Black and Buono Blog

...by Kiley Black


There are many people on the fence about buying a new home right now. Their concerns stem from the overall housing market in Massachusetts and their worries about the potential of losing value in the new home over the first year or two.

Let’s face it, the possibility is there, but we don’t know many people who are flippping houses right now.

So, if you are not looking to flip a house, if you are looking to buy a house that you will stay in for a number of years and you are interested in finding a community in which to settle, then you can’t lose.

Home prices are low and the mortgage rate which was already low in comparison to five years ago just fell again. So even if you do lose money on your house (on paper) in the first year or two you will come out on top. If you are going to remain in your home for a while, the rates and prices right now combine to ensure that you will save money by buying now versus waiting until later and gambling with a mortgage rate increase.

So if you are on the fence, talk to an expert and let them help you do the math. But if you are still concerned, there are a number of foreclosures and short sale homes to consider. Generally, these sell for under market value. Although, to a degree there are some hurdles to overcome with these purchases and you do need some patience as well. These types of purchases take longer than traditional home buying transactions. If you need to speak with a realtor, and you don’t know who to call, we can help direct you to some of our trusted associates.

...By Kiley Black

Despite the fact that mortgage rates rose for the third straight week, mortgage rates are still low. However, if you are thinking about buying or selling a home, now would be the time. Because even though rates are low, (in the mid fours for a 30-year fixed), they may continue to go up through the end of this year and into 2011.

But, coming off of slightly lower numbers in existing home sales, the National Association of Realtors announced a 10.4% increase in pending home sales. This number is 20% lower than the same time last year, but there was no tax credit this year for buying a home. This national number was led by the Midwest, but, good news for the Northeast, we saw a 19.6% increase in pending home sales. What does this mean? People are getting more confident about the economy and are reacting with confidence. With confidence comes the purchase of homes. Fewer people are worried about affording a new home, and more people feel like taking the plunge.

So even though rates are going up, they are still lower than this time last year, Bostonians are buying and selling homes. With an economy doing better than expected, the rates are bound to rise. Mortgage rates in the fours are still low. If you are thinking about buying or selling, contact your Realtor today because with pending sales rising in the Northeast, it means we are ready to buy and move on.

...By Kiley Black

Negative equity is the term that describes the situation of having a home that is worth less than your mortgage. In layman terms, you are upside down on your home. Negative Equity is the result of the boom and bust cycle of the housing market. If you find yourself in this situation, you have a few options which consist of a short sale, foreclosure, loan modification or a deed in lieu of foreclosure. If you do not have the resources to sell your property, meaning you do not have enough money in the bank to make up the difference between what is owed and what you can sell the home for, your options are more limited. However, if you have the resources, if you have money in the bank, you can go the closing as a seller with money. In this way your credit can remain unaffected.

A loan modification is when, as the homeowner, you find yourself unable to make your monthly loan payment. You can work with your lender to get the loan modified, or lessened. This does affect your credit rating. Loan modifications show up as late payments, but you will be able to stay in your home.

A short sale is when your lender agrees to accept less than they are owed for an outstanding mortgage loan. A bank would much rather agree to a Short Sale than foreclose on a home.
No matter your situation when you have an upside down mortgage, you need a real estate attorney who is well versed in these procedures. Contact Black and Buono today.

... by Kiley Black

In today’s economic climate, we have heard quite a bit about short sales of homes. There are many questions concerning Massachusetts short sales, namely what are they, and how do you qualify. The banks approve short sales for two reasons. The seller must face a hardship, such as loss of job, divorce or death and the bank must agree to accept less than they are owed for the loan.

A short sale in real estate is not always a relaxing or timely transaction.

There are many ways to lose a home but signing away your ownership in a way that ruins your credit and embarrasses you and your family is one of the hardest. For owners who can no longer afford to make their mortgage payments, there are alternatives to bankruptcy or foreclosure. One of those options is called a "short sale."
However, many home buyers do not understand the short sale process, so they are impatient waiting for short sale approval. Confused buyers are looking for direction, and not all buyers’ agents are well versed in the short sale process. It is important to understand the process if you intend to buy or sell a home through a short sale. But it is equally important to surround yourself with people who know the process as well.

When banks agree to do a short sale, it means the bank is accepting less than the total amount due. Not all banks or mortgage brokers will accept short sales, especially if it would make more financial sense to foreclose; additionally, not all sellers and properties qualify for short sales.

If you are considering buying a short sale, there could be drawbacks. For your protection, we suggest that all borrowers:

• Obtain legal advice from a knowledgeable real estate lawyer
• Call an accountant to discuss the tax ramifications of a short sale
• Check for liens on the property to ensure you are not responsible for any outstanding debts once you close on the property.

By Kiley Black

There is no doubt that in our community, many people are suffering from the problems of debt. Many homeowners are experiencing a cash crisis. With credit cards up to their limits and income not meeting the needs of home expenses, many are wondering how to survive the holidays. Credit counseling services may be what is needed to get a handle on your future. Believe it or not, a lawyer who specializes in debt management credit counseling may be able to help you. This is done through direct negotiations with creditors; assisting small businesses with commercial debt restructuring, and assisting individuals with credit card debt.

In today's economic climate, a growing number of us are suffering from negative ratings in our credit file such as delinquent payments, judgments, collections, foreclosures, and bankruptcies. Obviously this prevents us from obtaining new credit when we need it most. Black and Buono works hard to assist individuals and small businesses in avoiding filing for bankruptcy relief whenever circumstances permit. Our firm strives to assist the over-extended individual with compassion, professionalism and experience. Financial strain truly adds stress to your life and your marriage and family. Find assistance before too much of a toll is taken on your health, your life and your family.

By Kiley Black
 
The Federal Reserve is going to pour more cash into the economy in an effort to make interest rates go down and prices go up. They do this by quantitative easing – which to you and me means buying Treasury notes. The Fed pays for billions of dollars' worth of Treasury bonds, which would add billions of dollars to the money supply. In theory, this would cause prices (or inflation) to rise and interest rates to drop, which would include a drop in mortgage rates. The theory here is for businesses and consumers to buy now rather than later.

This may be the perfect time to put your home on the market if you have been thinking of selling. With low mortgage rates, many potential home buyers are looking for that perfect home. By the same token, if you are a renter or home owner who has been thinking of making a change, now may be the best time to buy a new home.

The Fed could begin buying treasuries as soon as early November, after their next scheduled rate policy meeting. Quantitative easing is not a guarantee; however this method of buying treasury bonds would push interest rates down, at least initially.  However, keep in mind that rates will eventually rebound higher. And next week, the Fed is supposed to announce a second round of “quantitative easing”. Mortgage interest rates are low now, but if you have been thinking of buying or selling, you should not wait. We need a crystal ball to see the future, but pretty soon, mortgage rates will have nowhere to go but up.