Archive for October, 2011

Property values are just about as low as they can be right now. Because of this, more and more homeowners owe more on their mortgage than what their home is actually worth.

This has made it almost impossible for those who have undergone a hardship – like a job loss, divorce, or medical emergency – to keep up with their mortgage payments.

Even those whose job status and income are in good standing wouldn’t be able to sell their home normally and satisfy their debt.

That’s why short sales have become so common. It’s the best possible option for homeowners who can’t modify their loan and need to get out from under a costly mortgage. Here are a few reasons why a short sale often makes the most sense:

Avoid foreclosure

The last thing any homeowner wants is a foreclosure. It’s a long, painful, and public process that can do significant and lasting damage to a borrower’s credit. A short sale, if a loan modification isn’t possible, is the next best way to avoid a foreclosure before it even begins.

Sell your home on your own terms

In a short sale, you’re in control. You can list your home and try to find a buyer. Then, if the lender approves the purchase price, you continue with the sale process like you normally would. You’ll get to meet the buyer, you’ll know exactly what your home sold for, and you’ll be able to determine the timing of your next move. In a foreclosure, you’re at the mercy of the lender. They’ll decide when you have to move out, they’ll have the power to evict you, and they’ll put your home up for public auction.

Pay nothing, receive incentives

The seller owes nothing when doing a short sale. The lender will cover all the costs, including agent commissions and sometimes even attorney fees, if they become necessary. Plus, they’ll almost always provide the seller with relocation assistance. This will usually be in the amount of about $3,000, but can even be up to $10,000 depending on the circumstance.

Salvage your credit

Your credit will still take a hit, mostly because of missed mortgage payments leading up to the sale (most lenders won’t approve a short sale if the borrower is up-to-date on the loan). But once the sale goes through, you can begin to rebuild your credit immediately. This will allow you to…

Buy again in two years

If you maintain good credit following a short sale and can build your score back up to the mid-600s or so, several loan programs will allow you to apply for another mortgage within two or three years. If you go to foreclosure, your score will be much harder to repair and it will take several more years before most creditors will be willing to lend to you again.

The Next Step

Homeowners who owe more than what their property is worth and can’t modify their loan must consider a short sale. Foreclosure is simply not an option and a short sale presents the best alternative.

For a free and completely confidential consultation, call Patriot (617 513-3016) today to discuss your options.

Patriot will be hosting a seminar on short sales at 6:30 p.m. on Tuesday, Novemeber 8th! If you’d like to learn more about the process or try to figure out if a short sale is right for you, we encourage you to come by! Click here to let us know if you can make it.

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Freshly Renovated Southie Two-Bed: Roof Deck, Brand-New Kitchen, $2,250/month

This one just price-dropped its way into Deal status.

It’s been completely renovated – high-end kitchen, re-done floors, new fixtures – and has easy access to a common roof deck with amazing city views. But when it hit the market less than two weeks ago at $2,450, it didn’t get any bites.

Now the owner is throwing the renter a bone by dropping the price a cool $200/month. Advantage: renter.

The Apartment

The beautiful new kitchen is this unit’s focal point, as it connects all the other rooms in the apartment. And this isn’t a run-of-the-mill kitchen renovation, either: in addition to the new stainless-steel appliances and granite counters, the owner installed beautiful maple cabinets, lightly colored ceramic flooring, and custom-tiled backsplashes.

It’s a second-floor unit that takes in sun from the east and the north, so both bedrooms get lots of natural light. Better still, both bedrooms feature a huge, walk-in closet, which makes this a perfect roommate setup.

An office niche lies off the living room, which transitions smoothly into the kitchen. The bathroom has an updated vanity and ceramic tiling that matches the kitchen floor.

There’s laundry on-site and – oh yeah! – a roof deck just one flight up. It’s common to the building but is only shared by two other neighbors. The entire Boston skyline is directly visible and unobstructed (even while seated), making it the spot to be when the weather’s cooperating.

The Price

$2,250/month (down from $2,450)

The Up-Front Costs

First, a full-month’s security deposit and a full-month’s broker fee.

The Location

It’s right on K Street, just two blocks away from East Broadway. And, really, you couldn’t pick a more convenient part of East Broadway to be near. It’s where the Stop & Shop is, the Rite Aid, a 7-Eleven, and bus stops for the 7 (Financial District), 9 (Copley), and 10 (South Bay). Not to mention popular bar/restaurants like The Playwright and Boston Beer Garden.

What’s also unique about this spot is that, because it’s on the northern side of East Broadway, you’re only a one-mile walk away from both the Broadway T and the Seaport waterfront. So no matter what, you’ll always have some car-free options if you need to get around.

Walkscore: 86 out of 100 – “Very Walkable”

The Next Step

Call Patriot (617 436-6000) to schedule a showing. Or if you want more info on any other properties we have, fill out the questionnaire on the Contact Us page.

You can always find great deals at patriotregroup.com. And you can always find Patriot’s electronic companionship by liking us on Facebook and following us on Twitter.

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