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If you are a seller of a coastal lot and not desperate you are sitting on a gold mine. The Maine Coast Heritage Trust last year raised $20,000,000 to buy up coastal land to prevent private use of it. That severely limited land availability for somebody to build a home or camp. Those few remaining available properties will bring a premium price.
Unfortunately for buyers, the bargain days are gone forever.
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.
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.
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
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.
If you are a seller of a coastal lot and not desperate you are sitting on a gold mine. The Maine Coast Heritage Trust last year raised $20,000,000 to buy up coastal land to prevent private use of it. That severely limited land availability for somebody to build a home or camp. Those few remaining available properties will bring a premium price.
Unfortunately for buyers, the bargain days are gone forever.
Ah yes...
as I picture John Travolta jaunting up for the weekend, piloting a G-4 and having coktails with Martha Stewart!
WFM and NMLM.........excellent informative posts. is it possible to get an understanding of the trends regarding coastal lots (lot only, no structures) in midcoast maine?
Hi contented, yes it's possible, but it's a bit cumbersome to do that research. I would contact a REALTOR in that part of the state and be honest as to what you're looking for and why. If you are a legitimately interested in purchasing property and develop a relationship with a professional based on mutual trust, you should be able to get what you are looking for.
The median price of home sales is up because those buying homes are able to afford them. When the median price is up and numbers of sales down it is not a good sign for the economy.
Banks are very cautious about lending. There are a few categories of buyers who banks are seeking out. They are buyers with substantial down payments and military personnel. Their incomes are assured and banks have very low risk with them.
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.
The picture can be understood best if we look at one transaction. The bank could not loan the money. The buyers are sitting there with a loaded U-haul van out front expecting to move in to their new house that day. The sellers have already moved out and their household goods are headed for South Carolina in a van. What can these people do? Each transaction involves two families so the magnitude of the crisis is not just 30% of the tranactions. It is actually has double the apparent effect.
A caution to buyers and sellers: Make darn sure the lender is a solid institution. A qualification letter is no longer good assurance that the buyer can actually buy the property.
Other than a couple of weeks this summer when a large, well known firm located widely through the country (am I disguising it enough?) had some funding problems, I haven't seen this from legitimate lenders. I recommend to my buyers that they work with a well established, professional firm where they can sit across the table from the loan officer and get the answers that they need. There are some lenders that advertise low rates and fees, but then hit you with ridiculous hidden charges at the closing table when its too late to back out. Like a real estate agent, a loan officer and the relationship formed with the buyer makes a very real difference on whether or not the transaction goes smoothly. Investors are still lending plenty of money to qualified buyers, but the days of qualifying by having a pulse and a smile are over.
Thanks for the information! These are great posts. I feel much better having closed on a home in Maine Oct 31st. The owner did reduce the price significantly. The house had been on the market all through the summer and maybe he wanted to move the house before winter set in. Here in Florida, we have nothing positive going on. Prices are down, sales are flat. No real hope for at least a year. They are hoping that spring will find the usual people here who have the cash to buy homes. Everyone is sort of hunkered down during the storm.
Once again, great posts everyone!
Congratulations maine4.us, 2007 was not an easy year to keep transactions together, particularly away from the major cities. We have offices in Florida and I've heard reports of 5 years worth of inventory in some parts of the state. That is not a pretty picture.
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You really can't be too careful I guess.
