May 9, 2019 | Foreclosure
By Attorney Nicholas Thalheimer.
You may have recently had a buyer experience an “insurability” issue with a foreclosed/REO property they are trying to purchase. A recent court case (Thompson v. J.P. Morgan) has put title insurance companies on edge, making them reluctant to insure title to foreclosed properties.
A brief summation regarding the recent Thompson foreclosure case in the Commonwealth. In Massachusetts a decision in a recent foreclosure case just came out that affects a vast number of foreclosed and REO properties. The basis of the case is regarding certain default notices issued in connection with a borrower’s non-payment.
This Notice has the ripple effect of rendering a foreclosure sale invalid or “uninsurable”. Basically the vast majority of mortgages in the Commonwealth have a provision that indicates that a borrower can stop a foreclosure by paying a mortgage in full “no later than five (5) days before an auction. This is usually found in section 18 or 19 in most standard mortgages. The issue with the notices that are being sent by most lenders indicate that a borrower can redeem or payoff a mortgage up and until “a foreclosure sale” as opposed to the 5 days stated in most mortgages as mentioned above.
It is this “confusion” that the courts have taken issue with and that if even a borrower had no intention of redeeming (as was the case in Thompson) that is not relevant because the notice was “misleading” and that compromises the entire process and renders the foreclosure problematic. Naturally title insurance companies are treading very lightly with this issue and they expect to be dealing with this all summer as this case is under further appeal. So for the time being whether or not a foreclosure is “good” is going to be on a case by case basis for the immediate future and a certain level of caution need be exercised when considering a foreclosure auction or a recent REO property.
If you or your buyer clients have questions about the issue, you are welcome to contact us. You can learn more on the case at Justia.com.
Dec 1, 2018 | Real Estate
Although emerging technologies have disrupted many industries, professionals in the real estate market have been slow to keep up. While things like on-demand app development and artificial intelligence have given rise to a new type of economy and customer experience, realtors have not yet begun to leverage new technologies.
That should no longer be the case. New developments are poised to revolutionize the industry. Those who take advantage of them sooner rather than later will benefit most. If you’re a real estate professional, consider how you can make use of emerging technologies. The following examples illustrate just a few potential innovations worth leveraging.
Virtual Reality
Shopping for property via the internet has grown more and more popular over the years. Surveys indicate nearly half of home buyers start their search online.
It’s easy to understand why. Being able to look for homes in your area (and price range) is much simpler when you don’t have to visit them first.
The problem is, this can make it difficult to highlight a property’s features. A series of pictures doesn’t always give potential buyers a truly dynamic view of a house. That’s why some real estate agents have begun to use virtual reality as a means of showing off their properties. VR tech lets potential buyers “tour” homes viewed over the internet. Immersing someone in this type of experience is clearly more effective than simply uploading a few basic pictures of the house and yard.
The Cloud
Real estate transactions tend to be complicated. All parties involved must frequently provide numerous documents before the process is complete. Additionally, other parties need time to review these documents.
The entire process becomes much more efficient with use of the cloud. Everyone from lawyers to buyers can quickly upload documents and information as soon as they’re available. Anyone who needs to review that information can then access it immediately.
Instead of signing a document, making copies, filing them away, and sending the original to any relevant parties for their review or signature, a buyer could e-sign a document and upload it to the cloud server. A process that once took days can take mere moments.
Blockchain
Most people think of blockchain in terms of its relationship to Bitcoin. However, it’s also very useful in the real estate sector.
Blockchain allows for the distribution of public ledgers across a network of multiple computers (rather than stored centrally, which is typically the case with digital files). This offers several benefits in the real estate industry. First, it adds another layer of security. Hacking a blockchain ledger is difficult because a hacker must target multiple computers instead of one centralized server.
Blockchain also adds transparency to various real estate processes. For instance, after a potential buyer makes an offer on a home, they can use blockchain to monitor the next steps instead of simply relying on their agents to work in their best interests. This actually has the effect of boosting trust.
These three examples alone prove technology can dramatically improve various real estate processes for everyone involved. If you work in the industry, you’ll stand out from the competition by making use of these innovations sooner rather than later.
By Catherine Metcalf
bluelabellabs.net
Nov 19, 2018 | Uncategorized
By Jimm McKinley
Buying your first home is a major milestone, a sign that you’ve made it. It’s also a huge financial decision that can be incredibly stressful at times. If you buy a home in poor condition or spend more than you can comfortably afford, that stress will persist long past closing.
That’s not to say you shouldn’t buy a house — far from it! Homeownership has many benefits, like the freedom to remodel and decorate to your tastes, protection from expensive rent hikes, and the potential to grow your net worth. But if you want home buying to be a good experience, there are a few pieces of advice you need to follow.
1. Get your finances in order before shopping for a mortgage
Lenders factor your income, debt, and credit score when assessing your mortgage application. A large debt load could prevent you from getting a mortgage big enough to buy in your preferred area. A low credit score could land you with a high mortgage rate — and that will cost you.
Before house hunting, pull your credit score and report. Identify factors hurting your credit score, like big credit card balances and accounts in collections. If you improve your credit score before shopping for a mortgage, you’ll benefit from lower rates.
2. Know what you can afford to spend
Just because a lender approves you for a big mortgage doesn’t mean you should spend that much. The amount of house you can actually afford depends on more factors than your income. Take Charge America recommends writing out your monthly household budget to determine what you can afford to spend on housing. Don’t forget to factor other big-picture financial goals like saving for retirement or your kid’s education into your budget, and don’t forget to include the full costs of homeownership, not just the mortgage.. Weigh your mortgage options carefully
Fixed-rate or adjustable-rate, 15-year or 30-year, government-backed or conventional — there are a lot of decisions to make when shopping for a mortgage. Do your research before meeting with lenders. When you’re ready to get pre-approved, shop around with different lenders to compare rates, fees, turnaround times, and other factors.
4. Know your must-haves and your deal-breakers
Don’t get swayed by a beautiful home that’s all wrong for you. Go into your house hunt with a clear understanding of the characteristics your home absolutely must have and the ones you can’t tolerate in a house.
It’s not much use listing requirements if they don’t match what’s actually available in your market. As you dream up your perfect home, research homes for sale in your area to get a feel for the options. With homes selling around $253,000 in Leominster, MA, first-time buyers can find great homes within their budget. However, you might realize you need to compromise on certain features to find a home you can afford.
5. Don’t wait until the last minute to start packing
Square Cow Movers puts it perfectly: “The sooner you start packing the less stressful the process will be.” Start packing as early as possible, beginning with items that are rarely used. You won’t miss off-season clothes, lawn equipment, and recreational gear if they spend a few weeks boxed up. And by packing it now, you spare yourself added stress when you’re busy closing a sale and moving. Packing early also gives you ample time to downsize your stuff so you don’t pay to move unwanted items.
Buying a home that’s all yours is a lot different than moving to a new rental. Searching for homes, applying for a mortgage, and closing on a sale are all complicated and time-consuming. Rather than navigate your first home purchase alone, hire a team of professionals to help you through the process. You’ll not only save yourself stress, you’ll buy feeling confident about your purchase.
Image via Unsplash
Oct 8, 2018 | Consumer Tips
Gone are the days where parents sit at home while their costumed children run around the neighborhood alone. These days, most small children are walked door to door by family. While there is relatively little mischief they can get into under their parents’ watchful gaze, below are even more trick-or-treating safety tips for an untroubled, fun and haunted evening.
- Light Them Up – Put reflective tape on your children’s costumes and bags, so drivers can identify them easily. It’s dark out there!
- Plan A Route – Hit up familiar homes and don’t get too far from your house in case a small one gets tired or needs to go to the bathroom.
- Stay Out Of The Street – Keep kids on the sidewalk and be sure to look both ways before crossing the street.
- Take Stranger Danger Seriously – Don’t go into any dark, unfamiliar homes or get into cars with strangers.
- Hem Long Costumes – After purchasing a costume, make sure it’s at least three inches above the ground, so your little ghost won’t trip.
- Be Cautious Getting Ghoulish – Test makeup on a small portion of your child’s skin before putting it all over his or her face. Also, be sure to remove it before bedtime.
- Pack Away Pointy Toys – Make sure your children’s swords, knives and axes are short, flexible and made of foam.
- Wear Comfy Shoes – Avoid princess shoes with heals or anything that’s not flat and comfy for your tot. You don’t want them to trip in the dark.
- Watch Out For Flames – Keep flammable costumes away from luminarias or any open-topped glowing pumpkins.
- Pretend You’re At The Pool – Walk; don’t run.
- Put A Spotlight On Those Monsters – Carry a flashlight so that no one trips.
- Check Out The Treats – While this might seem paranoid, just quickly double-check the treats to make sure none have been tampered with or could pose a choking hazard.
Having your little witch in the emergency room instead of indulging in a late night sugar rush would put a damper on the entire holiday. So follow the 12 trick-or-treating safety tips above to help your child enjoy a hauntingly fun and safe Halloween.
Sep 7, 2018 | Around The Home, Home Decorating, Home Maintenance
Home renovations come in many different forms. For some homeowners, it’s about expanding the living space, while for others, it might mean working on a project that adds luxury features to the home. For homeowners that are planning to sell in the near future, the primary concern should be the expected return on investment.
There are several home renovation projects that can add value to the property and make the home more attractive to buyers. Here are a few home renovation projects that can add the most value at resale.
Enhance Your Home’s Curb Appeal
If you want to sell your home for the highest price possible, it needs to make a good first impression. Since the first impression is made when a prospective buyer pulls up out front, you want to make sure to invest both time and money when improving your home’s curb appeal.
Some simple steps include mowing the lawn regularly and keeping the bushes and trees well trimmed. You may need to use your electric chainsaw to cut down large branches if you haven’t been doing regular upkeep.
If you have an old front door, refinishing or replacing it can offer a great return on investment. Power washing your home’s front exterior is another inexpensive way to improve curb appeal and increase the potential resale value of the home.
Upgrade to Energy Efficient Windows
Energy efficient features are some of the most attractive selling points for modern homebuyers. Since windows can account for about 25-30% of a home’s heating and cooling costs, upgrading to newer, more efficient models can be a good way to increase the resale value of the home. It might not be the flashiest home upgrade out there, but smart homebuyers will recognize the potential savings that come with better windows.
Minor Kitchen Remodel
The kitchen is listed as one of the most important rooms among homebuyers. Sellers could go all out and do a complete remodel of the kitchen area, but smaller renovations tend to offer the best value in the kitchen. According to Hanley Wood, a homeowner can recoup upwards of 80% of their investment on a minor kitchen remodel.
When you do a minor kitchen remodel, you are not tearing the room down and starting anew. Instead, homeowners can focus on tasks like repainting fixtures or replacing the fronts of cabinets and drawers with a tool fitted with oscillating saw blades. Changing the kitchen hardware and possibly upgrading the countertops will also provide a strong ROI.
Interior Paint
Painting is one of the most affordable home improvements, and it has the potential to return more than you invest. If you have some rooms where the walls look old and scuffed up, a fresh coat of paint will make them look good as new.
While you could certainly just repaint the interior with your standard whites and off-white shades, there is value to be earned by putting more thought into the project. Research has shown that there are colors that can have a bigger impact on the resale value when they are used in certain rooms.
Bathroom Remodel
Second only to the kitchen, the bathroom is seen as one of the most important rooms for selling a home. With a simple bathroom remodel, you can increase the value of the home and make it more attractive to buyers.
Just like with the minor kitchen remodel, this project doesn’t require you to remake the space. Simple renovation work like regrouting tiles and replacing the caulk around the tub and toilet will offer good value. Additionally, if fixtures, like your toilet, tub, or sink, are old, you may want to consider having them replaced.
Many options exist for homeowners when it comes to renovations that will add value to the home, and most are affordable DIY projects. With the right tools and a little bit of time, you can significantly increase the value of your home without having to break the bank.
