Oct 20, 2016 | Home Mortgage Tips, Uncategorized
It can be a bit of a surprise if your home turns out to be valued at less than the purchase price offered, but this is the type of thing that can occur in an appraisal situation. While this can change everything from your contract to the amount of your down payment if your home has been appraised at less than you envisioned, here are some options you may want to consider.
Review The Appraisal Contingency Clause
If an appraisal contingency clause is built into the terms of your contract, this means that the terms of your contract can be re-evaluated and re-negotiated if an appraisal happens to come up short. While this is meant primarily to protect the homebuyer against a lower appraisal, it doesn’t mean that the terms of a new deal can’t be met for the good of both parties.
Get A Second Appraisal
It’s entirely possible that the initial appraisal is accurate, but it doesn’t necessarily hurt to get a second opinion in the event that the first appraisal seems too low. While you can work in conjunction with your lender to get a second appraisal, you may need to pay for it the second time around in order to get your initial purchasing price. Whether it happens to be good news or bad news, it can be worth the peace of mind to know how to proceed.
Consider A Lower Price
It’s less than ideal when your home is appraised for less than the purchase price, but this doesn’t have to be a deal breaker when it comes to selling it. While you may be able to get away with a higher price for your home in a hot real estate market, if things have cooled off, this can be an important time to re-negotiate the deal you’ve got. If a potential buyer likes your home and has already made an offer, they may be happy to decide on new contract terms.
It can be quite disappointing if your home is appraised at a value that is less than the offer you’ve received, but this doesn’t necessarily mean that you’ll have to put your home back on the market. Whether you and the potential buyer decide to re-negotiate or get a second opinion, there are options that can be beneficial for both parties. If you’re currently going through the appraisal process, you may want to contact your local real estate professional for more information.
Oct 19, 2016 | Housing Market, Uncategorized
According to the National Association of Home Builders, overall builder confidence in housing markets dropped two points in October to an index reading of 63. September’s reading of 65 was the highest posted since the housing bubble peak. Component readings for October’s housing market index were mixed; the reading for builder confidence in market conditions over the next six months rose one point to 72. Builder confidence in current housing market conditions fell two points to 69. Builder outlook for buyer traffic in new home developments over the next six months fell by one point to an index reading of 46.
Approaching winter weather likely contributed to lower readings, but builder confidence remained strong. Any reading above 50 signifies that more builders are confident about specific index components than fewer. While home builders continue to be encouraged by low mortgage rates and a stronger job market, they also face obstacles including shortages of labor and buildable lots for development.
High Demand, Low Inventory of Homes Present Ongoing Challenges
High demand for homes coupled with depleted inventory of available homes is sidelining some buyers. As demand continues to drive home prices higher first-time and moderate income buyers are faced with affordability and mortgage qualification challenges. Limited inventory also makes it difficult for home buyers to find homes they want and contributes to competition for available homes. Buyers depending on mortgage financing typically compete with investors and cash buyers for homes in high demand areas.
Real estate pros and analysts monitor home builder sentiment as an indicator of future home supplies, but builder sentiment and housing starts don’t necessarily correspond. Given high home prices and strict mortgage qualification standards that sideline some buyers, it appears that home builders are taking a moderate stance toward ramping up construction.
In addition to boosting real estate markets, building homes provides jobs and supports local economies. Building homes creates demand for construction materials and related products and services.
Jan 27, 2016 | Uncategorized
We recently decided to get involved with a project that intrigued an employee here at The Law Office of David R Rocheford Jr.
Amber brought Right-To-Write information to Attorney Rocheford and he immediately saw the need and understood the mission. Their story is very inspiring and we felt it a good fit for our group, thank you Amber!
Please take a look…
In many parts of the world, owning a pen or pencil is a luxury that some families cannot
afford. It is hard to imagine. Receiving an education without a writing utensil is even harder to imagine. Education can help achieve success and stability in a person’s life but without the basics, it is so much harder.
Right-to-Write is a unique and simple program designed to put new and used pens and pencils to good use by collecting and then dispensing them to children in developing countries. Donated pens and pencils are delivered to schools, orphanages, and hospitals by individual volunteers, travelers, and organizations who can distribute them hand to hand, person to person, to children who need them. Through this effort Right-to-Write achieves many unique positive goals:
- facilitating better education for kids
- recycle pens and pencils that are “extras” in offices, handbags, houses, etc.
- promoting positive global alliances and friendships through direct face-to-face contact
- ensuring delivery and avoiding delivery cost, blackmarkets, and lost goods
Simply drop your pens and pencils at our collection bin in our office lobby, preferably in a ziploc bag.
Jan 12, 2016 | Uncategorized
Leominster, MA January 8, 2016 – Real estate transactions are complicated and it is important for people to fully understand the process before making a decision to put their home on the market. In an effort to make the process easier for sellers, Attorney David Rocheford Jr. is proud to announce the release of his new book, “Selling Your Home in Massachusetts: How to sell on time, reduce your risk, and move on to your next property.” Rocheford has a real estate law practice and is dedicated to helping people sell their homes successfully. Guidelines vary by state, so the book covers everything sellers in Massachusetts need to know in order to understand the law and how to sell properly. It will be released on December 15, 2015 and it will be available on Amazon.com, and on the Rocheford’s website www.TheBestClosings.com.
The book was written for people who are thinking about putting their house on the market, or, who are in the process of selling their home. It covers a wide variety of topics important to selling a home including the role of a real estate attorney, written agreements, the difference between real estate agents and Realtors®, property marketing, house pricing, commissions, fees and more. Rocheford takes complicated topics and simplifies them in a way that readers can understand and benefit from. According to Rocheford, “I educate the reader about how to get started and navigate the process of selling a home. This new book is an easy-to-follow, guide that was not written in typical ‘legalese’ that only attorneys understand. Everyone should fully understand the process before closing.”
Rocheford has over 20 years of experience in real estate. As a college student, Rocheford worked as a real estate agent and continued the job throughout law school. He opened his own law firm and focuses on real estate matters. With over 7,000 real estate transactions under his guidance, Rocheford knows what tips to give sellers and what mistakes to avoid. He is dedicated to simplifying the home selling process with his experience and knowledge in the field.
Nov 24, 2015 | Uncategorized
Make sure all of your clients are protected
You’re a real estate agent, so you know that buying a home can be overwhelming for many of your clients. Homebuyers can easily feel confused and frustrated by the mounds of paperwork they have to sign. Plus, all the fees associated with closing can sometimes be a surprise even to an experienced buyer.
Owner’s title insurance is one of those items often misunderstood by homebuyers at closing, yet its value is tremendous. As an important advisor to your clients, you are in the position to help them understand the value of owner’s title insurance and the dangers that can be incurred without it.
What is title insurance?
Owner’s title insurance is a policy that protects homebuyers’ property rights. For the same reasons that the bank requires a lender’s insurance policy, a homebuyer obtains owner’s title insurance to protect their legal claims to the property.
How it protects your clients
Say, for example, your client recently purchased a new home from a builder, but the builder failed to pay the roofer. Wanting to be paid, the roofer filed a lien against the property. Without owner’s title insurance, your client would be responsible for paying this existing debt—meaning they’d be paying the roofer out of pocket instead of purchasing something nice for their new home, like new living room furniture. This is just one example of how owner’s title insurance protects homebuyers’ from various significant risks. With owner’s title insurance, your client would be protected from certain legal or financial responsibilities.
Enduring value
The good news is that owner’s title insurance protects homebuyers financially, as long as they or their heirs* own the home. For a low, one-time fee (average of 0.5% of purchase price), homebuyers can rest assured, knowing they are protected from inheriting existing debts or claims to their property.
State regulations and CFPB
Each state government regulates its own title insurance costs. In addition, the Consumer Financial Protection Bureau (CFPB) regulates closing and settlement practices which can impact title insurance. Keep in mind that title insurance industry practices vary due to differences in state laws and local real estate customs. The party that pays for the owner’s title insurance policy varies from state to state, and sometimes even within a state. For more information about title insurance, or to find a company approved to issue an owner’s policy, please direct your homebuyer clients to www.homeclosing101.org.
Free resources for Realtors®
Together, real estate agents, land title insurance professionals and other stakeholders involved in real estate transactions can protect homebuyers and provide them with the peace of mind they deserve during the home closing process.
For more information about title insurance, and to get free resources for real estate agents, visit www.alta.org/realtor.
Sep 14, 2015 | Uncategorized
You may have seen this statement in the remarks section of property descriptions and 
purchase and sale agreement: “This property is being sold subject to 24 CFR 206.125”. REO sellers are required by HUD to comply with this regulation upon the acquisition and resale of the property. The regulation pertains to properties that were subject to a reverse mortgage. Reverse mortgages are sometimes known as Home Equity Conversion Mortgages (HECM). Reverse mortgages are available to qualified borrowers over 62 years of age often the properties were transferred back to the lender due the death of the owner rather than as a result of a financial or fraudulent situation. It is likely that property is currently an REO because of the drop in in the value of homes since the peak of the market when some lenders were aggressively marketing reverse mortgages. The expectation at that time was that values would continue to increase. These REOs typically don’t have any owner occupant or NSP buyer restrictions when they come on the market. There are a couple of things to note with them. They generally will not sell the property for less than the asking price which is usually an as-is appraised value established by an FHA roster Appraiser. They are sold As-Is at the time of closing with no repair reimbursements or allowances. They won’t pay for home warranties. Home inspections and the connections of utilities for inspections will be at the buyer’s expense. Also the seller will not contribute to buyer’s closing costs. They should be viewed as soon as they come on the market because some of them are very good values and end up having multiple offers on them.
