Joshua Matthews

Having had the opportunity to work with many sellers in dire straits, I can understand the potential of a foreclosure can be one of the most stressful times in a person's life. Harassing phone calls come multiple times throughout each day and demands become more and more bold. If a seller is unable to renegotiate their mortgage, the prospect of trying to get now, what they paid for their house in the last five is a near impossible task. It would feel easier just to pack up and walk out then to try and find a solution because for most people, it appears as though there are none.

A foreclosure will ruin your credit which will affect:

• Where you live -- In moving from a house to an apartment, landlords often pull credit before offering a lease agreement. Going from a house to a smaller apartment is a hard pill to swallow, having to move into an area where the landlord isn't concerned with a credit score could be a nightmare.
• Where you work -- While applying for a new job, employers often pull credit as well which might prevent potential candidates from being able to qualify.
• What you drive -- If/when buying a new car, both the loan rate and the insurance premium are affected by credit score.
• The simple act of getting a new cell phone contract can be denied by bad credit.

All of these issues will directly affect stability and quality of life. Explore the options, lenders don't want to foreclose. If renegotiation is an option, talk with a loan workout group who can offer all the details of a short sale (when the lien holder accepts less than what is owed in order to sell the property) possibility.

Need to know what your house is worth or if the local market has stabilized? Find out here.

When I first got in the business a little over six years ago, it was hard (but not impossible) to find an insurance company who would insure a home with knob-and-tube wiring. Well now, it's really hard to find that same coverage. Since I've been licensed, I've seen that same change in coverage concerning fuses vs. breakers. You can find the coverage, but now it's becoming less and less available. The change that I am starting to see now, is one that scares me quite a bit more than the other two. The issue--insurance companies not providing insurance on investment properties without a "lead-free" certificate. Now I am aware of the dangers of lead based paint, but eliminating coverage on homes with lead based paint is going to alienate a large portion of multi-family homes nationwide. We are seeing a huge influx in foreclosed multifamily homes in this area, if coverage can't be obtained, does the bank let them go at yard sale prices or do they let them fall into disrepair, stay as a non-performing asset and devalue an entire neighborhood? Abatement isn't cheap, so check with your insurance agency before you put that next investment under contract.

If you found this article helpful, check out this other potential nightmare when buying foreclosed property.

Joshua Matthews-Keller Williams Coastal Realty

Having represented dozens of buyers purchasing short-sale and foreclosed properties and having the opportunity to review more than a hundred purchase and sale addendums offered by banks (take a look at my earlier blogs: Bank Trick #1, Bank Trick #2, Bank Trick #3, Bank Trick #4) I thought I had seen it all.

The newest issue of concern when buying foreclosures and purchasing a foreclosed property actually has nothing to do with the bank you're buying it from as much as it does dealing with the code enforcement department of the town the property is located in. For properties (single family/multi family) where the electrical service provider (ie. PSNH-Public Service of New Hampshire) has removed the electrical meter from the side of the home, THE NEW OWNER MUST BRING THE WIRING SYSTEM UP TO CODE before the town will re-issue a certificate of occupancy. This can be a very expensive cost to a buyer so make sure you check with the town before entering into a contract which might have a $3,000-$7,500 hidden "cost" after closing.

Buyers-make sure you are using an agent who has been through the process of representing a buyer purchasing a foreclosed property before. These transactions require a different skill set and an unprepared/uneducated agent can cost you money in the long run. As always, I'm always happy to answer any questions concerning this or other matters regarding real estate.

Wishing you all the best life has to offer,

Joshua Matthews, Licensed Realtor in NH & ME

Director, Strafford County Board of Realtors

Keller Williams Coastal Realty

Portsmouth, NH 03801

(603) 781-4030

A large portion of my business in 2008 came from representing first time home buyers and investors purchasing both short-sale and foreclosed property. Up until recently banks were pretty firm on their prices until they were ready to make another price reduction. I've seen banks hold on to properties for nine additional months only to sell them for what our initial offer was. The one things which has rung true in this area for almost all banks was no seller concessions on the purchase price, but recently, some banks not only will help if it's needed with closing costs, they're advertising 3%-5% seller concessions for OWNER OCCUPIED buyers. The banks are at a saturation point where they need to unload these properties and with an estimated 40% increase in foreclosures in 09', they're getting more aggressive with pricing, commissions, and incentives. I understand that this may be a regional phenomena, so for those agents around the country, what are your experiences?

Joshua Matthews--Keller Williams Coastal Realty

Those who know me know I like working on projects around the house, inside and out. Those who know me really well, know I love saving money on those projects. The habitat for humanity organization recently opened the Re-Store in Dover NH. When I first heard of the idea, I thought "this place is going to be full of junk people don't want". When I actually stepped foot inside Re-Store, I could not believe the bargains they had on all sorts of construction materials both donated from companies like Home Depot and Lowe's, to salvaged items from remodels in perfectly good shape. From flooring to kitchen cabinets to closet organizers, this place may not have it all, but it's got enough for the D.I.Y. homeowner, landlord, or contractor (as a matter of fact, the day I went, it was being raided by several contractors buying up CHEAP items to put in their projects). The Re-store's stock turns quickly so, what you see today might not be there tomorrow so you should visit often. In my years as a home-owner, land-lord, and Real Estate Agent, I've seen my fair share of waste, so it's not hard for me to get behind a project that just makes sense. Although the "What's my Carbon Footprint" movement is still in it's infancy, I have started to grasp just how much impact we have as individuals and anytime we can reduce, recycle & re-use as a community we can infinitely multiply our efforts.

Hope to see you there!

Joshua Matthews-Licensed Realtor in NH & ME