Archive

Archive for June, 2011

6 real estate headlines: 29-June

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

Real estate bidding wars are back in parts of DC
Washington Post
: Some agents say multiple offers were more frequent in the early spring, when buyers were bubbling over with pent-up demand from the inventory-deprived winter.
Montgomery plans science center for eastern county
Washington Examiner
: The idea for the plan is to create a place where those in the life science industry can collaborate while creating a community for those employees who want to live near where they work.
Don't jump at Case Shiller bounce
Wall Street Journal
: The latest Case-Shiller report said that home prices on a non-seasonally adjusted basis gained for the first time in eight months.

A background check for the house you're considering
The New York Times
: The service has primarily been marketed to insurers, appraisers and building and real-estate professionals but is also available to consumers.

Historic rowhouse facades likely to remain
DC Mud
: All three are flat-front, brick rowhouses built in 1866-1867, “representative of the speculative housing built on the outskirts of the city in the boom years immediately following the Civil War.”

The credit score puzzle
DC Urban Turf: A credit score is a crucial standard used by mortgage lenders as an indicator of how likely a borrower is to pay off their debts.

http://twlv.net/MmBbVS

Categories: Uncategorized

6 real estate headlines: 24-June

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

How to make the most from refinancing
The Motley Fool
: By jumping at the first opportunity to save small amounts, you could give up the chance to reap bigger savings later.�
10 steps to a safe open house
Inman News
: This article is the first of a three-part series focusing on the personal safety of real estate agents and best practices to observe while conducting open houses.
Bernanke: Modify loans where appropriate
Wall Street Journal
: The Federal Reserve chairman talked about the state of the housing market during his press conference Thursday.

New home sales fall for first time in months
MSNBC
: New-home sales fell 2.1 percent in May to a seasonally adjusted annual rate of 319,000 homes, the Commerce Department said Thursday.

What moves mortgage rates?
HSH.com
: Investor demand for a given kind of investment plays a considerable role in moving market yields, because investors have literally hundreds of places to put their money.

A real estate investment that hasn't tanked
Smart Money: In spite of the worst real estate market in decades and a recent market shake-up, REITs have still soundly beaten most other investments. Year-to-date, U.S. REITs are up 7.3%.

http://twlv.net/Di1XUf

Categories: Uncategorized

6 real estate headlines: 23-June

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

Index shows home prices rose
Wall Street Journal
: Compared with a year earlier, prices were still down 5.7%. April's index value was 182.4. A reading of 100 is equal to the price of homes in January 1991.
Obama launches foreclosure relief for unemployed
DC Urban Turf
: Under program guidelines, eligible homeowners can qualify for an interest-free loan that pays a portion of their monthly mortgage for up to two years or up to $50,000, whichever comes first.
Should you refinance?
HSH.com
: A well-executed refinance can lower your interest rate, lower your monthly payment and help you pay off your home more quickly.

FHA interest payoffs spark debate
Inman News
: If an FHA mortgage were paid off on the sixth day of the month the borrower could only be asked to pay interest for those six days under a new rule.

Retail coming soon to The Avenue in Foggy Bottom
DC Mud
: Residential units at The Avenue are ready to be occupied as well, and to date approximately 130 out of the 335 have been leased.

Where we live: South Run
Washington Post: Many of the streets do not have sidewalks, but there is relatively little traffic and so residents feel comfortable on foot.

http://twlv.net/fur26Z

Categories: Uncategorized

6 real estate headlines: 22-June

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

9 items homebuyers desire in 2011
Bankrate.com
: Today's homebuyers want it all. Some items on the shopping list: a home in great condition with rooms that can do double duty.
Behind the numbers: Drop in home resales
Wall Street Journal
: To be sure, unusually weak weather hurt sales. But housing's pain will persist until the employment market and housing prices stabilize.
Real estate sales stumble again in May
Inman News
: After slipping in April, existing-home sales fell again in May compared to the month before, according to the latest monthly report from the National Association of Realtors.

Q&A: Purchasing foreclosures
Baltimore Sun
: Buying a home is complicated. When it's a foreclosure, though, the questions really multiply.

3 myths about renovation loans
DC Urban Turf
: One of the biggest myths associated with renovation financing is that a home has to be in major disrepair in order to take advantage of it.

Home sales fall to 2011 low
Miami Herald: Declining home prices have kept people from selling their houses and moving to find jobs in growing areas. They have also made people feel less wealthy.

http://twlv.net/FSRg22

Categories: Uncategorized

6 real estate headlines: 21-June

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

Boutique condo projects sell fast in Columbia Heights
DC Urban Turf
: In Columbia Heights condos sold out relatively quickly over the last year, evidence of the neighborhood's increasing popularity among condo buyers.
Home loan shopping still far from perfect
Inman News
: The mortgages being written today are certainly better matched to the needs and payment capacity of borrowers than they were before the crisis.
Debts that unsettle the score
Washington Post
: Lower scores are disqualifying borrowers from getting mortgages in today's toughened underwriting climate or forcing them to pay higher interest rates, fees and down payments.

Mortgage rates moved a little higher last week
HSH.com
: Mortgage rates managed a slight increase, perhaps the first sign that mortgage rates have fallen about as much as they can, signaling a foundation for the economy.

Housing remains a drag on U.S. growth
Wall Street Journal
: Persistently high inventory levels continue to push home prices lower. Any flattening of the downward spiral of U.S. home prices isn't likely until the end of 2011, economists add.
Changes coming to Miami-Dade foreclosure courts
Miami Herald
: Many of the changes are being made in order to speed the timeline of foreclosure, which has swollen to an average of more than 600 days in Florida.

http://twlv.net/nGNKll

Categories: Uncategorized

Reissue rates… Explained

In the world of real estate closings and title insurance lurks an oft misunderstood concept we call the “Reissue Rate.”� Simply put, a reissue rate is a homebuyer discount on the cost of an owner's title insurance policy. To obtain a reissue rate discount, the transaction must satisfy certain conditions from the title insurance underwriter.

The following sets forth the requirements along with the most common questions we encounter from homebuyers. (Our title insurance underwriter is First American Title Insurance Company, so for this discussion we will focus on their reissue rate discount guidelines. The reissue rate guidelines of other national title insurance underwriters may vary.)


How Do I Qualify for a Reissue Rate Discount?

A reissue rate is available to a homebuyer when:

1)�� �The seller has owned the property for less than ten (10) years; and
2)�� �The seller purchased an owner's title insurance policy within that ten (10) year period

Does Federal Title seek out a reissue rate discount on behalf of the homebuyer?

Yes. If the seller has owned the property for less than ten (10) years, Federal Title will search its underwriter's database for a prior policy and/or request evidence of a prior policy from the seller


Do I have to use the same Title Insurance Underwriter?

No. If the title company you selected underwrites through a different title insurance underwriter than the title insurance underwriter that issued the seller's policy, you still qualify for a reissue rate.

 

What is the Amount of the Reissue Rate Discount?

In Maryland and the District of Columbia, the homebuyer receives a 40% discount based on the prior policy (seller's policy) coverage amount.

For example, let's say a homebuyer needs a policy to cover a $500,000 purchase, while the seller's existing policy coverage amount is for $400,000. The 40% reissue rate discount would apply to the first $400,000, and the homebuyer would pay full price for the remaining $100,000.

On standard owner's coverage for a Maryland property, this would amount to a savings of approximately $504. Here is a breakdown of the dollar amounts using Original Title Insurance Premium rates on a $500,000 purchase in Maryland and Standard Owner's Coverage:

Reissue rate discount Total NO reissue rate discount Total
Policy coverage for first $400,000 $1,397.50 � �
Reissue rate discount (40%) ($559.00) � �
Policy coverage for first $400,000 w/ reissue rate discount $838.50    
Policy coverage for remaining $100,000 $370.00    
Policy coverage for$500,000 with reissue rate discount $1,208.50 Policy coverage for $500,000 without reissue rate discount $1,712.50

Assuming the homebuyer qualifies, what is the average reissue rate discount?

Of course the answer to this question depends on the purchase price (new coverage amount) and the seller's original purchase price (prior coverage). However, according to Federal Title's internal analysis of nearly 20,000 transactions over a 15-year period, the average reissue rate savings by purchase price point is as follows:

Purchase Price
(New coverage amount)
Average Reissue Rate Savings
(District of Columbia)
Average Reissue Rate
Savings (Maryland)
$300,000 $373.00 $266.00
$400,000 $546.00 $390.00
$500,000 $705.00 $503.00
$600,000 $864.00 $616.00
$700,000 $998.00 $712.00
$800,000 $1,132.00 $807.00
$900,000 $1,265.00 $903.00
$1 million $1,400.00 $998.00

 

How often is the reissue rate applied to real estate transactions in the DC Metro Area?

The reissue rate discount is applicable in approximately 65% of all transactions. The other 35% of the time, the homebuyer doesn't qualify for the reissue rate at all (since seller has owned for longer than 10 years).

Federal Title's REAL Credit™ is applicable in 100% of real estate transactions.

 

How does Federal Title's REAL Credit™ stack up against the average reissue rate savings?

Federal Title always provides homebuyers with the most savings. More often than not our REAL Credit™ gives higher savings compared to a reissue rate discount. In cases where the reissue rate savings exceeds the REAL Credit™, we apply the reissue rate savings.

Below is a comparison of the average reissue rate savings vs. our REAL Credit™ for purchases in the District of Columbia.

The comparison we provide between REAL Credit™ v. Reissue Rate is a comparison ONLY of those transactions in which the seller owned for less than 10 years. In other words, if we were to use an average reissue rate savings of ALL transactions, the dollar amounts would be much lower.

Purchase Price
(New coverage amount)
REAL Credit™ savings
(District of Columbia)
Average reissue rate
savings
$300,000 $700.00 $373.00
$400,000 $900.00 $546.00
$500,000 $1,000.00 $705.00
$600,000 $1,100.00 $864.00
$700,000 $1,100.00 $998.00
$800,000 $1,100.00 $1,132.00
$900,000 $1,100.00 $1,262.00
$1 million $1,100.00 $1,400.00

Below is a comparison of the average reissue rate savings vs. our REAL Credit™ for purchases in the Maryland.

The comparison we provide between REAL Credit™ v. Reissue Rate is a comparison ONLY of those transactions in which the seller owned for less than 10 years. In other words, if we were to use an average reissue rate savings of ALL transactions, the dollar amounts would be much lower.��

Purchase Price
(New coverage amount)
REAL Credit™ savings
(Maryland)
Average reissue rate
savings
$300,000 $500.00 $266.00
$400,000 $600.00 $390.00
$500,000 $800.00 $503.00
$600,000 $800.00 $616.00
$700,000 $900.00 $712.00
$800,000 $900.00 $807.00
$900,000 $900.00 $903.00
$1 million $900.00 $998.00

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Categories: Uncategorized

6 real estate headlines: 16-June

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

Tips for saving on title insurance
MortgageLoan.com
: At its most basic, title insurance protects the lender and sometimes the owner from possible loss of the property if someone else claims ownership on after the closing.
Double dip? Not in Washington, D.C.
The New York Times
: The Greater D.C. metro is an economic powerhouse. It currently ranks as the nation's eighth largest; with 5.5 million people and nearly $400 billion in economic output.
Maryland urges struggling homeowners to seek mortgage help
Baltimore Sun
: The number of delinquent borrowers here and nationally has eased in the last year after a rapid increase fueled first by bad lending practices and then by a deep recession.

Mortgage bankers push FHA to adopt e-signatures
Housing Wire
: The MBA said by allowing e-signatures on all forms, there would be less paperwork lost, fewer possibilities for fraud, a reduction in the time it takes to close a loan and lower costs for borrowers.

Angry homeowners 'foreclose' on lenders
The New York Times
: Owners of a house in Florida have engineered a reverse foreclosure against a bank. That makes two so far this year. Just one more, and it's officially a trend, right?
Senate lawmakers want tough approach in foreclosure talks
Wall Street Journal
: Senate Democrats on are calling on a federal bank regulator to take a tougher approach in fixing problems in banks' home-foreclosure practices.

http://twlv.net/9Qfm4D

Categories: Uncategorized