your home falls, your credit takes a hit or if the lender just decides they don’t want to offer you credit anymore.

Home Equity Loan

Home Equity Line of CreditA home equity loan is a form of a second mortgage against your home. The terms of which can vary greatly from a first mortgage. With a home equity loan you borrow a set sum of money at one time and it is paid back over a certain amount of years and interest rate that can vary greatly.

Often times a home equity loan has a fixed interest rate but also could be variable as well. Like either of the other financing options if you don’t pay it back the lender would have the option to foreclose!

Most of the time a home equity loan option is used for a specific purpose where the cost is known ahead of time. For example paying for the kids college education or buying a new car. What you need to decide is whether you would get more favorable loan terms by going this route or by getting an unsecured loan somewhere else such as at credit union or local lender. Sometimes this decision boils down to how conservative you want to be. You may get a better interest rate by getting a home equity loan but is it worth the risk of having it secured against your home?

Some borrowers would say no. If you happen to lose your job and have an equity loan against the family home for $150,000 this may not put you in a comfortable position. You should also check to see if there are any penalties for paying off the loan balance early. A number of lenders will charge a pre-payment penalty fee if you sell the home.

Cash Out Re-finance

A cash out re-finance is when you pay off your existing loan and get a new loan for the old mortgage balance plus whatever additional amount you need to borrow plus any closing costs. If the cash out refinance interest rate is lower than the existing mortgage rate, this option is probably going to be the best route to take. Most of the time you are going to be able to get a better interest rate with a 1st mortgage than going to the 2nd mortgage option. It is likely cheaper to borrow this way than having the combination of two mortgages. This is especially true when fixed rate mortgages are very low.

Nowadays when getting any type of mortgage it really makes sense to look over your ability to pay it back. The last thing you want to do is find yourself in an uncomfortable financial situation. Carefully studying the above home equity mortgage scenarios to determine which fits your situation best is a good business decision!

Other Mortgage articles worth a look:

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About the author: The above Real Estate information on A guide to mortgage equity loan options was provided by Bill Gassett, a Nationally recognized leader in his field. Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-435-5356. Bill has helped people move in and out of many Metrowest towns for the last 25+ Years.

Thinking of selling your home? I have a passion for Real Estate and love to share my marketing expertise!

I service the following towns in Metrowest MA: Hopkinton, Milford, Southboro, Westboro, Ashland, Holliston, Medway, Franklin, Framingham, Grafton, Hopedale, Mendon, Upton, Northbridge, Shrewsbury, Northboro, Bellingham, Uxbridge, Sutton, Worcester, Natick, and Douglas.

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Fixing Your Finances After Foreclosure or Short Sale

August 15, 2011

There are not many things that can negatively impact your credit score more than a foreclosure or short sale. In fact one of the more common untruths you will hear from many Realtors is that short sales don’t impact your credit scores like foreclosures do. This is absolutely WRONG! If you fail to pay your [...]

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Homeowners Insurance: Getting The Right Insurance Coverage

July 10, 2011

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7 comments Read the full article →

Fixing Home Water Damage

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If you have ever been in the unfortunate position of having a pipe burst in your home, a washing machine hose give way while you were gone for the weekend, or a finished basement become flooded by a 100 year storm, you know what a royal pain in the $#@ it is to clean up [...]

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8 Reasons Why You Will Not Buy My Short Sale Listing

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One of the grossly misunderstood topics in Real Estate is the short sale transaction. There are a large number of Realtors who unfortunately do not possess the knowledge to properly educate their clients on what should be expected of them when trying to make a short sale purchase. The problem is further exacerbated because there [...]

52 comments Read the full article →

Disclosing Murder Suicide or Haunted Homes in Real Estate

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While working as a Massachusetts Realtor over the last twenty five years one of the questions that always seems to come up is whether or not a Realtor is obligated to disclose a murder, suicide, haunting or other type of paranormal activity that may have occurred in a home or other Real Estate. Wikepedia defines [...]

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Buying a Home After Short Sale or Foreclosure

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Massachusetts Homestead Protection Act

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The Massachusetts Homestead Protection Act is one of the biggest no- brainers for any homeowner in Massachusetts to take advantage off. Quite simply, an estate of homestead is protection for a persons residence from most creditors. The declaration of homestead protects the equity in your home for up to $500,000 in the event you are sued. [...]

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Stop Making Mortgage Payments During a Short Sale?

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The question of whether a home owner should stop making mortgage payments during a short sale is a popular topic for sure! There are a lot of myths floating around when it comes to successfully doing a Real Estate short sale. One of the more prominent untruths is the fact that you need to be [...]

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Tax Deductions to Remember When Buying a Home

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When you are getting a mortgage to purchase a home, there are certain deductions that the IRS allows that are well worth remembering come tax time in April. The following is a list of  some of the deductions that many people forget about when buying a home: POINTS Points on a home loan are tax [...]

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Massachusetts Public Open Houses Are a Waste of Time For Home Sellers

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Yes… I am talking about the waste of time that thousands of Realtors continue to participate in week after week on Sundays in Massachusetts….THE PUBLIC OPEN HOUSE. Let me rephrase that…A waste of time for the seller of the home. This will probably come as a surprise to you but Nationally less than 1% of [...]

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What Kind of Massachusetts Realtor Do You Want?

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There is a lot of talk in Real Estate circles about how Realtors should run their business in regards to returning either another agents or clients phone call. There are of course some pretty differing opinions amongst Real Estate agents themselves on what they should be held accountable to. There are quite a few including [...]

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Massachusetts Property Tax Relief for Seniors

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One of the things that Massachusetts seniors face in many of the destination towns where schools are top notch is the growing burden of higher taxes. There is almost always a correlation between a towns popularity and the market value of the homes. When you look at why property values are higher in one town [...]

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Price Per Square Foot is Misleading for Real Estate Values

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Over the years working as a Realtor I have seen numerous home buyers as well as other Realtors try to use dollars per square foot as a good measuring stick for market values. Sorry folks but that is a very poor way to analyze value. There are a number of reasons why this is the [...]

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Massachusetts Seller’s Statement of Property Condition

March 15, 2010

The Massachusetts sellers statement of property condition is a form that many Massachusetts Real Estate companies require their agents to have the seller sign. Massachusetts however, does not require these forms to be filled out as part of a Real Estate transaction so it is up to the individual company to decide if they are [...]

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Need a Massachusetts Short Sale Realtor? Don’t Pick a Short Sale Buffoon!

March 24, 2010

One of the biggest mistakes I see being made over and over again by those that need to short sell their Massachusetts home is picking the wrong Real Estate agent to work with. Don’t make this mistake and turn into Realtor road kill! The are an abundance of Realtors that are listing short sales and [...]

19 comments Read the full article →

Real Estate Value Range Pricing is Nothing But Deception

March 17, 2010

Real Estate value range pricing is not that common in Massachusetts thankfully! The term value range pricing can also be known as “variable pricing”, “value range marketing” and “range pricing”. So what is Real Estate value range pricing exactly? It is when you list a home for sale and rather than going out on the [...]

14 comments Read the full article →

FICO Credit Scores and Increasing Your Creditworthiness

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How to increase a credit score Credit scores are one of the largest factors that lenders use in evaluating whether or not to lend money to a borrower. Credit scores are designed to measure the risk of someone defaulting by taking into account various factors in a person’s financial history. If you are considering purchasing [...]

26 comments Read the full article →

Testing a Massachusetts Well When Buying a Home

March 20, 2010

As a home seller or buyer in Massachusetts there are always questions that come up regarding testing the water when a home is serviced by a private well. If you happen to be buying a Massachusetts home that is serviced by a well and not by public water you better make darn sure that you [...]

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Buying a Massachusetts Bank Owned Home

March 18, 2010

There are a few different ways in which a buyer of Real Estate could obtain ownership of a foreclosure. Here is a quick summary of the three possible scenarios: A pre-foreclosure where you are able to buy directly from the home owner before the bank takes over. This is commonly referred to as a short [...]

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Real Estate Pricing Ending in 900 May or May Not Be a Good Idea

April 19, 2010

When I 1st got into the Real Estate business twenty four years ago we used to carry around the big bulky MLS books. Back in those days this was how we knew what properties were on the market in Massachusetts. The internet was in it’s infancy and jumping online to look at properties was not [...]

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Handling Offers When Selling a Massachusetts Home

April 5, 2010

One of my favorite things when selling a Massachusetts home is to receive multiple offers. I know there are a lot of Real Estate agents that hate this situation because on many occasions it can become contentious. When there are multiple offers on a home from a couple of different parties there is only one [...]

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Make Sure You Get Your Massachusetts Short Sale Debt Released!

April 16, 2010

If you are an avid reader of my Massachusetts Real Estate blog you probably have guessed that one of my passions is to help out those that are in need of completing a short sale. Massachusetts home owners struggling to make mortgage payments are often turning to doing a short sale as a means of [...]

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Massachusetts Assessed Home Values Are Not The Same As Fair Market Value

March 31, 2010

As a Massachusetts Realtor who has been around the block a few times, I often come across things that are written and said by other Realtors that just want to make me scratch my head in disbelief. All this head scratching could partially explain why I started to lose my hair at such an early [...]

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Painting a Massachusetts Home with Duration Paint by Sherwin Williams

May 17, 2010

If you live anywhere in the New England region you know that are weather can go from being beautiful to down right nasty in the blink of an eye. Where I live in Massachusetts a homes exterior can take a terrible beating due to the elements. If your Massachusetts home has clapboard or wood siding [...]

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Massachusetts Home Sale Contingencies and Right of 1st Refusal

April 9, 2010

If you are selling your home in Massachusetts it is possible you may see a buyer try to purchase your home with a home sale contingency. In other words they write into the Real Estate contract that they will not have to proceed with buying your home unless they successfully close on the property that [...]

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Questions to Ask a Short Sale Listing Agent as a Buyer or Buyers Agent

April 7, 2010

There is no doubt that a short sale is not your run of the mill Real Estate transaction. Anyone who has ever been involved with one as a listing agent knows there are a lot of hoops to jump through! On a national level there is a very high percentage of short sales that never [...]

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Massachusetts Tax Stamps and Other Costs to Sell a Home

April 2, 2010

One of the things that I have realized over the years while representing Massachusetts home sellers is the fact that many are completely unaware that there is a tax to sell your home! While it is true that if you live in Massachusetts you come to grips quickly that just about everything gets taxed, sometimes [...]

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Realtor Communication Skills The Number One Complaint!

April 28, 2010

If you look at any of the National Real Estate surveys the number one complaint from consumers against Realtors who are representing home sellers is the lack of communication skills. There are countless stories of sellers signing a listing contract and then never hearing from their Realtor again unless they initiate the contact. Obviously if [...]

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Real Estate Commissions Agent Bonus and Unethical Realtors

April 12, 2010

Many many years ago when I got into the Real Estate business every Realtor represented the seller. Consumers did not have the luxury of having a Real Estate agent in their corner to represent their best interests. Consumer law in Massachusetts however, changed in the 1990′s. Buyers are now afforded the opportunity to have a [...]

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Marking a Property Under Agreement or Accepting Back Up Offers in Real Estate?

May 13, 2010

In Massachusetts when you are marketing a seller’s home and you procure a ready willing and able buyer to purchase a property you have hopefully started your journey to a successful closing. One of the things that Realtors are required to do is change the status of the property when we have a signed contract [...]

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Massachusetts Flooding and The Potential Pollution of Local Water Supplies

April 14, 2010

I am pleased to introduce guest blogger Ashley Connolley from Northeast Water Wells who is here to discuss some of the potential issues a home owner can face from the recent record breaking storms and flooding in the Metrowest Massachusetts area. Ashley was kind enough to drop by and give some things to consider regarding [...]

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Picking a Dominant Online Metrowest MA Realtor

May 2, 2010

It is a fact that 90% of all home buyers start their search for a home online. The days of buyers using newspapers and magazines as a viable means to find a home are over! Keeping this in mind, the goal of any Realtor that is worth their commission is to make darn sure the [...]

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Why Accompanied Showings in Real Estate are a Big Mistake

April 21, 2010

In the Metrowest Massachusetts area where I am located it is pretty rare to see an accompanied showing. In towards Boston it becomes much more common place. Some areas around the country have them and others don’t. Why? Who knows but more than likely it has to do with tradition. I am glad the policy [...]

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FHA Loans V.S a Conventional Loan

April 22, 2010

I am excited to announce guest blogger Michael Dunsky from Guaranteed Rate Mortgages who will be covering some of the great benefits to FHA financing. Michael has been one of my preferred loan officers for years and always does an outstanding job with his clients. Check out Mike’s terrific article on FHA Loans v.s conventional [...]

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How Not to Sell a Massachusetts Home

April 26, 2010

Every week on the Multiple Listing Service (MLS) you see countless homes that come up “expired”. For those that are not familiar with the term, an expired listing is a home that did not sell. When looking over the possible common denominators of why some homes do not sell the reason is usually pretty easy [...]

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Staging and Preparing a Massachusetts Home For Sale

May 6, 2010

Back in the boom times of the Real Estate market from the mid 1990′s until the mid 2000′s getting a Massachusetts home truly ready for the market was far less important than it is today. Every home seller today is in stiff competition with the next guy down the street with far less buyers in [...]

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Massachusetts Bedroom Misrepresentation With Septic Systems

April 30, 2010

One of the things that Massachusetts home owners who are serviced by a private septic system need to be keenly aware of when selling their home is to make sure they do not misrepresent the bedroom count. When a home is serviced by a septic system in Massachusetts the advertised bedroom count must meet the [...]

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Why Most Real Estate For Sale By Owners (FSBO) Fail

May 3, 2010

One thing that makes the world go around is the desire to save money. Everyone likes to save a few bucks. In Real Estate saving a commission translates into big dollars. It is hard to blame anyone for wanting to save the type of money that is made when a Realtor sells a home or [...]

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Picking The Wrong Massachusetts Realtor Can Get Ugly!

June 18, 2010

As a Realtor, knowing how to market your services as well as a clients property online can be very powerful. In the Real Estate field it can certainly be the difference maker in whether or not a client chooses to hire you or NOT! It is not that hard to figure out that Realtors are [...]

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Short Sale Tax Consequences

May 10, 2010

As a Massachusetts Realtor that has been doing quite a few successful short sales, one of the things I like to make sure of when I meet a potential client that is looking to do a short sale is to give them a complete understanding of how they work. Short sales can be complicated transactions. [...]

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Breaking a Massachusetts Real Estate Contract

May 27, 2010

When a Real Estate client expresses a desire to break a Real Estate contract you know the next few days of your life are probably not going to be too pleasant. When people are looking to break a contract it is usually a highly charged emotional event! In Massachusetts we are a two contract state. [...]

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Massachusetts Home Owners Insurance Savings Tips

June 1, 2010

One of the things that every Massachusetts home owner is required to have when procuring a loan for a property is to have home owners insurance. Most banks and mortgage companies will not give someone a loan unless their home is insured. Most loan documents will also give the bank the option of taking legal [...]

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Should I Move or Improve My Massachusetts Home?

June 2, 2010

As a Massachusetts Realtor getting asked the question should I move to another home or improve on my existing home is something I hear fairly often. The answer to this question often depends on each individual home owners circumstances. Massachusetts home improvements are cheaper There is no question that now is a great time to [...]

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Acceptable Hardships For Massachusetts Short Sales

May 20, 2010

I have encountered quite a few people in my Real Estate travels that incorrectly assume that anyone who owes more money than their home is worth and wishes to short sell their Massachusetts home can do so with no problem. Sorry folks but it does not always work that way. In some respects it actually [...]

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Short Sale Low Ball Offers

January 10, 2011

There is no question that short sales are like the wild West. Almost every single sale is different. Each lender and even the investors that hold the loan may have different procedures on how they want things done. There are some folks that believe that because a home is a short sale it is an [...]

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Getting The Best Mortgage Home Loan

May 21, 2010

Getting the best mortgage home loan for your particular needs is all about doing the proper research so you can hand pick the program that works for your situation in life. There are numerous loan programs available to savvy home buyers. The most common loan programs are the conventional fixed rate mortgage and the adjustable [...]

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Home Warranty Benefits For Massachusetts Homes

June 22, 2010

Home warranties are something you see every now and then being offered by a Massachusetts home seller who is looking to provide a perk and piece of mind to a prospective home buyer. The seller pays for the warranty upfront and the Realtor advertises that the property comes with a home warranty. A home warranty [...]

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Fixing Credit Report Errors

June 7, 2010

There is no question that getting a home loan today is far more difficult than in years past. Gone are the days where anybody that had a pulse could speak with a bank or mortgage company and feel confident they would walk away with a mortgage. When you are looking to make a home purchase [...]

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203K Rehabilitation Loan

December 13, 2010

Guest blogger Michael Dunsky from Guaranteed Rate Mortgage is back to take to help review a popular mortgage program known as the 203k rehabilitation loan. The landscape of the housing market all over the country has changed drastically over the last few years. Foreclosures and short sales have become the norm not the exception. Many [...]

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Home Improvements With The Worst Return On Investment

June 14, 2010

One thing I have learned over the years while working as a Massachusetts Realtor is that many folks do not realize the correlation between making improvements to their home and what the corresponding return on investment will end up being. So many people blindly assume that every improvement they make to their home will bring [...]

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Massachusetts Home Buyer Turn Offs

June 10, 2010

Getting a Massachusetts home sold today is a lot more difficult than it used to be. The fact of the matter is that there are far fewer buyers that can qualify to buy a home today.  We all know that lending practices have tightened and rightfully so. There are also millions of people that have [...]

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Buying a Massachusetts Foreclosure Property

July 20, 2010

Are you considering buying a Massachusetts foreclosure property?   Investors that have a long term perspective of the Real Estate market understand that purchasing a bank foreclosure can be an excellent financial proposition. In the Metrowest Massachusetts area there are plenty of them around and they can typically be bought at a discount to the present [...]

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USDA Loans For No Down Payment Financing

July 7, 2010

A USDA guaranteed loan is a government insured 100% purchase loan. This type of loan is only offered in what is considered a rural area. They are serviced by direct lenders that meet Federal guidelines. USDA loans (US Department of Agriculture) aka Section 502 loans are an excellent mortgage vehicle for those home buyers who [...]

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Fannie Mae Strikes Against Strategic Defaults

June 25, 2010

You may have heard or read recently about strategic defaults as this topic is all over the news. A strategic default is when a home owner walks away from their mortgage when they are still able to make the payments. The reason why a home owner would consider a strategic default and just walk away [...]

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Realtors Should Be Attending Home Inspections With Their Clients

June 30, 2010

In the Real Estate industry it is usually pretty easy to spot a truly dedicated Realtor who has a passion for their business. It is also just as easy to spot a pretender that does as little as they can get away with. Unfortunately, there are very low barriers to becoming a Realtor. Take a [...]

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When To Do a Short Sale Home Inspection

July 13, 2010

In most Real Estate transactions there is a buyers agent representing a buyer and a sellers agent representing the seller. In a traditional purchase, the home inspection is generally done within the 1st week or two after a contract has been executed by both the buyer and seller. This is know as a “home inspection [...]

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Massachusetts Title 5 Bedroom Count Deed Restriction

August 24, 2010

In Massachusetts the law governing septic system installation and maintenance is known as Title V. Whenever a home owner is going to be selling their home they will need to get what is called a Title V inspection done. In order to close on a property in Massachusetts you will need to have a passing [...]

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Massachusetts Moving and Storage With PODS

July 27, 2010

If you are pretty observant like I am you may have  noticed a white container in a local yard that had in big bold lettering the word PODS and wondered what it was. PODS is short for portable on demand storage. More than likely a home owner who has one of these units is either [...]

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Selling a Home in a Buyer’s Market

September 16, 2010

Selling a Massachusetts home in a buyer’s market The title of the article really should read buying and selling a home simultaneously in a buyer’s market. In my daily life as a Massachusetts Realtor I come across lots of folks who do not sell their home even though they want to. The thought process is [...]

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Moving From a Home During a Short Sale

August 3, 2010

One of the questions I am often asked when consulting a Massachusetts home owner about short sales is whether or not it is alright if they move out of the home. Sometimes  life circumstances dictate that it would be more convenient to live somewhere else. The answer to this questions is an easy one. Leaving [...]

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Rhino Shield An Exterior Painting Alternative

September 8, 2010

Rhino Shield is something you may be reading about more and more in the near future. It is just starting to become popular as an alternative to painting a home. If you live in Massachusetts or any of the other the New England states you already know that our varied seasons can do a number [...]

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Divorce and Selling a Home

August 9, 2010

One of the realities of being a Massachusetts Realtor is that I often encounter folks that are going to need to sell their home due to a divorce. The divorce rate today is higher that it has ever been. It is just a fact that people do not stay together for better or worse like [...]

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Beware of The Short Sale Investor|Short Sale Fraud

August 17, 2010

Any Realtor that regularly works with short sales is bound to come across a proposition from a potential buyer who happens to be a short sale investor. As a home owner you may have also at one time or another noticed some signs around town that say  something like “we buy houses” or “stop foreclosure” [...]

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Realtors Should Not Let Short Sale Investors Negotiate With Lenders

September 1, 2010

The reason why Realtors handling short sales should not let a short sale investor take over negotiations with a lender may not be fairly obvious. If you are a Realtor who works  short sales or are thinking about doing them here is where you really need to pay attention. Without a doubt we live in [...]

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Home Energy Saving Tips For The Winter Months

October 12, 2010

It is no secret that energy prices have been a big part of every Massachusetts home owners budget for the last few years. As we head towards Winter there are some fairly easy and inexpensive things you can do to save additional money and conserve energy. Some are fairly obvious and easy. Easy energy saving [...]

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Hail Damage to Roofs|Insurance Claims From Hail

September 21, 2010

Massachusetts Hail Damaged Roofs If you live in the Metrowest area of Massachusetts there is the strong possibility that the roof on your home may have been damaged by the hail storm that took place in May of 2009. You may be thinking to yourself that you remember the hail storm but looked up at [...]

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How to Interview a Realtor With Great Questions

September 30, 2010

Realtor interview Questions Carefully interviewing a Realtor should be one of the most important things any home seller does when considering selling their home yet many do not. Having been in this business for almost twenty five years I have found this to be pretty fascinating. There are lots of folks that will make contact [...]

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Stopping a Foreclosure Via a Short Sale

October 7, 2010

Avoiding a Massachusetts Foreclosure Foreclosure is something that most people want to avoid at all costs. Nobody sets out to own a home and then see it taken back by the lender. Across the country this has become a common theme as ten’s of thousands of people are losing their homes due to an economy [...]

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Short Sale Lawsuits Will Realtors Be Next?

November 29, 2010

Avoiding short sale lawsuits There is no question that in this economic down turn we have experienced over the last five years or so that short sales and foreclosures have become part of our everyday Real Estate landscape. Every week there are countless new short sale listings that hit the market in Massachusetts. In many [...]

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Solving Basement Water Problems

October 20, 2010

Working as a Massachusetts Realtor for almost twenty five years, I can say without question that one of the greatest fears of any home owner is having a water problem in their basement! When buying a home, the uneasiness of having a water issue will be magnified ten fold if the intention of the owner [...]

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Removing Radon From Well Water

December 7, 2010

Massachusetts Radon removal from wells One of the roles of any good buyer agent when selling a home to a buyer client in Massachusetts is to educate them on the home buying process including the “contingencies” that they should have in their Real Estate contract. The contingencies in a Massachusetts Real Estate contract usually consist [...]

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Great Reasons to Refinance a Mortgage

October 26, 2010

Reducing your interest rate When interest rates are at record lows it creates an environment that is ripe for refinancing a home mortgage. There is no question that a mortgage on a home is usually one of the largest financial obligations that you will have in your life. It stands to reason that if you [...]

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Appealing a Massachusetts Property Tax Bill

November 2, 2010

Taxes on homes or other property in Massachusetts are typically based on two pieces of information including the towns property tax rate and the assessed value. Obviously the tax rate is set in stone and is not something that is going to be changed once it is put in place for that particular fiscal year. [...]

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Tax Breaks on Home Improvements

November 17, 2010

There is no question that there are far less people today that have the kind of equity in their home that they did five to ten years ago. In most areas across the country Real Estate values have dropped by a substantial margin decreasing the amount of folks who have capital gains concerns. One of [...]

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Home Affordable Foreclosure Alternatives (HAFA)

November 5, 2010

What is a HAFA Short Sale? Over the last four years or so I have been helping numerous sellers successfully complete a short sale in and around the Metrowest Massachusetts area. Short sales are not for the timid at heart and require quite a bit of knowledge of proper procedures in order to get to [...]

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Tax Deductions For Rental Property

December 29, 2010

Given that fact that I am a Massachusetts Realtor, I often get asked if I have any rental property. It is a pretty logical question as I work in the field and would obviously have access to the information necessary to get a pretty good deal on a rental purchase. Honestly I have never been [...]

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Considerations For Renting or Selling a Home

January 26, 2011

Suddenly out of the blue you have found out that a new position has opened up within your company and they are asking you to relocate your family to the other side of the country. The job opportunity is too good to pass up so you decide to take the position. You realize with an [...]

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Short Sale Lenders Lying to Mortgage Holders

December 21, 2010

Over the last few years while working with Massachusetts sellers looking to short sale their home I have encountered on a couple occasions folks that were deliberately lied to and told that a short sale was not possible. Fortunately these particular home sellers were savvy enough to realize their short sale lender was lying to [...]

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Short Sale Realtor Mistakes

February 16, 2011

As a Realtor who has been successfully completing short sales over the last four years I get to see quite a bit of the inner workings of a short sale transaction. In many of the articles I have written about short sales, I have expounded on how important it is for a seller to have [...]

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Bed Bugs in a Home Near You?

January 18, 2011

What are Bed Bugs? Lately, there have been many news reports about the growing problem with bed bugs.  As a Realtor working in the Real Estate  industry it is always important to stay up to speed with current laws and issues facing both buyers and sellers of homes and other property. Like any other known [...]

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Lenders Choosing to Foreclose Instead of Short Sale Approval

February 7, 2011

Why would a lender foreclosure instead of approving a short sale? As a Massachusetts Realtor who deals with short sale transactions on a daily basis, I have seen and learned quite a bit since I started getting involved with these types of transactions four years ago. One thing that I am extremely proud of is [...]

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Fannie Mae Mortgage Interest Rates & Costs Rising

January 30, 2011

Guest blogger Michael Dunsky from Guaranteed Rate is back again to take a look at the recent announcement by Fannie Mae that a borrowers costs and/or interest rate will be rising in the near future. Michael comes to the Massachusetts Real Estate blog on occasion because of his extensive knowledge on what is going on [...]

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Rental Property Tax Law Changes

February 23, 2011

Here Ye Here Ye “Rental property tax law changes go into effect this year” Yes more great news for those who own Real Estate – NOT! If you are the owner of rental property there is a pretty significant tax law change going into effect for 2012. As of this year anyone who owns rental [...]

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Increasing a Credit Score With Home Finance Tips

March 7, 2011

Credit scores can have a dramatic effect on a borrowers ability to get the best rates for many types of financing including a home mortgage and a car loan. If your credit score does not meet minimum standards you may not even have the ability to get a home mortgage period! There are a number [...]

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