Massachusetts Home Buyer Guide

Many Homes Assessed Too High

As many as 60 percent of U.S. homes may be assessed too high, according to the National Taxpayers Union, but most homeowners don't know how the process works or that they can appeal their tax assessment, The Boston Globe reported June 11, 2009.

Depending on your municipalities last assessment, your property's assessed value may be out of date. You are likely to have more success now appealing your tax assessment, because in most areas there is a large disparity between assessed values from the real estate boom years and the current depressed market values.

In Massachusetts, the appeal is called an abatement of real estate taxes. Abatement applications are available at all city and town assessors office, or online.

The Massachusetts state Web site has a Web page with tax abatement tips.

Read The Boston Globe Article

Deciding Whether To Refinance

There are a lot of "rules of thumb" floating around about whether you should refinance your home loan or not. Forget the old rules of thumb.

The bottom line when deciding whether to refinance your mortgage is knowing your break-even point.

The break-even point is the time it takes to make up in monthly savings what you paid in fees. You calculate it by dividing the mortgage fees by the monthly savings from refinancing to a lower interest rate. For example, let's say you would save $100 a month by refinancing, and the closing costs would be $2,000. Your break-even point is 20 months from now: the $2,000 in fees divided by the $100 a month in savings.

If you plan to stay in your home for longer than 20 months (using the scenario above), you'll save money. It's that simple.

Use a mortgage calculator.

Find a competent, trustworthy mortgage professional.

Read an article about refinancing from Bankrate.com.

Reverse Mortgage Loan Limits Increased

The Economic Stimulus Bill signed recently by President Obama increased the reverse mortgage loan limits to 150 percent of the Freddie Mac loan limit.

Presently, that would create reverse mortgage loan limit of $625,500, potentially helping older Americans access even more of the equity available in their homes to augment retirement incomes or offset investment losses.

Of course, one problem is home values. Many states with large populations of seniors, i.e., Florida and Arizona, have experienced drops in home values over the past year. This means that many seniors who previously stood to benefit from the new limits, no longer can realize the full potential of their home’s equity.

Obama Unveils Foreclosure Prevention Plan

President Obama in Phoenix on February 18, 2009 unveiled a $75 billion government-backed plan to prevent foreclosures.

One part of the plan will ease refinancing for people who owe more on their mortgages than their homes are currently worth. Another part of the plan provides incentives for mortgage lenders to help those on the verge of foreclosure.

The following video, courtesy of New England Cable News, is about 11 minutes long.

Mortgage Rescue Scams

Not being able to pay your mortgage is a bad enough situation, but apparently the slime of the earth have stepped up their efforts to scam people in a vulnerable predicament.

The following video about mortgage rescue scams is from CBS news.

Watch CBS Videos Online

The Dilemma Facing Many Homeowners

The Freakonomics blog has a post regarding a question from a reader regarding whether he should walk away from his house that has lost nearly 50 percent of its value.

It's an interesting question the reader asks, and the comments from other readers are quite entertaining.

For example, "Since you’re willing to sacrifice integrity for money, why not just rent out your wife for a few years and pay off the whole thing very quickly?" Another comment starts out, "omg the same greed that got us into this mess is going to make it worse!"

Another reader's comment was more supportive. "There is nothing unethical about handing in your keys and walking away. It is a perfectly legal option available to you in your mortgage contract."

What are your thoughts?

Read The Freakonomics Post

The Art Of Home Staging

I found the following video on Boston.com.

MA Legislation Would Require Loan Modifications

Legislation filed in Massachusetts would require  lenders to modify home loans in certain circumstances, the Boston Business Journal reported January 27, 2009. 

The legislation named, An Act to Require Commercially Reasonable Efforts to Avoid Foreclosure, was filed by Massachusetts Attorney General Martha Coakley, with Senator Susan Tucker and Representative Steven Walsh, would mandate loan modifications in certain circumstances.  

Specifically, the legislation requires that creditors take commercially reasonable efforts to avoid foreclosure upon mortgage loans securing homes that are owner-occupied.  This would apply only to loans on principal residences, and to loans with certain risky features, such as interest-only loans, adjustable rate mortgages, and loans with short-term, introductory interest rates.  The legislation also provides a "safe harbor" for creditors to comply with this requirement of commercial reasonableness. 

A violation of this legislation will constitute a violation of Massachusetts General Law Chapter 93A, which is the Massachusetts Consumer Protection Act. 

This really is an amazing piece of legislation. State government is now forcing private businesses to operate their business a certain way and mandating those businesses to make certain business decisions. 

Foreclosure Listings Absolutely Free

Read The Boston Business Journal Article

Read Attorney General Coakley's Press Release

Summary of the Legislation Filed

Full Text of the Legislation Filed

Should You Refinance?

The video below is from the CBS Morning Show on January 22, 2009.

Not Just A Stove, But A 'Masonary Heater'

Check out this Boston.com video about masonry heaters. These heaters are suppose to be energy efficient and environmentally friendly, but certainly not inexpensive.

If You Can't Sell It, Swap It

Some homeowners unable to sell their homes are considering a swap. It may sound crazy, but apparently people are doing it.

Hotline To Help Avoid Foreclosure

If you are currently having, or anticipate having, difficulty making the payments on your mortgage, or have recently received a foreclosure notice, you should contact the HOPE Hotline at (888) 995-HOPE (4673), or visit www.995hope.org. Counselors on the HOPE Hotline are available 24 hours a day.

Before And After Renovations

The Boston Globe asked readers to submit photos of before and after renovations.

Check out the slide show.

First-time Home Buyer Tax Credit

The Housing and Economic Recovery Act of 2008 signed into law on July 30, 2008 provides for a first-time home buyer tax credit up to $7,500.

The law applies to home purchases made from April 9, 2008 through June 30, 2009.

The National Association of REALTORS® (NAR) has put together a list of frequently asked questions about the new tax law.

Read NAR List of Frequently Asked Questions

Thousands Of Home Owners Seek Relief

Thousands of homeowners descended on Gillette Stadium in Foxboro, MA last week to seek relief from their mortgage loan lenders and avoid foreclosure, the Boston Herald reported August 13, 2008.

Organizers of the Gillette event didn’t have an estimate on the number of people who showed up yesterday for the housing gathering co-sponsored by the Federal Reserve Bank of Boston and the New England Patriots  Charitable Foundation, but observers estimated the number to be in the thousands.

Homeowners of every race and gender, many of them accompanied by young children and friends, waited in hundreds of yards of lines along the Gillette parking lot at one point.

"It could be days, if not weeks, before organizers have a final tally on how many people got new deals from lenders, who some have criticized for not being accessible enough for struggling homeowners as the housing crunch intensifies."

Patriots owner Robert Kraft, a member of the Boston Fed’s board, said the day would be a success even if one family got to keep its home.

Read The Boston Herald Article