Shawn Sullivan, Massachusetts Real Estate, Medford homes for sale, Somerville homes for sale


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The common understanding of an asset-based debt is a loan meant to be repaid with interest, over time, and backed by a physical asset such as a building or a car. The asset serves as collateral that can be claimed by the lender in case of borrower default.

An Asset-Based Security (ABS), however, in investment terminology, is somewhat different.

Even though the common understanding of an Asset-Backed Security (ABS) might be a loan that is based on an actual asset, such as a home or an automobile, that is only partially the case in investment terminology. By definition, the ABS represents a pool of debt -- usually a group of individual loans -- that can include any type of debt other than mortgages. It may include loans that are backed by real property, such as equipment, land, buildings, or business inventory, but not necessarily.

Mortgages are specifically excluded and classed separately today. The ABS evolved from the mortgage-backed securities that were first introduced in the 1980s, but a debt secured by a mortgage is today known as Collateralized Debt Obligation (CDO). To make it more confusing, a CDO is a specific type of ABS.

An ABS represents other types of debt. Liability might be associated with an automobile loan, student loan debt, credit card debt, home equity loan or other types of loan debt that are to be repaid, with interest, over a specified period of time. Investors in asset-based securities assume the risk; the anticipation is that payment of outstanding principal and interest will be repaid as scheduled, so that investors will earn a reasonable rate of return. The risk is that borrowers may default on the loans, or that a collection process will delay repayment and involve unexpected costs. 

The relative risk and anticipated return depends on the way such loans are packaged and sold. And the packaging depends in part on the reasons an original lender has for wanting to transfer the liability.

The original lender, often a small bank, credit union or other type of funding agency, will "sell the paper" as part of a package to a larger investor. This is accomplished in many ways and for a variety of reasons. Sometimes, it is to better the creditor's financial position or to comply with government rules regarding loan percentages and cash reserves. Such a sale may also be an attempt to dispose of non-performing loans by transferring the burden of collections to another entity. 

Investment institutions package loans based on risk assessment. The loans are separated into three classes known as tranches. Risk and potential return are proportional: A higher-risk tranch also promises higher yield, while lower risk invariably holds potential for a lower interest rate return on investment.

Working with a knowledgeable financial advisor is recommended if you are interested in ABS investing. Almost any brokerage firm can be used for such investment.  


This Condo in Boston, MA recently sold for $570,000. This 2/3 Family style home was sold by Shawn Sullivan, CRS - RE/MAX Andrew Realty Services.


51 Hobson Street, Boston, MA 02135

Brighton

Condo

$559,000
Price
$570,000
Sale Price

6
Rooms
2
Beds
1
Baths
Located in Brighton's sought after Oak Square is this charming two bedroom and one bath unit. You enter the unit through the spacious foyer to a large living room that is surrounded by windows and open to the dining room. There are two good size bedrooms and the bathroom has been recently renovated. The updated eat in kitchen with ample storage, stainless steel appliances, granite counters and wine fridge has everything you need. 2019 high efficiency heating system. Two off street parking spaces including one garage space. Your own laundry in the basement and additional storage in the basement. Enjoy exclusive use of both the front and rear decks and the shared backyard. Convenient distance to bus lines directly into Cambridge, Downtown, Copley and Kenmore Square, plus a you are only moments away from to the Charles River and the shops and restaurants of both Washington Street and Market Street.

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This Single-Family in Lynn, MA recently sold for $450,000. This Bungalow style home was sold by Shawn Sullivan, CRS - RE/MAX Andrew Realty Services.


26 Broadway Circle, Lynn, MA 01904

Single-Family

$419,900
Price
$450,000
Sale Price

5
Rooms
2
Beds
1
Baths
Lynn/Peabody line. Meticulously maintained WARD 1 neighborhood. Beautiful hardwood floors and newly carpeted bedrooms. This two bedroom bungalow has 1038sqft of living space on a .12 acre lot. Brand new hot water heater, new heating system and plumbing. The underneath garage walks into the full basement with washer/dryer hook up and a finished room. This home also has a 3 season porch that is perfect for watching wildlife in the woods that surround the home. The sun room off the living room is ideal for an in-home office or a play area. In accordance with COVID-19 recommendations, masks MUST be worn and social distancing observed at all times while at the property. First showing - Open House - Saturday, Mar. 20th 12:00 pm to 1:00 pm. Any and all offers must be in by Monday, Mar. 22nd by 5:00 pm. Owner needs 48 hours to review all offers.

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This Single-Family in Boston, MA recently sold for $725,000. This Colonial style home was sold by Shawn Sullivan, CRS - RE/MAX Andrew Realty Services.


45 Pinehurst St, Boston, MA 02131

Single-Family

$699,000
Price
$725,000
Sale Price

7
Rooms
3
Beds
1/2
Full/Half Baths
***MULTIPLE OFFERS RECEIVED*** BEST/FINAL DUE TUESDAY 2/2 BY 12PM ***A beautifully updated home presents a perfect balance of craftsman style charm with modern amenities. Brand new exterior paint (2020) and newer roof (2015) with oversized 3 season porch featuring detailed custom woodwork. A sun-drenched living room showcases beautifully refinished floors (2016) and custom built-ins that lead into a gorgeous updated kitchen (2017).Upstairs there are 3 generously sized bedrooms with closets featuring custom shelving. New mini splits (2019) throughout the entire home provides comfort year-round. Don't forget about the newly finished basement (2016) which offers an additional 500 sqft of living space! Property includes a private fenced in yard and composite deck perfect for social distancing gatherings. Your new home is centrally located to shops, dining, the Arnold Arboretum and only 0.2mi to the Roslindale Village and commuter rail.

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This Single-Family in Grafton, MA recently sold for $705,000. This Colonial style home was sold by Shawn Sullivan, CRS - RE/MAX Andrew Realty Services.


225 Magill Drive, Grafton, MA 01519

Single-Family

$710,000
Price
$705,000
Sale Price

8
Rooms
4
Beds
3/1
Full/Half Baths
Beautifully appointed & situated in Highfields Golf and CC sits this stunning colonial! Enter into a large two story foyer with a sweeping staircase & gleaming hardwoods! 1st floor home office with French doors, formal dining room with wainscoting & crown molding. The eat in kitchen features cherry cabinets, stainless steel appliances & a center island. A slider leads you out to an expansive deck where you can enjoy sunset views! The kitchen opens into a spacious living room which boasts a gas fireplace & newer carpet! The master suite is sure to impress with a tray ceiling, 2 large walk in closets & lavish master bath! The vaulted master bath has dual sinks, a jacuzzi tub & custom tiled shower! One of the bedrooms has its own private bath & walk in closet! 2 additional bedrooms, one which can be used as a large bonus room are joined with a Jack & Jill bath. Newly painted exterior, new driveway & a spacious backyard complete with irrigation ,a shed & a amazing swim/spa off your deck!

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