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Hamden CT Homes - Hamden Real Estate Market Report August 2009

Informative post from a local agent on the recent activity and market trends in the Hamden, CT real estate market.

Read on for more information.

Via Donna Bigda REALTOR® Branford Connecticut Homes & Condos ( RE/MAX Alliance):

Hamden CT Homes - Hamden Real Estate Market Report August 2009

Understanding the general direction of the current Hamden real estate market conditions is of vital importance to both buyers and sellers in order to help you make a more informed decision when buying or selling a home in Hamden.

There are currently 203 Hamden CT homes for sale ranging in price from $26,000 to $1,495,000. In the month of August 2009 there were 44 homes that closed which is a decrease of 1 home as there were 45 Hamden CT homes that closed in August 2008.

The average sales prices of the Hamden CT homes sold in August 2009 was $241,583 with an average 78 days on the market versus $295,677 for those sold in August 2008 with an average 60 days on the market.

The median sales price for August 2009 was $227,500.

The median sales price for August 2008 was $272,500.

Below is a summary of the Hamden real estate market that provides a more in depth view of market conditions over the past twelve months.

For the period of January-August 2008 there were 336 Hamden CT homes sold withan average list price of $295,675, an average sales price of $283,131 and a median sales price of 260,000.

For the period of January-August 2009 there were 302 Hamden CT homes sold with an average list price of $256,242, an average sales price of $244,445 and a median sales price of $225,500.

The average sale price to list price ratio for January-August 2008 was 95.80% and for January-August 2009 was 95.27%.

The average days on market for January-August 2008 was 83 days and for January-August 2009 it was 78 days.

In reviewing this comparison of year to year market data for the Hamden real estate market there has been a significant decrease in the number of homes sold. While there has been a considerable decrease in the average sales price the months supply of inventory is going down indicating signs of some stability in the Hamden real estate market. . The average days on market for homes sold this year has decreased from the previous year.

The data for the August 2009 real estate market report for Hamden CT homes is based on statistics provided from the CTMLS (private sales are not included nor are mobile homes). ****************************************************************************************

Contact Donna Bigda, ABR, SRES, e-PRO, Realtor®, RE/MAX Alliance Licensed Realtor® in the State of Connecticut at 203-488-1641, ext. 214 to list your property for sale or to purchase a property in Branford, Guilford, Madison, East Haven, New Haven, North Branford, Hamden, North Haven and the rest of shoreline area in New Haven County Connecticut.

If you're considering selling your Hamden home, we'd be happy to provide you with a Pin-Point Price Analysis of your home which will help you determine what it might sell for in today's market.

If you're thinking of buying a home in Hamden see Hamden real estate or sign up today to get access the hottest new listings here Hamden CT Homes,

Copyright © 2009 by Donna Bi.da, All Rights Reserved ...*Hamden CT Homes - Hamden Real Estate Market Report August 2009*

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About the author:  Attorney Begemann is a member of the Connecticut Bar and practices real estate and business law in Connecticut.  As an experienced real estate attorney he represents individuals and lenders in residential and commercial loan closings across Connecticut, including the purchase, sale and refinance of real estate.

Attorney Paul H. Begemann, 2764 Whitney Avenue, Hamden, CT  06518

Phone 203-230-8739                                       Fax 800-483-1904

email

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0 commentsPaul Begemann • October 01 2009 03:11PM

Real Estate Contract Purchase and Sale Agreement Process in Connecticut

What is the real estate contract purchase and sale agreement, for purchasing or selling residential real estate in Connecticut?  What will my Connecticut real estate attorney do?  What will my Connecticut real estate agent do?  If you are thinking of buying or selling a home in CT, it is important to understand the basic process. 

Please note that the following is not legal advice but is designed as information.  Please contact your attorney for legal advice.  If you wish to contact me to discuss a particular situation or to retain me for your CT real estate closing, please go to my website at http://www.attybegemann.com or email me at .  Most of my closings I do for a fixed fee, discussed and disclosed prior to you retaining me as your attorney.  Please contact me for further details.

Make (or accept) an offer on residential real estate - Connecticut overview.

The potential buyer of a piece of residential real estate in CT will make a written offer. This offer will contain the relevant terms, such as property address, purchase price, closing date, mortgage amount, date by which to obtain mortgage, inspection terms, date by which to accept and any other relevant terms or conditions. Depending on where the property is located, the offer may be made in the form of a 'binder' or on a full purchase and sale agreement. In Fairfield County, the binder is usually used, while most of the rest of the state goes directly to contract.

Make (or accept) an offer on a binder form (Fairfield County, Connecticut).

Typically in Fairfield County offers are made on a binder. Although the exact form of the binder differs by area and by real estate agent, typically the binder is a one page form that contains the basic terms of the transaction. This includes purchase price, deposits, property address, personal property included with the sale, mortgage amount and date, inspection provisions and signatures of the parties. Typically one percent of the purchase price is paid at the time of the offer. The seller may accept or make a counter-offer. If an agreement is reached, the executed binder is forwarded to the seller's attorney for a full contract to be drafted for execution by the parties. Although the binder is completed with the expectation that a full contract will later be signed, in certain circumstances the binder can be enforced as a contract. The property condition disclosure report is also included. You should consult an attorney before signing a binder.

Make (or accept) an offer on a contract form (New Haven and Hartford Counties and most of CT).

Most areas of Connecticut go 'straight to contract,' which means that the buyer's offer is made on a contract form, and acceptance of the offer results in a fully binding contract. Most areas have an 'official' contract approved by the local Board of Realtors and the local Bar Association (see example at link below), or a form used by a particular agency. The contract form contains all the 'boilerplate' provisions, and the terms specific to the transaction must be added to the form and agreed to by the buyer and seller. The property condition disclosure report is also included. Although the contract form does not usually contain an automatic attorney review contingency, it is a good idea to have an attorney review the contract before it is binding (before you sign it). Since the contract forms used in different areas and even by different brokers have differing provisions, you should always have an attorney review the terms and provisions before you sign it. Remember, when you are making an offer on a contract form (most of the state) once that offer is accepted, it is a binding contract and the rights and obligations of the parties will be deterimed by that acontract.

Include important provisions in the contract or binder.

Whether the offer is made on a binder or a contract form, there are certain important terms that must be included. These include the address of the property, the names and signatures of the buyer and seller, the purchase price, deposit and closing date. These are the basic terms needed to make a binding agreement. In addition, for the protection of the buyer there must be a mortgage contingency provision which would include the amount and terms of the mortgage and the date by which the mortgage must be obtained. The buyer should also have an inspection contingency provision, which allows the buyer to have a building inspection on the premises by a certain date. You can review my post here on the use of contingencies.  There should also be a listing of any personal property included with the sale, such as appliances, draperies, etc. In addition, any special provision, such as an agreement that the seller pay part of the buyer's closing costs, would need to be included. Anything not included will not be a part of the binding contract.

Forward a copy of the contract to your lender and attorney.

Your lender will need a copy of the fully executed contract as part of the underwriting process for your loan. You should also consult the lender if you make any subsequent changes to the contract, such as credits for repair items, as these may affect the underwriting of your loan. If you have not done so already, you will need to send a copy of the contract to your closing attorney.

 Coordinate the closing with your attorney and real estate agent.

If you are the buyer, your attorney and your lender should be in contact once you have loan approval. If you do not receive loan approval by the date in your mortgage contingency, your attorney will need to ask for an extension. The lender will need certain information from the attorney regarding the title to the property. The buyer's attorney will order and review the title search and prepare the title insurance commitment for the lender. As the closing date approaches, the attorneys will prepare the closing adjustments, working with the other attorney and the lender, and will coordinate the closing date. The buyer's attorney will prepare the title insurance. A walk through is done the day of closing with the real estate agent to be sure the house is empty and in agreed condition.

What if it is a short sale or there are other issues?

If you are selling or buying a property through a 'short sale' when the seller owes more on the house then they will be selling it for, it is especially important to consult an attorney before a binding purchase and sale agreement is executed. Please feel free to ask me or your real estate attorney for advice on any issues. Most attorneys, such as myself, offer a free initial consultation and are happy to quote a fee for representing you on your real estate matter.

QUESTIONS?  COMMENTS?  NEED MORE INFORMATION? Please contact me at or view my website at http://www.attybegemann.com.  I practice real estate law from my main office in Hamden and satellite office in Fairfield. 

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About the author:  Attorney Begemann is a member of the Connecticut Bar and practices real estate and business law in Connecticut.  As an experienced real estate attorney he represents individuals and lenders in residential and commercial loan closings across Connecticut, including the purchase, sale and refinance of real estate.

Attorney Paul H. Begemann, 2764 Whitney Avenue, Hamden, CT  06518

Phone 203-230-8739                                       Fax 800-483-1904

email

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2 commentsPaul Begemann • October 01 2009 10:30AM

Overview of Mortgage Foreclosure Process in Connecticut

Overview of Basic Mortgage Foreclosure Process in Connecticut

 I thought it would be useful to give a basic foreclosure overview for a CT mortgage foreclosure.  Connecticut has some unusual foreclosure provisions that make it different from many states.  It is especially important for anyone considering a short sale to have a basic understanding of the foreclosure process as they proceed through the short sale process.

  • Connecticut Foreclosures are Judicial With extremely limited exceptions all foreclosures in CT require suing the borrower and the court entering a judgment of foreclosure.  There are really no non-judicial foreclosures in CT such as there are in some states, where the lender can perform the foreclosure without court supervision.  There are no 'trustee sales' either since Deeds of Trust are not used in Connecticut.
  •  Foreclosure sales are the exception rather than the norm.  Even though the process is judicial, in the vast majority of foreclosure cases in CT there is NO auction!  Connecticut follows a procedure called 'strict foreclosure' in cases where there is no or little equity in the property after the debt of the foreclosing lender is considered.  In a strict foreclosure the judge assigns a 'law day' (which is usually 30 - 60 days after the court enters judgment).  On that day the plaintiff lender will become the owner of the property unless the owner or a second lien holder pays to the plaintiff the amount of its debt.  There is no auction or opportunity for third parties to bid on the property.
  • How Foreclosure Sales Work in CT.  The court will only order a foreclosure by sale with an auction if it appears that the borrower has equity in the property.  If a foreclosure by sale is ordered, the court appoints what is called a "Committee," which is actually one lawyer, to over see the sale process and hold the auction.  The auction will be held at the property being foreclosed on the date ordered by the court.  There are no 'courthouse steps' auctions in Connecticut.
  • Lenders in Connecticut can Obtain a Deficiency Judgment.  If the results of the auction do not pay the lender in full, or if a strict foreclosure was ordered, the plaintiff lender can seek a deficiency judgment against the borrower(s).  A deficiency judgment is a money judgment against the borrowers for the amount remaining due the lender after the foreclosure.  If there was a strict foreclosure, the deficiency will be the difference between the value of the property as determined by the court (based on an appraisal) and the amount of the debt.  If there was a foreclosure by sale, the deficiency is the difference between what the plaintiff obtained from the auction and the amount of the debt.  In either case, the deficiency judgment can be obtained by the plaintiff by it making a motion after the foreclosure itself is completed (within the period required by law).
  • Protections for Owners.  Connecticut is one of the few states requiring that lenders submit their foreclosures to a court supervised mediation process, although this is only applicable to foreclosures on principal residences.  The mediation process occurs after the lender has commenced suit.  The foreclosing lender is required to give notice of the mediation program when it commences the foreclosure suit, and the borrower can make a request that a court appointed mediator meet with the lender and the borrower to see if a resolution of the foreclosure can be worked out.  The borrower must request the mediation, it is not automatic.
  • Timing.  Depending on how aggressively the lender pursues the foreclosure and if the owner opposes it or seeks mediation, the process takes about 90 to 120 days from commencement of the suit to the lender owning the property in a strict foreclosure; a foreclosure by sale takes about 30 days longer.

UPDATE:  The CT legislature has recently passed legislation expanding the voluntary Foreclosure Mediation program which provides for court supervised mediation between borrowers and lenders and made it mandatory.  The details of this program are still being put in place, but it will provide the opportunity for all homeowners to have court mediation to try to allow a reinstatement or mortgage modification.  As far as I know, it is the only program of its type in the country.

Please be advised that this is a basic summary of the Connecticut foreclosure process and is no substitute for consulting with an attorney for legal advice.  Due to its brevity, this summary does not include specific time frames or specific requirements for a foreclosure.  It is simply an overview.  Please consult an attorney for further information, and this blog posting does not constitute and is not a substitute for legal advice.

Please feel free to contact me for further information.

Paul H. Begemann, Esq.
http://www.attybegemann.com

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About the author:  Attorney Begemann is a member of the Connecticut Bar and practices real estate and business law in Connecticut.  As an experienced real estate attorney he represents individuals and lenders in residential and commercial loan closings across Connecticut, including the purchase, sale and refinance of real estate.

Attorney Paul H. Begemann, 2764 Whitney Avenue, Hamden, CT  06518

Phone 203-230-8739                                       Fax 800-483-1904

email

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5 commentsPaul Begemann • August 31 2009 02:06PM

Proper Use of Contingency Provisions in Connecticut Real Estate Contracts

Most of the great State of Connecticut uses broker form contracts when an offer to purchase residential real estate is made.  The majority of Fairfield County uses a binder form followed up by an attorney drafted contract.  I have prepared a summary of real estate transactions in Connecticut for further reading on that topic.  In either case, the selection of the proper contingencies and the drafting of those contingencies is essential.  When the broker is preparing the contract, it is generally considered "OK" (i.e. not the practice of law) to include either standard form contingencies or simple contingencies added to the form contract.  Of course, as a real estate attorney, I would always suggest that an experienced real estate attorney review any proposed contract prior to signature by their client (or add an attorney review contingency!).  Contingency provisions on residential real estate contracts are some of the most important elements of the contract and are especially important for the protections that they provide for the buyer.  Plus, contingencies can be drafted to cover almost any situation.

Ther purpose of this blog post is to give an introduction to the proper use of contingencies in real estate contracts, and then in future posts I will discuss some specific issues relating to some common contingency provisions used in real estate contracts in Connecticut (most of which are generally applicable in other areas also).

In general terms a contingency describes an event that must happen for the contract to be binding.  We are all familiar with the mortgage contingency or the inspection contingency.  So for instance a buyer will add a contingency (or check the appropriate box on the form contract) that states in general terms that they have lets say thirty days to obtain a mortgage approval in an amount no less that $150,000 at a rate of no ore than 6%; or that they have seven business days to obtain a satisfactory home inspection, to use the two most common contingencies we all deal with on a daily basis.  So what does adding the contingency mean?  Basically in these instances, while the buyer has signed a contract to purchase a piece of real estate, her contractual duty to fully perform the contract is contingent upon certain events occurring, in this example a mortgage approval and a satisfactory inspection.  Contingencies can be drafted to cover other events as well, protecting either the seller or the buyer.

Sounds simple so far, correct?  As in most issues dealing with real estate and especially real estate law, the devil is in the details.  The proper contingency provision should contain clear provisions that not only state what the contingency is, but what the obligations of both parties are and the consequences of failing to meet the contingency provision.  So for instance in our mortgage contingency example, does the contingency require that the buyer diligently pursue their application?  What happens if they are simply not approved by the deadline, but are not denied?  What happens if the deadline passes and the buyer is not approved, but also has not requested an extension?  What happens if they obtain an approval, but it is verbal or it contains numerous conditions?  For the inspection, what if the seller does not provide access?  Or the buyers' report states items "should" be repaired or have reached the limit of their useful life?  Or if the buyer simply says the premises are unacceptable without giving the seller the opportunity to make repairs or adjust the sale price?  Or if the time to inspect passes?  Most or all of these questions can and should be addressed in the properly drafted contingency provision.

Most broker form contracts, even in an area such as New Haven that has a Board of Realtors approved standard form contract, are different.  So for instance, the agency form contract for the party making the offer may differ from the form contract being used by the listing agent.  Thus it is essential that the agent first know their own contract and hopefully be comfortable with it, and second be able to spot what is different about the 'other' broker's contract and then be able to point that out to their client.  This of course is where the real estate attorney should also come into the picture.

Hopefully that provides an introduction to the use of contingencies.  I will continue bloggin on this topic in the future with a discussion of some particular common (and not so common) contingency provisions.

For more information feel free to contact me directly through my website or email me at .

 

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About the author:  Attorney Begemann is a member of the Connecticut Bar and practices real estate and business law in Connecticut.  As an experienced real estate attorney he represents individuals and lenders in residential and commercial loan closings across Connecticut, including the purchase, sale and refinance of real estate.

Attorney Paul H. Begemann, 2764 Whitney Avenue, Hamden, CT  06518

Phone 203-230-8739                                       Fax 800-483-1904

email

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0 commentsPaul Begemann • August 31 2009 09:04AM