Portsmouth, New Hampshire is a historic city on the state’s Atlantic Ocean coast. A popular summer tourist destination, Portsmouth offers a multitude of shops, restaurants, art galleries, cultural attractions, parks, beaches and historic sites for the enjoyment of residents and visitors alike. Portsmouth is centrally located within an hour’s drive of Boston, the state capital in Concord, the cities of Nashua and Manchester, the southern coast of Maine and the scenic Lakes Region. Additionally, the snowy peaks of the White Mountains and the idyllic fishing villages of Cape Cod are just a short drive away. First explored in about 1603, Portsmouth was settled in 1630 as Piscataqua and soon renamed Strawberry Banke because of the abundant wild strawberries growing along the banks of the Piscataqua River. Portsmouth was incorporated under [...]
Portsmouth NH Condominiums
Portsmouth NH Condo If you are interested in buying a Portsmouth NH condo (condominium) as a primary residence or for investment, it is important to be aware of the legal, financing and lifestyle ramifications of this alternative type of home ownership. Since you will be sharing land, common areas and amenities, there are rules and regulations that you must be familiar with. A condominium has its advantages but in some cases a specific Portsmouth condo development may have restrictions that do not fit your lifestyle. To assist you in evaluating the community of Portsmouth and types of homeownership visit Portsmouth NH real estate. This site will provide virtual tours, demographic, school, home buying and selling information. What Is A Condominium? A condominium is a form of land ownership which typically [...]
Read the full article →Portsmouth NH Short Sales
Portsmouth NH Short Sales – An Alternative to Foreclosure As a home buyer looking for value in the purchase of real estate a Portsmouth NH short sale may be a viable option. The process of finding and buying a Portsmouth short sale is not a typical real estate transaction. To achieve your goal, hire experienced professionals that understand all aspects of the transaction. Utilize the services of Realtors, attorneys, accountants, mortgage lenders and home inspectors as they all provide expert advice. What is a Short Sale? Homeowners in financial distress often explore all options, including a short sale, prior to foreclosure. This process may be the best option to preserve their credit and limit their debt exposure. Prior to the current real estate recession, homeowners with financial difficulties often negotiated [...]
Read the full article →Portsmouth NH Homes for Sale
Portsmouth NH Homes for Sale – Homebuying Guide Purchasing a home can be a very stressful and complicated process especially if you are a first time buyer. Enlisting the services of experienced real estate and industry related professionals will provide you with the necessary information and advice to make sound decisions in buying Portsmouth homes for sale. Buyers often interview mortgage loan officers, Realtors, attorneys, home inspectors, accountants and financial advisors during the process of purchasing real estate. Visit Portsmouth NH real estate to evaluate the community demographics and obtain school, relocation, home buying and selling guides. Virtual tours of homes, neighborhoods, schools and recreational amenities are featured. Portsmouth Home Mortgage Financing Most homebuyers will finance the purchase of their purchase through a home mortgage and there are various first-time [...]
Read the full article →Portsmouth NH Condo
If you are interested in buying a Portsmouth NH condo (condominium) as a primary residence or for investment, it is important to be aware of the legal, financing and lifestyle ramifications of this alternative type of home ownership. Since you will be sharing land, common areas and amenities, there are rules and regulations that you must be familiar with. A condominium has its advantages but in some cases a specific Portsmouth condo development may have restrictions that do not fit your lifestyle. To assist you in evaluating the community of Portsmouth and types of homeownership visit Portsmouth NH real estate. This site will provide virtual tours, demographic, school, home buying and selling information.
What Is A Condominium?
A condominium is a form of land ownership which typically consists of 2 or more units. The interiors of the units are individually owned (the paint in). Unit owners share joint ownership of common areas (grounds, hallways, pools, clubhouse, etc.). Areas that service a specific unit, while still held in common, may also be designated as the “exclusive right to use” of a specific unit. This typically will include balconies, patios, and assigned parking spaces. The master deed is a document that places the land into condominium status and details the ownership structure.
The cost to maintain these common areas and services are shared by the unit owners in the association. They pay a monthly fee which is typically determined based on an approved annual budget voted on by the condominium association.
Financing a condominium can be a more difficult process than obtaining a mortgage for a single family home. A variety of factors impact condo developments and their ability to obtain approval from HUD for FHA or VA loans. The financial stability of the condo association, investor concentration and recent foreclosures are concerns for underwriters.
Laws Governing New Hampshire Condominiums
The primary statutes are the federal Land Sales Full Disclosure Act, the New Hampshire Land Sales Full Disclosure Act and New Hampshire RSA 356-C. The New Hampshire Condominium Act is 356-B.
Any condominium of more than 10 units must register with, or formally be exempted by, the New Hampshire Attorney General. The registration (or exemption from the registration) must happen before the developer sells or offers for sale any units. This law also requires that the developer present all material facts about the property to potential buyers (a fact is “material” if it would influence the average person’s decision to buy the property).
Some projects must present a public offering statement to each buyer before or at the time of purchase. In addition, under the law buyers usually may cancel their purchase within five days after signing the purchase contract or five days after receiving the public offering statement whichever is later.
What Buyers Should Know about Condominiums
Visit Portsmouth NH homes for sale to view all condos for sale. If you are thinking of buying a condominium unit, be sure to review:
1. Condominium Documents — “The Condo Docs” – Master Deed, Condominium Trust, etc.
2. Rules & Regulations – Can you have a tenant? Are their pet restrictions?
3. Financial Statements — Annual and current budget – What is the delinquency rate?
4. Capital Reserve Fund – Are there sufficient reserves? Will FHA approve the fund?
5. FHA, VA Approval – Is a current approval in place? Financing may be impacted.
6. Ownership Concentration – How many units are owner occupied? May effect financing options.
7. Special Assessments – Pending and approved. Should be disclosed by the seller.
8. Management Company – Is there one? Who is it? Do they have a track record?
9. Pending Legal Actions – Are there any? What type?
10. Monthly Condo Fee – What does it cover? This may vary greatly.
11. Master Insurance Policy – Verify coverage
12. Annual Meeting Minutes and Trustee Minutes (When Available) – most current changes to the by-laws, rules and regulations.
If you are going to buy a Portsmouth MA condo you should have the documents reviewed by your attorney. Your Realtor Buyer’s Agent should also be certain your offer provides for a cancellation should any part of the documents not are acceptable to you. The appropriate contingencies should be referenced in the purchase and sales agreement.
Portsmouth Condominium Styles
• Garden (flat) — contains one-level of finished living space. Often an apartment conversion.
• Townhouse — contains two or more levels of finished living space.
• Conversion – many city antique properties have been converted to condos.
• Detached — free-standing building (no other unit is located in that same building).
• Duplex — two attached units sometimes referred to as “codex”. There may be several duplexes/condexes within a particular complex.
• Low Rise Building – A building with primarily garden-style units and no more than 4 levels in the entire building.
• Loft – Units developed from commercial/industrial buildings and converted to large open living areas.
• Mid Rise Condo – Often mixed use buildings of 5-10 stories.
Importance of Working with a REALTOR in Your Condo Purchase
Portsmouth offers a variety of condominiums for home ownership and investment. Consider all options including new construction, foreclosures and short sales. To assist you in evaluating your options you should consider hiring a Buyer’s agent to represent your interests. NH real estate law requires agents to provide proper disclosure of agency options which includes client level services to consumers. This fiduciary relationship is established with a Buyer agency contract will provide you with the representation you may want. Your options for the Realtor business relationship must be presented through the Mandatory Disclosure form. Realtors will provide this disclosure at the first business opportunity and be mindful that the disclosure is not a contract for services.
Virtual Homes real estate agents can provide additional details and educate you on everything that you need to know regarding your Portsmouth NH condo purchase, including information on co-ops and informal complexes such as converted multi-family buildings.
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Portsmouth NH Short Sales – An Alternative to Foreclosure
As a home buyer looking for value in the purchase of real estate a Portsmouth NH short sale may be a viable option. The process of finding and buying a Portsmouth short sale is not a typical real estate transaction. To achieve your goal, hire experienced professionals that understand all aspects of the transaction. Utilize the services of Realtors, attorneys, accountants, mortgage lenders and home inspectors as they all provide expert advice.
What is a Short Sale?
Homeowners in financial distress often explore all options, including a short sale, prior to foreclosure. This process may be the best option to preserve their credit and limit their debt exposure. Prior to the current real estate recession, homeowners with financial difficulties often negotiated a “work out” or simply sold the property. Due to the dramatic decrease in values and the high volume of high ratio loans, homeowners are often “under water” on their mortgage. This term is used when the net proceeds of the sale of property is insufficient to cover existing liens on the property. Due to the higher volume of homeowners in this financial situation, short sales have become more common and lenders have determined that it may be in their best interests to consider them.
NH law often presents the lender with incentives to offer the homeowner other alternatives than foreclosing. The lender understands market conditions and the expense involved in foreclosing on property. Under the Homes Affordable Foreclosure Alternatives Program (HAFA) offered in 2010 by the Treasury Department, lenders and homeowners have additional incentives to consider a short sale. This program was designed to facilitate the process qualifying and negotiating a loan modification or short sale prior to foreclosure.
Portsmouth Short Sales – The Process
The first step in the process is to negotiate a contract with the homeowner that would be subject to lender approval. In most cases, the homeowner does not know if the lender will accept all the terms and conditions of the contract at the time they accept the offer. If the contract is not acceptable to the lender then the Seller may not have sufficient time to sell to another party and avoid foreclosure. If the homeowner and the lender are participating in the HAFA program, then the short sale may have been pre-approved. The following tips will increase your chances of negotiating a successful Portsmouth New Hampshire short sale transaction.
You Must be Credit Approved – Well Qualified Buyers Have the Advantage
As a home buyer you must provide evidence that you are financially capable to purchase the property. The Seller is unable to accept your offer without a valid credit approval as they know the lender will reject the contract. If you are attempting to purchase a Portsmouth NH short sale, get pre-approved through a reputable lender or if a cash buyer provide proof of funds. The contract must have only the standard and typical conditions of sale to obtain lender approval.
Finding Portsmouth Short Sale Listings That Qualify
Homeowners in financial distress typically have a limited amount of time to find a qualified buyer. If they have not connected with their lender(s) and started the short sale approval process, there may not be sufficient time to affect a sale. Home buyers should understand that all properties marketed as Portsmouth short sales are not a realistic options. View all listings available at Portsmouth NH homes for sale. Your real estate agent can identify properties that you may consider and should obtain the following information.
Has the homeowner compiled the necessary documents for the lender approval package?
How many liens are on the property? If more than one, what are they? Is there a plan to obtain releases from all the lien-holders?
Don’t take yourself out of the market for a property that has no chance of closing. In most cases, short sales do not close and you may have better options such as a Portsmouth foreclosure.
Offer and Acceptance by the Seller
The first step is to have your offer accepted by the Seller and you will be competing against other buyers. Some real estate agents market the property substantially below market value to entice buyers. Others offer the property at the bottom of fair market value. The real estate agents goal is to generate as many offers as possible, in a short period of time, so the Seller has options to consider. Price, terms and your qualifications will be the deciding factors for Seller acceptance. Sellers and lenders prefer offers with fewer contingencies.
Earnest Money Deposit- Sellers may be hesitant to accept your offer with a low deposit. Buyers can easily “walk away” from a contract with a low deposit. Offering the Seller a strong deposit indicates that you are serious about buying the property. If you are competing against other offers that have similar terms and conditions, the deposit can be the deciding factor.
Home Inspection – It is customary to conduct the home inspection prior to submitting the contract to the lender. A Seller may not want to take the risk of allowing the inspection after lender approval. The buyer can easily “walk” from the home inspection and lenders normally will not approve them.
Flexible Closing Date – Lenders often approve short sales with quick closings. You must be prepared to comply if you want to consummate the sale. Once the lender approves the short sale, they want to close and limit further financial losses.
Subsequent Offers –As a rule, real estate agents must present all offers up to closing. A contract with better terms and conditions may have a better chance of being approved by the lender. Sellers often think the lender will want to view a new and stronger contract. The lender will give the homeowner direction as to submitting additional offers and typically new offers are taken in a “back-up” position. In addition, arrange for your lender to lock your interest rate for your mortgage so that you qualify whenever the closing is required.
Lender Approval – Nothing is Guaranteed
Lenders have no set formula for determining the value of the property other than to substantiate values through due diligence. However, Freddie Mac (one of the largest secondary market lenders) has a target sales price of 88% of one or more broker price opinions (BOP). Have realistic expectations of the approval process as it may take between 30-180 days and property values can change.
If the lender and the Seller are participating in the HAFA program, these timelines will be streamlined for a quicker response. In fact, the Lender may have approved a listing price for the property.
If you are interested in pursuing a Portsmouth NH short sale or other listings currently on the market, please contact Virtual Homes Real Estate at 800-856-2479.
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