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Fannie Mae Intensifies Penalties for Strategic Defaulters
Fannie Mae is boosting penalties for strategic defaulters by prohibiting them from getting a mortgage, backed by the company, for seven years from the foreclosure date. Fannie Mae says it will also take legal action to recoup debt and will be instructing services to monitor delinquent loans and recommend cases that need deficiency judgments. In a statement Fannie said policy changes designed to encourage borrowers to work with their services and pursue alternatives to foreclosure. “Defaulting borrowers who walk away and had the capacity to pay or did not complete a workout alternative in good faith will be ineligible for a new Fannie Mae-backed mortgage loan for a period of seven years from the date of foreclosure,” the company said in a statement. “Borrowers who have extenuating circumstances may be eligible for new loan in a shorter timeframe.
Senate Approves Extension of Tax Credit Closing Deadline
The U.S. Senate has passed an amendment that would extend the closing deadline of the homebuyer tax credit by three months. Right now, qualifying homebuyers who were under contract by April 3oth have until June 3oth to close the deal. But because of the large volume of applications for lenders to process, concerns have begun to surface that some buyers may miss out on the tax break simple because of the backlogged pipeline.
The National Association of Realtors (NAR) says it has received reports that as many as a third of the buyers eligible for the credit have already been notified by their lender that they won’t make the June 30th deadline. The Senate’s amendment, approved Wednesday by a vote of 60 to 37, would give homebuyers and their lenders until September 30th to complete their transaction.
FHA 203k Financing Program: A Good Option!
The FHA 203k Financing Program is a good option for anyone looking to purchase a home that needs updating or repairs that the seller is unable or unwilling to fix due to the property being a short sale, foreclosure or estate sales. A 203k loan can help buyers finance both minor and major repairs and improvements. It can also help buyers compete with investors when bidding for short sales and foreclosures.
In the past 203k loans were tedious and difficult. I use to avoid them as much as possible but I would still end up assisting about 2- 3 clients a year to navigate through the process. Most lenders during those days did not specialize in 203k financing so many were learning with each transaction. We never went to settlement on time because a step was always missed and we had to back track. Today I can gladly tell you that is no longer the case. Most lenders who offer FHA 203k financing have a 203k department and loan officers that specialize in the process. I have 2 clients this year who have used FHA 203k financing and both went smooth.
Streamline vs Traditional
Buyers today have the option of doing a streamline or the traditional 203k. A streamline 203k is good for a buyer who is financing $35,000 or less in repairs. The buyer receives half the repair money at settlement. If you go over the $35,000 for repairs you must use the traditional 203k financing. I recommended that my clients who were first-time home buyers to use the traditional 203k instead of the streamline option even though their repair amount was less than $35,000 for several reasons. My first thought was that I wanted my clients to have a good experience and lessen their risk and potential loss of money. The traditional 203k requires that the contractor the buyer has chosen do the work before he gets paid. If the contractor puts in a new kitchen for the buyer a FHA Fee Inspector must come to the property look at the work and sign off on the repairs with the buyers permission before the contractor will get paid. This insures that the contractors does the work correctly the first time or make any necessary modification before receiving his/her money. When a buyer does the streamline 203k and receives half the money up front most of the time they will give it to the contractor and if the buyer is not satisfied with the work the contractor has been paid some or most of the money. Most contractors will not start the work without receiving money in advance. I have found several contractors that specialize in traditional 203k financing and are willing to put up their money and get paid when their work is completed. And my clients are having a wonderful experience. In the past most 203k’s did not work because of issues with contractors. Things have changed for the better and I now recommend FHA 203k financing to my clients its a Good Option!
Federal Home Loan Bank of Atlanta (FHLB) Program Starts April 19, 2010 up to $7,500 in Grant Money for First-Time Home Buyers!
The Federal Home Loan Bank of Atlanta first-time home buyer program (FHP) will start on April 19, 2010. Through its FHP, the Bank will provide up to $7,500 in matching funds per eligible household for down payments and closing costs. The Bank has preliminarily allocated approximately $11 million dollars of funds for the 2010 FHP offering.
Since 1999, the Bank has funded over $59 million in FHP dollars to help more than 9,700 families purchase their first home. More information should be available soon about the program requirements and the funding process. Last year several of my clients used this program to purchase their first home. Don’t miss out! Contact me for more details.
Park Potomac Place-Luxury Highrise Garage Condo Living!
Yesterday my wife and I previewed the condos at Park Potomac Place. Prices range from $682,900 to $1,121,900 with condo fees starting at $690.00 to $951.00 a month. Park Potomac Place has easy access to Montrose Road, I-270 and the area’s many main thoroughfares. It is also convenient to fine dining, anchored by a Harris Teeter and Kimpton Hotel & Spa coming soon. The community is anchored by specialty boutiques, golf courses, cinemas and Strathmore Hall exhibits and performances. It is close to the C & O Canal and also has a community nature trail and easy walking distance to Cabin John Park.
The building has an elegant lobby with beautiful finished limestone flooring, grand staircase, sitting area and staffed front desk with concierge. I loved the private fitness center including cardiovascular equipment with individual flat screen TVs and state-of-the-art strength equipment. Park Potomac Place has a large circular pool and adjacent arbor. Expansive landscaped courtyard, with grill area, arbor and water wall feature. There are private suites for overnight guest, spacious clubroom with fireplace, wet bar, catering kitchen, and a dining/conference room. Each unit includes controlled-access underground parking.
Some of the high-end luxury appointments are included in the sales price and have been selected and coordinated by one of the area’s most exclusive design teams, with a wide variety of cabinet, flooring, granite, marble or natural stone baths and Viking, Bosch and Sub-Zero appliances. Custom upgrades also include crown moldings, designer backsplashes, fireplaces, and window coverings.
Contact me to tour these luxurious condos!
The Luxury Residential Market Could Feel the Strain if the Commercial Market Collapse in 2010
On 1/11/2010, DS News ran an article on the expected collapse of the commercial real estate market in 2010. Here are some excerpts:
According to the Emerging Trends in Real Estate 2010 report, issued by the Urban Land Institute and PricewaterhouseCoopers, most investors will recognize massive losses in the commercial real estate market. Value declines will eventually total 40 to 50 percent of market highs, and surveys in the report indicate 2010 will be the worst time for investors to sell properties in the report’s 30-year history.
“A lackluster economic recovery characterized by problematic job growth will hamper the pace of any real estate market resurgence,” the report said.
Richard Parkus, Deutche Bank commercial real estate analyst, believes this is just the tip of the iceberg. He predicts enormous losses and a large number of banks failing as a result of the declining commercial real estate market.
As tenants go bankrupt, downsize, or invoke their escape clauses, commercial real estate property owners have begun to feel the serious effects of the economy. By the end of 2010, the national vacancy rate is expected to reach 18.5 to 19 percent, the highest recorded since 1986.
A lack of tenants causes a lack of cash flow, and this makes it difficult for commercial property owners to make their impending balloon payments. as a result, some property owners may face foreclosure.
How does this affect the luxury residential market? As you know the investors, brokers, developers, tenants (business owners), and other players in the commercial market are often potential buyers and sellers of luxury homes. Even in markets that are generally stabilizing or improving in 2010 this could mean trouble in the upper tier.
Questions You Need To Ask When You Buy A Condo!
Before you buy a condo you should get the answers to the following questions from the Condo Association. In the process, you’ll learn how responsive-and organized- its members are. You’ll also be alerted to potential problems with the property.
1. What percentage of units is owner-occupied? What percentage is tenant-occupied? Generally, the higher the percentage of owner-occupied units, the more marketable the units will be at resale.
2. What covenants, bylaws, and restrictions govern the property? What grandfather clauses are in place? You may find, for instance, that those who buy a property after a certain date can’t rent out their units, but buyers who bought earlier can. Ask for a copy of the bylaws to determine if you can live within them.
3. How much does the association keep in reserve? Plus, find out how that money is being invested.
4. Are association assessments keeping pace with the annual rate of inflation? Smart boards raise assessments a certain percentage each year to build reserves to fund future repairs. To determine if the assessment is reasonable, compare the rate to others in the area.
5. What does and doesn’t the assessment cover? Does the assessment include common-area maintenance, recreational facilities, trash collection, and snow removal?
6. What special assessments have been mandated in the past five years? How much was each owner responsible for? Some special assessments are unavoidable. But repeated, expensive assessments could be a red flag about condition of the building or the board’s fiscal policy.
7. How much turnover occurs in the building? This will tell you if residents are generally happy with the building. According to research by the National Association of REALTORS, owners of condos in two-to-four unit buildings stay for a median of five years, and owners of condos in a building with five or more units stay for a median of four years.
8. Is the condo building in litigation? This is never a good sign. If the builders or home owners are involved in a lawsuit, reserves can be depleted quickly.
9. Is the developer reputable? Find out what other projects the developer has built and visit one if you can.
10. Are multiple associations involved in the property? In very large developments, umbrella associations, as well as the smaller association into which you’re buying, may require separate assessments.
Beautiful NV Wynterhall in Perry Hall, MD.!
This NV Home features 4 Bedrooms, 4 Full Baths, and 1 Half Bath. This property is a must see for $515,000. This home features luxury appointments throughout such as, a double door front entrance leading to a spacious 2 story foyer. There are columns throughout create an open floor plan.There is a gourmet kitchen with granite counters, butlers pantry and a 2 story family room off the kitchen. Front and rear staircases on the main level for your ultimate convenience. The upper level features double door entry to a spacious master suite that features a sunken master bath and so much more. Take a look at the photos below. If you would like to view this Beautiful home located at 9414 Ryans Way contact me at 410-977-7176.
Take the Stress Out of Homebuying!
Buying a home should be fun but it can be a little stressful. As you look for your dream home, keep in mind these tips for making the process as peaceful as possible.
1. Find a real estate agent who you connect with. Home buying is not only a big financial commitment, but also an emotional one. It’s critical that the agent you chose is both highly skilled and a good fit with your personality.
2. Remember, there’s no “right” time to buy, just as there’s no perfect time to sell. If you find a home now, don’t try to second-guess interest rates or the housing market by waiting longer- you risk losing out on the home of your dreams. The housing market usually doesn’t change fast enough to make much difference in price, and a good home won’t stay on the market long.
3. Accept that no house is ever perfect. If it’s in the right location, the yard may be a bit smaller than you had hoped, but the kitchen is perfect. Make a list of your top priorities and focus in on things that are most important to you. Let the minor ones go.
4. Remember your home doesn’t exist in a vacuum. Don’t get so caught up in the physical aspects of the house itself-room size, kitchen, etc.- that you forget about important issues as noise level, location to amenities, and other aspects that also have a big impact on your quality of life.
5. Plan ahead. Don’t wait until you’ve found a home and made an offer to get approved for a mortgage, investigate home insurance, and consider a schedule for moving.
6. Factor in maintenance and repair costs in your post-home buying budget. Even if you buy a new home, there will be costs. Don’t leave yourself short and let your home deteriorate.
7. Accept that a little buyer’s remorse is inevitable and will probably pass. Buying a home, especially for the first time, is a big financial commitment. But it also yields big benefits. Don’t lose sight of why you wanted to buy a home and what made you fall in love with the property you purchased.
I wish everyone a Happy Holiday!
8 Tips for Your Home Search
1. Research before you look- Decide what features you most want to have in a home, what neighborhoods you prefer, and how much you’d be willing to spend each month for housing.
2. Be realistic- It’s OK to be picky, but don’t be unrealistic with your expectations. There’s no such thing as a perfect home. Use your list of priorities as a guide to evaluate each property.
3. Get your finances in order- Review your credit report and be sure you have enough money to cover your down payment and closing costs. Then, talk to a lender and get pre- qualified for a mortgage. This will save you the heartache later of falling in love with a house you can’t afford.
4. Don’t ask too many people for opinions- It will drive you crazy. Select one or two people to turn to if you feel you need a second opinion, but be ready to make the final decision on your own.
5. Decide your moving timeline- When is your lease up? Are you allowed to sublet? How tight is the rental market in your area? All of these factors will help you determine when you should move.
6. Think long term- Are you looking for a starter house with plans to move up in a few years, or do you hope to stay in this home for a longer period? This decision may dictate what type of home you’ll buy as well as the type of mortgage terms that will best suit you.
7. Insist on a home inspection- If possible, get a home warranty from the seller to cover defects for one year.
8. Get help from a Buyer’s Agent- Hire a real estate professional to represent you. Not the listing agent who represents the seller.
