“World's Most Complete Neighborpedia”
Explore:   What's happening in your neck of the woods?

Anthony Lamacchia

More People Are Asking About Buying a Home After a Short Sale or Foreclosure

John and I were on Fox25 News this morning talking about buying a home after a foreclosure or short sale.

We have gotten a lot of questions lately from our clients about this.

They realize this is one of the best times to buy a home: mortgage rates are at record lows, there’s an increase of desirable, affordable homes on the market to choose from, and apartment rents have gone up, actually making it cheaper to own a home than it is to rent in many areas. They’re ready to make a fresh start but aren’t sure when—or if—they can buy a home again.

The truth is many of these people fear that after they lose their home they will never be able to buy again. They may get conflicting information on how long they have to wait to get a loan or if they would even be eligible.

In this blog we've outlined the basics on how to prepare to buy again and figuring out how much you can afford:

Buying a Home After a Short Sale or Foreclosure

Over 28% of Our Short Sale Sellers Get Cash Incentive at Closing

Last year at this time about 10% of our Short Sale clients were getting money at closing from their bank for relocation assistance. Now it’s about 28% and if it continues to increase at this rate it looks like it could be 50% of our short sales by the end of the year.

What is Short Sale Relocation Assistance?

All major servicers are now offering cash to homeowners to do a short sale through the HAFA (Home Affordable Foreclosure Alternative) program rather than allow their homes to go into foreclosure. It’s nice to see that the banks have finally woken up and realize that short sales are far better for them than foreclosures. Last month we compiled data from MLS and found that short sale homes sold for 24% more than foreclosed homes in Massachusetts in 2011. That substantially decreases the loss for banks. This is why many of them are now paying incentives for distressed homeowners to do a short sale.

How Much are Short Sale Sellers Getting?

Some major banks such as Bank of America, Chase, and Citi are paying their own incentives on their own loans.

Read more Over 28% of Our Short Sale Sellers Get Cash Incentive at Closing

Spring 2012 is a Great Time for Home Buyers:

Spring 2012 is one of the best times we’ve seen to shop for a new home in years. Mortgage rates are at historic lows, and each week we’re seeing more beautiful—and affordable—homes coming on the market. In the metro Boston area, it’s actually cheaper to own a home than to rent.

John and I were on Fox 25 news this morning to show these 3 great properties.These homes all have what most buyers are looking for: easy access to highways, updated kitchens, great landscaping, and proximity to schools and parks. They’re all listed under $340,000, lower than the average selling price for a home in the state.

Check out these 3 Beautiful Homes in Massachusetts.

Framingham home

Good News for Home Prices in Massachusetts and New Hampshire

Over 100 towns and cities in Massachusetts saw an increase in home selling prices last month compared to January of last year. Increases in average home prices were also seen in both Cheshire and Hillsborough counties in New Hampshire.

Our January Housing Report shows average prices for single-family, condo, and multi-family homes sold in Central and Eastern Massachusetts and Southern New Hampshire for January of 2012 compared to January 2011. In many communities more homes sold and for higher prices than last year, indicating a slight improvement in the housing market for the region.

In Massachusetts, Worcester County did well overall, selling a total of 486 properties last month compared to 420 in January 2011, with a 6.9% increase in the average home selling price.

View the January 2012 home sales by town report

See Us on Fox25 News Discussing the New Short Sale Bill

This morning John and I appeared on Fox25 News here in Boston to discuss the new Short Sale Bill introduced by Massachusetts Senator Scott Brown (R), Lisa Murkowski (R-AK), and Sherrod Brown (D-OH). This bill aims at making the short sale process easier and faster by requiring the bank to respond to an offer on a short sale within 75 days.

Watch us discuss the short sale bill on Fox 25 News.