Real Estate Information

As we discussed previously, the rate of foreclosure is rising at breakneck speed all across America.  A few weeks ago I provided a link to an article full of great advice on how to avoid foreclosure.  This week I want to look at the issue from another angle – from the perspective of those looking to capitalize on the trend by investing in foreclosures and – they hope – selling them for a hefty profit.

While this seems like a great idea on the surface, considering the abundance of foreclosed-upon homes that are becoming available, potential investors should use caution and take the time to investigate what they may be getting themselves into when purchasing property at auction or from a bank.

As this article on RealEstateJournal.com details, there are caveats to investing in foreclosures.  If you are thinking of investing in a property with the hopes of flipping it for a quick re-sale, you should first consult an experienced Realtor to get a clear picture of the current real estate market in your area.  If homes are not moving off the market quickly, you could end up with a property that won’t sell and ends up costing you in the long run.  Also, some homes may come with major structural damage, hidden liens, or utility bills that need to be paid.  Since these properties generally cannot be inspected prior to purchase, it is important to decide in advance how much you are willing to invest in improvements over and above the purchase price of the property.

If you are interested in investing in Western MA real estate, please visit ShannonDonohueHomes.com or call me at 412-283-1223.  You can also begin searching for Western MA homes here. I would be happy to help you invest in your future!

CNNMoney.com recently ranked the top 100 places to live in the United States, focusing on smaller towns that offer the best combination of economic opportunity, good schools, safe streets, things to do, and a real sense of community.

For those of us already lucky enough to live in this area, it is no surprise that Wilbraham MA was one of the cities that made the cut!  Read the full article here and learn more about the social and economic factors that make Western MA such a fantastic place to call home.

Thinking of moving to Wilbraham MA?  Begin by searching the MLS.  For more personalized service, visit ShannonDonohueHomes.com or call me at 413-283-1223.

Thanks to increasingly tightening credit standards and rising interest rates, there has been a lot of buzz about the startling increase in foreclosure rates across America.

Many homeowners think it can or will not happen to them, but what would you do if you were actually faced with the prospect of foreclosure?  It is important to know the “lingo” of lenders and understand what the options are so that you can make an informed decision on the best way to move forward in a stressful situation such as foreclosure.

This article from FreddieMac.com is a good resource that defines the terms associated with foreclosure and walks through the steps to take if you think you may soon be unable to pay your mortgage.  Among the topics covered in this helpful article:

• What to do if you can not pay your mortgage
• What if you can no longer afford to keep your home
• Beware of scam artists

I would like to add to the list of steps to take when facing foreclosure – contact an experienced Realtor!  Along with a reputable lender, an experienced Realtor can help explain your options and guide you through whichever choice you decide to make.

For more information about Wilbraham MA real estate, please call me today at 413-283-1223 or visit ShannonDonohueHomes.com, I would be happy to help you.  To receive automated emails of new listings that match your criteria, please visit WesternMAListings.com. 

According to the latest forecast by the National Association of Realtors®, tightening credit standards for those applying for home mortgages will likely dampen home sales in the short term and postpone an expected recovery for existing-home sales until 2008.

Lawrence Yun, senior NAR economist, said unusual disruptions in the mortgage market are dampening the outlook for home sales, notably for August and September.  “There’s been an unusual hit to home sales, starting in March when subprime problems emerged and more recently when problems spread to jumbo loans, with many potential home buyers on the sidelines.”  He noted, however, that “the volume of existing-home sales this year will be better than 2002, which was the second year of the housing boom.”

Let’s take a look at August sales statistics to see how the market looks in Worcester, Hampden, and Hampshire counties.

In Worcester County, the number of sold listings this August declined only slightly - by 3 homes - from August 2006.  The number of days on the market, however, increased 14% over last year while the average sale price decreased slightly - about a 2% decline.

Hampden County saw a significant drop in number of homes sold, about 16% fewer this August compared with August 2006.  The average number of days on the market increased 25% while the average sale price remained almost unchanged over last year.

Thanks to today’s tightening credit standards, you may need more paperwork than ever when applying for a new home loan.  To try to make the process less daunting, I’ve put together this list of items you may be required to bring along when you visit your lender to begin the loan application process:  (please note, all lenders are different and may require more or less paperwork!)

Employment/Income

-          Addresses of employers for two full years

-          Gross monthly income, proven by last two pay stubs

-          W-2’s, if available

-          Proof of pensions, retirement, disability, or Social Security

-          Proof of income from rentals, investments, etc.

-          Proof of child support or alimony paid/received

-          Self-employed: two years 1040 tax returns

-          Current year profit and loss statement

Creditors

-          Each creditor’s name and type of account

-          Account numbers

-          Monthly payments and approximate balances

-          Amount of child care expenses

Banking

-          Names of checking & savings institutions

-          Account numbers and current balances

-          Last two months bank and savings statements

Miscellaneous

-          List of assets in stocks, bonds, land

-          Life insurance cash value

-          Social Security numbers for all parties

-          Veterans: Certificate of Eligibility & DD-214 or Statement of Service

-          Divorce Decree and/or Separation Agreement if applicable

-          Child support documentation if applicable

-          Bankruptcy papers if applicable

This may seem like an unreasonable amount of work to have to do on your part just to apply for a home loan.  But imagine if you were about to lend hundreds of thousands of dollars to somebody – you’d probably want a pretty good idea of that person’s ability to pay you back!

Please click here to get started searching for homes Western MA homes.  You can also visit my website or email me to learn more about Wilbraham MA real estate.  I’m here to help!

When was the last time you really thought about the soil that your home is sitting on?  It may seem like just an afterthought when you’re in the market for a new home or adding on to your existing one, but investigating the soil upon which your home is built can tell you a great deal about the history and future of the property that you have invested in and live on.

No need to go out shopping for test tubes, Petri dishes, and microscopes!  The US Department of Agriculture has already done the “dirty” work and has put together an extremely comprehensive Web Soil Survey website that contains digital maps and unbelievable amounts of digital soil data that has been methodically collected.  Just type in your address and then explore almost anything you ever wanted to know about the soil upon which your home is sitting including chemical properties, erosion factors and likelihood, and its drainage class.

This is truly invaluable information if you are considering building an addition to your existing home or are concerned about the dirt that your little ones inevitably become covered in after playing outside.

To get a complimentary comparative analysis of your home’s value, please click here - or feel free to visit my website or email me if you would like to learn more about Western MA real estate.  I would love to help you invest in your future.

With the recent coverage of Hurricane Dean and other weather-related disasters across the country, now is a good time for homeowners everywhere to review their homeowners insurance policies.  If you are not familiar with your policy coverage, it is important to take a good look before a natural disaster strikes so that you can know what to expect if and when you need to file a claim.  Here are 5 things everyone should understand about their homeowners insurance:

1. Look for exclusions to coverage.  For example, most policies do not cover flood or earthquake damage as a standard item – these coverages must be purchased separately.
2. Look for dollar limitations on claims.  Even if you are covered for a risk, there may be a limit on how much the insurer will pay.  For example, many policies limit the amount paid for stolen jewelry unless items are insured separately.
3. Understand replacement cost.  If your home is destroyed you’ll receive money to replace it only to the maximum of your coverage, so be sure your insurance is sufficient.  This means that if your home is insured for $150,000 and it costs $180,000 to replace it, you’ll only receive $150,000.
4. Understand actual cash value.  If you choose not to replace your home when it’s destroyed, you’ll receive replacement cost, less depreciation. 
5. Understand liability.  Generally your homeowners insurance covers you for accidents that happen to other people on your property, including medical care, court costs, and awards by the court.  However, there is usually an upper limit to the amount of coverage provided.  Be sure that it’s sufficient if you have significant assets. 

For more information about owning a home and Western MA real estate, please visit my website or call me at 413-283-6324. 

America is still in the middle of what is being referred to in the news media as “Mortgage Meltdown 2007.”  Adding to the gloomy outlook of the housing market, Realty Trac (an online marketer of foreclosure properties) has announced that the huge influx of recent foreclosure filings showed no sign of letting up as of this July.

The number of foreclosure filings in July 2007 showed a 9 percent rise over those filed in June 2006, and a staggering 93 percent increase compared with July 2006.

Read the full article here, and don’t forget that one of the first steps any homeowner should take if they think they may be headed to foreclosure is to talk to an experienced Realtor who can help lay out the various options and provide a comprehensive view of the current real estate market.

To learn more about the latest in the housing market and western MA real estate, please visit my website or call me today at 413-283-6324!