Real Estate Guy Podcast

Boston properties on the decline?!?

randy — Wed, 25 Aug 2010 05:22:59 +0000

Business Updates – Massachusetts business news from The Boston Globe

jomes

randy — Wed, 25 Aug 2010 05:21:06 +0000

Business Updates – Massachusetts business news from The Boston Globe

Yes, you can buy a home!

admin — Fri, 19 Mar 2010 14:01:04 +0000

In spite of the downturn in the economy and the financial challenges facing many prospective homeowners there are a number of options available to first time home buyers that can help to even the playing field if you will. This article from the Boston Globe highlights some of the great first time home buyer programs like the Soft Second, MHFA, FHA, NACA, and other more localized programs that will help buyers in certain income brackets purchase homes. It’s probably best to start with a Home Buyer Education Class, click HERE to find one, and learn all of the options available to you and then figure out what you can afford by visiting a reputable lender or using one of the many Home Affordability Calculators out there on the internet… (If you need a good one visit the Mortgage Professor for a host of calculators that can help you avoid biting off more than you can chew!)

Check out the Boston Globe article for additional details…

Yes, you can buy a home – The Boston Globe

Perfect Storm scenario causes Buyers to compete for properties like they did a few years ago in Mass.

admin — Fri, 19 Mar 2010 14:00:41 +0000

It appears that Spring will bring more than April showers and new flowers. The Boston Globe is reporting that Buyers in Massachusetts are finding a much more challenging market than one would expect given the overall economic climate in our country. Hopeful buyers are attending open houses in the under $600K price range and finding a ton of competition from other willing buyers who want to take advantage of historically low interest rates, first time home buyer tax benefits, and favorable pricing in a market like Massachusetts that has experienced a 15% price decline in home values since 2005. Couple those factors with the fact that Massachusetts has not done any appreciable Home building in the past few years and you understand why so many buyers are gravitating to the dwindling supply of homes in good condition in the most desirable areas.

All of a sudden people are attending Open Houses only to find that the Seller has accepted an offer for asking price or more in some instances. It can be very disheartening for the qualified buyer but I would encourage you to stick with it and be willing to look at properties as soon as they hit the market and not wait a long time hoping that the Seller will lower the price. No, I’m not advocating for you to pay more than a home is worth but I am saying that you have to recognize the market that you are in wherever you are and be willing to do whatever is necessary based on your affordability factor. If there is one thing that we have learned over the last five years, don’t buy more house than you can afford, shop around for a good mortgage product, take a home buyer class, and hire a good real estate agent who is familiar with the area you want to live in….

Remember, Location…Location…Location!

Check out the Boston Globe article below for additional information.

For sale, but not for long – The Boston Globe

How much money can a homeowner on the brink of Foreclosure save in 6 months?

admin — Fri, 19 Mar 2010 14:00:07 +0000

It appears that Citigroup, Inc., has decided to deal with those homeowners who cannot qualify for a Modification or a Short Sale by allowing them to stay in the home for 6 months, continue to maintain the property by paying utilities, etc., and they turning the keys of the house over to Citi at the end of 6 months. This “Pilot,” program is going to only serve the needs of a limited number of homeowners in Texas, Florida, Illinois, Michigan, New Jersey and Ohio.

I’m wondering why they didn’t include Nevada on this list?

According to Citi the program may be expanded nationwide. This program is a direct result of the fairly new wrinkle in the system known as “Strategic Defaults,” where homeowners have purposefully fallen behind in their mortgages in the hopes of possibly obtaining a modification with their lender. This program will essentially be a Deed in Lieu of Foreclosure and it will feature easier hit to the borrowers credit score than a Foreclosure.

Check out the article below and let me know what you think….

Citi to let distressed homeowners stay for 6 mos. – Boston.com

If Big Business can do it why can’t the little guy?

admin — Fri, 19 Mar 2010 13:59:42 +0000

I’ve spent quite a bit of time traveling the country teaching Non-Profit housing counselors and others how to help homeowners stay in their home when possible. Usually we talk about all of the retention options to stay in the home and when transition, or Moving Out, is the only option then we deal with that as well. Most of the counselors that I come in contact with think the banks or lenders are very inflexible when it comes to dealing with their clients. It appears to be very hard to get the type of modification needed to enable the homeowner to stay in the home without a serious examination of the value of the property and the consideration of a principal write down (reducing the unpaid principal balance down to an amount that is manageable for the homeowner given their current financial condition). Lenders don’t like going down this road as evidenced by the lack of language in the Making Homes Affordable program that would allow for this type of modification to a loan in addition to changing the interest rate, extending the term, or some combination. In many cases homeowners realize that they cannot afford the home without some type of principal write down to bring their mortgage balances and payments in line with the economic realities of the day. I agree that this is very controversial given the fact that everyone who has a mortgage has signed a contract that they must adhere to but more and more homeowners are “strategically,” walking away from what appears to be in untenable situation with no real upside. Arizona law professor Brent White has been making a very academic argument for the business decision behind everyday homeowners strategically defaulting on their loans in order to compel the lender to come up with more reasonable alternatives to their current mortgage payments so they don’t have to walk away from their homes.

“I’m all for a society where people must take personal responsibility, but that should also apply to the banks and financial institutions.”

An article on Professor White from the Arizona Republic is below. I’ve also attached a direct link to his 50-page discussion paper on this topic. Very interesting reading.

‘Walking away’ not immoral, prof says

50-page Discussion Paper

Boston gets $13.6 million to buy foreclosed homes – Daily Business Update – The Boston Globe

randywilburn — Tue, 19 Jan 2010 04:04:32 +0000

Boston gets $13.6 million to buy foreclosed homes – Daily Business Update – The Boston Globe

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How to Get Your Free Credit Report Online: A Step-by-Step Guide * Get Rich Slowly

admin — Wed, 28 Oct 2009 03:02:32 +0000

I have spent a considerable amount of time telling people to “Pull your own credit!” first to figure out where you stand before you start applying for loans, apartments, or just trying to fix your own credit which you can do without paying some service $500 or $1,000 to repair your credit…Hello!

The only thing that cures what ails you from a credit perspective is Time and a game plan to correct errors on your report and make sure that you are not a victim of Identity Theft which is rampant these days…

J.D. Roth from the Blog, “Get Rich Slowly,” provides a very thorough step by step process for pulling your own credit from www.AnnualCreditReport.com not “FreeCreditReport.com,” the first is free and the latter charges you so they can continue making those funny commercials with those young guys lamenting their poor credit scores and the predicaments they find themselves in….

When I’m asked to rent an apartment for a client I will tell all prospective tenants to visit www.AnnualCreditReport.com and make sure that the report is no older than 7 days and we use that information along with reference checks, employment, landlord, etc., and an application is usually enough information to make an informed decision on the applicant. In addition, I explain to the prospective tenant that when they pull their own credit they don’t get dinged on their credit for the inquiry. Unlike when someone else pulls your credit, you can check your credit all day long without the inquiry effecting your credit score. Check your state law with regards to the number of free credit reports you are allowed each year and figure out a way to spread them out throughout the year so that you can get an updated report almost every quarter….

Good Luck!

Click below for the complete article

How to Get Your Free Credit Report Online: A Step-by-Step Guide * Get Rich Slowly: “”

Scenes from a Foreclosure Auction

randywilburn — Thu, 13 Aug 2009 22:53:27 +0000

I shot this Foreclosure Auction a couple of months ago in Boston, MA.

[youtubeplaylist C30DAB4B01B67891]

REO Legal pitfalls to avoid when purchasing a home…

randywilburn — Thu, 13 Aug 2009 18:20:37 +0000

I recently spoke with Attorney George Megaloudis of Roach & Wise about some of the pitfalls faced by buyers of REO properties.