New Fannie Mae Guidelines Encourage Short Sales

Fannie Mae recently released updated underwriting guidelines for new mortgage loans that directly address individuals with various types of foreclosure history.

Potential borrowers with a foreclosure on their credit record must wait 5 years to be considered for new funding, and are subject to additional credit and down payment requirements for 5 to 7 years. Deed-in-lieu-of-foreclosures warrant a 4 year wait with additional requirements for 4 to 7 years. Finally, the silver lining...Short Sales require only a two year wait with no additional requirements. These new guidelines make short sales a more attractive option for homeowners as well as provide realtors with a tremendous opportunity to assist distressed homeowners with a short sale AND future home ownership. This information can be very valuable when meeting with short sale prospects.

Full guidelines can be downloaded directly from FannieMae by Clicking Here!

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Why Would a Seller do a Short Sale?

We work in a great area where other Realtors no matter their brokerage affiliation often make themselves available to other Realtors to answer questions on areas they specialize in. Our team is no different and we often speak with other Realtors in the area about short sales. Recently a Realtor I think highly of contact me and asked a wonderfully simple question. Why would an owner bother with a short sale? Why not just let it go to foreclosure?

The big three reasons are . . .

1. Control
2. Deficiency Balance
3. Purchasing another home

CONTROL:
A short sale gives some control back to the owner. In a time of stress, lost sleep, uncertainty, arguments over money with a significant other and everything else there is something to be said with taking control of your destiny. This is a step in that direction.

DEFICIENCY BALANCE:
During a short sale the seller and the Realtor have an opportunity to negotiate away the deficiency balance during the sale. This is not an option after a foreclosure.

PURCHASING ANOTHER HOME:
As of this article Fannie Mae has set some new guidelines stating that a Short Sale only has to cure on a sellers record for 2 years before they could by their next home. Of course supporting details like a sufficient credit score, income and the like would need to be there if any bank would approve a loan. But importantly their standard has been adjusted down to 2 years. Not too bad to work with for most people. With a foreclosure you are looking at more like 10 years.

Some would also suggest I should add credit score/hit to this list. The reality is that both a short sale and a foreclosure have almost the same hit on your credit. A short sale might be slightly less but from what I have seen not by too much to make a difference.

If you are reading this article and work for a company in the area with a large number of employees and need some articles or documentation for your employees please let us know. Recently some large employers have made efforts to understand the strain their employees are in and have found that providing qualified material and resources can relieve stress from their lives. With enough notice we are also available at no cost to visit and hold short seminars to talk about the process and loan modification options to help save their home.

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Qualifying Your Short Sale Realtor

It turns my stomach when I talk to sellers that sold their home as a short sale only to find out after it is a bit too late that their Realtor did not know how to protect their best interest. The biggest issue I see is when the deficiency of the loan is not released and the seller is held liable for the balance. This is not acceptable in my book.

Recently I received an email from a nice woman about their sale and having this exact problem. I'll skip the conversation about the specifics and just say that it is absolutely possible to sell your home for less than is owed and have the bank(s) forgive the balance of the loan. Of course there are requirements such as a valid hardship and supporting facts. Not every seller will get this approved but many will.

To date all of our owners have had their deficiencies removed. Why? Are we so brilliant and such keen negotiators that we are the only people capable of this? Not in the lease. We understand the process, we are patient and almost more important we understand that the bank is NOT the enemy here. Spending time gathering the information the banks need to justify such a release is very important. We all have to remember the banks are taking a horrific hit out there. Sure some may deserve it if they were using predatory practices but most are fighting to stay afloat just like you and I are trying to keep our families afloat in a difficult time.

So please take the time to truly qualify your Realtor prior to placing your home on the market. Protect yourself and ask these qualifying questions.

• How long have you been doing short sales?
• How many short sales have you personally represented from the seller side?
• How many of those went to closing?
• What percentage of the successful sales were two loans with different banks?
• Have you successfully helped those sellers negotiate away their deficiency balance(s)?
• Can I call or email any of your recent sellers, including those that were unable to sell?
• Explain the process to me?
• How long after we get an offer will it take to close?
• How often do you follow up with the bank? You want them to say weekly or at lease every 2 weeks.
• How often do you update the Buyer's agent? This one is HUGE! If your agent does not actively update the buyer's agent there is a very big chance they will get nervous feeling that your agent has no experience and may void the offer after waiting 2 months.
• Does the Realtor and or his/her team do the actual negotiations with the bank(s) or have they hired an outside company to do this? I have mixed feelings on this one. I believe your Realtor has a much bigger stake in the sale than the outside servicers. The outside servicers are often working in volume, don't know you or your situation and cannot properly voice the urgency. Your Realtor and their team can bring up specifics of your hardship and help sway the banks in your favor. But don't automatically disqualify a Realtor if they outsource. Ask them more question about the outsourcing and their numbers and approach.

Something everyone should know; most banks say no initially. If they don't say no they often come back with terms that your buyer will not be able to work with. There is nothing to panic about and if your agent does then you are doomed. The banks are doing their job to protect your bottom line. It is up to your Realtor to do theirs and justify your contract.

A great tool we use and feel free to ask your Realtor if they have one, is a wonderful spreadsheet we present to the bank with the offer. It compares the contract offer to the cost of a foreclosure for the same home. It is extremely eye opening and when the banks see you know the numbers they stand up and listen. Now you can truly negotiate your sale and move on to a better place.

Back to the deficiency for one moment. I wanted to say that typically when the bank sends over their letter approving the short sale this is where your Realtor needs to read it carefully. If it is not clear what will happen with the deficiency they should immediately get back on the phone and request an updated letter making it clear the deficiency will be removed along with the lien. If the banks states they will not remove it then the Realtor must jump back into negotiating mode and do their best to get it cleared for you. I can tell you that half of our letters from the banks are unclear and we have to follow up. On some occasions they say they will not and that is when our experience, knowledge and patience pays off best. To date we have been able to come to an agreement each time with the banks to have it removed for our clients.

As always feel free to email or call with any questions related to short sales. Remember we are in Northern Virginia and for that reason we are unable to speak about the home sale process outside of our licensed area. But we can help you interview and locate a qualified short sale agent in your area if you need help.

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USDA Rural Home Loan Development program

Are you looking to Sell or Buy a home in Bristow, Gainesville, Haymarket, Catharpin, Catlett or beyond in Virginia? Well there just may be some great lender news to help with your purchase or sale. Check out the USDA Rural Home Loan Development Program

Advantages & Benefits of GRH Financing
• No down payment required: True 100% product
• No monthly mortgage insurance: Clients can afford more!
• No reserve requirements
• No minimum credit score
• No Maximum Loan Amount: Clients have NO purchase price limitations
• 30 year fixed rate
• NOT limited to first- time home buyers
• 102% of LTV (100% plus one time 2% guarantee fee)
• No limitation on source of closing costs: 100% gifted closing cost or down
payment assistance is allowed. Charity, or similar housing assistance from
community based organizations may be used. Soft second mortgages are
allowed for closing costs even if the total debt exceeds the appraised value of
the property
• No limit on seller concessions to pay for closing costs and/or repairs. Check
guidelines of your secondary market for their concession limits.
• Include closing costs/repairs in loan if appraisal is higher than sales contract

COMPLETE RURAL DEVELOPMENT INSTRUCTION 1980-D is available online:
www.rurdev.usda.gov/
Under “Regulations”, Click on “Instructions”

To determine property eligibility, click on this link http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

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This article was provided to Bradley Group International from Brian Howdershell of SunTrust Mortgage. If you have questions, wish to qualify or find out the advantages if your home qualifies contract Brian Howdershell directly at 703-232-8616.

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FHA to Provide Additional Mortgage Assistance to Struggling Homeowners

The President has signed into law legislation that will allow HUD's Federal Housing Administration (FHA) to continue providing targeted mortgage assistance to homeowners. The Hope for Homeowners program will continue FHA's existing and successful efforts to provide aid to struggling families trapped in mortgages they currently cannot afford. Under the program, certain borrowers facing difficulty with their mortgage will be eligible to refinance into FHA-insured mortgages they can afford. The program will be implemented on October 1, 2008.

Homeowners May Already Be Eligible For Assistance
Families should not wait to seek mortgage relief. Right now, homeowners can determine if they are already eligible for mortgage assistance through FHASecure, FHA's existing refinancing program. They can obtain information through any of the following options:

1. Contact a local, HUD-approved housing counseling agency at HUD.gov;
2. Contact the HOPE NOW Alliance at (888) 995-HOPE; or
3. Call FHA at (800) CALL-FHA.

Sustainable, Affordability Homeownership

Hope for Homeowners maintains FHA's long-standing requirement that new loans be based on a family's long-term ability to repay the mortgage. FHA only allows owner-occupants to be eligible for FHA-insured mortgages. Borrowers must also meet the following eligibility criteria:

• Their mortgage must have originated on or before January 1, 2008;
• Their mortgage debt-to-income must be at least 31 percent;
• They cannot afford their current loan;
• They did not intentionally miss mortgage payments; and
• They do not own second homes.

Features of FHA-insured loans under the new program include:

• 30-year, fixed rate mortgage;
• Maximum 90 percent loan-to-value ratio;
• No prepayment penalties;
• $550,440 maximum mortgage amount;
• Extinguishment of any subordinate liens; and
• New home appraisals from FHA-approved appraisers.

HUD, Treasury, FDIC and the Federal Reserve will form the Congressionally-mandated Board of Directors and work together to establish additional program standards.

Voluntary Lender Participation

FHA will continue to offer lenders an alternative to foreclosing on borrowers. Similar to FHASecure's recent expansion, lenders will be encouraged to write-down the outstanding mortgage principal balances to 90 percent of the new value of the property. In many cases, reductions in principle will cost lenders less than the losses associated with foreclosure.

Market Stability and Liquidity

By continuing to slow the rate of foreclosures, this program will support FHA's existing effort to stabilize local housing markets. From September 2007 to June 2008, FHA has guaranteed more than $93 billion of mortgage capital.

Funding

FHA will insure up to $300 billion in new loans. Borrowers will pay an upfront premium of 3 percent of the original mortgage amount and an annual premium of 1.5 percent of the outstanding mortgage amount. Any additional costs incurred by FHA will be reimbursed by Fannie Mae and Freddie Mac.

Program Timeline

The program will last from October 1, 2008 through September 30, 2011. Since September 2007, FHASecure has helped more than 290,000 families obtain safer, more affordable mortgages. FHASecure is on pace to help 500,000 families by the end of the year.

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FREE Short Sale Support For Prince William County Virginia

The market is hard and getting harder or the average Joe or Josephine to sell. Add to this home sellers that need to sell because they cannot afford their mortgage and they owe more than the home is worth. What can they do? Well besides hiring a Realtor that specializes in Short Sales you need an competent Settlement Company to help you get to close. We would like to introduce you to that resource, Advanced Title, LLC. Their head office is located in Manassas Virginia but they service Virginia, Maryland and coming soon Florida.

Heather and Lee Mergler the founders and owners of this visionary settlement company suggest and we would have to agree, that your settlement company is just as important to a smooth and successful short sale as the Realtors and sellers.

There are others out there providing support and other third party providers that will help the negotiations. One simple truth is they all charge for their services. While we can all agree that a business should be able to charge for services provided and are entitled to a fair profit there are other issues here. In the sale of a home as a short sale the banks focus intently on that bottom line. As you can imagine they want to recover as much of the debt owed to them as they can. Any additional charges that will reduce the banks bottom line start to reduce the likelihood of an approval.

The following is bullet list from Heather Mergler about their Short Sale support.

Highlight Features from Advanced Title LLC
- FREE Short Sale Support. Outside of our standard and competitive fees we charge no additional fee for the details support and follow up required for Short Sales.

- Quick Property Title Search. It is important to find out about any liens that may be on the property as early as possible so they can be cleared in time to close.

- Experience and Knowledge to help you close your sale.

- Patient and diplomatic with all parties in the transaction. Often overlooked as a value, we have found that our patience and ability to resolve issue calmly have a very positive effect on getting your home to close.

- Communication is absolutely number one on our list and a significant difference between us and other area providers.

- On site settlements available. (Close at your location or come by ours).

It is important to note that while this blog was titled for Prince William County Virginia that Advanced Title LLC services a very large area in Northern Virginia and Maryland. Call them today at 703-365-9636 and ask for Heather Mergler.

-Best of luck!

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I Thought This Was a Buyer Market!?

What a difference in working for our buyers the last few months have been. So we are supposed to be in a declining market, homes staying on the market for months on end but our buyers are competing for homes with other buyers. To make it worse if they truly want that home they have to offer more than it is listed for. What is going on out there?

Actually the bank owned properties (foreclosed) on the market are increasing but the banks are finally getting smart on how to get them to move. They are pricing the homes WAY below the current market value. Now I would not say this is a 'bait and switch' sales scenario or even that the Realtors are pricing it low to generate leads. Remember on these bank owned homes the bank runs the show, so the Realtor doesn't choose the list price, the bank does. The Realtor does provide details and suggestions on price but in the end the bank sets this number just like any owner would. So back on track, what they are doing now is allowing the 'Market', you the buyer, decide what the home is worth? They are pricing it low to get the traffic into the home and then allowing any interested buyers to set the value.

This is how home buying in a buyer market would normally work. So what's the catch and why are buyers paying above the asking price in a market like this? Simple supply and demand. Every buyer is looking for a great deal, a great home that needs no work and in a great location. Well the supply on great homes is a bit limited. Many of the foreclosed homes will need some work to get them up to most buyers standards.

Even the not so great home around the corner needing tens of thousands of dollars of work priced very aggressively can generate the same multiple buyer situation.

In the last month alone we have worked with several buyers that have placed offers on multiple homes only to lose every one to competing offers that were well above the asking price. It seems to take buyers about two lost offers for the reality to really set in. The market has been injected with some life by the banks pricing their homes at very competitive and often below market value prices.

When you do find that needle in a haystack make certain to really look at the past sales and know what they are selling for. If the home you are looking at is a '10', newer on the market or the price has just dropped significantly under the market value then you have a choice to make. You can bid low and hope to get it at a steal or you can choose not to ignore the trend and offer a reasonable price and terms to take that home away from the other buyers right behind you.

The additional factor that makes all of this difficult is that the banks reserve the right to consider other offers even if they have verbally or in writing accepted yours. So being the first offer in does not at all guarantee you will get the home.

There are some incredible deals out there but the Spring/Summer home market is really starting to heat up. As we speak with Relators, lenders and the industry locally they are all saying there is absolutely more activity and excitement out there.

Best of luck and if you have questions related to the local real estate market in Prince William County Virginia please contact us at any time.

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First Time Home Buyers Frequently Asked Questions

First Time Home Buyers Frequently Asked Questions

How do I choose a mortgage lender?
Bradley Group International can recommend several lenders who we have successfully worked with over the years. The lender will expedite all of the necessary paperwork and information, including ordering a credit report and appraisal of the property, if required.

The application normally takes about one hour. All parties who will be on the title as new owners should be present. The information you provide to the lender is confidential.

Do I need to bring anything with me when I am looking at homes?
Bring a notebook and pen for note taking. This will make it easier to remember the specifics about each home.

If you need to go back to a home for another look, just let us know, and we will happily schedule an appointment. And bring your checkbook so you can make an offer if we find a home you like.

When I start visiting homes, what should I be looking for the first time through?
The house you ultimately choose to call home will play a major role in your life. While it is true that a home can be an excellent investment, it must also fit the way you live. Your chief concern should be those things that you cannot change: location, floor plan, # of baths, lot size, etc. Then, consider those things that you can change – appliances, carpet, paint, cabinets, etc. – and whether or not you are willing to change them.

What key questions should I ask about each home?
Sellers will supply you with a Seller’s Disclosure for the home, which will disclose any defects known by the seller. Or they may provide a or Disclaimer stating that they are unaware of any defects and that you may inspect the property at your expense. But, be sure to ask any questions you have about the home, even if you feel you are being nosy. You have a right to know. Ask any questions you have. We will assist you in finding the answers to all of your questions and/or concerns.

How many homes should I look at before I buy?
We will be viewing homes that match the preferences you gave during the buyer consultation. As long as your preferences don’t change, you will only to have seen an average of 6-8 homes before finding the one you want.

Where can I get information about local schools?
Ask us any questions you have about local schools. A great online resource for investigating schools is located at Greatschools.net

How can I find out what homes are selling for in a given neighborhood?
The simplest and easiest way is to ask us. If you are interested in a particular home, we may be able to provide you with a list of comparables—sale prices of homes in the area that are roughly the same size and age as the home you are considering. This is a good way to evaluate the seller’s asking price.

How do I determine the amount of my initial offer?
Once you have examined the home’s features and looked at the comparables, you should have a good idea of what the home’s value is in the current market. Consider your financial situation, and make an offer that you consider to be fair. Your offer will include the amount you are willing to pay, financing terms, any personal property you wish to have included, loan commitment date, closing date, and other contingencies including inspections. Remember that the lower your offer is, the less likely the seller will be to accept, so avoid ‘low-balling’ if you really want the house.

Should I be present during the inspection?
It is not required, but it is very much to your advantage. You will be able to better understand the inspection report, and know exactly which areas need attention. Plus, you will have a chance to get answers to many of your questions, and receive a lot of general information that will help you when you move into your new home.

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Special Short Sale Guidelines for FHA or VA Loans

If you are currently in default on your mortgage and are financially strapped you may have decided to try and sell your home under a short sale. There is a lot to consider and one of them might be to first figure out if you might qualify. Special consideration are needed for home that were financed via FHA or a VA loan.

Every lender will have different criteria for accepting a short sale proposal. In many cases you won't know what their requirements are up front. In the case of FHA and VA loans we do know what some of those requirements are.

As always consult a professional specializing in short sales when proceeding but here are some of the basic guidelines related to these types of loans and a short sale.

FHA Short Sale Criteria
- Net proceeds from the sale must be equal to or greater than 82% of the property's fair market value (FMV).
- The Ratio of FMV to the total current loan amount is greater than or equal to 63%.
- The second loan (if there is one) receives no more then $1000.
- Repairs cost less than 10% of after repaired value.

VA Short Sale Criteria
- Net proceeds from the sale must be equal to or greater than 88% of the property's fair market value (FMV).

I know, after reading this you are almost as confused as you were before you found this post. Don't worry you don't need a CPA to figure out the general qualifications. If you are working with a seasoned and experienced short sale Realtor they will ask you the right questions to help qualify if you are within the guidelines.

Best of luck and try to find some comfort in knowing this - Banks do not want to have to foreclose on your home. They are in the business of lending money not owning real estate. Don't be afraid or embarrassed to talk to them about your situation. They are more willing now then before to work out ways to help you catch up, maybe even forbearance is an option(where they let you skip a payment or temporarily reduce your payments). You may have options you are not even aware of. So before you even talk with a Realtor make sure to talk to your bank. You may be pleasantly surprised.

Best of luck and if you would like to talk with us to ask some questions about the process, cost, timing, anything at all feel free to call or email us.

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Northern Virginia FREE MLS Access. Does it exist?

Hidden addresses, no price, limited access!!! Is there really free MLS access out there? The very simple answer for our area is YES! Some areas don't actually allow it without some cost and I think I remember a rumor a year or two ago that our area was considering making the public pay for it. That would, and please excuse me here, but that would suck! Some Realtors want to hide this information. I think that is just the stupidest thing in the world. We are adults here. There's no reason in this Internet age to hide access to this information. That is why any web site where we have control over what it shown to our visitors we choose to show all the detail we can.


For example Homesdatabase.com is our public MLS placed on the Internet by our MLS company. Now I understand them not showing the address because their 'clients' are the Realtors that pay to support all of this. But as local agents we are allowed to purchase a subscription to this site and the subscription allows us at no cost to use to show the address. I am amazed that so many agents choose to keep this hidden. In some cases non-Internet savy agents may not even know they can click a little button and turn this feature on. (Our subscription site is located at www.Homesdatabase.net, you'll see the addresses show there because we have turned them on.

As I surf the 'Net' and check out the competition and seeing what's new and cool it never fails to amaze me how many sites advertise free mls access but don't really. They offer limited results until you sign up. We will always offer the Northern Virginia MLS access without limitation (unless our market changes that rule and takes that choice from us).

If you are looking for a home in the area take you time and when you are ready contact a local Realtor to the area you are looking. Having an agent from the same area you wish to purchase can save you a lot of headaches down the road as they will know the are market and trends intimately. Good luck.

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Wonderful Web Site Layout - John Mayer's Web Site (non Real Estate Related :)

I thought I would take a moment to share a web site that I really enjoyed recently. Coming from a web development and search engine optimization background I just can't help myself but to review our site logs and check out different sites on the web. It's always a good idea to look outside your own industry to keep your mind fresh but especially to avoid becoming complacent.

SO . . . recently while reviewing our web logs I noticed the referring web site JohnMayer.com, from a blog page on the site. I followed the referral link but did not see how the visitor on that site came through to ours (web gremlins maybe). But I have to say the site applies some basic rules all web site owners should try to apply better and that is actually the use of more 'white space' or open area without text and links as it were. Of course many of you may have heard of John as he is a popular singer and you would except an artist to have a site that is attractive in an 'artsy' way. But I wanted to give some kudos to John and his designer for a great site that is easy to navigate and doesn't come anywhere near overwhelming the visitor. Wonderfully enough as you navigate around you find there really is a lot of information and detail but the layout pulls it all off in a wonderful manner.

Check out John Mayer's web site over at www.JohnMayer.com.

(Good work out of you John's web guy/gal (maybe it's even you John - U Rock (pun intended)).

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Short Sales In Prince William County Virginia - Doing Something Good

Just recently I added a post comparing the advantages of purchasing a short sale to that of purchasing a bank owned home. A few days later I was speaking with a fellow Realtor about the awful situation local homeowners are going through. Most home owners I speak with are just like you and me, they shop at the local stores, work long hours and are trying to make the best of a difficult situation. Adjusting ARMs, Divorce, loss of a job, so many issues that you and I may not even be able to guess all come into play.

Quickly in case you did not read the post I am mentioning a Short Sale is when an owner sells their home for less then what they owe on the mortgage(s) and with the banks approval the home will sell to the buyer(s) making the offer.

I would like to suggest that if you are in the market to purchase a new home think about helping those around you. Think about purchasing a home that is being sold as a Short Sale. I know it might not be as public a deed as donating for disease research, which is of course very important to all of us. You most likely will not know the owners personally but does that really matter? The stress, loss of sleep and strain on a person or family in this situation is not easy to explain if you have not been through it.

Your offering to purchase their home may in fact be the first sign of light for the owner(s) of the home you are trying to buy. Sometimes all they need is a little sign of hope at the end of the tunnel. Your choosing to purchase their home may bring enough relief of stress to help the owner(s) make it through the next few months. And you know they say that we all have to take it just one day at a time when times are hard. So your offer to purchase may get them through some of the tougher times ahead.

It is true that in the end it is the bank that will say yes or no to the offer. These purchases absolutely require some patience from your part. Is that really so much to ask in this situation? Try to imagine owning a home and being in the same position and maybe you'll see just a bit of what so many owners in our area are going through.

So if you are looking for a new home at a great price and can just have a little patience with the process, please consider purchasing a Short Sale home. Doing this can relieve a lot of financial stress for the current owner(s) and a successful sale keeps the home from going to 'Foreclosure'.

I want to thank you in advance for even considering this option for your home purchase. Helping our neighbors, friends and family is never a bad idea. We all have challenging times in our lives and helping those around us is the right thing to do.

If you are a home owner needing to sell as a short sale please contact a local Realtor that has experience with these challenging and unique sales. Of course we would always be happy to speak with you and explain the process. And if you choose to move forward we are happy to help you take care of this.

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Short Sale: Townhome For Sale in Gainesville VA - Piedmont South - $294.2K

Wow this large town house is located in Gainesville, Virginia in the newer subdivision of Piedmont South. With plenty of upgrades and lots of interior space you won't be disappointed with this home in Prince William County.
Enjoy the 2-sided fireplace in your Living Room and large, bright windows to bring in the morning sun. Fully finished on all levels there is plenty of space to live and grow in this wonderful home.



Room / Dimensions
Living Room / 16 x 12
Dining Room / 12 x 11
BDRM-Master / 16 x 12
BDRM-2nd / 10 x 10
BDRM-3rd / 10 x 10
Recreation Rm / 27 x 15
Other Room / 14 x 11
Breakfast Room / 13 x 11

View The Property Photos and Virtual Tour (Click Here)

Come check out this property at 6903 Stanwick Square, Gainesville, VA 20155. For a Private Showing call us at 703.330.7683 ext 3. We look forward to showing you this

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My Favorite - 404 - Page Missing, Page :)

For today I thought I would share something completely non-related to real estate. We've all clicked a link on a site only to find the infamous '404 - Page Missing' page. Well some sites out there do it just a bit different and often in a very entertaining way.

Check out my Favorite locate at - http://www.homestarrunner.com/systemisdown.html. You will want your volume on for this one.

Enjoy, and take a moment not to stress too much about this difficult market.

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Manassas Va Home Buyers: Purchasing Short Sale vs. Bank Owned

With all of the area home sales that are Short Sales and with all of the Foreclosed homes on the market buyers in Manassas Virginia and the surrounding areas have a lot to think about.

First let's start with making sure everyone understands the differences in these types of properties.

During a Short Sale the owner still owns the home and may or may not be occupying it at the time. The home value is higher then the total mortgages currently held on the property. The owner is trying to avoid foreclosure from the bank by receiving an offer to purchase. If the sale goes through the final approval is needed by the bank to accept the offer for less then the amount owed on the loan. It's a bit more involved but you get the idea.

A Bank Owned home has already been foreclosed by the bank and was not purchased at auction. So the home now reverts back to ownership by the bank. Banks want to sell these as they are not in the business of owning homes.

So which is best to buy? Which one gets you the best deal? How flexible is your time line?

If you purchase a Short Sale property you MUST be prepared for two things. The first is that it may take 30-60 days, maybe longer for the bank to approve the sale. And the second thing is that when that 30 or 60 day decision arrives they may say 'no'. If they say no you are out any expenses up until then and you have to start the home search again. Sure you will get your earnest deposit back but the cost for the home inspection, the appraisal or other inspections are gone. Now you need to start looking again. The challenge is putting an offer together that in the long run, the bank will like. The seller's will almost accept anything sometimes which is good and bad. For you it seems good but when the bank finally reviews the offer if it is out of line with a) what they owe the bank and b) what the general market value is the bank is likely to say NO.

The good thing you are doing if this does go through is you are actually helping the sellers save themselves from an otherwise disastrous situation - foreclosure. A Short Sale has less impact on the seller's credit rating and may help them to get themselves back on track that much sooner. And I have to say there is something nice in knowing that you got a great home, at a great price and where able to help someone else along the way.

Bank Owned homes are a great alternative but not always the great deal you might think so take your time. Banks, just like the original owners are looking for market value. They are trying to a) recover their losses and b) make up for some of those losses. If you are in a time crunch Bank Owned homes help you stay on track a bit better then a Short Sale. Both are often sold in AS-IS condition meaning 'buyer beware'. Make certain to have a home inspection even if they sellers are stating AS-IS. Consult with your Realtor as you should be able to make an offer with using a Home Inspection as the right to 'Void the Offer'. This would simply state that if you find things during the inspection, even if the owners will not correct them, you should have full rights to void the offer and get your earnest deposit back.

Everyone wants a great home at a steal of a price. They are out there but do your homework and you just might find just what you are looking for.

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New Conforming Loan Limits - Update (Laura Triplett from SunTrust)

Thanks to Laura Triplett from Suntrust for the update on what the heck is going on out in the mortgage industry for our area. Laura is a very trusted lender in the area and if you are interested in speaking with her I have included all of her contact information at the bottom of her article. -Steve

What we know today (but things could change):

The bill sets the FHA and conforming (FNMA/FHLMC) loan limits to the leseer of $729,750 or 125% of an area’s median home sales price. If 12% of an area’s median sales price is below the current conforming loan limit of $417,00, don’t worry; the $417,000 still applies. In others words, you will not be any worse off than you ar today. The area median home price is determined by HUD and is based, in part, on the National Association of Realtors Data for each MSA.

The FHA and conforming limit changes are meant to be temporary and are set to expire on December 31, 2008 (unless extended, which could happen)

The new limits will apply to 30 year and 15 year fixed rate, fully amortizing (no interest only) and owner occupied.

ARMS are being considered, but if allowed, the increase will likely apply to one ARM type (for example 5/1 ARMS)

FNMA will have other credit overlays including LTV limitations (probably 90%)

The limits will be effective as soon as the bill is signed, FNMA determines pricing, and the lenders can update their systems.

Washington DC MSA may go up to $547,500. None of the above is official yet. More to come….

CONTACT Laura Triplett:
Vice President - Branch Manager
Suntrust Mortgage
Office: 703-492-5057
Mobile: 703-919-3679
email: Laura.Triplett@SunTrust.com
Laura's Web Site

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Behind on your Mortgage? Save Your Home.

If you are a home owner in Northern Virginia you probably know neighbors that are behind on their home payments. Possibly you are behind currently. There is hope if you tae action.
There is some wonderful information posted at the Fannie Mae site. Follow this link to read the article about how the save your home when you are getting behind on payments.

http://www.fanniemae.com/aboutfm/borrower_resource.jhtml

If you find that your only option is a Short Sale then contact us today for details on what you need to do to get started.

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FOR SALE - 3 Acres in Manassas, 5 Bedroom, 2600+/- sq ft

What would you do with a gorgeous Rambler that sits privately on just about 3 acres of pure serenity? How about enjoy it everyday you can? Why not invite your friends and family over for a relaxing dinner while gathering for conversation and great food in your screened porch off of the back of the home?

As you drive down the long, private, tree lined driveway you are magically taken away from the stress of a long day. It’s marvelous to be so close to everything but feel as though you are hidden away from the busy world.

The two-car carport was smartly designed with breezeway spacing just in case you choose later to build it out into a two-car garage.

The home and property are fully fenced and offer a second fenced area for pets. Included with the sale are FOUR outdoor sheds for plenty of storage.

The most recent updates to this home include New Flooring, Kitchen (Refrigerator, Stove & Dishwasher), Bathrooms, HVAC and Roof.

This wonderful home offers 2600 +/- finished square feet and the comfort and elegance you truly deserve. This home has 2 Full Baths as well as an additional 1/2 Bath and separate laundry room for your convenience.

The large Game Room fills with natural light as you gather to play or relax after a long day.

Move in Condition - Pack Your Bags, Call your Realtor and fill out those change of address cards, this home is waiting for you.

// ROOM SIZES //
• Master Bedroom - 16 x 13
• Bedroom #2 - 13 x 10
• Bedroom #3 - 13 x 11
• Bedroom #4 - 13 x 11
• Bedroom #5/Office - 10 x 10
• Dining Area - 13 x 12
• Kitchen - 13 x 13
• Family Room - 13 x 19
• Game Room - 24 x 22

Property Address: 7201 Token Valley Road, Manassas, VA 20112
For a Private Showing Call 703-330-7683 Ext 3.

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