Pending sales fall in August

— By: Marilyn Jackson

Pending sales of condos and single-family homes in August fell in year-to-year comparisions, but the number of single-family homes placed under agreement between July and August increased, according to the Massachusetts Association of Realtors.
For condos, the pending sales dipped from 1,466 to 1,435 in a month-to-month comparison. In August 2009, pending sales of condos totaled 1,770.
Kevin Sears, broker-co-owner of Sears Real estate in Springfield and president of MAR, said that the rock-bottom interest rates may be starting to have an impact.

Petitions to foreclose drop, but deeds nearly double

— By: Marilyn Jackson

A record number of foreclosures were recorded across the state in July, but the number of petitions to foreclose dropped, according to the Warren Group, which publishes Banker & Tradesman.
The petitions are the first step of the foreclosure process, and many times the financial problems can be resolved before the properties are sold.
Fewer petitions may be a hint that the housing crisis is abating. The federal government has created programs to help rescue homeowners who are facing foreclosure.

MORE FEATURED HOMES

492 Beacon St. Unit 12 LIVING ROOM 1

Flagship Wharf No. 629 DINING ROOM

64 Walker St. EXTERIOR

301 Berkeley St. ENTRY

45 Commonwealth Ave. RENDERING

— By: Linda Goodspeed

Short sales can be accomplished

How can I do a short sale? Are there rules you have to follow? I need to get out from under my house. I’m drowning. My wife lost her job, and we can’t afford to stay here any longer.

But all the realtors I’ve contacted about selling our home say the house is worth less than what I owe on it. They have suggested I do a short sale. What do I need to do?

A:

A short sale, which has become a common term in these troubled mortgage and real estate times, enables a financially strapped homeowner, who doesn’t have the income or debt levels to qualify for a loan modification, to sell the home for less than what the borrower owes on it.

A short sale reduces the damage a foreclosure would inflict on a borrower’s credit record. It also saves the lender the cost of foreclosure and enables it to recoup at least some of its investment.

A short sale can also help maintain the value of neighboring properties because the short sale price is usually higher than what the property would bring in a foreclosure auction.

It also keeps the property occupied, again, relieving the strain abandoned properties pose for neighbors and communities.

It sounds like a win-win for everyone involved, and you would think more lenders would be open to short sales.

Think again. Short sales are not easy to accomplish. But that does not mean you should not try. By all means, investigate it.

To qualify for a short sale, the property in question must be the borrower’s principal residence. The borrower must be delinquent on his/her mortgage, and default looks likely.

The loan must have been made before Jan. 1, 2009, and is for an amount less than $729,750.

The borrower’s total monthly mortgage payment must exceed 31 percent of his/her before tax income. Also the borrower cannot qualify for a loan modification under the Obama administration’s Making Home Affordable Program.

If you can meet all of these criteria, your first step should be to contact your lender. The lender must agree to any short sale.

If you have a second mortgage on the property, getting both lenders to sign off on the short sale is going to be that much more difficult.

Any offer you receive on the property is going to need the approval of the lender. But if you are patient and proactive, a short sale may be possible. Investigate it, by all means. Start by contacting your lender.