Real Estate - Some good news from Maine? (Standish, Hancock: brokers, house)

[WhoFanMe]

Originally Posted by 7th generation

The problem I am having with purchasing a foreclosure is that the company selling the piece doesn't have a clear title.
There are two gaps in the chain of custody where a mortgage holder sold the title to another company but never recorded the deed with the registry.
I guess these companies hope and pray that the buyer won't perform a title search and discover the discrepancies.
Buyer beware.

We have an agent who specializes in these types of property and he reports that this is not all that uncommon. Buying short sales and foreclosures are not as easy as it looks on late night TV, it is not for the faint of heart!

[WhoFanMe]

Originally Posted by Northern Maine Land Man

Lenders will require buyers to buy title insurance. Often times the title insurance covers the lender only. Make sure that a title insurance policy you pay for covers YOU.

It is mandatory in Maine to purchase a policy to cover the lender for the loan amount, however the buyer must also purchase a policy for the purchase price or be at risk. Sadly, when funds are tight at closing, buyers may cancel the purchase of their side.

[Northern Maine Land Man]

Yup. That's what I said.

[WhoFanMe]

Originally Posted by flycessna

I was wondering what the median sales prices comparing Nov 2007 to nov 2006 for the portland market are??

I watch this closely......It looked to me that the prices have declined....at least here in southern Maine. I would be very interested in knowing if they hadn't

Hi fly,

It's broken down by county and for Cumberland County in the quarter from 9/1/07 to 11/30/07, the median sales price was 249,950 vs. 258,500 in the same timeframe in 2006, a decrease of 3.31%. That is the highest in the state, followed by Lincoln County and York County. Aroostook County has the lowest, followed by Somerset County and Piscataquis County.

[Coaster]

Originally Posted by Northern Maine Land Man

In the month of October, 30% of the scheduled home closings in Maine did not occur. The buyers were qualified for a loan; the sellers were willing; title work was OK. The problem was that the lenders simply did not have the money to lend. Americans as a group no longer save. We are withdrawing our savings to buy food, fuel and toys. Banks are required to have certain amounts in reserve to lend money. If their reserves are too low, they can't lend.

That's an astonishing and alarming bit of information, NMLM. Are these lending institutions local banks or the large nationwide lenders who have been having trouble in the credit crunch, such as Countrywide? I haven't seen a hint of this sort of ground-level problem in the media. Is this not widely known?

BTW, your point about savings is spot on. Americans have had a negative savings rate for the past three or four years IIRC, and have been using home equity lines as ATMs to keep up their desired standard of living. Now that particular money machine is closing due to the credit market problems. Combine that with $100 oil. Can anyone spell recession?

[WhoFanMe]

Originally Posted by Boomerang

I heard from a real estate attorney out-of-state that some banks/lenders have not transferred funds as expected on closing day (i.e., did not pay off the seller's mortgage and/or give the seller the proceeds due during closing). He said that normally the funds do come in later the same day, or the next day, but he refuses to record a new title in the buyer's name until the transfer of money is confirmed - just in case. Apparently there have been some cases where the lender bailed the last minute, leaving the seller moved out, the buyer moved in, and no sale You really can't be too careful I guess.

It's known as a "dry closing" and no fun for anyone. I've seen this on occasion, but have been lucky with familiar title companies and familiar mortgage companies completing the deal in the morning with the funds coming in later that day. It is why you seldom see closings before 10:00, the funds may be literally wired in through the Federal Reserve Bank in Boston. In light of the crisis this past summer, I might not be so lucky the next time.

[WhoFanMe]

Originally Posted by Coaster

That's an astonishing and alarming bit of information, NMLM. Are these lending institutions local banks or the large nationwide lenders who have been having trouble in the credit crunch, such as Countrywide? I haven't seen a hint of this sort of ground-level problem in the media. Is this not widely known?

BTW, your point about savings is spot on. Americans have had a negative savings rate for the past three or four years IIRC, and have been using home equity lines as ATMs to keep up their desired standard of living. Now that particular money machine is closing due to the credit market problems. Combine that with $100 oil. Can anyone spell recession?

Home equity loans are a big problem right now. We often run into a seller who took equity out for vacations, tuition, etc. and although they may have paid 100,000 for a property now worth 200,000, owe close to its worth and then over price the home because they "have to get $xxxxx.xx out of the home." I walk away from those listings, but many agents will take them. When the home doesn't sell - guess who's fault it is?

[Northern Maine Land Man]

"That's an astonishing and alarming bit of information, NMLM. Are these lending institutions local banks or the large nationwide lenders who have been having trouble in the credit crunch, such as Countrywide? I haven't seen a hint of this sort of ground-level problem in the media. Is this not widely known?"

Very often the borrower has no idea who he is actually borrowing from. He's working with an independent mortgage broker or small office and the office shops the borrower's name around the industry. This can actually hurt the borrower's credit and kill the deal if he had marginal credit going in. When the mortgage broker strikes a deal with a lender the mortgage broker may not even know for sure the funds will be there until everybody is at the closing table. It's a very scary situation. I think we are returning to the days of yesteryear when nobody would talk to a home buyer unless he had at least 20% down for a mortgage.

Start saving, folks.

[dmyankee]

Yes...but!

About five years ago the owner financing dried up as easy credit was available. I think the days of buying marginal property with owner financing will return shortly. Me and several friends have been buying like this for the past 30 years.

[flycessna]

Originally Posted by WhoFanMe

Hi fly,

It's broken down by county and for Cumberland County in the quarter from 9/1/07 to 11/30/07, the median sales price was 249,950 vs. 258,500 in the same timeframe in 2006, a decrease of 3.31%. That is the highest in the state, followed by Lincoln County and York County. Aroostook County has the lowest, followed by Somerset County and Piscataquis County.

Thanks "WHOFANME".

Do you think that is a better gage when looking at the overall market here in Maine. It's hard when looking up north because there are so few sales, all it takes is one big one or little on to skew the median price?