Nyles's Real Estate Attorney Blog

Springfield MA Real Estate Attorney Guide to Buying From Family

Sun, 05 Apr 2009 20:50:31 -0500

When purchasing a home from a family member, the first thing that you have to do is forget that you are purchasing from family and be prepared to take all actions that you would normally take if you were not purchasing from family. The second thing that you must do is hire professionals who will see you through the process and protect your interest in the transaction. Let's face it, negotiating with family is different - you may make concessions that are not in your best interest. Having real estate professionals to "BLAME" for your due dilligence and fair consideration of all issues can be very conveninent! Above all else:

DO NOT TAKE SHORT CUTS!

Shortcut number 1. Do not use your family's listing agent as your buyer's agent. People may have different opinions, but I can tell you that I would not want to be a dual agent in the middle of a family fight. Keep it separated and there will be no hard feelings if there is a dispute.

Shortcut number 2. Do not skip inspections. Just becaus you lived in a house all of your life does not mean that you have been aware of all of the structural issues in your home. You actually get used to the imperfections to the point that you do not question them at all. You probably would view a home that you are familliar with much less critivaly then a strange home and you will pay for it later.

Shortcut nuber 3. Many clients ask if I can "represent both sides" of a transaction because it is "family". These are the deals that can be the most difficult. For example, just because your family has had a title to a property for 3 generations does not mean that the title is clear. If a dispute arises over the ownership, money , conditon of the property, or client confidences, you need to have your own attorney.

If something goes wrong, who would you rather blame (read sue) your family member or your attorney's malpractice insurance carrier?

Springfield MA Real Estate Attorney Finds Scams on Active Rain!!!

Sun, 22 Mar 2009 22:01:06 -0500

Well, it finally happened. Without getting into too much detail, I received a couple of emails last week concerning an out of state client looking for representation in a simultaneous closing for a multi-million dollar property in Springfield, Massachusetts. It started with an email from a supposed service coordinator who has a profile on AR (She also emailed me through AR). I was then introduced to the client via email. The "client" was asking for a contract that would allow two deals to take place. The first would allow my "client to buy a property with the second Buyer's money. My client would use the second Buyer's deposit in order to purchase the Million dollar property. . . . How "creative". Eventually everything would have to go through my Trust Account. . . . To all of my friends on AR who worked hard for their broker / attorney license to practice, BE CAREFUL!

With these solicitations, use your gut instict. If it sounds too good to be true, or if it sounds like an email you received from Nigeria, stay the hell away!

You connect on AR (Active Rain), but what about your RA (Realtor Association)?

Mon, 16 Mar 2009 22:34:30 -0500

As a real estate atorney I have been fortunate with my on-line marketing. However, nothing has been more rewarding than my personal relationships with loan officers and Realtors. One of the easiest places to make these connections is your local Realtor Association.

For many years I belonged to the RAPV Realtor Association of Pioneer Valley - main office in Springfield, MA. I never really felt like I was part of the community until I was invited to participate in an annual show that the RAPV put on . I have been involved every year since and see the events as an opportunity to build friendships with real estate professionals in the area. To quote Jeff Gitomer (marketing genius) "All things being equal, people would rather work with their friends". While it is true that you can make friends on AR, it is very important to make friends at your RA.

After participating in the annual shows, I found myself teaching the salesperson's course, and working on additional education courses through the RAPV. I feel very comfortable at the events because I am involved and always have things in common to discuss.

So, here's a thought - attend your RA events and then blog about themon your AR blog! All your local friends will hear about it and check out your blog!

MA Closing Attorney on Working with Realtors

Wed, 11 Mar 2009 22:55:08 -0500

Well, I have got to tell you, in the thirteen years that I have been a real estate attorney in Massachusetts, I have learned a lot about my business. One of the things that I have learned is that you need to work as a team with the Realtor and the loan officer. Here are some things that I DO NOT DO because Realtors hate it so:

1. I never point fingers at other members of the team when something goes wrong. There was a time in my career when I viewed the Realtor's role like that of a used car salesperson. I had a poor view of the hard work that Realtors put into these transactions and in short - I thought I was more informed and more valuable to the client. If I thougha Realtor made a mistake, I would blame them. This was inmatuer and unprofessional on my part. I learned the hard way how these remarks can come back to bite you. Everyone starts out as a newbie, everyone makes mistakes. But, not everyone grows to be a successful professional and not everyone builds long lasting professional relationships. Instead of pointing fingers I pick up the phone, ask questions and offer my perspective in a professional manner that saves everyone face in front of our client.

2. I never renegotiate the transaction after a Realtor has made a deal. This is a sophomoric approach to contract review in my opinion. Attorneys who act like they have a better handle on the situation than the Realtor who has had their finger on the pulse of the transaction for two months also deserve a bad name. This makes no sense. Realtors spend a lot of time negotiating these transactions. Unbeknownst to the attorney, the fact that a rose bush is staying or leaving could be highly significant, depending upon how the negotiations got to that point. I do not second guess the importance of any term. I ask questions, but I do not undermine the negotiations that took place long before I came into the picture!

3. I do not fail to communicate.I use conference calls and group emails to make sure that there are no misunderstandings. I think that attorneys who do not return calls or who sit on contracts do their clients a disservice. If something is wrong I want everyone to hear what i a saying no "he said, she said" - everyone gets the same information and they get it quickly.

If you are a MA Realtor looking for an attorney who "gets it", call me for your next transaction.

Thanks for the excellent response Active Rain Community!

Wed, 11 Mar 2009 21:21:55 -0500

Just wanted to give a word of thanks to the members who took the time to respond to my post yesterday. I had asked what a small offfice attorney might do on a low budget to get started with an advertising campaign on the web. I was provided with multiple web sites that could assist in getting my own sites started and other great information. Some of the ideas were really inovated. The power of video on the web was explained to me and also the power of blogging in concert with a web site.

Sometimes it just takes a few minutes of the right person's attention and you can find yourself with an answer that sets you off in the right direction. I truly appreciate the responses that I receive on this network.

ThankYou!

Springfield MA Real Estate Attorney Goes Google

Tue, 10 Mar 2009 21:58:45 -0500

Over the past couple of months I have picked up a pair of books on Google SEO. I do not have my own website (only a company web site) I do not know HTML. I am just intrigued by the idea that I can inexpensively compete with other lawyers who do not blog or consider their website as important as I . . . would like to if I knew how! I am throwing this one out to the masses. Where does a lawyer with limited web experience begin in order to develop a few web sites that focus on areas of expertise. I think that I can do it better than my competition.

Does anyone have a how to get started formula?

Thanks AR!

Evaluating the Likely Success of a Short Sale

Tue, 10 Mar 2009 20:46:04 -0500

Over the past year I have been involved with approximately 100 short sale transactions in the Springfield Massachusetts area. (My real estate law practice is located in Springfield, Massachusetts. I have been practicing real estate law and conducted real estate closings for approximately 13 years.) Many of my short sale transactions have come through successfully and I am happy to say that this week I have three that look like they are "ripe" for settlement. In my experience, not all short sales are created equal and many are doomed to failure from the start. Others fail because of the "wrong pairing" of Buyers with short sale Sellers. Following are a few guidelines for evaluating the likely success for a short sale from the Seller and Buyer's perspectives:

Seller perspective on short sale:

1. How many creditors and what kinds of liens are we talking about: Many Realtors get hung up on the numbers involved in the short sale. My mantra in these affairs is simply: Is the property being sold for market value. That is all that matters. I do not care how much of a haircut the lender is going to take; that is their reality in the cycle of foreclosure, buy back, hold, and resale. The Lender will not get market value and is usually happy to get out of the mortgage at market value. The problems come when there are multiple mortgages or executions, or attachments for unresolved legal matters. These types of liens can be extremely problematic. If there is unresolved litigation and an attachment on the property, it becomes extremely unlikely that a short sale involving the lien holder receiving $0.00 will be successful. It pays to review the title with a real estate attorney before you accept a short sale listing in order to guage how difficult (read likely) the short sale will be. . .

2. Who are the creditors: There is a huge difference between negotiating a short sale with a local bank and negotiating a short sale with a large national bank. Generally, local banks have loss mitigation staff that can be reached all the time on the first call. I find myself dealing directly with a decision maker when I call local banks. I western Massachusetts we usually have a two step process when negotiating any residential real estate transaction consisting of an offer and a purchase and sale agreement. When I deal with local banks, I am more likely to present offers directly to the bank because of how quickly thy will respond. I do not do this with larger banks. They take months just to assign the file to a "negotiator". In the meantime their collections office is foreclosing on the property. With the big banks it is a race against time and I insist on having fully executed contracts before I submit my client's information. Local banks are easier mostly because they are faster!!!!

3. Do you have the right Buyer: Time is what kills these transactions. When I have the seller in a short sale I cringe when I see a Buyer reserving their rights to inspect the property until after short sale negotiation. What is the point? There is no money for repairs and if something comes up in the inspection where the Buyer will absolutely not buy a house that has "X", why wait 90 days to figure that out? (The opportunity costs are huge) Very quick "drop dead dates" are also difficult for me to tolerate. While I appreciate the opportunity costs, you are either in this for the bargain and love of the house and for the long hall or you are still shopping around. I feel that you must have Buyers make a serious commitment to the process or everyone is wasting a lot of valuable time. I like the usual good stuff that keeps a transaction together: big deposits and default penalties with a commitment to remove inspection contingencies at the outset. Finally, these transactions are not for people who are buying their first home and are relying on government subsidies, grants, seller paid closing cost money or loans that have strict guidelines that require extra appraisals. These issues will only complicate the short sale and may lead to a rejection of a line item that is a deal breaker for a Buyer whose financing is completely contingent upon for example, seller financed closing costs that the seller's lender will not allow.

Buyer perspective on short sale:

Items one and two, above can be reviewed by a Buyer just as easily as the Seller. Buyers should ask their real estate attorney to review the title to the property to see what is owed and to whom. They should also review any other issues that can make this transaction difficult difficult. . .

Most importantly however, is the question: "Who is moving this short sale forward?" Is there an attorney involved or a Realtor with a lot of experience? What can they tell you about the likelihood of success of this transaction. Of course I like to see attorneys involved whenever possible. It is my opinion that an attorney that specializes in Short sale negotiation will generally have the staff and experience to bring these deals to the finish line within a reasonable amount of time. The real esatte professionals have to be on top of these transactions or they will crumble along with your Buyer's dreams of owning their short sale home.

Refinancing with Massachusetts Real Estate Attorney

Sun, 15 Feb 2009 08:56:52 -0600

There is a great deal of confusion in the marketplace right now concerning refinancing. The first question that my clients usually ask is "Should I refinance?" Of course my answer is always "yes", how else will I make any money? (I am kidding, but consumers need to be careful who they ask for advice on this subject. The answer should not always be yes. . . )

Generally if refinancing will save a consumer money in the short run, it is an easy answer - however when I say "save money" I mean pay for itself in a short period of time. If refinancing saves you $200.00 a month and the costs are less than $2400.00 and you plan on staying in the house for more than 2 years, it would make sense to refinance. . . Many of the homeowners that I have conducted closings for have interest rates in the low 6% range. As I go to post this article there are many lenders that are offering 5% interest with 0 points. Generally, anyone dropping 1 percentage point will drop their payments between $100.00 and $200.00 a month (There are many loan calculators available for you to calculate your payments at your current and then anticipated interest rate in order to determine the savings per month try http://www.bankrate.com/brm/popcalc2.asp to figure your monthly savings.)

The next question is “Will I save money after I pay all of the costs for a refinance?” Now you have to figure out the costs and this is where you have to take some initiative and really shop around and become educated – because it is complicated. For some reason people do not spend any time reviewing the costs of their mortgage. The manner in which most people shop for a mortgage is in fact ridiculous. Most people walk up to the first salesperson (loan officer) they meet or better yet, their brother’s friend who just started in the business, and they say, “I would like to purchase your mortgage product. Is it the best product for me at the lowest price?” And the salesperson says, “yes, it is the best product for you at the lowest price” and the sale is completed. Wow, how savvy of that consumer. They got all of their research and education as to what is available in the market from the first salesperson they spoke with, who coincidentally will be the person who sells them the product.

Here is a secret about mortgages: The worst deal that you will accept equals the most money the loan officer will make on your refinance. Here is another happy thought: you will pay interest on every dollar that you overpaid your loan officer/bank. For example if you refinance for 30 years at 5% and pay an extra $3,000.00 in costs, at the end of the 30 years, you will pay another $4,500.00 in interest. Your mistake will have cost you $7,500.00. If your loan officer convinces you to accept a higher interest rate (sometimes they get paid more money if you accept a higher rate – they receive a yield spread premium) it can cost you thousands, just so they can earn a few thousand more. I advise my clients to call me before they refinance – I review the numbers for free!!!! I get paid the same amount for my discounted settlement services no matter which lender they choose. . . .

Here is a quick and easy overview regarding costs. Ask your loan officer for a good faith estimate, GFE and a truth in lending statement TIL. With these two documents from the three most competitive lenders in your area, you should quickly learn who is charging what and which offers the best deal.

Points: The first couple of lines on the GFE have to do with loan origination and discount fees – these are “points”. The lender may allow you to “buy down the interest rate if you pay a percentage point or fraction of a percentage point of the loan e.g. 2 and ½ points for a thirty year fixed loan at 4.5%. If you are borrowing $200,000.00, the points alone will cost you $5,000.00. You do not have to pay for points, but if you are planning on staying in the home for a longer period of time, the points may make sense. . .

Standard Fees : Every bank/ lender will likely charge certain fees all in the 800’s line on the GFE. Each fee is shown as a line item 800, 801, 802, etc. . . Typical bank fees will include an appraisal fee ($300), a credit report check ($35), a flood certification ($19), a tax servicing fee($65) and an overnight or funding fee ($45). The bare bones for the lender fees is probably around $500- $600 for these fees. These are the costs that you should accept and consider in your calculations. Any additional fees are the loan officer and/or lender making money on the transaction (see below)

Junk Fees: Processing fees, underwriting fees, documents preparation fees, closing fees, mortgage broker fees, etc. . . all of these additional fees are not necessary for you – maybe they are necessary for your brother-in-law’s fly by night operation, but they are not necessary for you to pay – SHOP AROUND!

Escrows and Prepaid Interest: These charges are “a wash” in a refinance and should not be included in your calculations. Your taxes and insurance cost what they cost and you are paying for these items already. The up-front costs of establishing new escrow reserves for your new mortgage should be offset when you pay-off your current mortgage and the old escrow accounts are closed – the money should be returned to you in a few weeks. Prepaid interest at the lower interest rate is a good thing. Close as soon as you can even if you have to pay 30 days prepaid interest. Your new payment will be delayed by as many days and will be at the lower rate – so do not worry about that fee. . .

Attorney fees and recording fees: Attorney fees can vary, I recommend real estate attorneys who will try to find discounts. Recording fees are what they are. There is no getting around the cost of recording the mortgage!

My final words on this matter are SHOP AROUND, SHOP AROUND, ask questions, and compare answers. Talk to a real estate attorney! Good Luck!

Reverse Mortgage Information from MA Attorney

Sun, 16 Nov 2008 17:45:03 -0600

Reverse mortgages are on the rise in Massachusetts. While many of my friends and colleagues in the lending business have started focusing on loan origination and financial planning for older clients, these transactions are quite different from your typical residential refinance mortgage. It takes a great deal of training to become proficient in advising clients about their options and the best reverse mortgage plan that will suit their needs. Folllowing is some general information concerning reverse mortgages and an attorney's perspective (that would be me) on the features of this type of loan product:

Reverse Mortgage defined: A reverse mortgage is a type of loan available to persons 62 years of age or older that allows the mortgagor to borrow money against the equity in their home. These mortgages are useful to older clients who wish to supplement their income or cover expenses that their retirement or social security income will not meet. The best thing about a reverse mortgage is that YOU DO NOT HAVE TO PAY THE LOAN BACK as long as one of the borrowers remains living at the home, pays the taxes and insurance and keeps the property in good condition.

Qualifying for a reverse mortgage: It is relatively easy to qualify for a reverse mortgage; your current income, credit history and debt-to income ratio are not at issue in a reverse mortgage. You simply must be 62 years of age or older, own a 1-4 family home in which you live, you must have equity in your home and your home must met certain condition standards.

Loan amounts and payment options: Recently reverse mortgage limits have increased to $417,000.00! How much an individual can borrow is based upon th following criteria: theage of the youngest borrower on the loan, the value of the home and the current interest rate. Once you have decided upon the maount of money that you wish to borrow there are several payment options to consider: a lump sum payment to pay of existing debt/mortgages on the home, set monthly payments to the borrower, a line of ccredit available to the borrower for future use or some combination of the three.

The effect that reverse mortgages have on other benefits: Proceeds from a reverse mortgage are not considered income and will not affect some benefits such as Social security. There are other needs based programs that may count reverse mortgage proceeds towards income and a borrower may not be eligible for ome needs based programs.

The reverse mortgage process begins with counseling. Please feel free to contact me by email or telephone with questions about reverse mortgages to determine whether or not a reverse mortgage is the right loan product for you. I am a real estate closing attorney who has closed numerous mortgages for borrowers including reverse mortgages with several different lenders. I would be happy to refer you to a reverse mortgage specialist that I have had good dealings with. Initial consultations with my office are free and I am willing to travel to clients homes to conduct reverse mortgage closings throughout Massachusetts.

Disclaimer In accordance with rules established by the Supreme Judicial Court of Massachusetts, this web site / blog must be labeled "advertising." It is designed to provide general information for clients, prospective clients and friends of the firm and should not be construed as legal advice, or legal opinion on any specific facts or circumstances. This web site / blog is designed for general information only. The information presented at this site / blog should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.

MA Real Estate Contract Seller Cooperation

Sun, 12 Oct 2008 13:52:49 -0500

5. ADDITIONAL DOCUMENTATION AT CLOSING. The SELLER agrees to execute and deliver simultaneously with the delivery of the Dead such certifications as may reasonably be required by the BUYERS attorney or the BUYER’S mortgage lender including, without limitation, documents relating to the absence of tenants in the premises the absence of mechanic’s or materialmen’s liens, the payment of municipal liens the absence of UFFI at the premises and the SELLERS compliance with requirement imposed upon residential sellers with respect to UFFI by statute and applicable regulations, the underlying financial terms of the purchase and sale, the citizenship and residency of the SELLER, and the SELLER’S taxpayer identification number and forwarding address.

This paragraph was added in order to remove a closing table issue that occurs once in a while where Seller refuses to sign additional documents that are required by the Buyer’s lender. There was a closing a couple of years ago where the Seller refused to sign such documentation at the closing and the closing fell through. Litigation ensued and the Seller prevailed! The Court found that eth Seller was only obligated to tender a deed and was not under any legal obligation to provide any additional documentation. The problem of course was that the Buyer’s Lender would not proceed without the additional documentation.

Typically the additional documentation includes an affidavit regarding “mechanic’s liens – liens that a contractor can place on the property within 90 days of completing any work at the premises. Such liens could become the responsibility of the new owner – so the Bank wants extra warranties from the Seller in case such a lien is placed on the property. Another form that the banks’ cannot seem to rid their closing packages of is a statement from the seller regarding a UFFI, a foam insulation that is no longer on the market and also no longer harmful even if it is in a home. Also, a statement regarding the legal status of a Seller and a social security number for tax purposes are common forms that the Buyer’s attorney may require at the time of closing.

I personally, have never had an attorney refuse to sign or have their Seller client sign a document required by my Buyer’s bank. But, just in case they ever try to avoid signing such a document, it is nice to have this paragraph in the contract!

Ma Real Estate Contract Quality of Title

Sun, 12 Oct 2008 13:38:23 -0500

4. TITLE. Said premises are to be conveyed on or before _______________________ by a good and sufficient Deed of the SELLER which shall be a Deed of equal character and covenants as held by the SELLER, conveying a good, clear, record and marketable title to the same, free from all encumbrances, except:

a. Usual public utilities servicing the premises, if any;

b. Taxes for the current year not due and payable on the date of delivery of the Deed;

c. Any liens for municipal assessments and/or orders for which assessments may be made after the date of this Agreement;

d. Restrictions and easements of record, if any, which do not materially affect the value or current use (single family and/or ) of the premises;

e. Provisions of existing building and zoning laws. Here is the first indication of when the closing will take place.

Aside from that important date, the quality of the title to be transferred is also defined. The practice is to “give what you get” with regard to the quality of the title, i.e., a deed of “equal character”. This paragraph is referring to the covenants or legal promises that seller gives with the deed. For example, if in MA you receive a deed with “warranty” covenants you will give a deed with “warranty” covenants to the Buyer of your property under the terms of this contract.

The paragraph also indicates that the title will be “clear record and marketable title, to the same, free of all encumbrances”. This means not only will there be no liens on the property, but if any rights were given away – easement rights, rights of way, etc, that were not disclosed, or not properly recorded, Buyer may withdraw from the transaction. Recall in paragraph 2 we discussed the importance of noting all of the encumbrances listed on the deed – those are already agreed upon!

The exceptions to the clear title rule that we area agreeing to follow are indicated in sub-paragraphs a-e. Essentially, utilities, taxes and municipal obligations must be current at the time of closing, but Seller will be obligated to pay these items going forward. Zoning bylaws are considered to have been reviewed and are not an issue that the Buyer may raise after they have signed the contract. Restrictions and easements of record that do not materially effect the use of the property as indicated in this sub-paragraph can be an item of contention. If you know about an encumbrance or obligation that the property has, it is best to disclose this item and have the Buyer sign off on the description of this item prior to signing the contract if possible.

MA real estate contract

Sun, 12 Oct 2008 13:20:28 -0500

3. BUILDINGS, STRUCTURES, IMPROVEMENTS, FIXTURES. Included in the sale as part of said premises are all buildings, structures, improvements and fixtures located in or on the premises belonging to the SELLER and used in connection therewith including, IF ANY, all venetian blinds, curtain rods, window shades, wall to wall carpeting, screen doors, storm windows and doors, awnings shutters, furnaces, heaters, oil and gas burners and fixtures appurtenant thereto, hot water tanks, plumbing fixtures, electrical and other lighting fixtures, TV antennas, rotors and controls, garage door openers and controls, mantels, fences, gates, trees, shrubs plants, and, IF BUILT-IN, exhaust fans, garbage disposers, dishwashers, air conditioning equipment, kitchen ranges and ovens, and vacuum cleaners.

Items to be transferred to the BUYER in “as is” condition and not to be considered part of the sale are: (if none, state “none”)

Not included in the sale as part of the premises are the following items: (if none, state “none”)

Not included in the sale as part of the premises are the following rented fixtures not belonging to the SELLER: (if none, state “none”)

In Massachusetts, all items that are bolted down or planted on the property are included with the sale unless specifically excluded by agreement. This is the section that it is important your client understands these rules. Anything that a Buyer wants that is not specifically listed must be written in the contract regardless of what the listing said. The contract is a more precise agreement; so do not take anything in the listing for granted.

Also, it is important to note to Sellers that unless the Buyers agreed that they wanted personal items, they all must go. Many times at the end of the move-out, Seller begin to rationalize why all of the paint cans they ever used should stay for the Buyer’s benefit, or why the bulky extra washer in the corner of the basement would benefit the Buyer. . . One man’s treasure is another man’s trash. This is the section of the contract where we must lay down what is going or not going in order to avoid any issues at the time of the walkthrough.

One final note on this section: rented fixtures must be disclosed and agreed upon less the Buyer demand that the Seller purchase an undisclosed rental fixture ant the time of closing. Common items in Springfield, MA area are rented hot water heaters and security systems.

MA purchase and sale agreement review

Sun, 12 Oct 2008 13:06:31 -0500

2. DESCRIPTION. Subject to the terms and conditions hereinafter set forth, the SELLER agrees to sell and the BUYER agrees to buy the following bounded and described premises:_____________________________________________(address) as more particularly described in a Deed dated , and recorded in the ___________County Registry of Deeds in Book______Page______or Land Court Certificate__________________

This section of the contract goes to the heart of the agreement – it describes with particularity, the real estate that is being sold. Reference is made to the street address, but more importantly, to the deed that describes the boundaries of the property and any rights or obligations that go with the property. The Buyer is agreeing to this description, with all of the possible easements and restrictions described therein. The Seller is agreeing to sell all of the land described in a particular deed.

NOTE: The deed reference is a shorthand way of attaching a detailed description. The Realtor and Real Estate Attorney should look to the registry of deeds and print a copy of the deed. – Deeds in MA are given a Book and Page reference or if the land has ben registered with the land court system, it will have a certificate number

The property description paragraph is extremely important and if handled carelessly can be the root of litigation. Despite what the listing says, the description paragraph indicates that the Seller and Buyer agree that they are buying the property described in a particular deed. IT IS REALLY IMPORTANT THAT YOU LOOK TO SEE WHAT THE DEED SAYS!!! Sometimes a deed may contain more land than your client intends to sell. If there are two parcels in the deed and no exception is made in the contract, it will be difficult to argue that the Seller did not intend to sell everything that is in the deed – that is what this paragraph says – in essence, forget about the address and what was advertised; what we are selling is more particularly described in the deed – so go there for a more particular description. I have made it my practice to carefully review the deed with my clients prior to their signing the contract (you should make this your practice as well).

Here are some examples of issues I have been able to avoid or clarify prior to committing to the purchase and sale agreement:

Correct land descriptions including correct acreage and number of lots to be sold;

Learning that property is located in two cities or that there are likely multiple tax bills;

Learning about easements that affect the property;

Learning that property is subject to restrictions;

Learning that there is a shared driveway, but no rights in the deed to use said driveway!

Contract Explanation for New Realtors and First Time Home Buyers

Mon, 29 Sep 2008 22:15:28 -0500

I have been teaching the sales persons course at the Realtor Association of Pioneer Valley in Springfield Massachusetts and I have to update my materials so I thought, what better way then to start at the heart of the course and update the analysis of the purchase and sale agreement. These next 26 passages are my view on the contract and should be helpful to the new Realtor or First time Home buyer looking at all of this "Greek" and wondering what it all means. . .

For purposes of these posts (and my materials!) I am reviewing the 2005 version of the Realtor contract that is recommended by the RAPV covering Hampden, Hampshire and Franklin County - that is most of Western Massachusetts!

PURCHASE AND SALE AGREEMENT

1. PARTIES, This Agreement is made this day of , 2008 between ____________________ and _____________________of __________________________hereinafter called the SELLER and_________________and ____________________ of __________________________, hereinafter called the BUYER.

The parties section of the contract seems straight forward enough, but one very common blunder is made right here. Many attorneys and Realtors do not bother to review the names part of the purchase and sale agreements with their clients and mistakes can be made! It is common that a secretary working for the listing agent (seller's agent) is the one who prepares the purchase and sale agreement. Often, they have only received the names of the buyers on the offer form. The names are frequently only signatures and are thus, very hard to read. Also many people do not sign their names with their middle initials or "Jr.", etc. . so, the name is often misspelled or incomplete on the purchase and sale agreement.

To further aggravate matters, the only document that the Seller's attorney has with the Buyers' names on it is the purchase and sale agreement. The Seller's attorney drafts the deed. When everyone is gathered round the closing table and the deed is passed to your Buyer for inspection and their name is spelled wrong, you will feel badly. The Seller's attorney will immediately throw you under the bus. "That's how it was spelled on the contract!" The Buyer's attorney or lender's attorney will whip out a black pen and mark up the most important document in the entire transaction. This moment will burn into the Buyer's mind as an example of the lack of care that everyone took in this transaction and make your Buyers feel very nervous that there are other mistakes in the 100 pages that they are signing.. . OK, that was a little exagerated, but if you have been in real estate for a while, you know that it happens and it is never pretty. . .

Another item that can cause delay has to do with estates. Generally, it is a much faster process to have a will allowed and an executor / executrix appointed than to have an administration allowed and a license to sell obtained. Sometimes Realtors are dealing with the family members of a decedent and do not know the status of the probate of the decedent's estate. hey could be contracting with the wrong person! It is very important to get the person who has authority to sell the estate property to sign the contract!

And that was all just paragraph 1!

Accountant View of Short Sales in MA

Sun, 28 Sep 2008 07:22:45 -0500

Following is a laetter that I requested from an accountant friend of mine, Dan Alexander. With his permission I am posting it here as a guide to the tax consequences of selling real estate "short".

September 4, 2008

The following information was pulled of the Internal Revenue Service website regarding recent hot spots in the real estate industry. Below you see information on Short Sales and Cancellations of Debt, including the Mortgage Forgiveness Act. The bulk of taxpayers will end up falling into the latter of the two subjects should a dire situation arrive.

Short Sales

A short sale is a contract to sell property you borrowed for delivery to a buyer. At a later date, you either buy substantially identical property and deliver it to the lender or deliver property that you held but did not want to transfer at the time of the sale. Usually, your holding period is the amount of time you actually held the property eventually delivered to the lender to close the short sale. However, your gain when closing a short sale is short term if you (a) held substantially identical property for 1 year or less on the date of the short sale or (b) acquired property substantially identical to the property sold short after the short sale but on or before the date you close the short sale. If you held substantially identical property for more than 1 year on the date of a short sale, any loss realized on the short sale is a long-term capital loss, even if the property used to close the short sale was held 1 year or less.

Exclusion from Income for Certain Cancellation of Debt on Principal Residence

The Mortgage Forgiveness Debt Relief Act of 2007 allows individuals to exclude from gross income a discharge of qualified principal residence indebtedness (defined below). This exclusion applies to discharges made after 2006 and before 2010. Additionally, the basis of the principal residence must be reduced (but not below zero) by the amount excluded from gross income. To claim the exclusion, you must file Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment), with your tax return.

Qualified principal residence indebtedness

This is a mortgage you took out to buy, build, or substantially improve your principal residence. It also must be secured by your principal residence. If the amount of your original mortgage is more than the cost of your principal residence plus the cost of any substantial improvements, only the debt that is not more than the cost of your principal residence plus improvements is qualified principal residence indebtedness. Any debt that is secured by your principal residence you use to refinance qualified principal residence indebtedness is treated as qualified principal residence indebtedness, but only up to the amount of the old mortgage principal just before the refinancing. Any additional debt you used to substantially improve your principal residence is also treated as qualified principal residence indebtedness.

Principal residence

Your principal residence is the home where you ordinarily live most of the time. You can have only one principal residence at any one time.

Amount eligible for the exclusion.

The maximum amount you can treat as qualified principal residence indebtedness in $2 million ($1 million if married filing separately). You cannot exclude from gross income discharge of qualified principal residence indebtedness if the discharge was for services performed for the lender or on account of any other factor not directly related to a decline in the value of your residence or to your financial condition.

Ordering rule

If only a part of a loan is qualified principal residence indebtedness, the exclusion applies only to the extent the amount discharged exceeds the amount of the loan (immediately before the discharge) that is not qualified principal residence indebtedness. For example, assume your principal residence is secured by a debt of $1 million, of which $800,000 is qualified principal residence indebtedness. If your residence is sold for $700,000 and $300,000 of debt is discharged, only $100,000 of the debt discharged may be excluded (the $300,000 that was discharged minus the $200,000 of nonqualified debt).

If you require any further explanation or have any questions regarding these issues please contact Daniel Alexander, accountant at Pignatare & Sagan LLC, 413-746-9465.

I really appreciated Dan writing this for me as I believe it sheds light on the tax issues in a concrete way. I hope readers find it as useful!

Thanks Dan - Nyles

Updated MA Short Sale Addendum

Sat, 27 Sep 2008 23:50:06 -0500

Although I have heard a great deal of complaints about the short sale addendums that are flying around he Commonwealth of MA (and the country) The contracts must be ammended to reflect the nature of the transaction!

Here is what I suggest:

ADDENDUM TO PURCHASE AND SALE AGREEMENT

BUYER understands and agrees that the sale of the Premises is the subject of a “short sale” meaning that the SELLER has made a request to his lenders, to accept loan payoff amounts for each loan that is less than the amount due under the terms of each lender’s Note. BUYER further understands and agrees That SELLER’s performance under this Purchase and Sale Agreement is conditioned upon:

1. Lender (s) approval of short sale

2. The amount of proceeds due SELLER or the amount of cash due from SELLER shown on the final HUD Settlement Statement at closing shall not exceed zero and 00/100 dollars ($0.00), meaning that SELLER shall neither take proceeds from the sale of The Premises nor he required to bring funds to closing to consummate the sale of the Premises to the BUYER.

3. All real estate taxes, condominium fees, utilities or other expenses related to the maintenance of the premises, adjustments or sellers closing costs shall be paid first at the time of closing with any deficit to be taken from the lender(s) or other creditor (s) fees as the lender(s) or creditor(s) may agree. Seller will not be responsible for any post closing adjustments.

4. BUYER understands and agrees that SELLER may continue to accept so-called “back up” offers until SELLER receives written confirmation of BUYER’s unconditional purchase money mortgage loan approval.

5. BUYER understands and agrees that if SELLER is informed that one or both of his mortgagees do not approve a “short sale” of the Premises, this Purchase and Sale Agreement shall be null and void, SELLER shall not be obligated to perform, and BUYER’s deposit shall be promptly returned to him in full.

6. The BUYER understands that there are no funds available to pay for termite repair or treatment should such repairs be recommended by Buyer’s inspector. Paragraph 15 is hereby deleted from the contract, however, Buyer may perform such termite or wood boring insect inspections under the terms of paragraph 20 of the purchase and sale agreement.

_____________________________ ____________________________

Buyer Seller

Short Sale Inspection Issues and Other Matters

Sat, 27 Sep 2008 23:44:49 -0500

As part if the series that I had been working onfollowing is my take on Short Sale Inspection Issues and Other Matters.

Inspections

Generally the Seller is not willing to pay for any repairs. This should be made clear in the contract. Recall that paragraph 15 of the standard Realtor contract in Hampden County requires that the Buyer pay for the first $1,000.00 in termite treatment and repair. If Seller is unwilling to pay this charge, it should not be left in the offer or purchase and sale agreement as a potential deal breaker. A compromise on this point is to state in the short sale addendum that the inspections may be performed for wood boring insects, but that these inspections fall under the general provisions of paragraph 20 where Buyer may request the return of their deposit if they are not satisfied with th results of the inspections.

Additional Provisions

Because there should be a date that the Seller must perform by, it is important to state a date by which Seller must obtain short sale approval or Buyer at Buyer’s option may terminate the contract. Without such a provision there could arguably be no performance date and Seller could hold Buyer’s deposit indefinitely. Another issue that is very important to the Buyer is their rate lock period. Lenders should attempt to lock the rate for as long as possible because these transactions are often delayed. In our opinion it is unfair to simply state that Buyer may withdraw if their rate lock expires without giving the Seller that date which should be stated as indicated above. The short sale addendum highlights the nature of the transaction, the requirement of approval from the lender(s) and the fact that there will be no adjustments after closing and no money for repairs prior to closing.

- Nyles Courchesne

Managing Time MA Real Estate Attorney Working With Realtors

Sat, 27 Sep 2008 23:14:28 -0500

Did you know that Realtors are extremely hard working and often take their workday into the night and weekends? Of course you did! As a MA Real Estate Attorney, I have come a long way in my journey from attorney to real estate attorney to real estate attorney that acts like a team member in each transaction. I have come to appreciate just how hard Realtors work and how difficult it is for them to manage their time.

When it comes to working with Realtors I think that it is important that attorneys help streamline the process. We need to have an understanding of what each professional's expectations are from start to finish.

Some of the things that I expect is that the Realtor will provide me with complete contact information for all parties at the time that I am first engaged. I also expect to receive fully executed contracts and any amendments to the contract timely so that I remain in the loop. Finally. I expect that the Realtor will feel comfortable calling me or encouraging the client to call me with any legal issue regarding the transaction.

Realtors can expect that I will contact the client right away and that my staff will process the file in a timely manner. Realtors can expect return calls or better yet, answers from myself or my staff whenever they call! I return all calls within 24 hours and check email all the time. I try to be pro-active and my staff makes reminder calls and faxes to Realtors at every important date in the transaction. We work as a team. . .

In short, Realtors can expect to be treated with respect for the hard work that I know they are performing.

Distressed

Tue, 23 Sep 2008 21:58:15 -0500

I have declared 2008 the year of distress!

There's a crazy looking distressed image for ya. . .

Everything that I am working on has a "distressed" component. If it is not a distressed sale (short sale) or a distressed property (neglected REO bank owned), then I am working with a Buyer who has distressed credit.

In fact I would have to say that the distress is not just limited to the clients and property, but extends to the real state professionals that I am working with as well. Every day I speak with distressed Realtors who are despairing over their lower than average sales. There are also many distressed loan officers who are moving around with every retail banking outlet closing in order to find better positions in the shrinking lending market.

What is the solution? I am not sure, but it seems that distress leads to dis-trust. The one thing that we cannot do is dis-trust one another as real estate professionals. The people who jumped in when the market was hot have all left now that it has gone cold. I think those of us left need to work together in order to maximize every opportunity that we have. We need to be thinking about referrals all the time. We need to be linking with people who can help us make the most of our time and effort as we work with these most difficult transactions. We need to bring order out of all of this chaos. Let's get back to basics, working harder, but working together. I say call that Realtor, Loan Officer, Real Estate Attorney and grab a coffee, bitch about the market and discuss how you can work together with new loan products, new legal strategies and new marketing ideas to turn things around.

-photo from congnitive distortion.com

Short Sale Contracts Concerning Inspection Issues and Rate Lock Issues

Mon, 08 Sep 2008 20:35:39 -0500

Stop short sales from putting you out of business! Read On!!!

Inspections:

Generally, in short sales,the Seller is not willing to pay for any repairs. This should be made clear in the contract. Recall that paragraph 15 termite, wood boring insect provision of the standard Realtor Contract for Hampden County and other Counties in MA requires that the Buyer pay for the first $1,000.00 in termite treatment and repair. If Seller is unwilling to pay this charge, it should not be left in the offer or purchase and sale agreement as a potential deal breaker.

A compromise on this point is to state in the short sale addendum that the inspections may be performed for wood boring insects, but that these inspections fall under the general provisions of paragraph 20, the structural / all other inspections paragraph where Buyer may request the return of their deposit if they are not satisfied with the results of the inspections.

Additional Provisions / Short Sale Addendum:

Modifications to the Realtor Contract for Successful Short Sale Transactions

Sun, 07 Sep 2008 11:25:47 -0500

SORRY ABOUT THE PIC, I JUST LOVE THE BASKETBALL HALL OF FAME!!!!

Short sales remain a slick shifting maze. The market has been changing, rates are climbing, and the number short sale transactions that are being processed by lenders is also increasing. These factors are creating more stress on an already stressful process. Below are a list of changes to the offer and purchase and sale agreement that balances the equities between buyers and sellers in these transactions and a brief explanation of the reasoning for each. This first article will focus on timeline changes and the second post will focus on inspections and addendum issues:

NOTE the paragraph numbera re not as important as the subheading, so if the MA contract you are using has different numbers, make chages according to the heading:

Changes to the Contract Paragraphs 4 and 7 Closing/Performance Dates Change date to 21 days from date of short sale approval* Paragraph 13 Mortgage Contingency Date: Change date to 14 days from date of short sale approval, Paragraph 20 inspection dates should occur within the normal 10 day period!*

Date changes*

Because the time frame for short sale approval can vary widely from 21 days to 120 days, many attorneys and Realtors are changing the dates that we normally see in the offer and purchase and sale agreement. Without these changes a Buyer will need to pay for inspections, an appraisal, title and other attorney fees prior to short sale approval if the standard periods of time are used in the Realtor contract and the short sale approval is delayed. To balance these expenses we encourage buyers to conduct their inspections prior to short sale approval, but wait until after short sale approval to pay any additional charges.

The rationale for the above compromise in the normal timeliness is three-fold:

1. We do not want the Buyer to pay for an appraisal and title work if the short sale is not approved in a timely manner or if it is denied - (sometimes we never hear and the property is eventually auctioned)

2. We do not want to find out at the end of a long short sale approval process that the Buyer is not interested in purchasing the property because of a repair issue which depending on its nature may be: a) non-negotiable (Buyer simply refuses to Buy a home with water issues) or b) now impossible to negotiate with the lender that has given their approval based upon the property being sold “as is”. If the repair issue is discovered early in the process, it can be negotiated in the sale price before the contract is submitted to the lender and short sale approval is obtained.

3. We do not want our Buyers wasting valuable house hunting time in the event that there are inspection issue. Rates are climbing and there are a lot of great deals out there. If the house does not inspect, let's get these Buyers to move on and Buye their home in this Buyer's Market!

Next post concerns inspection and an updated addendum!

Why Print is Still Important

Mon, 04 Aug 2008 21:05:18 -0500

As much as we may not wish to believe it, print media is still important in the advertising campaigns of real estate professionals. One of the most powerful tools that real estate agents use is the signage with their picture and phone number, stuck in the front lawn of an impressive property. People who are not even in the market notice the same names appearing over and over as they drive by . In their minds they are think ling wow, that so and so does a lot of business. She must be a good agent.. . . Not to mention the fact (everyone has this story) Buyers who are already working with agents often call the agent named on a sign or walk in to an open house advertised with signs and ask to work with the agent that has the listing - even when they have been working with a Buyer's agent - they suddenly forget because well, this agent just seem more convenient or better because her name and number are on the sign on the house that I want.

As far as print advertising, it is not a far stretch from the sign on the front lawn to the newspaper that sits on the front porch. If people read the name of the listing agent associated with a property that they like in the Sunday paper - they are likely to call that number and suddenly the agent has two sides of the transaction. The internet provides the same opportunity, but do not forgo the print advertising. People are still using it on Sundays etc. . . and if they do not find you there, they may find someone else. . .

Perhaps the most powerful print advertising / marketing that you can do is the "Thank You" card or letter. An email is just not the same as a card in the mail. One of my goals this year is to work on a Thank You campaign of direct mail cards to real estate agents and bankers who send me referrals or who I happen to work with on a given transaction. People deserve a personal contact - a hand written card means a lot - I know that I keep them when I get them! Tell me what you think. . .

Death and Real Estate in Massachusetts

Sun, 27 Jul 2008 18:45:58 -0500

In Massachusetts, real estate sales can become complicated when an owner passes away. Sometimes very little is necessary in order to validate a transfer of a survivor-owner of the real estate. Other times it may take months to clear the title through the probate process in order to allow the property to be transferred out of the name of a decedent. It is therefore important for the real estate agent and the Buyer or Seller of real estate to understand these complexities so that any additional time or expenses can be anticipated during the contract negotiation stage, rather than reacted to as an unforeseen surprise/delay just prior to closing. . .

How Title is transferred:

The most usual way that title is transferred is voluntarily through a written instrument called a “deed”. Any person or entity that owns real property can grant their interest ( as a “grantor”) in the real property to another person or entity who accepts the property (“grantee”). If more than one person own real estate than all owners must execute a deed to the new owner if the new owner is to receive 100% interest in the property. The basic rule is this: Everyone who is listed on the deed as a person who is receiving the property, (“grantee”) must sign a deed into the new owner. This includes anyone who has reserved any rights as a grantor. In the example deed below, the Grantees are underlined, as is the reservation of rights in the grantor:

Example Deed:

Book 13435, Page 245

Rec: 06/05/2007

Quitclaim Deed

Know all men by these presents that George S. Jones and Jennifer C. Jones both of 123 Any Street, Any Town, Hampden County, MA, 00000 in consideration of less than one hundred dollars grant to

Mark C. Jones and Samantha J. Weston-Jones, both of 456 Another Street, Another Town, Hampden, MA 00000 as joint tenants with rights of survivorship (the tenancy could also be silent, listed as “tenants in common” or “tenants by the entirety”)

The land located in Any Town, Hampden County , MA known and numbered as 123 Any Street, Any Town, Hampden County, MA, more particularly described in Exhibit “A” attached hereto

Grantors herein reserve a life estate.

Being the same premises conveyed to the Grantor’s herein by Deed dated January 1, 2008 and recorded with the Hampden County Registry of Deeds in Book 12345, Page 123. Executed as a sealed instrument this 31st day of July, 2008

_______________________ _____________________________

Witness George S. Jones

________________________ _______________________________

Witness Jennifer C. Jones

COMMONWEALTH OF MASSACHUSETTS

Hampden, ss July 31, 2008

On this 31st day of July, 2008, before me, the undersigned notary public, personally appeared George S. Jones and Jennifer C. Jones, proved to me through satisfactory evidence of identification, which was a Massachusetts Drivers License, to be the person whose name is signed on the preceding or attached document, and acknowledged to me that they signed it voluntarily for its stated purpose.

________________________________ Nyles L. Courchesne, Notary Public My commission expires: 03/15/09

If you were Mark C. Jones, one of the owners of the property described in the deed listed above, you would need the participation of Samantha J. Weston-Jones, the co-owner and George S. Jones and Jennifer C. Jones who have both retained a life estate in order to transfer 100% interest in the property to a third party. All four owners would simply sign a deed and the property can be transferred. If one of the four parties had died then they obviously cannot sign. Depending on what their ownership interest is in the deed a probate of their interest may or may not be necessary.

When Probate is Not Necessary:

Many times, as in the example above a deed is written so that if someone dies, their interest automatically vests in a survivor-owner. The most common way for this survivorship interest is established is through the “tenancy” which is stated in the grantee clause of the deed. A tenancy describes what the ownership interest or rights that a person will have at the time of the death of an owner of the property. In our example above, the grantee clause is: as joint tenants with rights of survivorship. This means that if Mark and Samantha hold the property jointly with rights of survivorship. If Mark dies, his interest in the property automatically vests in Samantha and vise versa.

The second common way for a survivorship interest to be established is when a grantor in a deed retains it. This is what George and Jennifer have done in the example deed above. Toward the end of the deed they reserve a “life estate” which means they have the right to possess the property for the duration of their lives. This is a common estate-planning tool that people use. When the holder of a life estate dies, their interest in the property passes to the remaining owners. In our example, when George and Jennifer die, Mark and Samantha will own the property outright, no longer subject to the rights of George and Jennifer.

The only thing that is necessary to validate a transfer from a survivor-owner is proof of the decedent-owner’s death. This is accomplished through the recording of a death certificate at the registry of deeds. If a decedent-owner has died within 10 years of the proposed transfer to a new owner the property may also be subject to estate taxes. An affidavit or estate taxes may need to be filed in such a situation. Normally this is not a problem as the threshold for estate taxes is fairly high (As of 2008 an estate must be worth over $1,000,000.00 to be subject to estate taxes). A joint owner, executor or administrator of an estate or a person in actual possession of the property may record a simple affidavit in order to resolve this issue.

If the property is held by an individual who dies or an owner who does not have a joint tenancy, who dies, then a probate will be necessary. In my next post, I will review the types of estates that must be filed and the time-line that is necessary in each circumstance.

Law Books Pic From http://www.flickr.com/photos/48745248@N00/

Massachusetts Real Estate Attorney - Buying Real Estate 2.0

Sun, 18 May 2008 20:00:59 -0500

As much as the real estate game has changed for Sellers (as I had explored in my last post), the game has certainly changed for Buyers as well. The question is with some types of property, do they, or rather should they want to play?

Over the last year I have had my share of horror-show -closings with short sales that were never approved and REO properties that were not properly inspected prior to closing leaving the Buyer with expensive, unexpected repairs. In Buying property 2.0, the basic principles of buying property are the same, but the risks have changed. With short sales and bank owned properties Buyers have three major risks:

1 Will the property close in time for Buyer's use, or within Buyer's rate lock period?

2. Will there be expenses that Buyer will lose if the property does not close due to Seller or Seller's Lender?

3. Must Buyer forego some due dilligence in order to make the deal happen and at what cost?

These risks may be obvious, but I have a lot of Realtors dragging first time home buyers through these types of transactions. Often, said Realtors do not fully relate all of these risks as same may apply and they end up calling my office a thousand times as the deadlines pass, asking me why we are not closing on time and "so what happens now?"

I think if we properly prepare our clients with cautionary advice and give them options, we can succeed with these 2.0 Buyers - they just need to be prepared to wait and they must be willing to gamble a little if they want to purchase a discounted bank owned or short sale property!

Massachusetts Real Estate Attorney and Real Estate Sales 2.0

Sat, 17 May 2008 17:03:15 -0500

It seems that the game has certainly changed with in this new market much like many of has experienced our businesses marketing strategies changing with all of this new web technology - including active rain and other social and business network sites. There really is a lot to learn about the web and the many new tools abound. . . This is really exciting because we can learn and take advantage of all of the information that is available on Activerain. I really must say that you, my fellow bloggers, are an enormous wealth of information - I learn something important and new every day. I think that generally our collective goals with all of this Web2.o technology is to be in the forefront of our respective fields. So while we get there who's clicking on the front page anyway?

I feel sometimes that we should take a step back and look at our targets in this new market. In this new market - Who are our Buyers? Who are our Sellers? I have written extensively on short sales, and recently on buying REO properties. I think that short sales and REO properties in Massachusetts are two of the more predominant trends that I have experienced as a Real Estate Attorney. I would have to say that these trends have more to do with the position our sellers are in. In fact 1 out of 3 sellers I am dealing with is a bank or bank representative!

That last statistic is quite telling in and of itself. It literally just hit me that essentially because I am not working at a clearing house for banks, I am not getting 1 out of 3 sales in this down market. So as bad as it is when you hear the statistics, it is 33% worse for me! If you are a Realtor and you do not get REO listings, I believe that you are probably experiencing the same thing. . .

This means that as real estate professionals the pool of available business is even smaller and perhaps unfairly so, due to the fact that the few Realtors and Attorneys that have REO business, probably have a lot of it (Doesn't it seem that the REO listing Realtors are overwhelmed and never know which of their 90 listings you are calling about?) And the REO attorneys NEVER have the documentation together in time to close (I really believe that Never is the correct term, not an exaggeration)

Well aside from the obvious conclusion that if we are not doing REO we are playing in the shallow end of the pool there are probably many other rules and strategies that apply going forward. . . Please share yours! Lets talk about Real Estate Sales 2.0 (feel free to give it another name, the concept is there, the tag-line needs work. . .)