Bristol /Plymouth County Realtor

In a recent ruling the Massachusetts Supreme Court changed how people slipping on ice and snow on your property was handled.  The prior law read that if you, as a home or business owner, chose not to clear the snow or ice off of your property it was ruled as it was an “act of nature” and you were not liable.  Well, that has now changed!

Please read this article:

The law now states that every property owner has a duty to use “reasonable care”.

What does that mean to you as a homeowner with your home on the market?????

………The snow removal reasonably expected of a property owner will depend on the amount of foot traffi c to be anticipated on the property……..If you know a showing is scheduled for the day AND you are aware that we received snow, than you are obligated to make sure the paths are clear and free of ice and snow.

In a recent article by Inman News it is reported that due to the treasury's failure to take action and re-allocate the HAMP program less than 1/5th of the number of borrowers were assisted and funds originally allocated were used.

The program was set up to give the lenders the money to modify troubled homeowners mortgages.  They anticipated by the $30 billion dollars that was allocated 3 to 4 million homeowners could have had their mortgage re-written to make them affordable.  Well, the numbers came in at 700,000 homeowners assisted and only $4 billion used.

The standards to qualify for HAMP precluded a lot of homeowners and then the lender's not being required to participate further reduced the number of assisted families.

Please read the full story here.

Please take a moment and watch the 2nd in a 10 part series on short sales. After having successfully completed well over 50 short sales and having 16 currently pending I am uniquely skilled and qualified to assist in handling even the most challenging of situations.

At this very moment I have 23 active short sale files. 

I just wanted to let that sentence sink in.  Give it the attention and thought that it deserves.  That is a good number of active short sale files.  Not bragging or looking for accolades just want you to realize how many files I work on at once so that you possibly can see why an agent who doesn't want to listen to how the process is OR an agent who just wants to play "pass the buck" is truly an unnecessary nuisance in this market.

A short sale is a process for all parties involved.  It takes many timed steps with organized and purposeful paperwork submitted to a lender and it takes patience and understanding of this process by the buyer and the buyer's agent.  If the buyer's agent is not educated in short sales AND is too pig headed to allow themselves to learn, what they are ultimately doing is NOT providing quality service to their buyer.   The buyer relies on the buyer's agent for educated guidance in a real estate purchase, but in a short sale they need even more information, it is the buyer's agents JOB to properly advise their client with accurate and home specific information.  You are NOT DOING YOUR JOB if you do not take some time and educate yourself on the short sale process. This education does not come from mortgage originators (like they know what the other departments in the bank are doing), it does not come from watching the news, it comes from going to classes offered by short sale certified professionals, it comes from asking questions of agents who have successfully handled a large number of them.

In many of the short sales I have handled, the seller mortgage contingency, unfortunately, is not the only problem with the home. Many of them are dealing with costly issues of deferred maintenance.  This makes getting the "right" buyer a more timely process, especially when dealing with the agents I previously described.  The buyers need to understand they are buying the home "as-is", they are buying all the flaws and issues.  There is NO money for repairs, and it is their job to satisfy themselves as to the condition of the property.

This issue just explodes when the problem with the home is a septic system.  We have a seller who is cash poor and cannot pay for the Title 5 examination. And by the way the law does not say the "Seller MUST PROVIDE TITLE 5" period, end of story.....it says the seller Must provide Title 5 UNLESS other wise disclosed!!!!!

So we disclose that it is the buyers responsibility to obtain Title 5 Certification.  And this must be done PRIOR to my submitting the contract to the lender (yes, contract...I do not submit non-ratified offers to a lender....they do not own the home....garbage in garbage out).  We will need to know if the home needs a new septic and need a rough estimate (not an engineered down to the penny contract price, just a written estimate on the high end of what it will cost to repair / replace) of the cost.

Well, it becomes even worse when it has been said that the septic or a portion of it is not fully contained on its own property and it is encroaching on another persons property.  Eeeeeeeeee!!!  As the listing agent I have a duty of disclosure when I am made aware of the potential problem. I disclose. PERIOD. I just disclose. 

The seller has no funds available to research the issue.  Any information that is not current and identifying and is turned over can put the seller and the listing agent into a liability situation. We are liable for any records that we offer. A survey that is on record at the Registry of Deeds becomes OUR representation of the accurate lot lines IF WE submit it to the buyer or the buyers agent. If that survey is wrong or if changes were made that were not recorded and we are not aware of NOW becomes our financial liability. It is the buyers or buyers agent's responsibility to research the issue(s) to their satisfaction.

A short sale is not the correct type of property for everyone and I fully understand and respect that.  But if you are interested in purchasing a home in a short sale situation you need to be prepared to do your homework and have understanding of the process involved.

As most of my readers know by now I specialize in short sales. Many agents claim to be an expert but when asked to show their numbers or show professional referrals, they cannot. I handle the short sales for many agents in my office as well as for several local attorneys, and have even stepped in to assist agents in other brokerage firms.

Yes, I now have sufficiently patted myself on the back  )!!!!!

Well, my experiences with a recent short sale left me out of wind and even speechless (and anybody who is laughing thinking there is NO way I was speechless, I was……for 5 minutes or so!!)

Here is my story and I’m sticking to it……………

About 1.5 years ago an agent in the office asked for me to assist him with a short sale. “Great!! I would love to”. We went together to the home and were interviewed by AND interviewed the homeowner (yes interviewed the homeowner…not all people are a match and I need to know that they understand the process and will work together as a team). They were happy with my explanations and expectations and were confident in my abilities.

So the journey begins!!

The home was marketed agressively by the listing agent and in the anount of expected and necessary time we received an offer to purchase, we actually received several and the home went into overbid. With the overbid amount the homeowners were actually extremely close to the balance due on the mortgage so it would have been a tiny short sale.

Yippee!!!!!

NOT!!!!!

The homeowner really got scared. They decided they wanted to try again for a loan modification as they really did not want to sell. You see, prior to my involvement they had tried a modification directly with their lender, got approved for a trial mod, and than the lender decided based on their numbers that a permanent mod was not an option. The bank advised them to do a short sale. The bank did say that if their income changed to try and reapply for a mod. Well, the homeowner felt that their income changed enough to qualify and they wanted to try that route. How do you get upset with someone for wanting to keep their home????? So we left it at if plans do not work out please call me back.

6 months later they contact me saying that the mod thing isn’t working. Okay, well lets get the paperwork rolling. Approx. 2 months later we get an offer. Great! They sign the offer tearfully. They have a title 5 inspector visit their home….low and behold we have a failure. Fabulous. Well, just a little bit of extra paperwork and the numbers to the bank change, but nothing earth shattering. The process continues. An appraisal was done by the homeowners lender and a negotiator was assigned. We were down to the finish line, doing some number crunching…the end is in sight…I see the light……….

To no avail. The homeowner decides again that he wants to try a loan mod. He felt that he could not go through with a short sale unless he knew that it was his last possible option. Ho-hum, ho-hum.

Well, whaddya know about 4 months later I get an email.

Here we go again…..try number 3.

I know at this point you gotta be thinking “is this for real?” the answer is Yes.

So here we go again (and not the song). Am I nuts? Possibly. But in my defense I like a challenge. And if a short sale with a indecisive seller and a failed septic isn’t bad enough, now lets add a couple of large tax liens to boot. I mean sizable.

An attorney told the seller a short sale would not be possible with these circumstances. That alone is fuel to me. Not possible???? Never say no to me!

Oh, did I forget to mention I don’t like the word “no”? Well I don’t.

Let the games begin! We got numerous offers in a very quick fashion, but they were dying just as quickly. Short sale, failed septic and liens does not make for a cozy buyer. But alas we got one, and an attorney for a buyer of course! Aaaaaaahhhhhhhh!!! Should I run now or later? Nope I didn’t (no one ever said I was the sharpest tool in the shed).

I submit the entire package with all the necessary docs and my substantiation of value plus a diarrhea of supporting facts and arguments. Another appraisal is completed. Another negotiator is assigned. Number crunching happens again………………………………………..

Well, guess what? If you are reading this you have to be thinking either “you are too soft to know when to quit” or “yippee you did it”.

Well, I did it!!! Short sale approved! Humungous liens get paid in full and we close!! Happy day for all!!!

The buyers do what they gotta do, then the closing attorney does what he has to do. The closing attorney sends me the final HUD (the statement of final numbers on a closing) to send to the bank for approval, which is housekeeping and standard business on a short sale, and I submit it to the lender. After several changes and the buyer agreeing to cover some typical seller related fees we get a final HUD. We are set to go….

But hell no!! The sellers lender rescinds the short sale approval. No closing! Yes, it is well within their rights to do this. They can legally leave families homeless, screw with people and think it is okay. We are all done!

Remember in the beginning when I said I didn’t like the word no?

Now let the games begin. The buyer, who in case I forgot to mention is an attorney, was sending threatening emails like “I am going to sue you” or the lovely Lis Pendens (lien) threat. I feel just lovely at this point.

Not taking no lying down I did what any righteous, aggressive realtor would do….I screamed!

Then I did what no other Realtor would do. I did not stop. My job wasn’t done. This home did not close and we had homeless buyers, i know it is hard to have sympathy since he was a lawyer but in my defense he is still a homeless buyer.

I sent an email to Senator Brian Joyce, a fax to Congressman Stephen Lynch, and an email to the vice president of this lender (this name was left out deliberately to protect the lender and privacy).

Congressman Lynch’s office responded. They agreed to contact the lender. They were quite clear they would not use any political pressure or influence, but would question the situation. I am okay with that and abundantly thank them for any call or email that they make. They did call and email.
Mind you I still have not heard from Senator Joyce.

Well all of a sudden executives from this lender are contacting me telling me they are looking into the situation. I do not know if it was the call from the Congressman’s Office or it was the email to the vice president of the lender that causes the actions.

When 4 days went by I had no choice but to admit defeat. I fought the good fight and lost! I even fought the ugly fight and lost too! But I tried!!

Then on Tuesday morning I get a call from the negotiator and was told that they re-approved the short sale!!!

Now here we are on Wednesday, the short sale was approved and an anxious buyer got all things together again and we closed!!!

I want to extend thanks and give kudos to: Diane Matthews, Realtor (buyers agent) Joseph Fiddler, Attorney (sellers attorney and my right arm) Walter Mirrione, Attorney (the closing attorney who went above and beyond). Any one of these professionals I have recommended and used or would recommend in a heart beat.

There is a new rule from FHA concerning foreclosed properties that are being sold within 90 days of the foreclosure that you need to be aware of going forward.
 
If a property was foreclosed within 90 days of being resold (P&S date not closing date) and is being sold at a price of at least 20% or more of the foreclosure price, then the Lender is now required to order a Home Inspection.  We cannot use any inspection done by the buyers even if it's by the same inspection company we use, which is Tiger Home Inspection.  Any items listed MAY be required to be repaired prior to closing. 
 
This applies to buyers applying for FHA financing.
 
Properties owned by FHA, Fannie Mae, and Freddie Mac are EXEMPT from this rule, however privately owned and bank owned properties are subject to the rule regardless of any repairs that they may have made after taking ownership of the property.  The 20% gain is calculated based on the foreclosure price and new sales price.  The cost of any repairs is NOT added to the seller's cost basis.
 

According to an Inman News Report foreclosure sales (properties that are purchased either already bank owned OR have already started the foreclosure process and need lender approval) have dropped 4.9% from Quarter 1 and over 20% from the same quarter last year. 

Is that a sign that we are on the mend?????? Not quite yet.  The numbers showed a decline due to the total number of sales jumping so much in the 2nd quarter due to the impending expiration of the tax credit.  Many more thousands of units sold which put the numbers of foreclosure sales as a smaller percentage.

Massachusetts is #5 on the list of the largest number of forelosure sales.

For more information or to read the article in full: Inman News

While surfing the internet I came across this budget spreadsheet that I thought was quick and simple.  There are plenty of costly and some free programs that will help you figure out your spending but they can be so difficult and/or time consuming to learn and use.  The thought of creating my own spreadsheet is enough to make me want to poke pencils through my ears!!!!!

Download Lauren's Budgeter (XLS)

1. Scroll to the current month.
2. Enter your current balance in the "Starting Balance" box at the top left.
3. Enter your credits and debits on the appropriate dates they will hit your account. Use positive numbers for money getting added credits, and negative numbers for when it's getting taken away.
4. The green "Total" will change to reflect your total overall balance.

The Consumerist

You've been warned about foreclosure scams. But sometimes it's really hard to tell if something is a scam or not. Some less-than-reliable outfits have even taken to including "hud" or "gov" in their URLs to fool you into thinking they are legitimate foreclosure counselors. It pays to be wary. Below are some websites from government and non-profit agencies that can help you with foreclosure. Some are seeking volunteers and donations to help stop the foreclosure crisis.

HOPENOW.COM
Research your options with this web form
Find your mortgage lender
Find a foreclosure counselor in your area
Focused on helping homeowners in crisis, this alliance helps you determine your options

FTC.GOV
Find a foreclosure counselor
Raise your own credit score
Fix mistakes on your credit report
The Federal Trade Commission has expert advice

FINDAFORECLOSURECOUNSELOR.ORG
Find a legitimate foreclosure counselor near you
This non-profit organization was created by Congress to provide financial support, technical assistance, and training for community-based revitalization efforts

MAKINGHOMEAFFORDABLE.GOV
Making Home Affordable
Making Home Affordable: short sale documents
Making Home Affordable: deed in lieu documents
The official government site for loan modifications and foreclosure alternatives

PORTAL.HUD.GOV
Find resources to avoid foreclosure in your state
Consult state and local resources

MYFICO.COM
Improve You Credit Score
Credit Q&A

Credit Basics

Understand credit and your credit scores

ANNUALCREDITREPORT.COM

See your credit report
Get all the details on late payments and other information, but not your actual credit score

RESPONSIBLELENDING.ORG
The Center for Responsible Lending
A non-profit organization that works to stop predatory lending practices

CREDITEDUCATION.ORG
Volunteer to be a credit counselor
Non-profit agency that works to provide financial literacy

LIVEUNITED.ORG
United Way
Donate or volunteer to decrease the number of families that are financially unstable

NCRC.ORG
Donate to the National Community Reinvestment Coalition
Send a donation to help NCRC "ensure that people in traditionally underserved communities are treated fairly and justly when applying for credit, opening a bank account, getting a mortgage, a loan, or other financial product or service."

IRS.GOV
The Mortgage Forgiveness Debt Relief Act
Get the details about when you might owe taxes on any debt that is canceled through a short sale or deed in lieu of foreclosure

OCC.GOV
Download a PDF on identifying a loan modification scam
The Office of the Comptroller of the Currency provides detail about scams, including "10 Warning Signs of a Loan Modification Scam."