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After taking my clients around to see more than 75 homes over the past couple of weeks in and around the Lake Braddock, Robinson, Woodson and Fairfax High School districts, we developed a keen awareness of what this market has to offer. 1. There are many homes for sale that are in need of improvements. 2. There are far fewer homes that have been well maintained and at least include updated kitchens and baths.
If you are interested in the fixer uppers, the world is your oyster. Abundant supply should help you gain a reasonable deal. But, if you are interested in a move in ready home, be ready to act quickly. We saw several that only lasted on the market for a week or so. That being the case, sellers are getting a bit resistant to reduce their prices. Could this be the beginning of the end of our buyers market?? Good Luck! Chip
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Danbury Forest, North Springfield
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Announcing a price reduction
on 5330 Danbury Forest Dr, a 1,850 sq. ft., 3 bath, 3 bdrm 3 story "Brick Front". Now
MLS®
$322,500
- Beautifully Updated.
Property information
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The Federal Housing Administration recently announced that lenders will allow homeowners to use the $8,000 tax credit as a downpayment. The announcement came at The Real Estate Summit: Advancing the U.S. Economy, a special daylong session at the REALTORS® Midyear Legislative Meetings & Trade Expo in Washington, DC this week. (May 12, 2009, NAR Press Release) Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, said that the
Federal Housing Administration is going to permit its lenders to allow homeowners to use the $8,000 tax credit as a downpayment. Secretary Donovan said that important changes, which the National Association of Realtors® has been calling for, will help consumers purchase a home. “We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a downpayment,” Donovan said. According to Donovan, the FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.
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Chip Warner of RE/MAX Allegiance, Burke, Virginia has earned the prestigious Certified Distressed Property Expert (CDPE) designation, having completed extensive training in foreclosure avoidance and short sales. This is invaluable expertise to offer at a time when the area is ravaged by “distressed” homes in the foreclosure process.
Short sales allow the cash-strapped seller to repay the mortgage at the price that the home sells for, even though it is lower than what is owed on the property. With plummeting property values, this can save many people from foreclosure and even bankruptcy. More and more lenders are willing to consider short sales because they are much less costly than foreclosures. Implementing the tools that this CDPE designation brought to me will be invaluable as I work with sellers and lenders on complicated short sales. Prior to employing the powerful CDPE techniques only about 20% of short sales nationwide were brought to a successful close. The CDPE methods have proven to reverse that trend. An 80% success rate is now possible. That’s huge! While attending this course, the question was posed, “how many of you know someone who has lost their job or is in danger of losing their home”. I could not believe my eyes. At least 60-70% of the people in the auditorium know someone in this situation. It just goes to show the extent of this problem. It is far reaching! Statistically, most homes are foreclosed upon without the homeowner ever trying to sell it or get help of any kind. They just have nowhere to turn. Most of those who do try, either try to sell it themselves at an unrealistic price to “stay whole” or end up working with an agent that has little or no training on the successful techniques required to bring about a positive result. 80% fail and the home ends up in foreclosure with the homeowners in complete financial disaster. I got into the real estate business to help people. As one of a very small percentage of realtors who have attained this designation, I am better qualified to bring a high level of expertise to people who need it most. What could be more fulfilling? Thanks for your trust and confidence. All the best! Chip FairfaxHomeStore.com
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The economic stimulus bill just signed into law contains two major items for 2009 homebuyers. The measure increases the first-time homebuyer tax credit to $8,000 and does away with it’s the repayment requirement. It also is keeping the 2008 loan limits for FHA, Freddie Mac, and Fannie Mae loans. This is great news for homebuyers. First-Time Homebuyer Credit With the repayment requirement now ditched, the first-time homebuyer credit deserves a fresh look by potential first time buyers, many of whom were underwhelmed by the old credit with its 15-year payback. The credit is 10% of the cost of a home, so a house costing $80,000 will be enough to qualify for the full credit. The credit is refundable, which means that the government will pay you the difference if your tax liability is less than your credit amount. The credit is designed to encourage purchasers to stay for a while. If you sell the home or stop using it as your principal residence within three years of the date of purchase, the credit will be recaptured. There is an income limit, above which you will not qualify for the credit. You must have “modified” adjusted gross income (MAGI) of $150,000 or less if you are a couple filing a joint return, $75,000 or less if you’re single to get a full credit. You can still get a partial credit up to $170,000 MAGI (joint) and $95,000 (single) based on where your income falls within the $20,000 phase-out range. What constitutes a “first-time homebuyer?” It is a person who has not owned a principal residence in the three years prior to the date of purchase of the home for which the credit is being claimed. If you are a first-time buyer who bought on or after January 1 of this year, you already qualify for the credit. If you haven’t bought yet, you have until December 1 (not the 31st!) 2009 to buy and get the credit.
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President Signs the Stimulus Bill:
H.R. 1, the “American Recovery and Reinvestment Act of 2009″ (AARA), passed the House on February 13, 2009, by a vote of 246 - 184. On the same day, the Senate passed the bill by a vote of 60 - 39. The President signed the bill on Tuesday, February 17, 2009. The bill is a $780 billion package, with roughly 35% of the package devoted to tax cuts (mostly for 2009) and the rest to spending intended to occur in 2009 and 2010.
The mix of provisions of interest to REALTORS® changed frequently throughout the legislative process, with changes continuing to be made just hours before the measure was released prior to the vote. In the end, the elements of NAR’s housing agenda were included. Congress and the President have announced that a finance and housing package (including tax provisions) will be the next “big” initiative, so Congress has by no means finished its work as it affects the housing industry and REALTORS®. The bill includes the following provisions: * Homebuyer Tax Credit — The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser’s income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser. * FHA, Fannie Mae and Freddie Mac Loan Limits — The bill reinstates last year’s 2008 loan limits for FHA, Freddie Mac, and Fannie Mae loans. These limits were equal to the greater of 125% of the 2008 local area median home price or $271,050 for FHA and $417,000 for Fannie and Freddie, with an overall maximum cap of $729,750. For the few areas where the 2009 limits were higher, the higher limits will apply. In addition, the bill includes language providing the HUD Secretary with the discretion, if warranted, to increase the loan limit for any “sub-area”, i.e.an area smaller than a county. The Secretary’s discretion is again limited by the $729,750 cap. These 2009 limits will expire December 31, 2009. The inclusion of these loan limit provisions in the final bill is a victory for homeowners, buyers and REALTORS®. While these new limits were included in version of the original stimulus bill approved by the House, the bill first approved by the Senate did not. NAR’s Call for Action to both the House and the Senate prior to the final vote advocated strongly for the provisions which were then included in the final bill approved by both Chambers. NAR has estimated the new 2009 Loan Limits by county. * Neighborhood Stabilization — Division A, Title XII of the bill provides $2,000,000,000 in additional funding for the Neighborhood Stabilization Program (NSP). The NSP was created by the Housing and Economic Recovery Act of 2008 (Public Law 110-289) to provide grants through the Community Development Block Grant program (CDBG) to states and localities to address the problems that can be created when whole neighborhoods are decimated by foreclosures. The funds can be used to purchase, manage, repair and resell foreclosed and abandoned properties. In addition, the funds can also be used by states and localities to establish financing methods for the purchase and redevelopment of foreclosed properties. After purchase the homes must be used to assist individuals and families with incomes at or below 120% of area median income. Twenty-five percent of funds must be used for households with incomes at or below 50% of area median income. By leveraging their expertise in partnership with others from both the public and private sector, REALTORS® in many communities have been making important contributions to their local communities’ neighborhood stabilization programs.
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Fannie Mae will loosen rules for homeowners seeking to lower their mortgage payments by refinancing. The District company, which accounts for more than 40 percent of the $12 trillion in U.S. residential mortgage debt, is seeking to break a "logjam" in refinancing and allow more homeowners to take advantage of near-record low interest rates, according to Brian Faith, a spokesman for Fannie Mae, which like its rival, Freddie Mac, is under government control. The increased flexibility for borrowers isn't enough to significantly harm mortgage-bond investors and mortgage insurers, analysts said. "This is not yet the no-appraisal refi wave that many have feared," Matt Jozoff and Brian Ye, mortgage-bond analysts at J.P. Morgan Chase, wrote in note to clients yesterday. Fannie Mae will drop some credit-score requirements, reduce income-documentation standards and waive the need for appraisals in some cases, according to a notice to lenders it distributed this week. The changes apply to loans that the company owns or guarantees. Fannie Mae will probably use automated models to check home values listed on applications before offering to waive appraisals, analysts said. The changes will also include allowing borrowers seeking to take out a loan that is 80 percent of the value of the home or less to qualify for refinancing with credit scores below its 580 minimum. FICO credit scores as measured by Fair Isaac Corp. range from 300 to 850. The program also will lower income-documentation requirements to one current pay stub. By Jody Shenn Bloomberg News
Friday, February 6, 2009; Page D04
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