Buying a Home After a Short Sale

Original article source: Massachusetts Real Estate Blog

As a Realtor who has been heavily involved closing Massachusetts short sales over the last five years, one of the questions that I get asked quite often from home sellers is how long will it take before I will be able to buy a home again.

The answer to this question does not have any clear cut and dry answer. There are quite a few variables involved when trying to figure out when someone will be able to purchase a home after a foreclosure or short sale.

Going through either a short sale or a foreclosure has the potential to seriously impact ones credit.  Government entities Fannie Mae, Freddie Mac and FHA do not directly loan money to individuals but are the governing body that work with lenders to guarantee loans and free up money to provide mortgages.

Banks typically have the authority to lend to whoever they want but will generally follow the guidelines set forth by these entities. There are some lenders of course that will take greater risks with some borrowers than others.

Below are the general guidelines that FHA, Fannie Mae and Freddie Mac follow when considering whether to fund a mortgage loan to a borrower after they have completed a short sale or foreclosure:

See Buying a home after short sale for a complete understanding of how your credit will be impacted, as well as the time period before a borrower will be able to get financing to purchase another home or other Real Estate.

There are different guidelines for getting a new mortgage based on circumstances as well as the type of mortgage loan.

In this article the time periods for getting a mortgage after both a short sale and foreclosure are discussed. On of the top concerns of any borrower after completing a short sale or foreclosure is how to increase a credit score.

If you are needing to complete a  short sale of your home or condo in Ashland, Bellingham, Framingham, Franklin, Grafton, Holliston, Hopedale,  Medway, Mendon, Milford, Hopkinton, Southboro, Westboro, Natick, Northboro, Northbridge, Whitinsville, Upton, Uxbridge, Shrewsbury, Worcester, or Douglas Get in touch! I would love to interview for the chance to represent your best interests.

Completing a short sale remains a much better option than letting a property go to foreclosure for a number of reasons centering around credit and your ability to buy another property in the future.

I am successfully completing short sales through out the Metrowest Massachusetts area as well as parts of Worcester County. As of this writing in almost four years, knock on wood, I have a 100% success rate for short sale approval!

I work hand in hand with a local short sale Real Estate attorney who knows how to get short sales done! I will admit there is some luck involved in my success rate but the team I have put together does a stellar job.

About the Author: The above Real Estate information on buying a home after a short sale was provided by Bill Gassett, a Nationally recognized leader in his field. Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-435-5356. Bill has helped people move in and out of Metrowest Massachusetts for the last 25+ Years.

Home Finance Tips for Increasing a Credit Score

Original article source: Massachusetts Real Estate Blog

Credit scores can have a dramatic effect on a borrowers ability to get the best rates for many types of financing including a home mortgage and a car loan.

If your credit score does not meet minimum standards you may not even have the ability to get a home mortgage period!

There are a number of factors that the credit bureaus use to calculate your credit score. One of the most important factors they use is your past payment history which generally accounts for 35% of your credit score. In the mortgage article how to improve a credit score, all the various ways you can achieve and maintain a great credit score are discussed. If you pay attention to these credit scoring factors you will be well on your way to achieving an exceptional credit score.

When it comes to your home there are ways to improve a credit score with specific home finance tips.

Pay Your Mortgage On Time

It goes without saying that paying your bills on time is a must if you want to have excellent credit. Above all else you want to make absolutely certain you pay your home mortgage when it is due. As mentioned above, past credit history is a critical factor on how you be viewed by a lender when applying for financing.

There is nothing that will hit your credit harder than a missed mortgage payment. Credit scoring agencies will look at a missed mortgage payment in a far more negative light than a missed car or credit card payment. If at all possible you should always consider making your mortgage payment before other bill that are due.

To continue reading and see all of the financial tips view increasing a credit score.

Location in Real Estate|How to Choose The Best Neighborhood

When buying a home, it's important to keep in mind what the neighborhood has to offer just as much as the home itself. A great neighborhood can make the deal much more sweeter if it has the things you expected.
If you think about it, your home is like a spouse, and the neighborhood is like the extended family. You have to live with both so it won't hurt to take a good look at the bigger picture. Here are a few tips to become a neighborhood detective and find the perfect home:

What Do You Want In A Neighborhood?
Before you can scrutinize a neighborhood you have to scrutinize yourself. What do you want in a neighborhood? And what do you need? Of course, you won't be able to get everything you want, but having a list of your must haves and a list of your wants will help you make the right decision. Here are a few things you may want to consider for your list:

• Do you have kids or are you planning on having kids in the future? As a parent, you'll probably want to choose a neighborhood with a great school system. Also, great schools also raise local property values, so even if you're single, choosing an area with good schools is a net positive. You'll also want to look for close proximity to local parks or community recreation centers to keep the young ones entertained.
• What type of housing are you looking for? If you're looking for a condo or a townhome, you'll have to deal with a close proximity of neighbors. If this is you, be sure to walk around the neighborhood and see how the neighborhood interacts. If you're looking for a singe-family home, you'll have more freedom from neighbors, but you'll also have to deal with more maintenance issues. Is the neighborhood well maintained?
• How's the commute? I've had clients find the perfect neighborhood but the drive to work was just to long. You don't want to buy a home and later regret it because the commute is killing precious family time. Do you have a car or do you need a home close to public transportation systems? Are you planning on walking to work? Knowing what you expect is good for you and your real estate agent.
• Do you want new or rustic? Older neighborhoods are filled with character and can be closer to town. You'll also find older neighborhoods may need more upkeep and maintenance. Newer neighborhoods are usually cleaner and require less up-keep, but you may not be able to find one close to town. Also, new neighborhoods may still be under construction which could cause a headache. Be sure to weigh both options and determine what will work for you.
• What do you hate about the neighborhood you're in? With the experience you've gained in your current neighborhood, I'm sure there are a few things you'd like to change. Don't move to a neighborhood you already know you won't like.

Choose Your Favorites And Dig Deeper
Using your list of must haves and wants, you should be able to narrow down to a few specific areas. Choose the ones that have your needs and the most wants. Now choose the neighborhoods that meet the criteria we outlined above. Here are a few more things to help you hone in on the perfect neighborhood:

• Schools - Take a list of schools your kids would attend even if you don't have kids. Remember, good schools increase property values. You can find many great websites online with parent reviews and test scores.
• Crime - Crime rates have a cause and affect on neighborhood values. You can get crime stats online or call the local police station for up to date information.
• Parks - Parks are great if they are well maintained. You don't want a neighborhood that houses the local drug cartels. A good park close to your home is an excellent feature for re-sale and will help maintain your properties value.
• HOA's - A homeowners association can be both good and bad. Find out the monthly fees and what type of restrictions they enforce. An overbearing HOA can be a nightmare so research carefully.
• Attractions - What type of attractions does the neighborhood have? You can check with the local tourism and chamber websites to find out what tourism and business are in the area.
• Busy Streets - A busy street can kill a properties value. Be sure to check with local transportation authorities on any planned of future projects in the area. A busy road can reduce your properties value up to 20% depending on the traffic and noise.

Use Your Senses
You can research a neighborhood all day online but nothing compares to talking a walk through the area. Visit the neighborhoods that stand out in your initial findings. You may find that the neighborhood you thought was perfect just doesn't stack up. Using your senses to choose a great neighborhood:

• Sight - When you first visit the neighborhood, what's your first impression? Are the homes well maintained? Does the curb appeal make you excited to live there? Can you see yourself living in the neighborhood and being happy with your decision? Lookout for homes in foreclosure or in dire repair, abandoned warehouses and buildings, and vandalism.
• Sound - Listen to the sounds of the neighborhood. Are there kids playing in the streets and birds singing in the trees? Or do you here industrial buildings and cars? Are there nearby train tracks? Do airplanes fly low close by? Talk to the local residents. If they're rude and don't want to talk, you may not want to live there. Ask where they hang out and how they like the neighborhood. People like to know who's moving into their neighborhood and is usually welcome a chat with potential neighbors.
• Smell - How does it smell? Can you smell fresh air or is it close to a chicken farm? You can't tell if a neighborhood smells bad until you get out of your car and walk the sidewalks. If there aren't any bad smells, be sure to ask the locals if it changes during the different seasons. During winter, smells may not be present, but come spring, a neighborhood with melting snow could be quiet different.
• Feel - Does it feel right? Many buyers out there will buy a home because as soon as they walked in, it just felt right. How does the neighborhood feel? If it feels right, it probably is. Don't ignore your initial feelings as they are usually your best.
• Taste - Does the neighborhood match your taste? No, I don't want you to lick the street signs! Are you high and classy? Is the neighborhood full of classy amenities? Are you simple and old school? Is the neighborhood nice and quiet? Are you into the night life? Does it have the local hot spots you're looking for?

Close The Deal
Once you've gone over your checklists, taken a walk through, and used your senses; it's time to make close the deal. Buying a home can be really fun or extremely stressful. Using these tips to ensure your neighborhood is the perfect place for your new home will help you enjoy the experience. All you have to do now is close the deal:

• Figure Out Your Financing - When you feel you're getting close to finding the best neighborhoods, it's time to get your financing options in order. Great houses in the best neighborhoods sell fast no matter how bad the real estate market is. If you're not ready to write an offer, there's a good chance someone else was already waiting for that home to come on the market and will swipe it right from underneath your feet. You should get pre-approved as son as you know decide you want to buy a home.
• Find A Realtor - You may not want to work with a Realtor, but they are invaluable to a real estate transaction. Yes, I am a Realtor myself, but even before I became an agent, I tried it both ways. I bought without an agent and the stress was almost unbearable. I ended up hiring an agent and everything changed, it was black and white. As a buyer, the commission is already priced into a home when it's listed, so even if you don't have an agent, you'll still be paying the same amount.
• Don't Hesitate - You know the neighborhood you want to live in. You know the type of house you want your family to grow up in. You feel comfortable with your lists and have narrowed down the best choice. When that perfect home pops up on the market, whether it's next week, or next year, be ready to pounce. One of the biggest regrets of buyers is missing out on the home they really wanted. If the home fits your criteria and priced affordably, write an offer. You can always negotiate, but you can't buy a home if you don't give it your best shot.

Real estate should be a fun and exciting experience. Some say the American dream of home-ownership is dead, but I disagree. The smile on my buyers face when they walk into their new home they've been waiting for is the most rewarding experience I have as an agent. Their eyes get big and they tense up, and I can tell that this is the one. When you do your homework, find the great neighborhood, and put together all the pieces necessary, buy your dream home and never look back.
About The Author: Lisa Udy is a Logan real estate professional providing expertise for home buyers and sellers in Norhtern, Utah. If you want to learn more about Lisa, you can read more articles about buying Logan short sales and Logan foreclosures.

Tax Law Changes For Rental Property

Here Ye Here Ye “Rental property tax law changes go into effect this year” Yes more great news for those who own Real Estate – NOT!


If you are the owner of rental property there is a pretty significant tax law change going into effect for 2012. As of this year anyone who owns rental property must now report all vendors doing work that exceeds $600. For the landlord that holds multiple rental properties this really is nothing new as they have been required to report this to the IRS.

Last year however, the Federal Government enacted the Small Business Jobs Act of 2010 (H.R. 3297) that expanded the reporting requirement to include ANYONE who owns rental property. To put it bluntly the little guy is now required to send a 1099 to contractors working on their homes.

Rental Owner Tax Obligations

If you are the owner of rental property it means you now have a legal obligation to collect information from contractors doing work at your property including their name, address, tax identification number or social security identification. You must also keep a detailed record of what you pay them through out the year. Again at the end of the year you are obligated to send them a 1099 form.

To continue reading see Tax law changes for rental property.

Massachusetts Short Sale Pitfalls

Over the last four years I have been diligently helping Massachusetts home owners successfully complete a short sale. If you look at the national success rate of these distressed properties you may be surprised to find out that many of them do not reach the closing table. The other day I was reading that less than 30 % of all short sales actually close!

Why does this happen? Often times it is because the Realtor who is working with the seller does not understand the short sale process. Unfortunately many Massachusetts home owners who need to short sell their home do not realize that you can't just hire any Real Estate agent and expect a short sale approval.

The Realtor you hire to complete your short sale needs to know what they are doing or more than likely you will find yourself facing a foreclosure. It is really aggravating to see Realtors who don't know what they are doing taking listings from home owners who will are trying to avoid losing their home. Watch the quick video below.

Trust me it only touches the surface on some of the foolishness that you see from agents handling these transactions. I will also emphasize that not all RE/MAX agents have short sale expertise. It just so happens that this short sale video does a nice job portraying the lack of knowledge of some of the Realtors listing these homes.



So what are some of the biggest Massachusetts short sale pitfalls that I see from Real Estate agents that don't know what they are doing? Here is a run down on a few of them:

• Underpricing or overpricing the short sale property ~ Pricing a short sale is really an art that should not be taken lightly. If you overprice the home and do not find a buyer in a timely fashion the seller is going to be that much closer to getting a foreclosure notice. On the other hand if a Realtor under prices the home the lender probably will reject the short sale. When a short sale contract is submitted to a lender, they will send out an appraiser or a Realtor to do a BPO (broker price opinion) in order to establish the value. The contract price accepted is going to need to be in close proximity to actual market value.

• Another common pitfall I see often is Realtors sending multiple unsigned offers to the lender. Remember the seller still owns the property. The lender is only there for one thing and that is to accept or deny the short sale terms submitted. When a seller does not sign a Real Estate contract the buyer can walk anytime. As a seller this is the last thing you want! Making sure the contract locks in the buyer is essential. In all of my Massachusetts short sale contracts the buyer's have to wait 90 days or they won't be buying the home!

• Having the seller sign a contract with terms that do not make sense. A short sale contracts terms should be set up the same as any other Real Estate sale. For example the short sale home inspection should be done right away NOT after short sale approval. A listing agent that allows a home inspection to occur after short sale approval is clueless! 

• The rest of the terms like the signing of the purchase and sale and the time allowed for a buyer to get financing approval are like any other transaction. There are buyers agents that think they are saving their buyers some money by doing a home inspection after approval in the event the short sale does not happen. The problem with that is if there are issues there are NO negotiations after approval. What would you rather do save a few hundred dollars or give up the chance to potentially negotiate thousands of dollars?  

• It is quite possible that your Realtor will be approached by an investor who wants to purchase your property. On many occasions the investor will ask to take over negotiations with the lender. Realtors should never let a short sale investor negotiate with a lender. Why a Realtor who has been hired to help a seller with a short sale would ever do this is beyond me.

• Another common pitfall is a Realtor not explaining that when you short sell a home in Massachusetts there can be short sale tax ramifications. If you are selling an investment property and not a primary residence you will more than likely get a tax bill.

• One of the biggest considerations when doing a Massachusetts short sale is the debt removal. One of the things that whoever you have hired to negotiate your short sale should be doing is to make sure the negotiate the best terms possible regarding the short sale deficiency. Make sure you read the article I have written on short sale debt removal.

Here are some other short sale articles that I have written that are worth taking a look at:

• Stopping a Massachusetts foreclosure auction
• HAFA short sale program

If you are needing to complete a  short sale of your home or condo in Ashland, Bellingham, Framingham, Franklin, Grafton, Holliston, Hopedale,  Medway, Mendon, Milford, Hopkinton, Southboro, Westboro, Natick, Northboro, Northbridge, Whitinsville, Upton, Uxbridge, Shrewsbury, Worcester, or Douglas Get in touch! I would love to interview for the chance to represent your best interests.

Completing a short sale remains a much better option than letting a property go to foreclosure for a number of reasons centering around credit and your ability to buy another property in the future.

I am successfully completing short sales through out the Metrowest Massachusetts area as well as parts of Worcester County. As of this writing in almost four years, knock on wood, I have a 100% success rate for short sale approval!

I work hand in hand with a local short sale Real Estate attorney who knows how to get short sales done! I will admit there is some luck involved in my success rate but the team I have put together does a stellar job.

About the Author: The above Real Estate information on Massachusetts short sale pitfalls was provided by Bill Gassett, a Nationally recognized leader in his field. Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-435-5356. Bill has helped people move in and out of Metrowest Massachusetts for the last 24+ Years.

Getting a Massachusetts Home Mortgage

Getting a mortgage in Massachusetts or anywhere else for that matter is a lot more difficult today than it used to be. With the financial turmoil and Real Estate melt down that has taken place over the last five years mortgage lenders are far more cautious.

You can expect that when you do apply for a new mortgage or are even refinancing a mortgage you will be asked to jump through hoops. The amount of paperwork and background checks you will go through is endless. It can be a very difficult process but unfortunately is a necessary evil to make sure the right borrowers are selected to get loans.

As a 1st time buyer one of the things you may want to investigate before you actually apply for a loan is to check on your credit report. Often times you may find something that is not correct and may need to fix a credit report error. This becomes incredibly important because if there are credit report errors they can have a negative impact on your credit score. One of the factors in determining what interest rate you will get for you mortgage is the FICO credit score.

FICO scores can range from a low of 300 to a high of 850. Anything over 800 is considered exceptional and would put you into a select group of individuals with outstanding credit. According to the FICO scoring system there are five factors that determine a borrowers score. The factors include a borrowers payment history which carries the most weight, a borrowers credit utilization, the length of credit history, types of credit used and lastly a recent search for credit or amount of credit obtained recently.

If your credit report history check out with no errors you will want to find a reputable lender to work with. Of course looking around for an attractive program should be at the top of your list of priorities. A word of caution though don't be fooled into thinking the lender who has the best rate is necessarily the best option.

What you need to pay close attention to in addition to the interest rate is the fees, points and closing costs that you are going to be charged! Getting the best mortgage loan often times depends on really analyzing all the charges and costs of obtaining the mortgage.

If you need a recommendation on a terrific mortgage broker who has competitive rates and exceptional service don't hesitate to get in touch as I would be happy to provide his contact information.

About the Author: The above Real Estate information on Getting a Massachusetts Home Mortgage was provided by Bill Gassett, a Nationally recognized leader in his field. Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-435-5356. Bill has helped people move in and out of Metrowest Massachusetts for the last 24+ Years.

Bill services the following towns in Metrowest MA: Hopkinton, Milford, Southboro, Westboro, Ashland, Holliston, Framingham, Mendon, Upton, Hopedale, Medway, Franklin, Grafton, Northbridge, Northboro, Shrewsbury, Bellingham and Uxbridge MA.

Shrewsbury MA Home For Sale 42 Saybrook Road

Are you looking for a Shrewsbury Massachusetts home for sale that is located in a great commuting location and has been well maintained by the owner? Look no further than this adorable ranch located at 42 Saybrook Road in Shrewsbury. Located just off of Rte 9 this home offer the perfect location for those that need convenient highway access.

There are three bedrooms and two full baths.With the finished lower level the home is 1900 plus square feet of living area. This Shrewsbury home is listed at $289,900. For much greater detail on this property visit 42 Saybrook Road Shrewsbury Massachusetts. You can also see a slide show video tour of this home below.



To sign up to have MLS access to view all home and condo's on the market in Ashland and surrounding towns see Shrewsbury MA Homes For Sale.

Helpful home sale articles:

Staging a Massachusetts home
Handling Real Estate offers

About the Author: The above Real Estate information on 42 Saybrook Road Shrewsbury Massachusetts was provided by Bill Gassett, a Nationally recognized leader in his field. Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-435-5356. Bill has helped people move in and out of Metrowest Massachusetts for the last 24+ Years.

Bill services the following towns in Metrowest MA: Hopkinton, Milford, Southboro, Westboro, Ashland, Holliston, Framingham, Mendon, Upton, Hopedale, Medway, Franklin, Grafton, Northbridge, Northboro, Shrewsbury, Bellingham and Uxbridge MA.

Village of Americas 121 America Blvd Ashland Massachusetts

Are you looking for a great Ashland Massachusetts townhome? Look no further than this beautiful condo at The Village of Americas! This condominium located at 121 America Blvd is listed for $329,900.

As you step inside you will be immediately greeted by an upgraded kitchen with granite counters and stainless steel appliances. The kitchen flows right into the fireplace family room with bay window. The unit is positioned to get great sunlight.

The 2nd floor has two outstanding bedrooms including a master that is fit for a king! You will find a 2nd fireplace along with a lavish bath and vaulted ceilings! To continue reading see 121 America Blvd Ashland Massachusetts.  You can also see a slide show video tour below as well.




To sign up to have MLS access to view all home and condo's on the market in Ashland and surrounding towns see Ashland MA Condos For Sale.

About the Author: The above Real Estate information on 121 America Blvd Ashland Massachusetts was provided by Bill Gassett, a Nationally recognized leader in his field. Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-435-5356. Bill has helped people move in and out of Metrowest Massachusetts for the last 24+ Years.

Bill services the following towns in Metrowest MA: Hopkinton, Milford, Southboro, Westboro, Ashland, Holliston, Framingham, Mendon, Upton, Hopedale, Medway, Franklin, Grafton, Northbridge,Northboro, Shrewsbury, Bellingham and Uxbridge MA.