Black and Buono Blog

Anthony Buono, of the Real Estate Law Firm, Black and Buono in Framingham, describes how his firm interacts with real estate agents and real estate brokers in Massachusetts.

... By Kiley Black

There are many reasons to choose your own real estate attorney. Whether you are buying or selling a home you should consider getting the help of a qualified attorney. Many home buyers believe that if their transaction is straight forward they may not feel the need to get a real estate lawyer. However, there are many transactions that appear straight forward and are anything but. A real estate attorney can help you through the paperwork.

There is so much paper to sign when you buy a home that often there is not enough time to read it all. Most home buyers only scan the information. Unfortunately, if terms have suddenly changed, and you have signed the paperwork, you have agreed to the new terms.

Obviously this could change your payments, move in stipulations, or the terms of ownership. Having an attorney help you look over the papers before you sign is important.

If you unknowingly purchase a home that has a lien attached to it, you have to pay off the lien. This too adds to the price of the home and changes your payments. Not paying the lien could affect having your name put on the home and/or poorly affect your credit.

If you are considering buying a home that is being sold as a foreclosure or short sale, before you put in an offer have a real estate lawyer look over the terms. Homes that are short sold or foreclosed often have issues attached to them, such as liens or property damage.

It is important for buyers to understand the legal documents involved in buying a home. The Law office of Black and Buono has successfully represented hundreds of homebuyers. We know that buyers who engage the services of a qualified real estate attorney early in the home buying process encounter far fewer problems than those that choose to do it alone and then seek legal advice when something goes wrong.

The risk of venturing into home ownership has been keeping many potential buyers from entering the market and the housing sector continues to struggle as a result. Mortgage interest rates are currently on the rise and the last several weeks are revealing an upward trend for long term rates. American citizens are looking for stability and predictability to help them make the jump into the home buying process. Predictability however, may be taken away.

One carrot that has been dangled to help promote home ownership is the primary residence tax and interest deduction that new home owners could benefit from come tax time. That deduction is on the chopping block and homeowners may no longer be rewarded as they have been in the past for taking on the risks and responsibilities of owning and maintaining a home. The national deficit is swelling more than anyone wants and the income tax deduction for mortgage interest is now a potential provision that the government may extinguish. The cut back is one that the federal government is willing to entertain as a way of working towards lowering the national deficit. It is being considered by the National Commission on Fiscal Responsibility and Reform and it is among several trillion worth of deficit cutting ideas on the table for the government to consider. All in the housing sector will be closely monitoring this push as outcomes will affect the American dream of home ownership.

Source: Stephen Johnson, Author

...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

There are some basic questions which we get asked every day about the Homestead Act. There is quite a bit of confusion out there regarding Homesteading and if you should or should not pursue a MA declaration of homestead.

An Estate of Homestead is a type of protection for your residence. The document is called a “Declaration of Estate of Homestead”. It allows homeowners in Massachusetts to protect their property up to five hundred thousand dollars of the value of the residence, per family. At Black and Buono, we will provide you a Declarations of Homestead for no additional fee.

Many ask how exactly this protects them. When you file a declaration of Homestead, your home which should be your principal residence, is protected against an attachment or levy. Therefore, you would not have to sell your home to satisfy debts to the extent of five hundred thousand dollars per residence, per family. The term “Family” in this law constitutes either parents or children, or if you own your home alone, a single owner of the home. In simple terms, if you get sued as a homeowner, you home is protected up to $500,000.

There are, however, certain situations even Homesteading cannot protect you from. These include Federal, state and local taxes, assessments, claims, and liens; mortgages used to purchase the residence; an execution issued from the Probate Court to enforce a spouse to pay for the support of a spouse or children; buildings on land not owned by the owner of a Homestead estate which have attachments or a levy, or are sold; upon an execution issued from a court based upon fraud, mistake, duress, undue influence or lack of capacity; debts contracted prior to the acquisition of the homestead.

At Black and Buono we understand that the Homestead Act is confusing and we offer counsel in regards to homesteading and if it is right for you. You should never make a financial decision if you are confused or unsure. Always consult with a real estate attorney if you have any questions. We are here to help, contact us 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

Purchasing a home seems easy enough. However, issues often arise in any real estate transaction.  Whether you are the buyer or the seller, you can greatly benefit from the services of a real estate attorney.

The most important document in any sale is the contract. The contract has the terms of the agreement between the seller and the buyer. All of the important details of the sale; the date, amount, and the down payment, are all detailed in the contract as well as other terms and agreements such as termites, death before the title is transferred, and other tricky situations. These types of concerns are addressed by your real estate lawyer.

An experienced and knowledgeable real estate attorney can protect you from horrible mistakes, such as errors in the documents, errors in the figures, and other problems that could lead to time-consuming, stressful, and expensive legal actions. Unexpected disputes often arise, such as liens, foreclosure defense, loan modifications, leasing, and acquisitions and sales, and with an experienced real estate attorney on your side, you will get the advantage in any real estate transaction dispute.  You want to hire a real estate attorney before it becomes imperative to hire one because you are facing a lawsuit or litigation involving real estate.