Foreclosures & Shortsales In Boston
One of the biggest topics of discussion in the local market is the record number of foreclosures and shortsales going on in the Boston area.
Because of the mortgage fallout, there are a ridiculous number of foreclosed properties on the market. They are often hard to distinguish from regular listings. Sometimes they are tagged as bank-owned, but most often they have no distinguishing notices to the public. Foreclosed properties can offer an opportunity to buy a property at a discount IF the place needs work. In this sense, they really aren’t all that different from a traditional sale on a fixer-upper.
But, because of the drop in property values recently, there aren’t as many "deals" out there with foreclosed homes as you might hope.
A shortsale, on the other hand, occurs when the mortgage on the property is higher than the value. You might have a $375,000 loan on a house, the market value of which is now only $350,000. A shortsale is when the mortgage holder agrees to forgive the $25,000 difference in order to sell the house.
Shortsales can be very difficult to negotiate since every dollar lower you try to go represents a dollar lost to the mortgage holder. An added complication here is that the mortgage holder must approve of EVERY step of the transaction. Even worse – they have the right to change their mind all the way up until the time of closing, meaning you could have your inspections, get your financing all set, be ready to close and suddenly get a notice saying that the seller’s lender has decided not to allow the sale.
I’ve compiled some frequently asked questions about the subject to handle the most common questions:
Charissa Pemper, Boston REALTOR®
Charissa Pemper
Lic. MA Real Estate Broker, REALTOR®
Charissa@HomesInBoston.com
