Wednesday, June 29, 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

Friday, June 24, 2011

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

Thursday, June 23, 2011

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

Wednesday, June 22, 2011

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

Tuesday, June 21, 2011

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

Thursday, June 16, 2011

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
http://twlv.net/vXspYe

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

Wednesday, June 15, 2011

Reasons why you should hire a Federal Title attorney for your purchase of a short sale property

In the current economy, short sales have become an increasingly common part of our day-to-day business. Due to declines in market value, the contracted sale prices on many homes are not enough to satisfy all of the liens encumbering the property and to pay the transaction costs.

Therefore, inherent in these types of transactions is the need for legal advice and guidance that is separate and distinct from the run of the mill title service provided by non-attorney title agents.

Generally, non-attorney title agents may perform the following functions:

  1. Search the title and identify superior and subordinate liens;
  2. Gather information and prepare the form required by the lender to obtain a payoff statement;�
  3. Obtain estoppel letters from each lien holder in which they commit to release their lien upon payment of a certain amount and/or satisfaction of other conditions;
  4. Prepare HUD-1 closing statements;
  5. Communicate information between the parties to the transaction; and
  6. Obtain payoff amounts, complete the closing and issue the requisite insurance policy.

These represent the bare-boned services provided by any title company and unfortunately, in any real estate climate, these general functions are not sufficient to protect the buyer and/or seller when unforeseen issues arise.

On the other hand, attorney title agents enhance the title services provided by being able to provide the client with an abundance of services, a few of them being:

Give opinions or explanations of the legal significance of any documents involved in the transaction;

  1. Clear title issues which require the services of licensed real estate attorneys;
  2. Counsel homeowners that sell their property in a short sale transaction as to the possibilities or legal ramifications of deficiency judgments and the impact of the proposed short sale on those issues;
  3. Counsel homeowners as to the strategy of negotiating a short sale as it might affect pending or future foreclosure and the implications of legal enforcement actions or other legal rights and remedies;
  4. Counsel the homeowner on the impact of filing for bankruptcy protection generally or as it relates to a short payoff and/or foreclosure; and
  5. Counsel the buyer as to whether the proper actions were taken in a pending foreclosure and whether there were any omissions that may cloud title.

At Federal Title our attorneys can assist buyers or homeowners with the often times unexpected yet frequent legal matters that arise during the purchase and sale of real property. At Federal Title there is always an attorney title agent on each transaction that is prepared to explain, negotiate and if needed, represent your legal interests in every transaction.

http://twlv.net/oihuWz

Tuesday, June 14, 2011

6 real estate headlines: 14-June

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

Major changes likely to QRM program
Inman News
: The proposed QRM standard would push nearly a third of American borrowers out of the market, especially first-time home purchasers, minorities and moderate-income families.
Mortgage rates love economic slow times
HSH.com
: While we remain about a third of a percentage point above our October 2010 rock-bottom levels, we should be nearing a place where refinance opportunities start to show.
Banks get 30 more days to fix foreclosure problems
Wall Street Journal
:� Banks are required to hire an independent consultant to conduct a "look back" at foreclosure proceedings from 2009 and 2010 to evaluate whether they improperly foreclosed.

Homebuying: Is now the best time to buy?
CNN Money
: Given the recent lackluster jobs report and the million-plus homes in foreclosure, no one is expecting a robust about-face anytime soon.

How GIs fight foreclosure proceedings
Bankrate.com
: The HAP expansion only applies to defense personnel who purchased their homes before July 1, 2006, and sell them by Sept. 30, 2012, pending availability of funds.
Where we live: Stanton Park
Washington Post
: Stanton Park wasn't so quaint and neighborly in the 1980s, when longtime residents say crime was plentiful and neighborhood issues included vacant, dilapidated houses.

http://twlv.net/6XGGOJ

Monday, June 13, 2011

6 real estate headlines: 13-June

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

DC home sales in May highest since 2005
DC Urban Turf
: New pending sales increased 6.5 percent over the 5,170 contracts signed in April and a whopping 43.1 percent over the 3,849 contracts signed in May 2010.
Put your child to work in real estate
Inman News
: There are probably lots of things your child can help you with, such as answering phones, helping with your website, stuffing envelopes, or cleaning the office.
Changes in refinancing
The New York Times
: Market changes are especially striking for those borrowers with loans taken out before the 2008 financial crisis.

Never built: A gallery of Washington projects
Washington Business Journal
: Ever wonder what could have been? Here's a preview of the National Building Museum's forthcoming exhibit.

Naysayers not satisfied with Alexandria Waterfront
Washington Examiner
: Alexandria officials have tweaked the city's hotly debated waterfront plan, but opponents say changes don't go far enough to address concerns that Old Town is too congested.
Palisades development digs in
DC Mud
: The for-sale units are on track to occupy prime clifftop real estate overlooking the Potomac River in the Palisades, now that Duball has purchased the project and brought in a new architect.

http://twlv.net/cV6V9k

Friday, June 3, 2011

6 real estate headlines: 03-June

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

In Washington, a housing thaw
Wall Street Journal
: While the area remains a buyer's market, anecdotal evidence suggests the tables are slowly turning, especially for properties in the city and inner suburbs.
H Street NE's soft middle
DC Mud
: For now it looks as though a functioning trolley line will connect the two ends of H Street before there is much reason to hop off in the middle.
Audit reveals IRS problems with homebuyer credit
Washington Post
: A review of a smaller sample of returns, supplemented with local real estate deed information, found that 30 percent "had no record of owning a home."

Ledroit Park brings neighbors together
Washington Examiner
: Today people are drawn to its relative affordability and prime location. The U Street and Shaw/Howard stops on Metro's green line are easily accessible, as are four bus lines.

Why is DC afraid of redistricting?
Washington City Paper
: There's a knock-down, drag-out fight in the Wilson Building over redistricting, and politically active residents are incensed that they'll be moved from one ward to another.
Lenders to pay for improper military foreclosures
MSNBC
: Two mortgage lenders will pay more than $22 million combined to settle federal civil charges that they improperly foreclosed on 178 military personnel, some of whom were serving in the Iraq or Afghanistan wars.

http://twlv.net/2Q4msu

Thursday, June 2, 2011

6 real estate headlines: 02-June

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

Washington home prices beating double dip
Washington Examiner
: The region's continued recovery in the face of a national double dip is largely because Washington got a head start in recovering from the recession.
Real estate news: Home prices still falling
Wall Street Journal
: U.S. home prices fell 4.2% in the first quarter, hitting a new post-bubble low, according to the S&P Case-Shiller home-price indexes.
Homebuyers should act now; mortgage costs will rise
HSH.com
: Fannie and Freddie were originally created to promote home ownership in the U.S. by facilitating the sale of mortgages to private investors. At issue is the hybrid public/private model of the GSEs.

Case Schiller: DC home prices increase 4.3%
DC Urban Turf
: As home prices in the rest of the country continue to fall, the DC area (as defined by the index) continues to move in the other direction.

Where we live: Truxton Circle
Washington Post
: The neighborhood saw significant changes starting five years ago, when more than 40 rowhouses clustered around Bates Street went on the market at once.
Ontario Theater dreaming of condos
Washington City Paper
: With the housing market going absolutely bonkers in D.C., the longest-stalled projects are creeping closer to reality.

http://twlv.net/WQorLF