Newburyport Foreclosures
Bank Owned Properties
From time to time, mortgage lenders come into possession of real estate. Banks develop "real estate owned" or "REO" inventories in a number of ways. They frequently acquire properties in this part of Essex County through the foreclosure process, as a result of the voluntary surrender of a property by a homeowner in lieu of a foreclosure proceeding, or as a result of the completion of some types of reverse mortgages.
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Typically, financial institutions prefer to acquire mortgages rather than realty. The latter type of asset may involve incurring holding expenses as the bank endeavors to administer and maintain the property. Many banks sell real estate, either by listing a home for sale with a real estate broker or by conducting a real estate auction. Today, prospective buyers sometimes search for bank owned properties.
Why do bank owned homes often appeal to home buyers and investors? In some situations, banks will provide attractive sales prices in order to entice purchasers to buy these properties quickly. Although exceptions occur, most mortgage lenders and financial institutions prefer to sell REOs. Vacant real estate does not generate a stream of revenue for the bank (unlike initiating a new mortgage).
Short Sales
When prospective home seekers look for homes in this region of Massachusetts, they find many different types of available properties. One situation deserves a word of caution. If you discover a property listed for sale as a realty "short sale", it usually makes sense to consult with a licensed Massachusetts real estate attorney and an experienced local broker in advance of making a purchasing decision.
While the buyer and seller and mortgage lenders may benefit from short sales, this type of situation involves considerable legal and financial risk. The seller owes more secured debt than a sale will realize. Many reasons may explain this development.
A homeowner may have purchased a home for an above market price and anticipated appreciation which never transpired. Or the homeowner may have incurred significant expenses associated with the property and borrowed money to help pay for repairs or improvements. In some cases, a seller bought a property at a competitive price, but the market subsequently fell. For a variety of reasons, sometimes property sellers become "upside down" on mortgaged homes.
Sometimes the holders of secured real estate debt agree to allow a short sale. In other cases, the sale may experience delays or disruptions which prevent a closing from occurring. Laws vary with respect to contracts for deed, so buyers and sellers contemplating a short sale should consider obtaining qualified legal advice from an expert in Massachusetts real estate law.
About Newburyport
The city of Newburyport sits along the Massachusetts coast in far northeastern Essex County. It maintained a population approaching 17,400 at the time of the 2010 decennial census. This distinctive location still contains many historic buildings, including a commercial district with impressive brownstone architecture.
Residents enjoy access to a thriving maritime port located at the mouth of the Merrimack River. This waterway empties into the Atlantic Ocean just north of Plum Island. The community appeals to many boating and maritime enthusiasts today.
On the north shore of the estuary, across the waterway from this town, Salisbury Beach State Reserve supplies a popular tourist destination. Many businesses in the area cater to seasonal visitors. With employment, shopping, dining, and entertainment opportunities within the local community, this enclave has attracted the interest of home seekers during recent years.
Highway (Route) 1 passes through the town. It offers ready access to the Greater Boston Metropolitan Area approximately 37 miles by road to the southwest. People living here also reach destinations within southern New Hampshire conveniently. If you've considered searching for a house, a townhome, a condo, a trailer, an apartment, or a lot zoned for residential construction in this location, contact Boston City Properties for knowledgeable assistance. We serve property sellers, mortgage lenders, home buyers, investors and other stakeholders within the real estate community.
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