Archive

Archive for May, 2011

6 real estate headlines: 31-May

A daily dose of headlines for real estate agents, mortgage lenders, homebuyers and home sellers.

DC estate tax at $35M six months early
Washington Business Journal
: Every D.C. estate tax dollar received between April and September is a bonus and could be used to ease budget cuts.

Tax breaks for property losses
Inman News
: A “casualty” is damage, destruction, or loss of property due to an event that is sudden, unexpected, or unusual. Deductible casualty losses can result from many different causes.
Washington hot spot for young professionals
Washington Examiner
: Young professionals look for a home that is a good value, in move-in condition, includes all appliances and requires little to no renovations or improvements.

Be realistic when refinancing a home loan
Bankrate.com
: If your personal finances are less solid, you may have to overcome some obstacles before getting a new home loan.

Pending home sales dive in April
Wall Street Journal
: The number of people who signed contracts to buy previously occupied homes in the U.S. tumbled last month, the latest sign that the battered sector is struggling to rebound.
Five things to watch: Hello, summer
CNBC
: Analysts aren't looking for much good news in the struggling housing market, as a two percent decline is expected. Then again, there's good news if you're a prospective home buyer.

http://twlv.net/shlaow

Categories: Uncategorized

6 real estate headlines: 27-May

A daily dose of headlines for real estate agents, mortgage lenders, homebuyers and home sellers.

Rates fall for 6th straight week
Washington Business Journal
: Signs of a slowing economy continued to bring mortgage rates down, with a 30-year fixed-rate mortgage falling to the lowest level of the year this week.
Who pays the most in property taxes?
CNN Money
: Two main factors contribute to property taxes: the amount of services local governments provide, and the revenue shared by state governments.
Counseling before borrowing
The New York Times
: Prepurchase education, although traditionally aimed at low- and moderate-income first-time buyers, is available to anyone.

Foreclosure sales high, but volumes drop
Wall Street Journal
: The foreclosure sales' data, and a drop in foreclosure activity suggest banks are moving cautiously.

This is what it takes to get approved for a mortgage
HSH.com
: Mortgage applicants must now meet strict debt-to-income limits, often set to 45 percent. This means that your monthly debts–housing costs, bills, etc.–may not exceed 45 percent of your documented monthly income.
Booming boomer population straining 'burbs
Washington Examiner
: As baby boomers enter retirement and begin collecting pensions and Social Security, government funding for those programs will be in trouble.

http://twlv.net/4SMex8

Categories: Uncategorized

How short sales and foreclosures impact your credit score

As the number of home foreclosures and short sales continue to dominate the housing market, it is important for foreclosure homeowners and short sale sellers to understand the impact of their decisions on their credit scores. �

In a May 2, 2011 article in the Baltimore Sun by Eileen Ambrose, an interview with FICO scores director Joanne Gaskin, discusses the potential hazards on credit scores.

While many argue that a short sale impacts credit scores less than a foreclosure or deed-in-lieu of foreclosure, Ms. Gaskin states that “[B]oth are considered a default.� There is little difference in impact.” �

However, it is possible for a short sale to have less impact depending on how the lender reports the short sale to the respective credit bureaus.� If the short sale lender does not include the amount of shortage from the sale, the homeowners FICO score would be approximately 35 points higher than if the homeowner underwent a foreclosure.

Another myth that Ms. Gaskin addresses is that being 30 days late on a mortgage payment will not affect a credit score as much as being 90 days late.� This is untrue because once you are late, the damage to your credit score has been done.� “The first 30 days late makes a significant impact and it takes a good deal of time to repair that credit,” according to Ms. Gaskin.

Below is a chart for every homeowner to consider when making a tough decision between a short sale and foreclosure and the impact on their credit score. �

** Please note, that before making any decisions, it is important to speak with a financial advisor to determine the true impact on you personally, as the information below is general in nature and may not reflect your specific situation. **

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Starting FICO Score (range 300-850)

Type of Delinquency/Default

Impact on Credit Score

Length of Time for Credit Score to Recover

680 (low)

30 days late on mortgage

Decrease 60-80 points

9 months

 

90 days late on mortgage

Decrease 60-80 points

9 months

 

Short Sale (no balance shortfall reported)

Decrease 50-70 points

3 years

 

Short Sale (balance shortfall reported)

Decrease 85-105 points

3 years

 

Foreclosure

Decrease 85-105 points

3 years

 

 

 

 

720 (good, but not ideal)

30 days late on mortgage

Decrease 90-110 points

2-1/2 years

 

90 days late on mortgage

Decrease 110-130 points

3 years

 

Short Sale (no balance shortfall reported)

Decrease 95-115 points

7 years

 

Short Sale (balance shortfall reported)

Decrease 130-150 points

7 years

 

Foreclosure

Decrease 130-150 points

7 years

 

 

 

 

780 (prime)

30 days late on mortgage

Decrease 90-110 points

3 years

 

90 days late on mortgage

Decrease 110-130 points

7 years

 

Short Sale (no balance shortfall reported)

Decrease 105-125 points

7 years

 

Short Sale (balance shortfall reported)

Decrease 140-160 points

7 years

 

Foreclosure

Decrease 140-160 points

7 years

 

http://twlv.net/bEXwIQ

Categories: Uncategorized

6 real estate headlines: 25-May

A daily dose of headlines for real estate agents, mortgage lenders, homebuyers and home sellers.

Behind the numbers: A surprise from new home sales
Wall Street Journal
: Sales climbed 7.3% on a monthly basis to a seasonally adjusted annual rate of 323,000 in April, the Commerce Department said Tuesday morning. Economists had expected 300,000.
Where we live: Rollingwood
Washington Post
: The neighborhood, west of Rock Creek Park and south of East West Highway, started as a single 100-acre estate with a 30-room castle and grand gatehouse.
10 markets with fastest rising real estate prices
Inman News
: Two Florida markets saw the highest jumps: median list price in Fort Myers-Cape Coral rose 25.7 percent to $225,000, and the median in Miami rose 8.6 percent to $239,000.

Top 5 worst housing markets
Bankrate.com
: House prices fell in most of the country from the beginning of 2010 to the first quarter of 2011. Check out the five fastest-falling markets.

First-time homebuyers leading the way
Washington Examiner
: First-time homebuyers still play a leading role in the metropolitan area's real estate show, snatching up low-interest rates and freeing sellers who want to move up in the market.
It can pay to snoop on your neighbors
Wall Street Journal
: Going to the open house of a home for sale down the block may make you feel like a nosy neighbor. But there are good reasons, beyond sheer curiosity, to take a peek inside.

http://twlv.net/usJEdd

Categories: Uncategorized

6 real estate headlines: 24-May

A daily dose of headlines for real estate agents, mortgage lenders, homebuyers and home sellers.

Home remodeling? Watch out for scams
CNN Money
: For many homeowners, the warmer months is the prime time to remodel a kitchen or bathroom. But beware — there are some contractors who may offer you a deal that's simply too good to be true.
Real estate news: U.S. steps up loan scrutiny
Wall Street Journal
: Three years after the financial crisis peaked, banks face a new wave of scrutiny and potential penalties for actions that contributed to the mortgage meltdown, possibly raising their costs for the cleanup.
Mortgage rates remain near record lows
HSH.com
: Unless inflation begins to create more cause for concern, there's little indication that economic conditions will change to any great degree, creating increased influence on the direction of mortgage rates.

MoCo moves to attract more mixed-use projects
Washington Examiner
: Two new zoning codes are being introduced as modifications to the existing code allowing for urban-looking, mixed-use development.

Consumers trending toward shorter term mortgages
Washington Post
: More than one out of three borrowers who ditched their 30-year fixed-rate loans opted to replace them with 15-year or 20-year mortgages at near-record low rates.
Service members grapple with housing market
MSNBC
: But for members of the military who must comply with relocation orders or face disciplinary action, waiting out the housing crash is often not an option.

http://twlv.net/7PM13G

Categories: Uncategorized

6 real estate headlines: 20-May

A daily dose of headlines for real estate agents, mortgage lenders, homebuyers and home sellers.

10 tips for surviving the housing market
CNBC
: How do homeowners, who have most of their equity in depressed real estate, slog through until it becomes a seller's market?
Foreclosure rate retreats from record highs
Inman News
: The combined percentage of loans in foreclosure or behind by at least one payment was 12.31 percent, down from 13.6 percent during the fourth quarter. That equates to about 6.1 million loans.
'Move up' homebuyers moving in
Wall Street Journal
: First-time buyers had dominated the market in the last few years since they weren't saddled with an existing home to sell in a down market.
Too few first-time homebuyers to absorb inventory
Housing Wire
: The number of first-time homebuyers coming to market this spring is not enough to absorb the amount of housing inventory on the market.
How to get over the house that got away
Washington Post
: How to get over the house that got away is a common problem, real estate agents say. It's particularly difficult for first-time buyers.
Mortgage approval: Does your home pass the test?
HSH.com
: Before your mortgage application can be approved, your mortgage lenders will require that a professional appraisal be done on the property proving that it is worth as much or more than you are attempting to borrow.

http://twlv.net/Junchf

Categories: Uncategorized

6 real estate headlines: 19-May

A daily dose of headlines for real estate agents, mortgage lenders, homebuyers and home sellers.

8 tips for a successful open house
Bankrate.com
: You're throwing open the doors to sell your home. Now how do you make sure the right people show up?
Should we celebrate lower home prices?
HSH.com
: The relentless expansion of home size since World War II�encouraged by federal subsidies, including the mortgage-interest tax deduction�arguably resulted in many Americans being “over-housed.”
Developer hoping to win federal agency for PG County
Washington Examiner
: Naylor Road is one of four sites that county officials are highlighting as prime federal office space.
April brings modest rise in housing listings
Wall Street Journal
: Nationally, inventories typically rise in April from March as the busy shopping season gets underway. Over the last 28 years, the average increase in April has been around 5%.
District losing affordable housing deal
Washington Post
: The project is a case study of the breakdowns in the nation's $2 billion-a-year affordable-housing program, in which extensive construction delays have derailed the development of thousands of homes.
New residential developments on 14th Street just keep coming
DC Urban Turf
: Here is a quick rundown of residential projects that are either under construction or planned for 14th Street between R Street and Euclid Street.

http://twlv.net/AzoMcI

Categories: Uncategorized