On Tuesday, May 22, 2012 from 10:00AM to 5:00PM at the Seaport World Trade Center – Exhibit Hall 200 Seaport Blvd, Boston, MA.
With over 150 exhibitors, learn from educational seminars and take the opportunity to network on this day at one location. Discovering endless solutions imaginable for your condo, HOA or co-op complex, learning from the experts gives educational and networking opportunities.
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source: Commercial Record
The top ten Mortgage Companies listed for 2011 recently in the Commercial Record for Condo Mortgages are:
Bank # Purchased Money Loans
Wells Fargo Bank 213
Bank of America 118
Webster Bank 106
People’s United Bank 94
Libery Bank 63
Union Savings Bank 56
Savings Bank of Danbury 51
Farmington Bank 50
JPMorgan Chase Bank 43
First Niagra Bank 42
Many sellers have many reasons why home selling is a part of a large decision in this current economy. The largest one is a question they ask themselves; “How do I sell my home for less than what it’s worth?” In this case – when a home owner cannot afford the monthly mortgage payment and they are facing circumstances where they want to take the right measures to sell to avoid foreclosure, this is called a Short Sale.
What is a short sale is – a homeowner makes an agreement with their mortgage bank to sell their home for less than what they owe. Mainly unforeseen circumstances are a part of the reason they need to sell. Some of these circumstances are divorce, death, job loss, income decrease, illness.
During a short sale process, a licensed real estate agent will walk the seller through all steps involved. First step is a current market value of a home using data from MLS (multiple listing services), which is accurate data – not a “zestimate” as seen on Zillow. Next step is authorizing a licensed real estate agent who has experience and specializes in REO/Short Sales to assist.
The common question – “If I need to sell my home under a short sale and the bank works with me to do so, how do you, the agent, gets paid?” Approaching the answer to this common question upfront in this article is like this: you agent is paid through the transaction and their brokerage firm will co-broke to a buyer’s agent via the terms of the listing agreement you, the seller, signs and a copy is given to the bank that is working with you to sell your home for less than what you owe.
It’s important to understand the bank will require the seller to remain and stay in compliance with them. Part of working with a mortgage bank to agree to sell your home less than what you owe is actually writing a letter of reasons why you are facing hardship. Also understand the bank does want to work with homeowners in these situations to sell the home and avoid a foreclosure action too.
It is wise to always seek and prepare the advice of an attorney as well. And not to fear – if you or someone you know fall under this circumstance, I have never seen anyone without a home to live in. Hardships are happening every day to millions of people because of the economy. But one fact of knowledge anyone who entertains to sell their home under a short sale agreement needs to also understand the bank is the third party approval via any offer that the seller accepts and the buyer(s) must also be in compliance with the bank as well along with understanding they are purchasing a short sale that is subject to the bank’s approval.
There is light at the end of the tunnel. Selling a home under a short sale agreement is not what I would advise to do on your own. Keep in mind when doing this, the bank will not allow a seller to keep any type of profit, meaning a seller who sells under a short sale agreement does not make any money from the sale.
I have seen sellers sell under a short sale agreement with their banks based on unforeseen circumstances and still make the mortgage payment until the home is sold and closed – resulting in a seller purchasing another home that is more affordable for them. But not every homeowner is able to keep up with this practice. The best knowledge to know and be aware of when can you buy a home again after you sell under a short sale agreement.
Contact Alan Barberino for all your Property Management, Leasing and Real Estate Sales needs. Visit www.BarberinoRealEstate.com
[Source: Walt Williamson, PCAM]
The Reactions of many unit owners in homeowner associations to the news that major special assessments or loans loom on the horizon range from “a doe caught in the headlights” to anger.
On one end are those who own at common interest communities with insufficient capital reserves who wonder how they can possibly afford a major monthly increase in fees pay their share for roofs, roads, and other major common element systems – and on the other end are those who are genuinely angry and often ask “where did our money go?”
Based on experience from more than a few 3 community associations, the problem of underfunded reserves for capital repairs and replacements is going to cause, for many people, financial hardship and perhaps the inability to maintain residence at a particular property.
Unlike municipalities and states that are also short on funds for capital repairs and replacements, most community associations who have insufficient capital reserves can look to two major causes:
Those who feel that keeping the monthly fee as low as possible for competitive purposes compared to other similar properties are exactly the same. There are differences in demographics, financial resources, quality of construction, and myriad other factors that could cause significant differences.
Also, the use of thumb rules as “$1,000 per unit” and guidelines regarding “10% of the Operating Budget for reserves” are useful, but they may not address situations where the potential shortfalls are so great that possible in-house remedies are unworkable for addressing actual funding needs say within the next five to seven years. In these cases, it is incumbent upon an association’s leadership to make all unit owners aware of the near and long-term financial outlook. In other words – no unpleasant surprises!
In a nutshell, a document near and long-term capital needs plan consists of these components:
Community associations that are 15 or more years old have one set of problems with common elements such as roads and roofs that will soon have to be repaired or replaced within the next five or so years.
Officials at newer communities, especially 55+ types, may have the problem of convincing owners that building reserves now is the right this to do when many of them scoff at projecting needs out twenty or so years from now. Some of the new developments that have free standing units on large acreage are surprised when they find out that their reserve funding policy is woefully inadequate for road repaving twenty or so years in the future.
All should be reminded that future buyers and lending institutions have become much more interested in the financial soundness of community associations.
Recent legislation has attempted to increase transparency and access to information about the operations of homeowner associations. Everyone who has a vested interest should become informed (and participate) in the governance process to prevent short-sighted funding decisions.
Feel free to contact Alan at Alan Barberino Real Estate, LLC at 203-265-7534 if you have any questions in reference to the above referenced article. www.BarberinoRealEstate.com
It has been said “A mind is like a parachute. It works best when it’s open”. That same frame of thinking also applies when researching the market conditions in the areas of which any seller and buyer is looking to sell or buy. The Internet is filled with advice and knowledge, but the top of the knowledge base are those who hold the key to your sources. That being said, a REALTOR® .
Knowing the market in the Greater New Haven County towns in Connecticut, it is important to know market values verses listing prices. Many times we will see a property marketed for sale way above it’s actual market value – this is one thing you want to avoid in this market.
For example – when selling or buying a home, set your price and get the market value a home is worth. That means the past time of “I will negotiate if an offer comes in” changes to “negotiating the best terms and conditions that fit the seller’s/buyer’s needs”. As a seller, you want to be able to stay ahead of the selling market in your area by listing your property appropriately to the market conditions in your area – resulting more buyers to view and an offer you want to see.
This same rule applies to buyers. Know the market. A real estate professional can and will help educate you in knowing the market values of the areas you search homes for sale in. Don’t go above your pre-appoval limit your lending institution pre-approves you for. Stay within your financing means as well.
Part of selling and buying a home is reaching for a successful goal in your real estate decisions. Although we all may feel at times a home is worth more than what the current true market value is, keep in mind market values do change frequently – but the BEST investment anyone can and will make in a lifetime is the purchase and sale of real estate.
Remember, whether you are a buyer or seller, the job of a real estate agent is to negotiate and get the best terms and conditions that are suitable and fit your real estate needs and goals.