Dan Derito

This is easily one of the most asked questions from our buyer clients. It wasn't that long ago that it was even easier to answer, but not anymore. The government intervention in the system, the 'you deserve to own a home' mentality, despite the fact that many buyers' didn't have enough discernible legal income to qualify to purchase a bird house on credit, has run its' course with predictable consequences. No one could really know, however, just how bad it would be. Now we do.

As Realtors, we have an obligation to work in the best interests of our client. When multiple offers came in on one of my recent listings the seller narrowed his decision to the two highest offers. The terms of both offers were very similar, a statistical tie, and the seller wanted to be sure that nothing would go wrong and asked my opinion. Offer A was being financed by a Bank of America representative, while offer B was to be from a local Credit Union with whom I had worked before.

Long story short, the Credit Union gets my vote. Credit Unions and other local banks usually have a stake in the community where they operate. They are in business to make a profit and are loathe to make bad investments in property to clients who can't afford to own them. Many of the employees are folks who have been there for a long time and live close by. If you are a good citizen, have worked hard and managed your own money wisely and can afford the monthly payments, then they will be happy to give you the loot.

The Bank of America, and those like them, are far more likely to blow up your transaction, seriously harming your client in the process, sometimes just days before they are scheduled to close. You all know the story. The seller and buyer have hired movers, had final utility readings, are due to close on the new place or given the landlord notice, and on and on. You call the loan officer, who up until a few weeks before the process started was a landscaper, but he isn't able to take your call. Surely, he will call back and give you the lame excuse that the underwriters......whatever.

The banks who are too big to fail are a cold blooded lot. If you have a choice and decide to dance with them, then it will be you who has the job of consoling your screwed client. My advice is to stick with the local yokel.

One of the most frequently asked questions by sellers' of short sales is if they will have a tax liability. The information that I am getting is contradictory, at best. Will they get a 1099 Form from the bank? What if they get back on their feet in a few years and try to buy another home, can the bank come after them for the short sale loss? They also ask just how bad of a hit will their credit scores get when compared to a foreclosure, or bankruptcy.

Free advice will be readily accepted from any Attorney, Tax Professional, or anyone else (but only if they stayed at a Holiday Inn Express). The rules seem to change faster than most of us can keep up. The homes are in Brockton, MA, but the banks are from different states and, in some cases, not the original bank that issued the mortgage. Anyone?

It has been said that the most important responsibility of our government is to protect the citizenry from being attacked by enemies, be they foreign or domestic, and to operate a system for delivering mail. So it was with interest that I read about the recent difficulties the USPS is having with deficits. As a Realtor, I have come to rely on this service and find it to be a good bang for the buck. For less than half a dollar I can send mail across town or across the country. This includes bills, advertising mailers, thank you notes and the myriad of other stuff, and it usually gets there in a day or so.

While they are not in the business of turning a profit, many of their revenue sources have dried up. The package delivery services (FedEx, UPS, etc) skim the cream, but won't deliver to far flung outposts. Folks pay their bills online and email each other instead of using 'snail mail.' So when the Post Office announces that they are running at a substantial (for them) deficit it becomes big news. To me, they are doing the best that they can with what they have, and I will be forever grateful for it. The real news should be that a cheapskate like myself says that we should cover the debt.

Let's just say that they are about $3 Billion short this year. So far during that period, the Government of the United States has lifted about $30 Billion, give or take a few, from the pockets of the taxpayers and invested it with the louts who run our automobile industry. If I had any say in the matter, which apparently I don't, it would be pointed out that I can buy a better car for less money from a Japanese company, but that they will not deliver a birthday card to my Aunt Tillie out in Hooterville. I'll need to use the Post Office for that. They will even deliver a 'Get Well' card while they are out there and still give me change for a buck.

As American taxpayers we have lots to be angry about these days, but the Post Office isn't one of them. They also employ many veterans who have fought to protect our freedom, and you never hear about them getting any ridiculous bonuses. There are some things in this life that you just have to pay for and the mail is one of them.

I'm currently working with clients who are nearing a short sale status. Although they are 'house poor' they both have good work histories at their current jobs, and have owned this home for 12 years. The trouble came a couple of years ago when the wife got sick/injured. They went down to one income, had two teenaged kids, lost their health coverage, took equity from the home, yada,yada, yada.

I recieved written permission to discuss their options with their mortgage company and was told that they are good candidates for the Loan Modification program which would allow them to keep the house. I would be interested in hearing of any one's experiences with this. (Good, bad or indifferent.)

This blog could be filed under 'Agent with too much time on his hands.' The fact is that there is a lot of history in these old New England cities. Around the turn of the 20th century a group of engineers were brought into this bustling shoe manufacturing city of nearly 100,000. Their mission was to design a rail system that would expidite the transportation of output from the many factories.

The result of their labor was a rail line that ran the length of the city, including through the center. At no point, however, did any vehicles ever have to stop for,or cross railroad tracks. Close to a dozen points of the north to south rail line that intersected the east to west street traffic were designed so that one passed over, or under, the other. Most of the original bridgework is still in place, modified only to accomodate the advances in the automobile industry.

It's easy to point out to new homebuyers that Brockton was the hometown of Rocky Marciano, the only undefeated World Heavyeight Champion (49-0), and that Marvin Hagler held the Middlewieght belt for many years, or that more than half of the combat boots worn by American soldiers in WW1 were manufactured here. Good schools, parks and other recreational and civic benefits are always explained. but they always check out my railroad story. More than once, during follow up visits, clients will tell me that they noticed it because they thought I was making it up.