Hybrid ARM Loans Are a Great Opportunity for Borrowers Who Know They Must Sell in Five Years

ARM mortgages have gotten a bad name recently and are often unjustly blamed for the housing bust, however buyers should not automatically dismiss all ARMs.

Hybrid ARMs can be really good deals even in these times of historically low interest rates, some lending experts insist.

In the first week of July, 2009, starting rates for ARMs were at 4 percent, generally a full percentage point lower than traditional, 30-year, fixed-rate mortgages. Hybrids are locked in at that starting rate for five, seven, or sometimes even 10 years, then they adjust—usually a maximum of 2 points a year with an overall cap of 6 or 8 points.

Savings on a hybrid ARM can be thousands of dollars and make sense for a buyer who does not expect to be in a home for more than five or six years – must sell BEFORE the rates adjust.

Buyers should do the math, considering the worst-case scenario. In many cases, particularly with jumbo loans, the savings can be substantial for short-term borrowers.

 

There is an important distinction between fixed-rate and adjustable-rate mortgages that few borrowers consider. When borrowers make fixed extra payments to principal on a fixed rate mortgage, they shorten the term but don’t change the payment. When they make fixed extra payments to principal on an ARM, they reduce the payment on rate adjustment dates, but don’t change the term. This makes ARMs attractive to those who want to reduce their payments, and FRMs attractive to those who want to shorten their term.

 

More about risks and benefits of Adjustable Rate Mortgages

 

Source: United Features Syndicate

Home Affordable Refinance Program – Loan-To-Value, LTV, increased to 125%

Home Affordable Refinance Program Expanded to Up to 125% LTV

On July 1, 2009, Secretary of Housing and Urban Development, Shaun Donovan, announced expansion of the Home Affordable Refinance Program to permit refinancing of existing Fannie Mae and Freddie Mac loans with LTVs up to 125 percent (up from the current LTV limit of 105 percent).

 

The goal of the refinance effort is “to provide access to low-cost refinancing for responsible homeowners suffering from falling home prices.”  The expectation is that refinancing a Fannie Mae or Freddie Mac loan will put responsible borrowers in a better position by reducing their monthly principal and interest payments or moving them from a more risky loan structure (such as interest-only or short-term ARM) to a more stable loan.

The move acknowledges that home prices in many areas have fallen so far that many people were shut out of the program. How many more people will be drawn to the program now, however, remains a question, especially since mortgage rates are on the rise since May, 2009. 

Rates hit a low of 4.84% on April 28, 2009, but were at 5.45% in June, 2009.

Since mortgage rates have been in the 6% range in recent years, refinancing to the mid-5% range may not be worth it, said Keith Gumbinger, vice president at HSH Associates. A homeowner with a $200,000 mortgage at 6% would see a savings of about $64 a month if he refinanced at 5.5%, and that’s before closing costs.  Closing costs may be the deciding factor in the refinancing option. 

More than one in five borrowers are now underwater, with homes in parts of California and Florida losing more than 50% of their value, according to Zillow.com, a real estate Web site. Some 20 million people own homes worth less than their mortgages.

Some 20,000 loans have been refinanced so far and banks have extended more than 200,000 trial modification offers, according to the Treasury Department.

 

 

To learn more about the Home Affordable Refinance and the Making Home Affordable programs, go to www.fanniemae.com or click here.

 

Other related posts on this blog: Homeowner Affordability and Stability Plan – March, 2009; What to do if loan officer is not following Home Affordable Guidelines – June, 2009

 

 

SOURCE: Fannie Mae

The Obama Making Home Affordable Program is Not Available to All Homeowners Willing to Refinance or Modify Their Loan

Borrowers Struggle to Get Help

According to a report from foreclosure-prevention counselor NeighborWorks America, getting help through the Obama administration’s mortgage-assistance program has been an impossible challenge for thousands of applicants, reported USA Today.

Home owners who apply for mortgage modifications can expect to wait 45 to 60 days before hearing anything from their mortgage service company.

To read more about Making Home Affordable Program: Refinancing and Modifications on this Blog.

Here is some other basic information:

• The refinancing option is available only for certain loans owned or securitized by Fannie Mae and Freddie Mac. Home owners should contact their lender to see if they’re eligible.
• Borrowers who are delinquent on their mortgage do not qualify.
• The first mortgage may not exceed 105 percent of the current market value of the property.
• NOTE:  Loan-To-Value, LTV, was increased to 125% July 1, 2009
•  
• To be eligible for the modification option, borrowers must live in their property and be able to pay the mortgage after the modification.
• The unpaid principal balance must be equal to or less than $729,750 for one-unit properties.
• The loan must have originated before Jan. 1, 2009.
• A borrower must have a payment (including taxes, insurance and homeowners association dues) that is more than 31 percent of the borrower’s gross monthly income.
• Consumers can find more information about these programs at FinancialStability.gov.

 

Eligibility Test to see if you qualify for Home Affordable Program Refinancing.

Eligibility Test to see if you qualify for Home Affordable Program Modification. 

Related post on this Blog about What to do when Loan Servicer is Not following the Home Affordable Program Guidelines - June, 2009

Related post on this Blog about Making Home Affordable: Refinancing and Modification – March, 2009

 

 

SOURCE: USA Today

What To Do if Loan Servicer is Not Following the Making Home Affordable Program Guidelines

Many homeowners looking to refinance or modify their mortgage are frustrated by unwillingness of some lenders to cooperate. It needs to be remembered here that Making Home Affordable Refinance Program applies ONLY to Fannie Mae and Freddie Mac sponsored loans.  In addition, those loans must meet criteria for refinancing or modification.

 

Here are the recommended steps to take when it becomes obvious that loan servicer is not following the guidelines for the Obama Administration’s Making Home Affordable Program for modifying eligible mortgages and refinancing Fannie Mae and Freddie Mac mortgages:

• First, go to http://www.makinghomeaffordable.gov/ — the official Treasury website for the Making Home Affordable Program. At the site, determine whether the loan is owned or guaranteed by Fannie Mae or Freddie Mac by clicking “Loan Look Up” on the ribbon on the top of the home page. Only the holder of the loan is allowed to perform this search or a person who has a written permission from the borrower.
• If the loan is a Fannie Mae or Freddie Mac loan, borrower should call (1) 1-800-7Fannie or (1) 1-800-Freddie, as appropriate, describing the specific inconsistency.  This applies to both, the refinancing and the loan modification program.
• Next, if the loan is not owned or guaranteed by Fannie Mae or Freddie Mac, borrower can determine if the loan servicer is participating in the Home Affordable Modification Program (HAMP) by going to the website and clicking “Contact Your Mortgage Servicer” on the top ribbon. To date, 16 servicers are participating, covering more than 80% of all mortgages.
• If the servicer is participating, the first step is to contact the servicer using the phone number or email address listed on the site so the borrower can appeal the issue to a supervisor. The borrower should identify the specific provision of the guidance that is believed not being followed. If the supervisor cannot or will not correct the problem, the borrower can call 1-800-7Fannie to report the disagreement. Fannie is administering the program for the Treasury Department and will work to resolve the issue.

 

Making Home Affordable Program Website (consumer friendly)

To see if you are eligible for Re-Financing

To see if you are eligible for Modification

Related post on this blog, March 2009, about Loan Refinancing and Modifications

 

SOURCE: NAR, REALTOR Magazine

Seven Common Credit Report Mistakes – Improve Credit Score by Removing Errors

 

Credit scores are more important than ever as lenders introduced higher standards for borrowers seeking a mortgage.

Most lenders require credit score above 720 for conventional loans. FHA loans did not take credit scores into account in the past, as long as the borrower had stable employment history and income over the last two years prior to seeking mortgage. However, in the 2009 financial landscape, even FHA loans require at least 620 credit score.

Borrowers with lower than perfect credit scores are punished by higher interest rate they must pay on their mortgage.

This is why it is important for borrowers to check their credit rating and remove any errors on credit reports BEFORE applying for a mortgage.

Consumers can obtain a copy of their credit report and review it for accuracy. Everyone is entitled to one free credit report per year from two of the three credit bureaus: Equifax, and TransUnion – credit score itself will not be included in the free credit report, however an option is offered to purchase the score along with the report. 

As of February 14, 2009,  Experian no longer offers credit scores via MyFICO.com, but FICO scores based on data from Equifax and TransUnion will still be available through the Web site. The change doesn’t affect lenders, but it makes it more difficult for potential borrowers to examine their score before they apply for a loan.

Borrowers must remember though that lenders will use different credit score for the mortgage than the consumer credit score they see on the report – the consumer credit score is deceivingly higher and therefore vigilance in keeping the score as high as possible is advised.

 

In order to correct any errors on the reports, borrowers should look for:

• Late payments. There should be no late payments over seven years old on the report. This is important, as approximately 35 percent of a credit score is based on timely payments.  
• Collections. The report shouldn’t show any collections or charge-offs more than seven years old. It’s a good idea for consumers to save copies of their credit report for seven years so they have proof of when an item was added.  
• Payment records. All paid-in-full installment loans and all collections that have been paid in full or settled for less than the amount due should show a zero balance. Sometimes collections are not updated after they’ve been paid or settled.  
• Mysterious accounts. Consumers should be able to recognize all accounts listed on the report. Incorrect accounts do sometimes appear, either by mistaken identity or by identity theft. Consumers should contact the creditor immediately to compare their name and Social Security number with the one shown for the incorrect amount. In the case of an incorrect collection, consumers may have to request a “validation of debt,” or what is sometimes called a “media packet,” which provides details on the account holder. If the account is a case of identity theft, the consumer should request a fraud affidavit from the creditor. It’s also a smart idea to file a police report.  
• Original dates. Length of credit history is 15 percent of a credit score, so consumers should be sure the original dates they opened their accounts are accurate. Original account dates could be reported inaccurately if a credit card company is acquired or merged, or if a credit card is reported lost or stolen.  
• Available credit. Credit limits on the credit report should match up with credit card statements. It’s best to keep balances under 50 percent of the available limit; less than 30 percent is even better. Debt accounts for 30 percent of your score.  
• Types of accounts. Sometimes accounts are not categorized correctly. A home equity line of credit should be listed as a second mortgage, not just a line of credit. If the account type is not reflected properly, consumers should contact the creditor. It is important to various types of credit (not just credit cards). 
• Reason codes. Consumers should read what the credit bureau has to say about why their score is what it is. These so-called “reason codes” appear in the credit report to explain what factors played into the credit score and what actions can be taken to improve the score over time. One caveat: If a consumer already has a good credit score, ignore the reason codes, as making changes could actually result in a lower score.

 

MyFICO credit scores are calculated as follows:

 

 

 

One last word of advice for consumers: Contrary to popular belief, think twice before closing credit cards, which shrinks the available line of credit listed on your report and hurts the credit utilization ratio. However, do not open too many credit cards either as this may increase the risk factor.

 

The key to good credit is paying bills on time and being proactive in reviewing credit reports regularly for potential errors. If consumers find their credit score is a respectable 720 or higher, removing minor errors may not be worth the effort. Otherwise, finding and eliminating major errors is one way to get the high credit rating mortgage borrowers deserve.

 

NOTE: For details always contact your trusted Lender

NOTE:  All information presented here is believed to be accurate but is subject to errors and omissions and should not be relied upon without verification.

 

SOURCE:  MyFICO, Experian, Equifax, TransUnion, REALTOR Magazine

Compiled by:
VIVIANNE RUTKOWSKI
REALTOR, ASP, ABR
KELLER WILLIAMS REALTY
Leesburg,  VA   20176
Toll-Free:….877.765.3799
Mobile:…540.229.5429
E-Fax:…..888.864.3374
E-mail: VivianneRutkowski@MRIS.com
WEBSITE: www.RealtorVivianneRutkowski.com
BLOG:  http://VivianneRutkowski.WordPress.com

The Virginia Housing Development Authority, VHDA, Homebuyer Tax Credit Plus – Program Can be Used for Closing Costs, Points, (and Downpayment) on Loans Closed by December 1, 2009

The Virginia Housing Development Authority (VHDA) is launching a new program to allow first time homebuyers to use the Federal First Time Homebuyer $8,000 Tax Credit to finance closing costs, points to lower their interest rate, and downpayment on a VHDA mortgage.  Borrowers can use the Tax Credit for downpayment only if they satissfied the 3.5% FHA requirement – only then the credit can be used to make a larger downpayment.

The release of VHDA’s program follows HUD’s May 2009 announcement that FHA approved lenders are permitted ”monetization” of the Federal First Time Homebuyer Tax Credit through short-term bridge loans.

 

 VHDA Homebuyer Tax Credit Plus Program Features: 

• The maximum loan amount for the first mortgage is the maximum FHA mortgage
• Affordable fixed-rate financing on both mortgages
• 0% interest on the second mortgage for the first year
• No payments required on the second mortgage for the first year
• Beginning with the 13th month, the second mortgage will have the same interest rate as the first mortgage and monthly payments must be made thereafter
• Maximum second mortgage loan amount – up to 5% of sales price (no cash back)

 

VHDA Homebuyer Tax Credit Plus Program Details:

Time Limit: Loan must close no later than November 30, 2009.

 Eligibility Requirements: Borrowers must meet federal First-time Homebuyer Tax Credit requirements as well as VHDA’s requirements regarding first-time homebuyer status, income limits, sales price limits, etc.

Maximum Income: The combined income of all household members may not exceed VHDA’s maximum income limits, which for Washington D.C. area: Arlington County, Fairfax County, Fauquier County, Loudoun County, Prince William County is $86,900 for 2 or fewer persons, and $100,000 for 3 or more persons.

Maximum Sales Price/Total Loan Amount: The combination of the first and second mortgage may not exceed VHDA’s sales price/income limits, which for Washington D.C. area: Arlington County, Fairfax County, Fauquier County, Loudoun County, Prince William County is $408,100.

Minimum Credit Score: Minimum of 620.

Qualifying Ratios: FHA Ratios of 31% payment to income/ 43% debt to income apply.

Required Borrowers Funds: Borrowers must have a minimum of 1% of the sales price verified as their own funds to be contributed toward the transaction or have available as reserves.

Pricing Options: Pricing Options are available. Rate on the first and second mortgage will be the same. No points or origination fee charged on the second mortgage.

In order to qualify for any VHDA loan product, including Homebuyer Tax Credit Plus, individuals must take a free VHDA homeownership education class. These free classes cover topics including credit issues, personal finances, home inspections, the role of lenders and real estate agents, and the closing process. In-person and online classes can be scheduled by visiting www.vhda.com.

 

Eligible buyers have the following three re-payment options:

1.  Pay off the second mortgage with the Federal First Time Homebuyer $8,000 Tax Credit.
2. Pay off the second mortgage over 29 years – and save the tax credit to pay for future emergencies, make home improvements, or pay off/pay down existing debt.
3. Make principal payments on the second mortgage before the repayment period begins; this will reduce the required monthly payments for the remaining 29 years on the second mortgage.  

If borrowers are not eligible for the First Time Homebuyer Tax Credit, or the tax refund (if any) is not enough to repay the First Time Homebuyer Tax Credit plus loan, borrowers are still obligated to repay the second mortgage, plus all applicable interest.  For more information, visit http://www.vhda.com/sf/pdf/HomebuyerTaxCreditPlus.pdf or call 877-VHDA-123.

.

Information about $8,000 tax credit is available at http://www.irs.gov/newsroom/article/0,,id=204671,00.html?portlet=7. 

Related posts about $8,000 Tax Credit,  FHA Approved Bridge Loans for $8,000 Tax Credit – Monetization 

 

 

NOTE: For details always contact your trusted Lender

NOTE: Contact me personally for a no obligation Buyer Consultation to see if you qualify for the Federal and VHDA $8,000 Tax Credit

 

SOURCE:  VHDA,  HUD, IRS

Washington-Arlington-Alexandria among 10 Cities Most Likely to Bounce Back Quickly from the Housing Bust

Real estate markets are very local in nature and dependent on local economies. Some cities are likely to recover more quickly from the housing downturn than others. Forbes magazine has identified the top 10 cities that it believes are poised for recovery by examining unemployment figures, projected gross domestic product from Moody’s Economy.com, and housing affordability data from the National Association of Home Builders.

Arlington, Virginia, which experienced the least drop in house values in the Washington, D.C. area, made the list of the top 10 cities to recover the most quickly from the housing downturn. 

Overall, cities most likely to recover first are those with strong technology capabilities.

Here is Forbes’ top 10:

1. Austin-Roundrock, Texas
2. Fayetteville-Springdale-Rogers, Ark.
3. Boulder, Colo.
4. Huntsville, Ala.
5. San Antonio, Texas
6. Mobile, Ala.
7. Dallas-Fort Worth-Arlington, Texas
8. Washington-Arlington-Alexandria, D.C.-MD- VA
9. McAllen-Edinburg-Mission, Texas
10. Seattle-Tacoma-Bellevue, Wash.

See June 2009 post – Median and Average price trends over the last six years in Arlington, Virginia

SOURCE:  Forbes

May 2009 Statistics, Real Estate and Homes For Sale in Arlington County, Virginia

A Summary of Residential Real Estate Statistics for Arlington County, Virginia, for the month of MAY 2009 in the $100,000 to $5 Million price range.

 

The Table below shows the most relevant real estate data for the month of MAY 2009 and compares it with the previous month and the previous year, April 2009 and May 2008, respectively. 

 

The Bar Graph is a distribution of the Listing Prices for the 239 properties SOLD in Arlington County in May 2009.  The actual Selling Price may differ from the Listing Price. The Bar Graph does not take into account Seller subsidies and contributions to the Buyer, only the Listing Price in the MLS at the time of the Offer. 

.

The Median Line Graph shows the MEDIAN sale price of the homes SOLD in Arlington County, Virginia, over the last six years.

The Average Line Graph shows the AVERAGE sale price of the homes SOLD in Arlington County, Virginia, over the last six years.

 

Arlington County includes: Ashton Heights (22201), Aurora Hills (22202), Crystal City (22202), Ballston (22203), South Arlington (22204), Shirlington (22206), North Arlington (22207), Rosslyn/Arlington (22209), and Alexandria.  

 

ARLINGTON	. MAY,2009.	PREVIOUS MONTH	MAY, LAST YEAR
UNITS SOLD	239 SOLD	191 SOLD	228 SOLD
ACTIVE LISTINGS	997 ACTIVE	1,018 ACTIVE	1,054 ACTIVE
UNITS SOLD IN 0-30 DAYS	109 UNITS	83 UNITS	119 UNITS
MEDIAN PRICE SOLD	$469K	$450K	$423K
AVERAGE PRICE SOLD	$518K	$498K	$515K
AVERAGE DAYS ON THE MRKT	80 DAYS	84 DAYS	68 DAYS

.

.

 

Distribution of the Listing Prices of the SOLD properties: 

 

 

.

.

 

 

MEDIAN SALE PRICE.  In this graph, Median means that 50% of the  homes sold were above the median price and 50% of the homes sold  were below the median price.  The Median Price in Arlington County for May 2009 was $469K

 

 

 

AVERAGE SALE PRICE: In this graph, the Average was calculated by combining the values of all the SOLD homes and dividing the Total by the number of homes sold.  The Average Price in Arlington County for May 2009 was $518K

.

 

 

 

NOTE: All information presented here is believed to be accurate but is subject to errors and omissions and should not be relied upon without verification.

NOTE: Contact me personally for a no obligation CMA, market analysis of your home and your neighborhood.

.

SOURCE: MLS - MRIS, Metropolitan Regional Information Systems

 

Table and Graphs compiled by:
VIVIANNE RUTKOWSKI
REALTOR, ASP, ABR
KELLER WILLIAMS REALTY
Toll-Free:….877.765.3799
Mobile:…540.229.5429
E-Fax:….888.864.3374
E-mail: VivianneRutkowski@MRIS.com
WEBSITE: www.RealtorVivianneRutkowski.com
BLOG:  http://VivianneRutkowski.WordPress.com

May 2009 Statistics, Real Estate and Homes For Sale in Fairfax County, Virginia

A Summary of Residential Real Estate Statistics for Fairfax County, Virginia, for the month of MAY 2009 in the $100,000 to $5 Million price range.

 

The Table below shows the most relevant real estate data for the month of May 2009 and compares it with the previous month and the previous year, April 2009 and May 2008, respectively.

 

The Bar Graph is a distribution of the Listing Prices for the 1,331 properties SOLD in Fairfax County in May 2009.  The actual Selling Price may differ from the Listing Price. The Bar Graph does not take into account Seller subsidies and contributions to the Buyer, only the Listing Price in the MLS at the time of the Offer.

 

The Median Line Graph shows the MEDIAN sale prices of the homes SOLD in Fairfax County, Virginia, over the last six years. 

The Average Line Graph shows the AVERAGE sale price of the homes SOLD in Fairfax County, Virginia, over the last six years.

.

Fairfax County includes: Annandale (22003), Burke (22015), Centreville (20120, 20121), Chantilly (20151), Clifton (20124),  Fairfax City (22030, 22031, 22032, 22033), Fairfax Station ( 22039), Falls Church (22041, 22042, 22043, 22044, 22046, 22047), Fort Belvoir (22060),  Great Falls (22066), Herndon (20170, 20171), Kingstowne (22315), Lorton (22079), Mc Lean (22101, 22102), Mount Vernon (22121), Oakton (22124), Reston (20190, 20191, 20194), Springfield (22150, 22151, 22152, 22153),  Vienna (22180, 22181, 22182), and  Alexandria. 

FAIRFAX	MAY, 2009	PREVIOUS MONTH	MAY, LAST YEAR
UNITS SOLD	1,331 SOLD	1,168 SOLD	1,278 SOLD
ACTIVE LISTINGS	6,030 ACTIVE	6,179 ACTIVE	8,530 ACTIVE
UNITS SOLD IN 0-30 DAYS	651 UNITS	489 UNITS	506 UNITS
MEDIAN PRICE SOLD	$360K	$340K	$399K
AVERAGE PRICE SOLD	$420K	$386K	$469K
AVERAGE DAYS ON MRKT	77 DAYS	85 DAYS	93 DAYS

 

.

 

Distribution of the Listing Prices of the SOLD properties:

 

 

 

.

MEDIAN SALE PRICE:  In this graph, the Median means that 50% of the  homes sold were above the median price and 50% of the homes sold  were below the median price.  The Median Price in Fairfax County for May 2009 was $360K

 

 

 

AVERAGE SALE PRICE: In this graph, the Average was calculated by combining the values of all the SOLD homes and dividing the Total  by the number of homes sold.  The Average Price in Fairfax County for May 2009 was $420K

 

 

NOTE: All information presented here is believed to be accurate but is subject to errors and omissions and should not be relied upon without verification.

NOTE: Contact me personally for a no obligation CMA, market analysis of your home and your neighborhood. .

SOURCE: MLS – MRIS, Metropolitan Regional Information Systems.

.

Table and Graphs compiled by:
VIVIANNE RUTKOWSKI
REALTOR, ASP, ABR
KELLER WILLIAMS REALTY
Toll-Free:….877.765.3799
Mobile:…540.229.5429
E-Fax:….888.864.3374
E-mail: VivianneRutkowski@MRIS.com
WEBSITE: www.RealtorVivianneRutkowski.com
BLOG:  http://VivianneRutkowski.WordPress.com

May 2009 Statistics, Real Estate and Homes For Sale in Fauquier County, Virginia

A Summary of Residential Real Estate Statistics for Fauquier County, Virginia, for the month of MAY 2009 in the $100,000 to $5 Million price range.

 

The Table below shows the most relevant real estate data for the month of May 2009 and compares it with the previous month and the previous year, April 2009 and May 2008, respectively.

 

The Bar Graph is a distribution of the Listing Prices for the 70 properties SOLD in Fauquier County in May 2009. The actual Selling Price may differ from the Listing Price. The Bar Graph does not take into account Seller subsidies and contributions to the Buyer, only the Listing Price in the MLS at the time of the Offer.

 

The Median Line Graph shows the MEDIAN sale price of the homes SOLD in Fauquier County over the last six years.

 

The Average Line Graph shows the AVERAGE sale price of the homes SOLD in Fauquier County over the last six years.

 

Fauquier County includes: Bealeton (22712), Broad Run (20137), Catlett (20119), Delaplane (20144), Marshall (20115), Midland (22728), Nokesville ( 20181), Remington (22734), Sumerduck (22742),   The Plains (20198), Warrenton (20186, 20187)

 

FAUQUIER	…MAY,2009.	PREVIOUS MONTH	MAY, LAST YEAR
UNITS SOLD	70 SOLD	54 SOLD	49 SOLD
ACTIVE LISTINGS	572 ACTIVE	569 ACTIVE	764 ACTIVE
UNITS SOLD IN 0-30 DAYS	24 UNITS	11 UNITS	12 UNITS
MEDIAN PRICE SOLD	$268K	$217K	$315K
AVERAGE PRICE SOLD	$351K	$283K	$355K
AVERAGE DAYS ON THE MRKT	140 DAYS	178 DAYS	184 DAYS

.

.

 

Distribution of the Listing Prices of the SOLD properties: 

.

  

. 

 

 

MEDIAN SALE PRICE.  In this graph, Median means that 50% of the  homes sold were above the median price and 50% of the homes sold  were below the median price. The Median Price in Fauquier County for May 2009 was $268K

 

 

 

 

 

AVERAGE SALE PRICE: In this graph, the Average was calculated by combining the values of all the SOLD homes and dividing the Total by the number of homes sold.  The Average  Price in Fauquier County for May 2009 was $351K

 

 

 

 

NOTE: All information presented here is believed to be accurate but is subject to errors and omissions and should not be relied upon without verification.

NOTE: Contact me personally for a no obligation CMA , market analysis of your home and your neighborhood.

 

 

SOURCE: MLS -MRIS, Metropolitan Regional Information Systems.

 

Table and Graphs compiled by:

VIVIANNE RUTKOWSKI
REALTOR, ASP, ABR
KELLER WILLIAMS REALTY
Toll-Free:….877.765.3799
Mobile:…540.229.5429
E-Fax:….888.864.3374
E-mail: VivianneRutkowski@MRIS.com
WEBSITE: www.RealtorVivianneRutkowski.com
BLOG:  http://VivianneRutkowski.WordPress.com

May 2009 Statistics, Real Estate and Homes For Sale in Loudoun County, Virginia

A Summary of Residential Real Estate Statistics for Loudoun County, Virginia, for the month of MAY 2009 in the $100,000 to $5 Million price range.

 

The Table below shows the most relevant real estate data for the month of May 2009 and compares it with the previous month and the previous year, April 2009 and May 2008, respectively.

 

The Bar Graph is a distribution of the Listing Prices for the 438 properties SOLD in Loudoun County in May 2009.  The actual Selling Price may differ from the Listing Price. The Bar Graph does not take into account Seller subsidies and contributions to the Buyer, only the Listing Price in the MLS at the time of the Offer. 

 

The Median Line Graph shows the MEDIAN sale price of the homes SOLD in Loudoun County over the last six years.

The Average Line Graph shows the AVERAGE sale price of the homes SOLD in Loudoun County over the last six years.

The Line Graph.The Line Graph

Loudoun County includes:  Aldie (20105), Ashburn (20147, 20148), Bluemont (20135), Chantilly (20152), Great Falls (22066), Hamilton (20158, 20159), Lovettsville (20180), Middleburg (20117), Paeonian Springs (20129), Purcellville (20132), Round Hill (20141), Sterling (20164, 20165, 20166), Waterford (20197) and Leesburg (20175, 20176, 20177)

 

LOUDOUN	MAY, 2009	PREVIOUS MONTH	MAY, LAST YEAR
UNITS SOLD	438 SOLD	370 SOLD	511 SOLD
ACTIVE LISTINGS	2,338 ACTIVE	2,421 ACTIVE	3,486 ACTIVE
UNITS SOLD IN 0-30 DAYS	217 UNITS	168 UNITS	133 UNITS
MEDIAN PRICE SOLD	$325K	$315K	$351K
AVERAGE PRICE SOLD	$366K	$353K	$398K
AVERAGE DAYS ON THE MRKT	86 DAYS	83 DAYS	119 DAYS

 

.

 

Distribution of the Listing Prices of the SOLD properties: 

 

 

.

 

 

 

 

 MEDIAN SALE PRICE.  In this graph, Median means that 50% of the  homes sold were above the median price and 50% of the homes sold  were below the median price.  The Median Price in Loudoun County for May 2009 was $325K

 

AVERAGE SALE PRICE:  In this graph, the Average was calculated by combining the values of all the SOLD homes and dividing the Total by the number of homes sold.  The average Price in Loudoun County for May 2009 was $353K

.

 

 

 

   

NOTE: All information presented here is believed to be accurate but is subject to errors and omissions and should not be relied upon without verification.

NOTE:  Contact me personally for a no obligation CMA, market analysis of your home and your neighborhood.

.

SOURCE: MLS – MRIS, Metropolitan Regional Information Systems.

 

Table and Graphs compiled by:
VIVIANNE RUTKOWSKI
REALTOR, ASP, ABR
KELLER WILLIAMS REALTY
Toll-Free:….877.765.3799
Mobile:…540.229.5429
E-Fax:….888.864.3374
E-mail: VivianneRutkowski@MRIS.com
WEBSITE: www.RealtorVivianneRutkowski.com
BLOG:  http://VivianneRutkowski.WordPress.com

May 2009 Statistics, Real Estate and Homes For Sale in Prince William County, Virginia

A Summary of Residential Real Estate Statistics for Prince.William.County,Virginia, for the month of MAY 2009 in the $100,000 to $5 Million price range.

 

The Table below shows the most relevant real estate data for the month of May 2009 and compares it with the previous month and the previous year, April 2009 and May 2008, respectively.

 

The Bar Graph is a distribution of the Listing Prices for the 875 properties SOLD in Prince William County in May 2009.  The actual Selling Price may differ from the Listing Price. The Bar Graph does not take into account Seller subsidies and contributions to the Buyer, only the Listing Price in the MLS at the time of the Offer.

 

The Median Line Graph shows the MEDIAN sale price of the homes SOLD in Prince William County over the last six years.

The Average Line Graph shows the AVERAGE sale price of the homes SOLD in Prince William County over the last six years.

 

Prince William County includes: Bristow (20136), Dumfries (22025, 22026), Gainessville (20155), Haymarket (20169), Nokesville (20181), Occoquan (22125), Triangle (22172), Woodbridge (22191, 22192, 22193), and Manassas (20109, 20110, 20111, 20112)  

 

PRINCE WILLIAM	MAY, 2009	PREVIOUS MONTH	MAY, LAST YEAR
UNITS SOLD	875 SOLD	845 SOLD	828 SOLD
ACTIVE LISTINGS	3,128 ACTIVE	3,341 ACTIVE	6,614 ACTIVE
UNITS SOLD IN 0-30 DAYS	453 UNITS	416 UNITS	243 UNITS
MEDIAN PRICE SOLD	$190K	$168K	$244K
AVERAGE PRICE SOLD	$227K	$205K	$273K
AVERAGE DAYS ON THE MRKT	78 DAYS	87 DAYS	127 DAYS

..
.

 

Distribution of the Listing Prices of the SOLD properties:  

.

 

 

.

.
MEDIAN SALE PRICE.  In this graph, Median means that 50% of the  homes sold were above the median price and 50% of the homes sold  were below the median price.  The Median Price in Prince William County for May 2009 was $190K

 

 

 

 

AVERAGE SALE PRICE:  In this graph, the Average was calculated by combining the values of all the SOLD homes and dividing the Total by the number of homes sold.  The Average Price in Prince William County for May 2009 was $227K

.

 

 

 

 

NOTE: All information presented here is believed to be accurate but is subject to errors and omissions and should not be relied upon without verification.

NOTE: Contact me personally for a no obligation CMA, market analysis of your home and your neighborhood.

.

SOURCE: MLS - MRIS, Metropolitan Regional Information Systems.

 

Table and Graphs compiled by:
VIVIANNE RUTKOWSKI
REALTOR, ASP, ABR
KELLER WILLIAMS REALTY
Toll-Free:….877.765.3799
Mobile:…540.229.5429
E-Fax:….888.864.3374
E-mail: VivianneRutkowski@MRIS.com
WEBSITE: www.RealtorVivianneRutkowski.com
BLOG:  http://VivianneRutkowski.WordPress.com

May 2009 Statistics, Real Estate and Homes for Sale in Arlington, Fairfax, Fauquier, Loudoun, and Prince William County

A Summary of Residential Real Estate Statistics for the Northern Virginia area for the month of MAY 2009 in the $100,000 to $5 Million price range.

 

ARLINGTON COUNTY

ARLINGTON	. MAY,2009.	PREVIOUS MONTH	MAY, LAST YEAR
UNITS SOLD	239 SOLD	191 SOLD	228 SOLD
ACTIVE LISTINGS	997 ACTIVE	1,018 ACTIVE	1,054 ACTIVE
UNITS SOLD IN 0-30 DAYS	109 UNITS	83 UNITS	119 UNITS
MEDIAN PRICE SOLD	$469K	$450K	$423K
AVERAGE PRICE SOLD	$518K	$498K	$515K
AVERAGE DAYS ON THE MRKT	80 DAYS	84 DAYS	68 DAYS

 

.. .

FAIRFAX COUNTY

FAIRFAX	MAY, 2009	PREVIOUS MONTH	MAY, LAST YEAR
UNITS SOLD	1,331 SOLD	1,168 SOLD	1,278 SOLD
ACTIVE LISTINGS	6,030 ACTIVE	6,179 ACTIVE	8,530 ACTIVE
UNITS SOLD IN 0-30 DAYS	651 UNITS	489 UNITS	506 UNITS
MEDIAN PRICE SOLD	$360K	$340K	$399K
AVERAGE PRICE SOLD	$420K	$386K	$469K
AVERAGE DAYS ON MRKT	77 DAYS	85 DAYS	93 DAYS

 .

..

FAUQUIER COUNTY

FAUQUIER	…MAY,2009.	PREVIOUS MONTH	MAY, LAST YEAR
UNITS SOLD	70 SOLD	54 SOLD	49 SOLD
ACTIVE LISTINGS	572 ACTIVE	569 ACTIVE	764 ACTIVE
UNITS SOLD IN 0-30 DAYS	24 UNITS	11 UNITS	12 UNITS
MEDIAN PRICE SOLD	$268K	$217K	$315K
AVERAGE PRICE SOLD	$351K	$283K	$355K
AVERAGE DAYS ON THE MRKT	140 DAYS	178 DAYS	184 DAYS

 .

.

LOUDOUN COUNTY

LOUDOUN	MAY, 2009	PREVIOUS MONTH	MAY, LAST YEAR
UNITS SOLD	438 SOLD	370 SOLD	511 SOLD
ACTIVE LISTINGS	2,338 ACTIVE	2,421 ACTIVE	3,486 ACTIVE
UNITS SOLD IN 0-30 DAYS	217 UNITS	168 UNITS	133 UNITS
MEDIAN PRICE SOLD	$325K	$315K	$351K
AVERAGE PRICE SOLD	$366K	$353K	$398K
AVERAGE DAYS ON THE MRKT	86 DAYS	83 DAYS	119 DAYS

. 

.

PRINCE WILLIAM COUNTY

PRINCE WILLIAM	MAY, 2009	PREVIOUS MONTH	MAY, LAST YEAR
UNITS SOLD	875 SOLD	845 SOLD	828 SOLD
ACTIVE LISTINGS	3,128 ACTIVE	3,341 ACTIVE	6,614 ACTIVE
UNITS SOLD IN 0-30 DAYS	453 UNITS	416 UNITS	243 UNITS
MEDIAN PRICE SOLD	$190K	$168K	$244K
AVERAGE PRICE SOLD	$227K	$205K	$273K
AVERAGE DAYS ON THE MRKT	78 DAYS	87 DAYS	127 DAYS

.

NOTE: Numbers rounded to the nearest thousand – * indicates NO change in month-to-month data, or month-to-previous year data.

NOTE: All information presented here is believed to be accurate but is subject to errors and omissions and should not be relied upon without verification. 

 

SOURCE: MLS – MRIS, Metropolitan Regional Information System

 

Compiled by REALTOR Vivianne Rutkowski of Keller Williams Realty, Virginia

Shopping for a Home Mortgage Online – Comparing Quotes for Loan Products

Getting a mortgage is not easy during the trying years 2008-2009, particularly since many banks have tightened crediting, which is ultimately keeping out some buyers with less than stellar credit rating or no downpayment.

Many borrowers are turning online to shop for a mortgage, in which they can shop anonymously and still get accurate rates.

According to a recent article on CNNMoney.com, here are three Web sites that will get mortgage-shoppers started – these sites act as a referral source and borrowers will still need to close with a bank or mortgage broker:

• Zillow.com: The best thing about this site is the ability to read reports of other people’s experiences with a lender. 
• MortgageMarvel.com: This site updates mortgage rates in real time, so it’s a good place to find deals.
• LendingTree.com: This site matches a potential borrower with four lenders who will offer their best rates. The downside is that lenders will pull credit scores, which could hurt a borrower’s credit. Regardless on what bank or mortgage broker borrowers use for their mortgage, they should expect to pay an average of $3,118 in fees, according to the article.

 

NOTE:  While mortgage shopping, it is important that borrowers compare one type of loan at a time - for instance, a 30-year, fixed rate with no points loans, or 15-year ARMs,etc.  See related post, April 2009: Finding the Best Mortgage Deal

NOTE: The above post is not meant as an advice; it is for informational purposes only. For details contact your lender of choice.

SOURCE:  CNNMoney.com

$8,000 Tax Credit can be used for Closing Costs, Points, and Downpayment for Homes Purchased by December 1, 2009

Potential first-time buyers have yet another reason to consider purchasing a home:  The monetization of the tax credit. Here are four ways first-time homebuyers can get access to the $8,000 that can be used for upfront costs for homes purchased by December 1, 2009.

Short-term bridge loans are now available from a variety of lenders so that buyers can tap the benefits of the $8,000 Federal Housing Tax Credit for First-Time Home Buyers upfront. If buyers are eligible for the $8,000 tax credit, these bridge loans will enable them to use the money for their down payment and closing costs with the credit as collateral. Consumers will have to pay the money back after they’ve filed their tax return and received a refund.

There are essentially four sources for this type of financing, and their terms can vary considerably.

1. State HFA Bridge Loans

As of early June 2009, 10 state Housing Finance Agencies offered tax-credit bridge loans, and more were planning to do so. The easiest way to learn whether one is offered in your state is to get your HFA’s phone number through a Housing Finance Agency list maintained by the National Council of State Housing Agencies (NCSHA). NCSHA also maintains a list of HFAs that already offer the bridge loans.

Although each state HFA loan differs, here are some typical characteristics:

•  Buyer will need to make a minimum downpayment from their own funds, probably around $1,000.
• Buyer will have to go through local lenders approved by the HFA to actually originate the loan, since HFAs are not originators.
• In some cases, the loans are interest-free; check with the state HFA to find out.
•  The HFAs have set aside a limited amount of funds for the loans, so they tend to be made on a first-come, first-served basis.
• Buyers will be expected to use HFA-backed financing for the mortgage on their home purchase.

This financing typically comes with a below-market interest rate and usually requires borrowers to meet eligibility criteria. These criteria will vary greatly, but they often require borrowers to be first-timer buyers and meet income-eligibility requirements. For the bridge loans, there’s a good chance the criteria will be similar to what’s required for the tax credit.

Since the bridge loans are made in tandem with your HFA’s financing products, buyers apply for the loans when they apply with the HFA-approved lender for their mortgage financing. A list of approved lenders is on the HFA’s Web site.

2. Local Government or Nonprofit Loans

If state HFA where buyer resides doesn’t offer the loans, buyer can ask an HFA staff person to direct to local nonprofits or state or local government agencies that do. If that person can’t help, a good place to start a search is with a national nonprofit group called NeighborWorks, which maintains a list of more than 200 local affiliates that provide housing assistance. The loan programs for each of these affiliates differ, so buyers will need to check with them on their underwriting standards and loan terms—and even on whether they make bridge loans repayable with the tax credit.

3. Local HFAs

Another source, if state HFA where buyer resides can’t help, might be the National Association of Local Housing Finance Agencies. Local HFAs are much like state HFAs but with jurisdictions limited to their locality. To learn whether there’s a local HFA in your area, call NALHFA at 202/367-1197.

4. FHA-approved Lenders

If buyer is unable to identify a state or local HFA or other governmental agency or nonprofit, buyer can tap bridge-loan assistance if buyer can work with a lender approved by the U.S. Department of Housing and Urban Development to originate FHA-backed loans. HUD maintains a database of FHA lenders on its Web site that’s searchable by a number of criteria including city, state, county, and service area.

In a difference with the assistance provided by state and local agencies or nonprofits, the bridge loans provided by private, for-profit FHA-approved lenders must be structured in the form of a personal loan or line of credit collateralized by the tax credit. The bridge loan cannot be structured as a second mortgage.

Also, although FHA allows buyers to use the bridge loan to cover the closing costs or to buy down the interest rate, buyers can use it for the down payment only after they’ve covered the 3.5 percent minimum that’s required on any FHA loan. Thus, buyers must come up with the 3.5 percent minimum down payment themselves or else tap another source of assistance for it. That can include gifts from family. Seller-funded down-payment programs are not permitted.

Since it’s the HUD-approved lender and not FHA itself that’s making the bridge loan, actual loan terms will vary. At a minimum, though, the bridge loan must meet certain restrictions, most of them imposed to weed out fraud or ensure borrowers are not borrowing more than what they can afford. These include:

• Loans cannot result in cash back to the borrower.
• The amount can’t exceed what’s needed for the downpayment, closing costs, and prepaid expenses.
• If there’s a monthly repayment, it must be included within the qualifying ratios and, when combined with the first mortgage, can’t exceed the borrower’s reasonable ability to pay.
• Payments must be included in the qualifying ratios, unless they are deferred for at least 36 months.
• There can be no balloon payment required before 10 years.
• Financing fee cannot exceed 2.5% of the tax credit

To read about $8,000 tax credit and other tax credit related posts   -  For details see ARCHIVES, February 2009 and March 2009, and 2009 – Library of Posts.

 

NOTE:  For details contact your lender

SOURCE: REALTOR Magazine, National Association of REALTORS

State Farm Auto Insurance Eye Opener – Welcome to the Insurance World

 Homeowners insurance is a very important part of the contract to purchase a home, or other real estate, for that matter. 

Lenders require the borrower to acquire the fire hazard insurance before taking the title to the property as a protection against damages caused by a fire, severe storms, or other natural hazards.

It is very important for home buyers to shop for a homeowners insurance with the same diligence as when shopping for a mortgage and carefully compare the coverage, deductibles, and exclusions.

I wanted to share with you two quotes for auto insurance for one and the same car prepared for one and the same person that was issued by State Farm Insurance.  The quotes truly are an eye opener and raise many questions.  By the legal standards in this country those quotes cannot be called a fraud as every business is entitled to have a ”freedom” to develope their own business strategy as they see it fit.  See below and judge for yourself.

I erased the name to protect the identity of the person involved.

Note that both quotes are for 1975 Volkswagen Beetle 2DR. Both quotes have $100, $500, and $200 deductibles.

However when you look closely at the LIMITS you can notice that one quote offers 250/500/100 Limits at a 6 months premium of $74.89 or $12.48 per month.

The second quote offers only 100/300/100 Limits at a 6 months premium of $73.42 or $12.24 per month.

This is ONLY $0.24  (24 cents) difference in pricing despite the huge difference in coverage due to lower limits.  

 

250/500/100 LIMITS   $12.48 per month

 

 

100/300/100 LIMITS    $12.24 per month

 

It is extremely important to understand here that the federal law does NOT put the same burden of disclosure on insurance agents the way it puts on real estate agents.  REALTORS are obligated by law to disclose virtually everything to their clients as well as obey Fair Housing Laws. 

Because of Agency laws, REALTORS owe fiduciary duty to their clients, sellers and buyers - however insurance agents represent the insurance company and have the duty to protect the best interests of the insurance company, NOT the interests of a person who purchases the insurance. 

Insurance agent is obligated and limited only by the business policy of the insurance company that he/she represents.

In other words, if State Farm has no requirement that obligates its agents to DISCLOSE various insurance options and  the pricing, then all patrons who purchase an insurance from State Farm are at the mercy and good will of the agent…. If the agent chooses not to disclose that for $0.24 (24 cents) more the patron can double the coverage, that patron will never know….. AND if State Farm does have such a policy,  why, in the spirit of fairness, not charge more equitable premiums?

Does it smell of open discrimination in a broad daylight? You bet.  Does it provide an opportunity to discriminate?  YES again. Discrimination that is legalized under the umbrella of a business world. 

I am certain the same applies to the homeowners insurance.

Defence: due diligence.  Shop and compare.

 

NOTE:  The above comment represents the views and opinion of the owner of this blog, Vivianne Rutkowski, and is not a reflection of views of  Keller Williams Realty. Each Keller Williams Realty office is independently owned and operated.

Risks and Benefits of Purchasing Real Estate with Unrelated Partners – Title to Real Property

 

Since the slowdown of the real estate market in 2006, many homebuyers and investors are taking advantage of the buyers’ market and purchase at a lower price. It is not uncommon for unmarried couple, or two roommates, or a group of friends to invest in a real property.

While the idea may seem on the surface like a good opportunity for renters who wish to become homeowners or investors looking for ways to capitalize on the current housing downturn, however there are many LEGAL problems and potential risks for unmarried/unrelated persons purchasing real estate together.

Most (not all) married couples purchase real estate either as Tenants by the Entirety ( in the states where it is allowed) or as Joint Tenants with the Right of the Survivorship – either way the surviving spouse is protected and the property is shared equally. The exception is the Tenancy in Common which does NOT automatically offer protection to the surviving spouse and owners can own unequal shares.

The mortgage obligations and the way title is taken can punish the participants to the transaction for years to come. This is especially true if all co-owners are on the title, but only some sign the mortgage – in case of default all co-owners who are on the title are responsible for the mortgage, however those who did sign the loan stand to loose more in terms of their credit rating.

This is why it is of utmost importance to have a well written, detailed legal agreement prepared BEFORE the property is purchased by a knowledgeable real estate attorney that clearly spells out all the terms of the agreement to co-own:

•  how title to the property will be held 
• who owns how much of the property 
• what amounts were contributed 
• who is responsible for mortgage 
• what happens if the partnership dissolves 
• future repair and maintenance costs
• HOA fees 
• utility costs and other expenses 
• who pays all the property taxes, unless the lender pays via escrow 
• how the tax deduction for the mortgage interest will be split 
• what happens if one or more of the co-owners abandons the property 
• what happens if one of the co-owners decides to sell or transfer his share 
• how the ownership arrangement will be dissolved 
• how the proceeds of the sale will be distributed

 

Choosing the way unmarried co-owners take the Title to the property depends greatly on the relationship of the co-owners: 

• Joint Tenancy with the right of survivorship 
• Tenancy in Common 
• Limited Liability Company

 To read about various ways that Title can be taken, visit May 2009 blog:

http://viviannerutkowski.wordpress.com/2009/05/04/title-to-real-property-protecting-ownership-rights/

While there are many benefits to co-ownership, there are certainly risks as well. Married people have comprehensive divorce laws that offer legal guidelines in the event of split – those who purchase real property with non-spouse do not have that legal benefit and protection.

All the more reason to consult a real estate attorney and tax accountant BEFORE purchasing a property with siblings, friends, or other investors to protect interests of everyone involved. A well written, detailed agreement can save a lot of headache and legal fees in the future.

A Guide to Free Summer Concerts in D.C., Maryland and Virginia for the Summer of 2009

 The 2009 summer season is upon us – swimming pools, beaches, camping out, barbecues, AND FREE outdoor concerts.

The Washington, D.C. area, Maryland and Virginia, abound in concerts that can be attended free of charge.  All you need to bring is a water, a sense of humor and an umbrella to protect yourself from the sunshine.  Enjoy!

http://www.washingtonpost.com/gog/search/q,categories_Music%20Events,includeAllTerms_Summer%20Concert%20Guide%20Free,sortSpecifier_Date.html

New Outdoor Water Park, A.V. Symington Aquatic Center, in Leesburg, Virginia, Opened May 22, 2009

 The Town of Leesburg residents celebrated a grand opening of a new $7 million outdoor pool facility, A.V. Symington Aquatic Center, located just past Ida Lee Park Recreation Center and named after the late philanthropist and Leesburg resident Symington, who bequested $5 million to the Town of Leesburg and made the outdoor pool possible.

 

The A.V. Symington Aquatic Center features 600-foot lazy river, a large slide tower with two body flumes, a four-lane lap pool, shade structures, and smaller slides for children.  There is also a large “beach” area with bubblers and water fountains, dumping buckets, a floating snake and alligator, a lily pad-type crossing feature and a little squirt whale, and a grass picnic area.

Outdoor food and drinks are allowed and available with the highest priced item at the concession stand at $6, making it affordable for families.  Food and drinks must be consumed at the grass picnic area.

 

Indoor pool is also available at the Ida Lee  Center.

 

The new water park is open every day during summer from 12p.m.  to 8p.m. 

The entrance prices for the Leesburg residents are as follows:

LEESBURG RESIDENTS	CHILDREN	ADULTS
MONDAY-FRIDAY	$5	$6
SATURDAY-SUNDAY	$6	$7

 

The entrance prices for out-of-town patrons are as follows:

OUT-OF-TOWN PATRONS	CHILDREN	ADULTS
MONDAY-FRIDAY	$8	$9
SATURDAY-SUNDAY	$9	$10

 

Zoom-in and Zoom-out MapQuest for Ida Lee Center: 60 Ida Lee Drive, NW,  Leesburg, VA 20176

http://www.mapquest.com/maps?city=Leesburg&state=VA&zipcode=20176&cat=Ida+Lee+Center#a/search/l:::Leesburg:VA:20176:US:39.12:-77.5254:zip:Loudoun+County:1/m::16:39.123392:-77.564969:0:::::/so:IDA+Lee+Center:::r::25:::::/e

Homeowners Can Fight Foreclosure by Using “Produce the Note” Strategy to Force the Lenders to Prove They Can Legally Foreclose on the House

 

The Consumer Warning Network website offers an advice that homeowners can put pressure on lenders who refuse to cooperate with homeowners willing to keep their homes and instead lenders choose to foreclose on the house.   

According to The Consumer Warning Network, homeowners who believe  they have been treated unfairly can fight back by using the “Produce the Note” strategy . 

 

NOTE:  In some states, a lender can foreclose on a home without going to court.  These are called non-judicial foreclosure states.  Homeowner  can still use the “Produce the Note” strategy in these states, but it takes a few more steps on homeowner’s part.

 

The logic and the legal defense  behind the “Produce the Note” strategy  is to make certain the financial institution attempting to foreclose on the house is, in fact, the owner of the note.  There is ONLY one original note for the mortgage that has the homeowner’s signature on it which proves that the homeowner owes the debt.

During the lending boom, most mortgages were flipped and sold to another lender or servicer or sliced up and sold to investors as securitized packages on Wall Street. In the rush to turn these loans over as fast as possible to make the most money, many of the new lenders did not get the proper paperwork to show they own the note and mortgage. This is the key to the “Produce the Note” strategy. Now, many lenders are moving to foreclose on homeowners, resulting in part from problems they created, and don’t have the proper paperwork to prove they have a right to foreclose.

 

It’s important to hold lenders accountable for their carelessness. Home is the biggest asset in many people’s life.

 

When the homeowner gets a copy of the foreclosure suit, many lenders now automatically include a count to re-establish the note that  reads like this: “…the Mortgage note has either been lost or destroyed and the Plaintiff is unable to state the manner in which this occurred.”

 

 In other words, the lenders are admitting they don’t have the note that proves they have a right to foreclose.

 

This is extremely important because if the lender is allowed to proceed without that proof, there is a possibility another institution, which may have bought your note along the way, will also try to collect the same debt from you again.

 

A Tennessee borrower recently had precisely that happen to her. Her lender, Ameriquest, foreclosed on her in July of 2007. About three months later, another bank sent her a default notice for the mortgage on the house she just lost. She called to find out what was going on. After being transferred from place to place and left on hold for lengthy periods of time, no one could explain what happened. They said they would get back to her, but never did. Now, she faces the risk of having her credit continually damaged for a debt she no longer owes.

 

The  primary goal of the “Produce the Note” strategy is to delay the foreclosure and put pressure on the lender to negotiate. Only about 20% of short sales are approved by the lenders, most become foreclosures.  Despite all the hype about lenders wanting to help homeowners avoid foreclosure, most borrowers know that’s not the reality.

Too many homeowners have experienced lender resistance to their efforts to work out a payment structure to keep them in their homes. Many lenders bear responsibility for these defaults, because they put borrowers into unfair loans using deceptive, hard-sell practices and then made the problem worse with predatory servicing.

 

Lenders made incredible amounts of money by using irresponsible practices to issue and service these loans. That greed led to the foreclosure crisis we’re in today. Allowing lenders to continue foreclosing on home after home, destroying our neighborhoods and our economy hurts us all.

 

With the help of judges who see through these predatory practices, lenders will feel the pressure to work with borrowers to keep them in their homes.

For more details and to watch the videos, visit:  

http://www.consumerwarningnetwork.com/2009/05/12/fight-foreclosure-make-em-produce-the-note-3/

 

NOTE:  For legal advice contact your real estate attorney.

SOURCE:  The Consumer Warning Network