November 24th, 2009
The Washington DC government’s Office of Tax and Revenue has rescheduled its property tax sale for November 30th. Interested parties can register from Nov. 23rd – 25th.
The auction is not in fact a sale, as no property changes hands on that date. Auction bidders win a claim against the property, and may eventually begin a foreclosure process, for which they’d have to pay off the tax lien on the property to the Washington DC government. But the original owners retain the property in the short term and have a right to pay off the bidder and clear the title to their home. Read the rest of this entry »
Tags: DC tax sale
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November 23rd, 2009
Appraisals seem to be the issue of the day in the mortgage and real estate world. Everybody seems to value property differently even in the best of real estate markets. In a more difficult real estate environment, appraising becomes even more contentious.
For example, banks have really tightened their underwriting policy on appraisals. On an FHA loan they may require two appraisals if if the loan is an FHA jumbo loan (which is one that is over $417,000), if the property is in a declining market, and if the buyer is borrowing the maximum loan to value (which is 96.5%, i.e. a 3.5% down payment).
Also on an FHA loan, even if it is a loan that is a conforming FHA loan (which is one that is below $417,000) the bank may require a desk review Read the rest of this entry »
Tags: appraisals
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November 20th, 2009
Communities across the country are realizing more and more that the spread out patterns of growth (i.e. sprawl), which have shaped American communities for the past several decades, cannot be sustained. Last week, the Montgomery County Council approved the plan for the county’s 2009 – 2011 Growth Policy, which will become effective January 1, 2010. According to the Washington Business Journal, “Under the plan, all new projects near transit must be at least 50% residential and projects must be at least 75% of the allowed density under the zoning rules. Obviously Montgomery County wants development to be denser, Read the rest of this entry »
Tags: Montgomery County development
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November 16th, 2009
So where are housing prices going next? Everyone has an opinion, most based on emotion as opposed to facts. The facts are that real estate is local. If the state of Florida’s residential real estate is down 16% year over year, that does not mean that every house in the state of Florida went down exactly 16%. There may even be homes in the state of Florida where there is no price decrease year over year, and maybe even an increase! So always do your homework before stating an opinion about real estate.
A recent headline said, “National home prices are forecast to shrink another 11%. Read the rest of this entry »
Tags: house prices
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November 12th, 2009
Dupont Circle is a vibrant, diverse neighborhood considered by many to be the heart of Washington, DC’s nightlife. It boasts some of the DC area’s finest historic homes, foreign embassies and museums. You will also find a large variety of ethnic restaurants, art galleries and bookstores.
The old Dupont Circle Subway Station lies below Dupont Circle and above the Dupont Metro Station. It was built in 1949 to relieve traffic congestion on Dupont Circle created by the old trolley system. In 1962 the station was closed when the trolley system was shut down. It remained closed for over 30 years.
Then in 1992, entrepreneur Geary Stephen Simon approached the city with a proposal to turn the space into high-end retail. Read the rest of this entry »
Tags: Dupont Underground
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November 10th, 2009
Shopping for a loan is easy, kind of like window shopping. You poke your head in the window, take a look, maybe you go in the store and ask a few questions, maybe you go to another store, who knows. You are not obligated to buy from anyone, and you are going to check every source you can TO GET THE BEST PRICE. It’s all about the best price after all (he said sarcastically).
It is all about the best price, as long as you get what you wanted in the first place. And this is the problem in shopping for goods and services, people are so focused on the price, they lose of track of making sure they are going to get what they need. You have to ask a lot of questions, and be asked a lot of questions, to ensure the process will go smoothly and to ensure you will get the price being promised. If you are not being asked a lot of questions when you ask about a mortgage, something is wrong. Read the rest of this entry »
Tags: loan shopping
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November 9th, 2009
The tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence has been extended through April 30, 2010. There is also a new tax credit of up to $6,500 for qualified repeat home buyers.
First-time home buyers purchasing a new construction or resale home are eligible for the 1st time home buyers tax credit. To qualify for this tax credit the settlement must occur on or after January 1, 2009 and on or before April 30, 2010. The date when closing occurs is the important date, not the “contract” date.
A “first-time home buyer” is defined as a buyer who has not owned a principal residence during the 3 year period prior to the purchase. For married taxpayers, the law tests the home ownership history of both the home buyer and his/her spouse. Read the rest of this entry »
Tags: federal tax credit
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November 5th, 2009
When you refinance your existing mortgage, if you have a home equity line or 2nd trust, the new bank will want a subordination agreement. What is this? Is a subordination agreement some sort of mortgage gibberish, or something that is really needed?
A subordination agreement is something that shows the 2nd trust lender will ‘subordinate’, or stay in 2nd trust place, when the 1st trust refinance takes place. Read the rest of this entry »
Tags: subordination agreement
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November 4th, 2009
A Reverse Mortgage is when your house pays you back, or that is how the commercial goes. But at what cost? And is it worth it?
I have been doing some more research on these Reverse Mortgages (RM). I have been trying to condense 80 pages of data down into something manageable. Here are a few important notes I came up with:
-You can get a more detailed over view on this website at: http://www.getloans.com/loanprograms/rm/
-You have to be 62 years of age or older. Read the rest of this entry »
Tags: reverse mortgage
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November 2nd, 2009
There are a lot of questions about refinancing, or at least there should be. The questions a consumer should be asking of a mortgage professional are:
1. What are the closing costs I have to spend to refinance?
2. Can I finance those costs into the new loan amount?
3. How much would I save by refinancing?
4. How long has the mortgage firm been licensed?
5. How long has the individual mortgage professional been licensed? And how long have they been with their current firm?
6. If you are being offered a “no closing cost” loan, are the costs simply being built into the rate so that you are paying simply paying a higher rate in trade for no costs?
7. What happens if your appraisal comes in lower than expected?
8. Will you be required to pay mortgage insurance?
9. If you have mortgage insurance on your current loan can you drop it?
10. How long is the interest rate locked-in for, and what is the turn around time on loan processing, underwriting, and loan document preparation?
And the questions that you “should” be asked by a mortgage professional are: Read the rest of this entry »
Tags: refinance questions
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