Massachusetts Foreclosed Homes

Tax Credit Helps With Homes In Need Of Repair

The following video created by Boston.com is of first-time home buyers that bought a home in Watertown, Massachusetts. The couple said that, among other things, the first-time home buyer federal tax credit influenced their decision to buy now.

The couple also mentioned that the $8,000 tax credit will help them make repairs to the home built in 1933.

The Biggest Myth About Bank-owned Properties

How many times have you heard something like the following? "Banks are not in the business of real estate. They want to sell these properties fast." Anyone who makes such a statement clearly has not recently been involved in negotiating any bank-owned home sales in Massachusetts.

The idea that banks are just giving away, or even selling for a substantial discount, foreclosed properties could not be further from the truth.

The fact is that banks will routinely reject offers of say $235,000 on a home listed for $250,000. Now, this does not mean that the bank will not eventually accept $235,000, but only after another month or two have passed and the price has been lowered. The banks typically employ one of two strategies.

1. Reduce the price of a property every month or so until the price results in one or more offers at or more than the list price. Along the way, the bank may reject several offers at or more than the ultimate sale price. It sounds crazy, but it is absolutely true.

2. List the property at below market value. This strategy usually results in multiple offers over the listing price. Multiple offer situations really put the banks in the driver's seat, as far as negotiations go. It's is not unusual for some bank-owned properties to have five, 10, 15 or 20 offers, most of which exceed the asking price. 

Home buyers interested in buying a foreclosed home need to know exactly what they want in home, have pre-approval letter for both a regular and rehab loan and be ready to act fast, if a potential deal comes along. Working with a real estate broker experienced in helping clients buy bank-owned properties and a real estate lawyer is an absolute must. 

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Foreclosure Deeds Decline In Massachusetts

Massachusetts recorded 823 foreclosure deeds in February 2009, a decline of 4.3 percent compared to February 2008 and a 16 percent decline from January; however, the number of foreclosures initiated has risen four consecutive months, The Warren Group reported March 31, 2009.

Lenders filed 2,295 petitions to foreclose in February, a 17 percent increase from 1,960 petitions in January; however, foreclosure petitions fell 19.1 percent from February 2008 when 2,838 petitions were filed. Foreclosure petitions are the first step in the foreclosure process.

The Warren Group tracked 917 auction announcements in February, down 27 percent from 1,256 in February 2008 and down 30.2 percent from 1,313 in January 2009. It was the first time that auction announcements fell below 1,000 since November 2007.