A Declaration of Homestead is a type of protection for a person’s primary residence. The Declaration of Homestead is a form that is filed at the Registry of Deeds in the county where the property is located, referencing the title/deed to the property. It allows homeowners in Massachusetts to protect their property up to five hundred thousand dollars ($500,000) of the value from civil attachment.
Today the House of Representatives voted 409 to 5 to give home buyers three more months to close on their purchases and still qualify for the $8,000 or $6,500 federal income tax credit.
The House bill extends the closing deadline to September 30, 2010.
Now the Senate must approve the new, stand-alone House bill. But the Senate has already shown support and approval of the measure by having passed their own version of the bill last week.
The House bill doesn’t help anyone currently shopping for a home. Buyers must have signed a purchase contact by April 30 to qualify for the tax break. The issues currently is that many who now qualify for the credit may not be able to close their transaction in time. That is by July 1, 2010.
Read more on Inman News.
The Home Affordable Foreclosure Alternatives (HAFA) program is a part of the Home Affordable Modification Program (HAMP), and offers a streamlined process for short sales and deeds-in-lieu of foreclosure. HAFA will allow homeowners to discharge their first mortgage debt without the credit-destroying step of foreclosure. The program also offers a $1,000 incentive to banks to permit short sales and a $1,500 bonus to homeowners for the purpose of relocation.
• The property must be the owner’s principal residence
• The first mortgage must have originated before 2009
• The unpaid principal must be less than $729,750 for a single-family dwelling
• The borrower’s monthly payment must exceed 31% of their gross income
• The mortgage must either be delinquent or a default be reasonably foreseeable.
If borrowers meet the program requirements they will receive pre-approved short sale terms from their lender, which will include a minimum acceptable proceeds figure for the sale. The homeowner will be required to list the property for sale with a Realtor® and close within 120 day, extensions may be permitted up to a total of 12 months.
Based on the short sale agreement with the lender, HAFA requires property owners to be fully released from any future liability on their first mortgage debt, and in some cases, subordinate debts, so that when the home is sold, the borrower is free and clear of their mortgage.
The program ends on December 31, 2012. HAFA does not apply to FHA or VA loans. There is an extensive amount of paperwork to be completed to participate in the program, Homeowners wishing to take advantage of the relief offered are encouraged to work with a experienced Realtor®.
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Law Requires 2 Types of Smoke Detector Technology
The two most common methods of fire/smoke detection technology currently used is either ionization or photoelectric based.
Ionization sensors feature a constant current flowing between two electrodes. When smoke strikes the device, it impedes the current between the electrodes and causes the alarm to set off. Ionization sensors are usually quicker to go off than photoelectric detectors. The problem with ionization detectors is that they are not able to distinguish between smoke and steam. This makes them prone to false alarms when steam from a shower or other source interrupts the current. This is particularly true when the ionization detector is located near a kitchen or bathroom.
Photoelectric sensors send a beam of light between two sensors. This beam passes in front of the sensors in a direct line. When smoke cuts across the path of the light beam, some light is dispersed by the smoke particles causing it to activate the alarm. Photoelectric detectors are less sensitive to false alarms from steam or cooking exhaust fumes but may take longer than ionization detectors to operate. Another major concern is that ionization detectors do not offer the best protection in fires that smolder. Fires that smolder are some of the deadliest fires nationally. Photoelectric smoke alarms are more sensitive to smoldering, smoke producing fires. Most of the residential dwellings in the country have ionization detectors which are more sensitive to flames.
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On July 1 2010 a new Massachusetts law goes into effect that will concern certain homeowners. The new law requires that all 1 to 4 family residential dwellings serviced by a home heating oil system meet new safety standards.
Homeowners using home heating oil must have either an oil supply safety valve or an oil supply line with a special protective sleeve.
Homes build after January 1990 should already be in compliance with the new law and would likely have one or both of these safety features installed.
However, homes constructed prior to then may not have such safety features and are required to be in compliance and upgraded by July 1, 2010.
There are limited exemptions and an upgrade is estimated to cost between $150.00 and $350.00.
If you represent a home seller with a property constructed before 1990 confirm with them that they are aware of the new law and that they understand that they will need to be in compliance in order not to complicate a potential sale.
If you represent home buyers buying a home subject to the law inform them of the new law and ensure that the seller is incompliance before closing.
Read more about the new law here.
Here is a helpful .PDF fact sheet for buyers and sellers.
Last night FEMA made Disaster Declarations for much of Mass, RI and NH (see counties affected below). Lenders are going to require the appraiser go back out and do a re-inspection prior to funding to show that the property is undamaged / unaffected by the disaster. Be prepared for the phone calls. Be prepared to let the appraiser in quickly. Be prepared for potential delays to your closings. Be aware that this is not just Prospect Mortgage, this is going to be the case with any lender.
Here are the counties:
Massachusetts:
Bristol, Essex, Middlesex, Norfolk, Plymouth, Suffolk, and Worcester Counties.
New Hampshire:
Grafton, Hillsborough, Merrimack, Rockingham, Strafford, and Sullivan Counties
Rhode Island:
Kent, Newport, Providence, and Washington Counties.
If you have questions please do not hesitate to call or email me.
David Bremer
Senior Loan Officer
978-302-0475 Direct
877-721-7051 Fax
david.bremer@prospectmtg.com
www.DavidProspect.com
