Real Estate Settlement Blog: Escrow Services, Closing Costs Explained - Federal Title

Real estate round-up: November 3

2011-11-03T08:44:00.001-04:00

Check in every business day for the latest edition of Real Estate Round-up, where we post a list of our favorite real estate news stories from DC and beyond.

Headlines from the DC Metro Area:

4 million homeowners eligible for foreclosure review
Washington Post

On Tuesday, servicers began mailing letters to the estimated 4 million borrowers whose loans were in the process of foreclosure between Jan. 1, 2009, and Dec. 31, 2010, detailing how to request a review of an individual case.

Resale of the Week: 6-bedroom Craftsman house in Arlington
Washington Times

Arlington's Lee Heights neighborhood offers some of the best aspects of suburban living, including quiet streets with cul-de-sacs to slow traffic and enable children to play safely.

Walter Street: The friendliest block on the Hill
DC Urban Turf

Physically, the street lends itself to interaction. The modestly sized row houses squeeze next to each other and the front porches line up.�

Sneak peak at the Foundry Lofts
JD Land

A first look inside the Foundry Lofts at the Yards, a 1918 industrial building on its way to becoming a 170-unit apartment building. First move-ins are expected at the end of November.

National real estate news stories:

What will the House decide on federal mortgage caps?
Wall Street Journal

Back in February, the Obama administration called for a decline in the maximum size of government-backed home loans as a way to start drawing back federal support for the nation's mortgage market. They dropped on schedule on Oct. 1 but now a movement is afoot to revive the higher limits to support the ailing housing market.

http://twlv.net/7AFev8

Real estate round-up: November 1

2011-11-01T09:04:00.001-04:00

Check in every business day for the latest edition of Real Estate Round-up, where we post a list of our favorite real estate news stories from DC and beyond.

Headlines from the DC Metro Area:

Creative refinancing doubly good
Washington Times

With interest rates remaining so low and the housing market still anemic, refinance customers abound. Most homeowners refinance to lower their interest rate, but there are many other objectives that can be accomplished through refinancing, depending upon the homeowner's particular situation.

Lenders could take home's energy costs into consideration
Washington Post

A bill introduced Oct. 20 would force the big three mortgage agencies to take account of energy costs in every loan they insure, guarantee or buy. It would also require them to instruct appraisers to adjust their property valuations upward when accurate data on energy efficiency savings are available.

National real estate news stories:

Making sense of home price data
Smart Money

Because real estate is so local and home prices can change every few miles, homeowners and potential buyers should focus on trends in their specific neighborhoods. That means consulting a realtor who can pull up prices of similar homes that sold over the past few months.

Handling high closing costs
The New York Times

Those who are cash-poor can ask relatives for help. But some lenders advertise another option: If borrowers agree to accept a mortgage interest rate from a quarter to a full percentage point higher than they would ordinarily qualify for, they can receive credit toward their closing costs.

http://twlv.net/ulWGKv

Planning to refinance? Don't forget about title insurance

2011-10-31T14:17:00.001-04:00

The government took action last week to help more homeowners with their mortgage payments. A revamped Home Affordable Refinance Program aims to remove some of the restrictions that have made it difficult for many to qualify assistance.

Historic lows on interest rates, changes coming to government programs such as HARP, it's no wonder so many Q&A and advice columns are dedicating space to homeowners' questions about refinancing, from knowing when to refinance to tips on how to avoid a mortgage refinance misstep.

One common question about refinancing relates to the settlement process, particularly title insurance.

Some homeowners are surprised when they hear they have to purchase a new title insurance policy when they refinance their mortgage. They bought a lender's and owner's policy when they purchased the home, and they want to know why they have to purchase a new title insurance policy.

To the lender, a refinance loan is no different than any other home loan. Your lender wants to insure that the new loan is protected by title insurance, just like the original lender required on your previous loan.� Lenders are protecting their investment against title related defects.

When you refinance, you are only buying a new title for the lender (a lender's policy), so your closing costs should still be less than when you purchased your home. And, while you're shopping around for the best refinance rates, be sure to shop around among title companies.

This will ensure you get the best pricing for your refinance.

http://twlv.net/TTZDTw

Real estate round-up: October 31

2011-10-31T09:13:00.001-04:00

Check in every business day for the latest edition of Real Estate Round-up, where we post a list of our favorite real estate news stories from DC and beyond.

Headlines from the DC Metro Area:

One million new jobs means DC needs more housing
DC Urban Turf

A report, which can be found here, estimates that the region as a whole will need to build as many as 731,000 new units to house the workers � 211,000 units in suburban Maryland, 392,000 in Northern Virginia and 122,000 in the District.

A map of architecturally impressive DC homes
Curbed DC

Your guide to fifteen of the best looking houses we could find in a handy map so you can drive/walk/bike around to see them yourself.

Keep your feelings out of contracts
Washington Post

When a contract comes up, many homeowners have a hard time saying that they want to have a lawyer look at it first.

National real estate news stories:

Loan limit battle looms for house Republicans
Wall Street Journal

The issue puts House Republicans in a tough spot: Lawmakers campaigned last year to end federal bailouts, including the rescue of Fannie Mae and Freddie Mac. But many lawmakers, particularly Republicans in California and New York, face pressure from real estate agents and mortgage lenders in their districts, who have been hit hard by the real estate downturn.

Pending home sales index rises from one year ago
Inman News

Third-quarter data showed a 2.5 percent rise in GDP, compared with 1.3 percent in the second quarter. NAR expects U.S. GDP growth of 1.8 percent for the full year in 2011, with 2.3 percent GDP growth in 2012.

http://twlv.net/ewcw6M

Real estate round-up: October 28

2011-10-28T08:28:00.001-04:00

Check in every business day for the latest edition of Real Estate Round-up, where we post a list of our favorite real estate news stories from DC and beyond.

Headlines from the DC Metro Area:

How to buy a short sale property
Washington Post

From the short sale home buyer's perspective, this third-party (lender) approval process is the major difference between a short sale and a regular sale. The short-sale home-buying process begins in the same manner as any other purchase: locating a home, determining a proposed offer price and preparing a written purchase offer.

Winterizing helps wallet, even sales appeal
Washington Times

According to the U.S. Energy Information Administration, most homeowners nationwide can expect a rise in costs associated with home heating this winter

New park in Southwest is in the works
The Dirt

A 4.2-acre park is slowly taking shape where a huge parking lot now exists on the southwest waterfront in Washington, D.C. The new redevelopment along the waterfront will use a denser development strategy for the buildings and wharfs, with some 50 percent open space,

National real estate news stories:

Freddie Mac CEO to step down
Wall Street Journal

The chief executive of Freddie Mac said he would step down next year, becoming the second CEO to resign from the mortgage-finance giant since it was taken over by the U.S. government in 2008.

Economic growth in U.S., though modest, speeds up
The New York Times

Economic growth in the United States picked up in the third quarter, the Commerce Department said Thursday, in an encouraging sign that the recovery, while still painfully slow, has not stalled.

http://twlv.net/3ALFHO

Real estate round-up: October 27

2011-10-27T08:37:00.001-04:00

Headlines from the DC Metro Area:

10 things to know about buying, selling your home
Washington Post

After staying put during the economic recession, you might be tempted by stabilizing real estate prices and low mortgage interest rates to sell your house and buy your next place. What you may not realize is how long and complicated the process of buying and selling a home has become.

Queen Anne-style home in Rockville gets national attention
Curbed DC

This 1900s-era 4 bed/2bath has been in the same family for the past forty years. It started out on the market at $500,000 (too high!, says Goldilocks), but has come down to $399,999 (just right!).

Home prices up in half of major U.S. cities
Washington Times

The biggest price increases were in Washington, Chicago and Detroit. The greatest declines were in Atlanta and Los Angeles. The August data provides a "modest glimmer of hope" that some areas may have bottomed out and could be turning around.

National real estate news stories:

Home prices tread water
Wall Street Journal

Here are four questions that borrowers should consider carefully before proceeding with a refinancing, according to experts.

Be neighbors with Vice President Joe Biden for $6.9M
Inman News

his Hacienda-style house might look like something out of the Spanish countryside, but it actually sits next to the vice president's mansion on the grounds of the Naval Observatory in Washington, D.C.

http://twlv.net/A9tUqs

Real estate round-up: October 26

2011-10-26T08:12:00.001-04:00

Check in every business day for the latest edition of Real Estate Round-up, where we post a list of our favorite real estate news stories from DC and beyond.

Headlines from the DC Metro Area:

Home Affordable Refinance Program: What you need to know
Washington Post

The HARP program, which was rolled out in 2009, is designed to help. Those who are "underwater" on their homes and owe more than the homes are worth.

Policy fixes may boost refinancing
Washington Times

If the Federal Housing Finance Agency is moderately successful in making these changes, the current refinance wave could turn into a tsunami.

Dominique Strauss-Kahn's DC home hits the market
DC Urban Turf

The three-bedroom home at 2613 Dumbarton Street NW in Georgetown was listed on Monday for the tidy sum of $5.2 million. Washingtonian reported back in early September that the home was poised to hit the market soon.�

National real estate news stories:

Knowing when to refinance
The New York Times

Here are four questions that borrowers should consider carefully before proceeding with a refinancing, according to experts.

Restringing the housing HARP
Wall Street Journal

The latest iteration came Monday, when the Federal Housing Finance Agency unveiled changes to a program meant to make it easier for underwater homeowners who are current on payments to refinance into a lower-rate mortgage.

Is gentrification always bad for revitalizing neighborhoods?
The Atlantic

The truth is that what some badly disinvested cities, districts, and neighborhoods desperately need is some form and degree of 'gentrification.' The challenge is to have enough without having too much.

http://twlv.net/U5qTrU

Real estate round-up: October 25

2011-10-25T08:08:00.001-04:00

Check in every business day for the latest edition of Real Estate Round-up, where we post a list of our favorite real estate news stories from DC and beyond.

Headlines from the DC Metro Area:

One real estate company offers a "bike-mounted tour"
Washington City Paper

Bikeability is a huge selling point these days, so it's not surprising to see realtors getting on board (following the architects, who are starting to include Bikeshare in their renderings).

FHA rules for condos make buying, selling difficult
Washington Post

FHA-insured mortgages have become a mainstay of condominium unit financing in the past several years, and now account for 40 percent of all purchase loans for condos in some metropolitan markets.

How value capture financing will revitalize White Flint
DC Streets Blog

Not only are the White Flint developers looking to include more mixed-use development in the community, they want to build new local streets to fill in a viable street grid and redesign the eight-lane Rockville Pike into a "21st century boulevard" with wide sidewalks, bike lanes, six rows of trees, and dedicated transit lanes.

How to find the best refi rate? Shop around
Washington Post

Consider speaking with someone in each of these categories: a big national bank; a credit union; a qualified and highly recommended mortgage broker (check with your local real estate agents; they usually have a list); an online lender; and a small regional lender.

National real estate news stories:

How to derail a mortgage refinance
Bankrate.com

A mortgage refinance is trickier than it was a few years ago. Here are five ways to mess up.

12 questions on Obama's refi plan
Wall Street Journal

The Obama administration is revamping a program that's designed to let more homeowners refinance their mortgages even if they don't have any equity.

http://twlv.net/5jmynA

Real estate round-up: October 19

2011-10-19T13:30:00.001-04:00

Check in every business day for the latest edition of Real Estate Round-up, where we post a list of our favorite real estate news stories from DC and beyond.

Headlines from the DC Metro Area:

Arlington tries to preserve 'essential' historic properties
Washington Examiner

Unlike most communities, which label only specific buildings or properties historic, Arlington ranks all buildings over 50 years old as historically significant.

Loan options for home improvement projects
DC Urban Turf

Today, with the low cost of building materials and contractor services, coupled with historically low interest rates, it is possible to finance $50,000 in home improvements for less than $350 a month through 203K or conventional home loans.

What $725,000 buys you in DC
DC Urban Turf

In What X Buys You this week, UrbanTurf takes a look at properties on the market in the $715,000 to $725,000 range to give readers an idea of what type of homes are available in this price point in the DC area.

National real estate news stories:

Next generation "less confident about home ownership"
Wall Street Journal

A new paper by Federal Reserve Bank of Boston economists used consumer sentiment data collected in the Michigan Survey of Consumers over the summer to try to find out how the housing market's terrible state of affairs was affecting the willingness to buy a new home.

Male agents list more homes, female agents list pricier ones
Inman News

In a blog post about the findings, Trulia said that "the average list price isn't necessarily a reflection on how aggressive the agent is on pricing. In some cases, it could mean that women take on inherently more expensive homes/neighborhoods than men, and vice versa."

http://twlv.net/NBGtpC

Real estate round-up: October 18

2011-10-18T08:18:00.001-04:00

Check in every business day for the latest edition of Real Estate Round-up, where we post a list of our favorite real estate news stories from DC and beyond.

Headlines from the DC Metro Area:

A foreclosure escape hatch?
Washington Post

A bill introduced Oct. 5 would waive the penalty if the purpose of the distribution is to make loan payments to avoid loss of a primary home to foreclosure.

Buyer's experience: The 90-day rule
DC Urban Turf

If you feel tempted to buy a home that was purchased and renovated in a relatively short amount of time, you should probably be wary for many reasons, but one is that most lenders will not approve loans for a home that is back on the market less than 90 days after it was purchased.

Optimistic signs for Spring 2012
Washington Times

If current trends continue during the next six months, we could see a rise in home prices during the more-active spring market to come.

National real estate news stories:

Housing inventory hits 4-year low
Wall Street Journal

Falling inventories are typically a sign of health because that leads to less downward pressure on home prices.

4 experts forecast 2012 housing market
HSH.com

We asked top real estate experts Ilyce Glink of Thinkglink.com, Paul Bishop of the National Association of Realtors, Barbara Corcoran of the Today show, and Dan Green of TheMortgageReports.com to share their thoughts on the housing market in 2011. Here's their takeaway on what to expect.

http://twlv.net/b9bMqk

5 tax deductions for Florida landlords

2011-10-17T14:57:00.001-04:00

The first thing most people think of when they hear the words "real estate investing" is buying cheap houses, fixing them up and reselling them at market prices. However, if the current housing market isn't really conducive to home sales, then it is important for an investor to be able to adapt.

A lot of investors dislike the thought of being a landlord, saying that there are just too many headaches to deal with. Luckily, there are a lot of benefits of renting out properties as well, including tax deductions. The following list details five of the available tax deductions for landlords.

Tax Deductible Property Repairs � If you have ever rented a home, you know that there is a lot that can go wrong. Anything that needs fixing on a rental property, such as roof repairs, tile replacements, or any other necessary repairs are tax deductible.� This makes it easier to deal with costly repairs throughout the year.
Insurance Premiums � Insurance is a requirement; it's nice that for investors who are renting out the property, the premiums can be deducted from the income at the end of the year.
Property Depreciation � Property values of real estate fluctuate, but generally houses appreciate rather than depreciate. This makes the fact that you deduct the depreciation of the property over time on your taxes.
Tax Deductible Interest � Interest that investors pay on mortgages and other loans used for properties is tax deductible. Not only that, but if you have a credit card used solely for spending on repairs, renovations, or anything on the property, the interest is deductible on your taxes as well.
Cost of Services � Perhaps one of the biggest reasons that many investors don't want to be landlords is because they would have to deal with tenants. Hiring a project manager is the perfect way to deal with that aversion. The costs of these and other services such as lawyers and accountants are tax deductible.

These are only five of the top tax deductions available to landlords who rent out their properties. There are so many reasons to rent out properties instead of selling them: residual, steady monthly income, as well as the extra tax benefits. Many of these tax deductions are not available for the everyday home buyer. Enjoy the benefits of being a landlord, and remember not to put all of your eggs in one basket.

About the author:
Jennifer Hill and the agents at Realnet of Tampa Bay are experts at finding the best investment properties or sale. Don't fall for the trap of buying investment properties without researching a property thoroughly.

http://twlv.net/Q30AUi

Real estate round-up: October 14

2011-10-14T09:27:00.001-04:00

Check in every business day for the latest edition of Real Estate Round-up, where we post a list of our favorite real estate news stories from DC and beyond.

Headlines from the DC Metro Area:

Father battles Fairfax County zoning laws for sons' treehouse
Washington Post

County officials say the Grapin family violated zoning regulations that try to ensure that everyone lives in a safe, well-kept neighborhood.

Washington not ready for electronic real estate transactions
Washington Examiner

The next big tech thing for homebuyers and sellers may be start-to-finish online real estate transactions, but industry experts said the Washington area is not ready to make that jump just yet.

Shirlington Crest reduces prices by $60K
DC Urban Turf

While reminiscent of DC's iconic row houses, with brick exteriors and classic stonework, Shirlington Crest townhouses are designed with a modern sensibility that means open floor plans, high ceilings, spacious master suites, luxurious bathrooms and two-car garages.

Your next place: Solar Decathlon edition
DC Mud

While saving the planet is obviously more important than improving the "vibes" of your sunroom, there's a parallel there with the green retrofitting that some people are calling the "Third Industrial Revolution."

National real estate news stories:

Mortgage pro: Don't let one denial stop you
Hsh.com

There are hundreds of lenders in the U.S. and each has its own series of overlays. Some are strict while some are loose, and most can be found on Google. If your loan has been turned down for any reason, start a search for new mortgage lenders. Your loan may be approvable--you just have to find the right bank.

Get a mortgage with little money down
Bankrate.com

First-time homeowners often aren't in the position to pay tens of thousands of dollars for a down payment, either. Luckily, options exist to help new buyers get mortgages without selling their organs to come up with the cash.

http://twlv.net/1xcuGN

Real estate round-up: October 13

2011-10-13T08:35:00.001-04:00

Check in every business day for the latest edition of Real Estate Round-up, where we post a list of our favorite real estate news stories from DC and beyond.

Headlines from the DC Metro Area:

Mortgage interest deduction hangs on, but how long?
Washington Examiner

Opposition from real estate organizations to reducing or eliminating the deduction remains strong in the face of a fragile housing market and a weak economy.

White House puts O Street Market on fast track
Washington City Paper

Of the 14 projects nationwide that "will be expedited through permitting and environmental review processes," the District's own City Market at O Street (former home to a crumbling Giant supermarket) will be one.

New EYA condos to be built in Alexandria office building
DC Urban Turf

Potential buyers of the building initially felt that it could accommodate 100-150 residential units, but that number has been pared down, and the final product will likely be somewhere in the 50-75 condos with large floorplans.

National real estate news stories:

10 tips for high value home appraisals
Wall Street Journal

Lowball appraisals can kill deals. They can also kill a refinancing application. If it comes in too low, it's not worth refinancing or you might need to put in a whole lot more equity.

Mortgage lenders to get more insight into borrower pasts
Inman News

Mortgage lenders will soon have access to new details about a prospective borrower's past -- such as past rental applications, inquiries to pay-day lenders, and missed child support payments -- that will be factored in to a new credit score.

http://twlv.net/4H2357

Real estate round-up: October 12

2011-10-12T08:23:00.001-04:00

Check in every business day for the latest edition of Real Estate Round-up, where we post a list of our favorite real estate news stories from DC and beyond.

Headlines from the DC Metro Area:

Appraisal guidelines now available for energy-saving home repairs
Washington Post

The Appraisal Institute, the country's largest and most influential association in its field, published the long-awaited addendum Sept. 29. It's designed to be attached to any standard appraisal report covering a property with significant green features.

Window-filled contemporary in Alexandria
Washington Times

The home at 2200 Shiver Drive in Randall Estates, designed and built in 1966 by Jerome Lindsey, an architect from Howard University, includes elements of Bauhaus and Frank Lloyd Wright's architectural styles.

Best new listings: Mount Pleasant Logan Circle and Dupont Circle
DC Urban Turf

This week's edition of Best New Listings looks at a Mount Pleasant two-bedroom with no set condo fees, a 3,500 square-foot four-bedroom townhouse in Logan Circle, and a three-bedroom penthouse just south of Dupont Circle.

National real estate news stories:

Supreme Court to consider mortgage fees lawsuit
Wall Street Journal

At issue is how to interpret the Real Estate Settlement Procedures Act, a 1974 law that sought to address abuses in the mortgage industry by prohibiting kickbacks or referral fees in connection with the settlement process.

Just get a title search?
St. Augustine Record

A title search is part of the risk assessment the title insurance company does before issuing the policy. The title company does not want to have to pay out that policy; therefore, it has a vested interest to find any and all complications to the ownership title.

Condo buyer frustrated by seller's road blocks
Sun Sentinel

Casual real estate observers figure the South Florida housing market is flush with homes for sale and that anxious sellers are begging for any offers. But that's not the case these days as the region's housing climate steadily improves.

http://twlv.net/kAso7o

Real estate round-up: October 11

2011-10-11T08:31:00.001-04:00

Check in every business day for the latest edition of Real Estate Round-up, where we post a list of our favorite real estate news stories from DC and beyond.

Headlines from the DC Metro Area:

Condos: Still a good investment?
Washington Post

If a building isn't FHA-approved, private lenders may require buyers to put 20 percent of the sale price down � a difficult financial hurdle for many first-time buyers.

Washington putting foreclosure trouble in rear view mirror
Washington Times

Foreclosures are not playing a significant role in the District market but they do attract investors and multiple bids.

Sometimes new housing is old housing
Washington City Paper

A 407-unit complex, though, currently sits half empty�a waste of good living space. It's a great sign, then, that W.C. Smith bought the lot for $12.525 million in early September.

National real estate news stories:

Triggers for mortgage rejection
The New York Times

Lenders' underwriting criteria have become more rigorous in recent years; some banks have tightened up beyond federal requirements. Here are the six biggest triggers for rejection, according to industry experts.

Should a first-time homebuyer be a land lord?
Wall Street Journal

Unless you buy a fixer upper at a discount, rehab it and resell it quickly, the only way to make money in real estate is to hold on to a property until it appreciates.

http://twlv.net/zmuDE0

Real estate round-up: October 10

2011-10-10T08:25:00.001-04:00

Check in every business day for the latest edition of Real Estate Round-up, where we post a list of our favorite real estate news stories from DC and beyond.

Headlines from the DC Metro Area:

What $500,000 buys in DC Area real estate
Washington Post

To gauge the region's real estate market, we set out to find out what you can buy today for $500,000 � from downtown Washington to farm country in Loudoun County.

Builders ratchet up buyer incentives
Washington Times

Most builders include closing-cost assistance in varying amounts as part of their sales package, acknowledging that most buyers need and want cash to help them become homeowners or to ease a move-up transition.

Savvy Realtors use social media to connect with buyers & sellers
Washington Examiner

Facebook, Twitter, YouTube and other social media have become significant new communications channels that would-be homebuyers need to tap and potential home sellers need to evaluate.

How to buy, renovate, rent and occupy a home in under six months
DC Urban Turf

After living in a Mount Pleasant group house for about a year, economist Adrian Dungan decided that, if done right, he could own and live in a home and also rent it out.�

National real estate news stories:

Sorting through lending costs
The New York Times

Plenty of people have ideas about what you should be told when you're shopping for a mortgage, but for now, that may not be much help.

What's the future of the mortgage interest deduction?
Wall Street Journal

Despite its popularity among real estate agents, builders and homeowners, talk is building on Capitol Hill and in policy circles of scaling back or eliminating the mortgage-interest tax deduction.

http://twlv.net/alFFpf

Tips for securing a home loan

2011-10-07T11:22:00.001-04:00

This week the 30-year mortgage rate sunk below 4% for the first time ever, yet mortgage applications continue to drop, according to a recent article in the Wall Street Journal.

Despite the attractive rate, lending standards remain tight, making� it difficult for many would-be homebuyers and refinancing borrowers to secure funding. While it is harder now to land a loan than it was five years ago, it's not impossible.

Here are a few tips to help prospective homebuyers and borrowers secure a home loan.

Get your finances in order

Before you can ask for a loan, you should know how much money you have and how much you can afford to borrow. Knowing this up front will also save you the potential heartache of getting attached to a home you can't afford. It'll save you, your lender and your agent a lot of time, too.

You are entitled to a free copy of your credit report from each of the three major credit rating agencies once a year.� Make a habit of getting it. Each report shows if you were more than 30 days late in making a payment on any of your existing loans or bills and lists inquiries made into your credit. If you come across any discrepancies, you'll want to inquire about them before you start shopping for a loan.

You'll also want to gather your most recent pay stubs, bank statements and tax forms. Any reputable lender you work with will need this information to determine if you qualify for a loan.

Limit credit inquiries while you shop for a loan

It may sound crazy, but shopping for a loan actually does ding your credit score by a couple points. So does applying for a new credit card or taking on new debt. Since your credit score helps to determine your interest rate, try to limit your number credit inquiries. Don't open any new lines of credit or make any large purchases until after the deal is closed.

Most experts will tell you to do all your mortgage loan shopping within a two-week span, as that will show up as one inquiry.

Save for a large down payment

The more money you can put into the transaction, the better your chances of securing a home loan. For FHA loans, you'll need at least 3.5%, though FHA loans come with more restrictions.

A 30-year conventional loan typically requires 20% down, but some lenders will make an exception depending on the property type and your financial situation. Note, though, that anytime you put down less than 20%, you'll have to pay for insurance on the loan, which means added monthly expense.

As the housing crisis continues, watch out for special offers from lenders. A recent article in Smart Money describes how many financial institutions, from national banks to local credit unions, are looking for ways to entice consumers to sign up for mortgages. �

If low home prices aren't enough, some banks are waiving lender fees, lowering rates and offering to pay closing costs. You may be able to leverage a large down payment and a lender discount in your favor.

With basic understanding of today's housing market, securing a home loan is not impossible. Be prepared by getting your financial house in order, and you'll be able to take advantage of record-low mortgage rates and home prices.

http://twlv.net/9EsAr6

Real estate round-up: October 7

2011-10-07T08:22:00.001-04:00

Check in every business day for the latest edition of Real Estate Round-up, where we post a list of our favorite real estate news stories from DC and beyond.

Headlines from the DC Metro Area:

First glimpse inside units of 1020 Monroe
DC Curbed

This is a 28-unit building, with one and two bedrooms, at the corner of 11th and Monroe NW. Prices start at $299,900 for one bedrooms and $399,900 for two bedrooms.

Huge Adams Morgan loft back on the market
DC Urban Turf

The larger of two massive units in a former car dealership located in the heart of Adams Morgan, the three-floor industrial space has a number of aspects that one would expect to find in a real loft � 14-foot ceilings, a private deck on the second floor (plus a larger deck on the roof), and a living area big enough to host a party for a few hundred people.

Your next place: Townhouse-style condo
DC Mud

This is not a Prius of condos � more like a Bentley. The epic living room has a 20-foot-plus vaulted ceiling and massive floor-to-ceiling windows, and there are two (!) floating staircases leading to the upper two levels.

National real estate news stories:

Redfin pulls agent scouting reports
Inman News

Holes in the data -- often created when agents work informally in teams, or don't inform the MLS when an out-of-town agent represented a buyer in a deal -- meant that consumers weren't always getting the complete deal history and performance metrics for every real estate agent.

Mortgage rates fall below 4%
Wall Street Journal

Many borrowers can't refinance today because they don't have enough equity or they can't qualify under lending standards that are far tougher than when they initially obtained their mortgages.

New discounts for mortgage borrowers
Smart Money

From large banks to credit unions, a growing number of lenders are waiving fees, lowering rates and finding new ways to cut loan prices for would-be home buyers and refinancers.�

http://twlv.net/aumY1Z

How to stay optimistic in a down market

2011-10-06T11:39:00.001-04:00

Investments are never a sure thing, no matter what type of investments you're talking about. When it comes to the stock market, common belief dictates that the higher the risk, the higher the potential for profit. In a down economy, however, it can be a little daunting to take risks with your money. Even in real estate investing, which is often considered safer than the stock market, investors may be nervous about tying their money up during a down market.

Real estate investors may have a little more security than stock market investors but when the economy is in a slump, no one feels secure taking risks with their hard earned cash. Sometimes it is best to keep investing even when things look grim and other times it is necessary to change with the times. Staying optimistic in hard times can be a challenge.

As previously stated, real estate investors have it a little easier as far as staying optimistic, even in a bad economy. Why? Because people will always need housing. The demand for a house to live in will never go away! Even if the prices fall for a short period, it's highly unlikely that the housing market will "crash" like the stock market.

While it won't "crash," the housing market will fluctuate; property prices rise and fall, based on how the economy is. As a result, property investors should keep a close eye on current market trends. Knowing whether to rent or flip a property is often as simple as knowing the current market.

If jobs are scarce and layoffs are rampant, home sales may drastically slow down. This doesn't mean that investors should stop their investing activities, however. It just means that their strategy needs to change. This is one reason why it's so important to know the market; if homes aren't selling, it's not a good time to try to renovate a large amount of homes and sell them.

In a selling slump, homes should be renovated and rented out, rather than sold. This may not create a large lump sum profit, but it will generate a nice steady residual monthly income. Being optimistic in a down market is easy; just remember that in the housing industry, there is no such thing as a "down market." It's an ever changing market, for sure, but there will always be a need for housing.

About the author
Jennifer Hill and the agents at Realnet of Tampa Bay are experts at finding the best investment property for sale. Don't fall for the trap of buying cheap houses for sale without researching a property thoroughly.

http://twlv.net/wTDRbB

Real estate round-up: October 6

2011-10-06T08:35:00.001-04:00

Check in every business day for the latest edition of Real Estate Round-up, where we post a list of our favorite real estate news stories from DC and beyond.

Headlines from the DC Metro Area:

Council Member Cheh introduces Condominium Act of 2011
DC City Council

The bill would increase transparency in condominium association board operations, permit condominium associations to deliver notice to members and conduct votes electronically, and require the associations to maintain financial records and provide owners a right of copying and inspection of the association's books and records.

What $550,000 buys you in the DC Area
DC Urban Turf

An early 20th century row home in Shaw, a 2-bedroom condo in Georgetown or a single-family home with a pond in the back yard, here's a quick overview of homes available in this price point in the DC area.

Historic Dupont mansion to be sold at auction
DC Mud

A historic, 128-year-old mansion, home of the Swann House Bed & Breakfast, located north of Dupont Circle at 1808 New Hampshire Ave, NW, and built in 1883, will be sold at auction next Friday.

National real estate news stories:

Talking money with Elmo (VIDEO)
The New York Times

In the wake of the financial crisis, "Sesame Street" is teaching children financial literacy. Ron Lieber talks to Elmo about saving and sharing.

Unwanted McMansions? Make them affordable housing
Wall Street Journal

Such homes can have more bathrooms than bedrooms, allowing for residential space that could be divided into private units, with a common kitchen and living room. Some already have or could be outfitted with second or third kitchens.

http://twlv.net/u2K06e

Real estate round-up: October 5

2011-10-05T08:44:00.001-04:00

Check in every business day for the latest edition of Real Estate Round-up, where we post a list of our favorite real estate news stories from DC and beyond.

Headlines from the DC Metro Area:

Million dollar house is a good deal in Potomac, MD
Curbed DC

Rarely does a price this high turn out to be a good deal, but in this situation it is. The house has five bedrooms, five baths, a heated outdoor pool, and sits on 1.3 acres of land. The listing description does say 'priced to sell' and in this case they actually mean it.

Learn the rules of Fannie Mae before buying from the agency
Washington Post

Looking to buy a home from Fannie Mae? You'd better hurry. According to its most recent SEC filing, only 135,719 single-family properties were in Fannie Mae's inventory at the end of June. Fannie Mae, which ended up with hundreds of thousands of homes as residents struggled to keep up with their mortgages in recent years, is looking to sell them with incentives for buyers.

National real estate news stories:

The right way to shop for a mortgage
HSH.com

With mortgage rates at all-time lows, U.S. homeowners are refinancing in droves. If you're among them, you already know that it's important to comparison shop; you shouldn't just work with the first lender you meet. But do you know how to comparison shop, whether it's for a conventional loan, FHA mortgage or otherwise?

5 housing trends in fall 2011
Bankrate.com

If you want to buy a home and you qualify for a mortgage, this is your time. With mortgage rates at historically low levels, falling home prices and plenty of distressed properties for sale, buyers will be able to find once-in-a-lifetime opportunities this fall.

Big banks stand to lose millions if FHA seeks indemnification
Housing Wire

FBR Capital said such a scenario would be the equivalent of another shoe dropping on the housing economy, but for now it's a headline risk as opposed to an immediate capital concern.

http://twlv.net/ne9j7e

Real estate round-up: October 4

2011-10-04T08:25:00.001-04:00

Check in every business day for the latest edition of Real Estate Round-up, where we post a list of our favorite real estate news stories from DC and beyond.

Headlines from the DC Metro Area:

Prices climbing in last areas to improve
Washington Times

Secure federal jobs and contracting work, along with a big technology sector, have made the entire Washington region a much more prosperous place to work and live than other metropolitan areas. That means people can afford to buy homes, which props up home values.

6 questions on lower loan limits
Wall Street Journal

Many people in Washington, including the Obama administration and congressional Republicans, support letting the limits fall in order to modestly shrink the government's role in the housing market. In essence, these high-cost communities will serve as a "pilot" for what happens when the government takes a toe out of the mortgage market.

National real estate news stories:

5 real estate time management myths debunked
Inman News

Would you like to manage your time more effectively? If so, the first step is to dump five common time management myths that can undermine both your business and your personal life.

Title insurance protects against errors
NH Avenues magazine

An owner's policy of title insurance is a contract that protects you, according to the contract terms, against loss or damage due to title defects.

Will baby boomers rock the housing market?
AOL Real Estate

As first-time buyers struggle with higher hurdles at the bank, some experts are pinning their hopes on baby boomers to boost the flagging housing market.

Miami Heat's Alonzo Mourning lists his Coral Gables home
Wall Street Journal

The 13,000-square-foot house overlooks the water and has eight bedrooms and 8� bathrooms. There's also a library, a gym and a four-car garage. Outside there's a kitchen and dining area and an infinity pool.�

http://twlv.net/qOv4lS

Simplifying homebuyer closing costs in Maryland

2011-10-03T13:35:00.001-04:00

How much will I need for closing costs? You hear this question from your homebuyers a lot, right?

Below I have provided a quick reference for calculating closing costs in Maryland. With the exception of lender origination charges or discount points, the factors include all closing costs such as settlement fees, owner's and lender's title insurance, and transfer/recordation taxes (assuming a 50/50 split between buyer and seller).

This will provide a close estimate if you are on the go without online access to exact closing costs using Federal Title's Quick Quote tool.

Montgomery County, MD

To use this chart, multiply your purchase price by the appropriate closing costs factor. (Example: For a $375,000 purchase in Montgomery County by a First-time homebuyer, expressed as $375,000 x 0.0155 = $5,812.50)

Purchase Price � in $1,000s	Closing Costs Factor Repeat Buyer	Closing Costs Factor First-time Homebuyer	Estimated Closing Costs
$100-199	0.0209	0.0184	�
$200-299	0.0191	0.0166	�
$300-399	0.0180	0.0155	�
$400-499	0.0174	0.0149	�
$500-599	0.0172	0.0147	�
$600-699	0.0170	0.0145	�
$700-799	0.0169	0.0144	�
$800-899	0.0168	0.0143	�
$900-999	0.0167	0.0142	�
$1.000-1.099	0.0166	0.0141	�
$1.100-1.199	0.0165	0.0140	�
$1.200-1.299	0.0164	0.0139	�
$1.300-1.399	0.0164	0.0139	�
$1.400-1.499	0.0163	0.0138	�

Prince George's County, MD

To use this chart, multiply your purchase price by the appropriate closing costs factor. (Example: For a $375,000 purchase in Prince George's County by a First-time homebuyer, expressed as $375,000 x 0.0170 = $6,375.00)

Purchase Price � in $1,000s	Closing Costs Factor Repeat Buyer	Closing Costs Factor First-time Homebuyer	Estimated Closing Costs
$100-199	0.0228	0.0203	�
$200-299	0.0207	0.0182	�
$300-399	0.0195	0.0170	�
$400-499	0.0188	0.0163	�
$500-599	0.0183	0.0158	�
$600-699	0.0177	0.0154	�
$700-799	0.0176	0.0151	�
$800-899	0.0173	0.0148	�
$900-999	0.0171	0.0146	�
$1.000-1.099	0.0169	0.0145	�
$1.100-1.199	0.0168	0.0143	�
$1.200-1.299	0.0166	0.0142	�
$1.300-1.399	0.0165	0.0140	�
$1.400-1.499	0.0164	0.0139	�

http://twlv.net/yP3Zkm

Real estate round-up: October 3

2011-10-03T08:11:00.001-04:00

Check in every business day for the latest edition of Real Estate Round-up, where we post a list of our favorite real estate news stories from DC and beyond.

Headlines from the DC Metro Area:

Parts of area housing market nearing pre-recession levels
Washington Examiner

The strongest signs of growth are in the region's inner core of the District, Arlington County and Alexandria. In particular, the District's median price in August was nearly 90 percent of its November 2005 high.

Grand opening: Old Town Commons
DC Urban Turf

The 44-unit boutique building will have one-bedroom, one-with-den and two-bedroom units, all of which will include garage parking with lockable storage areas.�

Small time real estate developer has big dreams
Washington Post

For decades, Buzzard Point has been the Washington waterfront's next big thing. From The Post, October 1989: Buzzard Point is "the blighted neighborhood south of the Capitol that is now being touted in the real estate trade as the Tysons Corner of the 21st century."

A little architectural knowledge can go a long way for homeowners
Washington Post

When real estate agents list a property with the multiple listing service, they have complete discretion over how to categorize the architectural style of the house. Sometimes they get it wrong. Official records occasionally get it wrong as well. And often, homeowners themselves aren't even sure.

National real estate news stories:

Exploring the 15-year loan
The New York Times

Fifteen-year mortgage rates certainly look enticing these days, and the idea of owning a home, debt-free, in less time than it takes to raise a child, sounds grand. So what's the catch?

South Florida property values show modest decline
Miami Herald

Recent figures showed a slowdown in the three-year freefall of property values, with modest countywide declines of 2.8 percent in Miami-Dade County and 1.6 percent in Broward County, according to property appraisers.

http://twlv.net/7PoxXs

Real estate round-up: September 30

2011-09-30T08:29:00.001-04:00

Check in every business day for the latest edition of Real Estate Round-up, where we post a list of our favorite real estate news stories from DC and beyond.

Headlines from the DC Metro Area:

Autumn home selling and buying
Baltimore Sun

Home sales in the Baltimore area generally peak in June and slide pretty much for the rest of the year, so you can see why some would-be sellers pull their homes from the market with the idea of trying again the next year.

D.C. Economic Partnership not ready to go
Washington Business Journal

The nonprofit partnership describes itself as "your first point of contact for development and business opportunities in the District of Columbia."

Tour Chancellor's Row development in Brookland
Curbed DC

Out of the one hundred homes in the first phase of their Chancellor's Row development in Brookland, only eleven remain on the market. Of those eleven, only two are available to move into this year.�

National real estate news stories:

In the beginning of land title claims
St. Augustine Record

If someone makes a title claim, it's up to the landowner to defend his ownership.� Title insurance not only provides and pays for legal representation to defend your ownership rights, it will also pay out the policy amount should that defense fail.�

Redfin Web site now publishes data on real estate agent success
The New York Times

The tool can help sellers find agents who are active and who have had success in their specific neighborhood. Using information from local multiple-listing services, where agents list the home they are representing for sale, the "Scouting Report" tool provides data on roughly one million agents.

Conforming loan limit drops Oct. 1
Housing Wire

Congress elevated the conforming loan limits in 2008 to allow the Federal Housing Administration, Fannie Mae, and Freddie Mac to insure and guarantee more mortgages when the credit markets froze.

http://twlv.net/DOw2bP

New rules attempt to clarify DC mortgage foreclosure legislation

2011-09-29T13:53:00.001-04:00

The D.C. Department of Insurance, Securities & Banking ("DISB") proposed new rules for governing residential mortgage foreclosures in an attempt to clarify legislation that affects the city's mortgage foreclosure process.

D.C. Council had made fundamental changes to the city's mortgage foreclosure process last year by adding (among other things) a requirement that lenders and borrowers make an attempt to mediate their disputes.

After the parties concluded their attempt to mediate, the lender was then entitled to record a "mediation certificate" and proceed to a foreclosure sale and enforce its rights under the deed of trust.

However, the requirement mandated by the "Saving D.C. Homes from Foreclosure Act of 2010," which the Council passed in an attempt to keep pace with reforms made by Maryland and other states, raised concerns among lenders and title insurers.

The raft of changes to the D.C. mortgage foreclosure law and rules thereunder opened a Pandora's Box of loopholes that increased the risk of clouded title for any property sold at, or even after, a foreclosure sale.

The aim of the new rules is to clarify the legal effect of recording a mediation certificate and make an amendment to the wording in the certificate.

Lenders and their allies have been clamoring for a change to the rules to state that recording a mediation certificate is prima facie evidence - that means presumptive validity - of all the procedural steps taken prior recording.

This change would prevent a borrower who participated in mediation and loss prevention from raising any objection to the conduct of this process after the foreclosure sale.

An aggrieved borrower could still raise objections, file a lawsuit, or take any other action to contest the lender's conduct during the process.

It will still take some initial stumbling through the maze of new rules by both lenders and borrowers to work out the kinks in the new procedure.

Hopefully, the new requirements will give borrowers increased opportunity to modify loans, and if modification isn't realistic, it will give title insurers, lenders and purchasers confidence that their title will be undisturbed.

- Jack Reid

http://twlv.net/JSVmrI

Real estate round-up: September 29

2011-09-29T09:19:00.001-04:00

Check in every business day for the latest edition of Real Estate Round-up, where we post a list of our favorite real estate news stories from DC and beyond.

Headlines from the DC Metro Area:

New condo project gets moving in Mount Vernon Triangle
DC Urban Turf

The new project would be following in the footsteps of CityVista and Yale Lofts, condo developments built over the last decade that represented the changing face of the area.

The risk of asking too much for your house
Baltimore Sun

It can seem counter-intuitive, especially to a seller who is trying to account for the possibility of lower offers from buyers by making the asking price 10 percent higher than he would actually take. But in a market where sale prices are dropping and lots of listings are jostling for attention, pricing too high really hurts sellers.�

National real estate news stories:

Vetting the lender
The New York Times

Ferreting out good information is not that easy. For one thing, different kinds of lenders are held to different rules, licenses and disclosure requirements.

Can mortgage servicing be saved from itself?
Wall Street Journal

Loan servicers have been forced to revamp their operations after revelations surfaced a year ago that they used so-called robo-signers who signed foreclosure documents without personally verifying their contents, possibly breaking state laws.

Their efforts to foreclose on members of the military have also raised alarms. And many homeowners were not offered loan modifications despite being eligible for them.

http://twlv.net/MDyNRE

Real estate round-up: September 28

2011-09-28T08:56:00.001-04:00

Check in every business day for the latest edition of Real Estate Round-up, where we post a list of our favorite real estate news stories from DC and beyond.

Headlines from the DC Metro Area:

Jair Lynch buys a block on H Street
Washington City Paper

It's just one of a bunch of big moves on H Street lately, with a deal for Murry's in the works, H Street Connection ready to go, and the Autozone site and 1350 Maryland spoken for.

DC home prices show slight annual increase: Case Schiller
DC Urban Turf

The index reported that home prices in the DC area increased on both a monthly (+2.4%) and annual (+0.3%) basis.

Where does the dirt go?
Washington City Paper

As long as construction keeps rolling, the D.C. dirt economy will do well.

Why do women pay more for mortgages?
National Association of Realtors

Authors of a recent study offer another explanation suggesting that women pay higher rates because they are more likely to choose lenders by recommendation while men tend to search for the lowest rate.

National real estate news stories:

Who wants to buy a new home?
Wall Street Journal

New homes are designed for the way Americans live today, maximizing the usability of space and offering amenities that speak to modern needs, such as big closets. Plus, new homes are built to be more energy efficient.

How are mortgage rates determined?
HSH.com

If you are watching mortgage rates so you can lock in a loan at the best time, you will notice that rates tick up and down regularly. Here are a few of the factors that regularly influence mortgage rates.

America's top cities: Cheapest real estate in the world?
Creditsesame.com

Even though many economists predict that prices may continue to fall, thus expressing a view that U.S. real estate is still overpriced, real estate in America's top cities is cheap when compared with the rest of the world.�

http://twlv.net/eDdbXa

What does a title company do?

2011-09-27T11:58:00.001-04:00

In the wake of foreclosure problems stemming from improper documentation and representation, a title insurance policy has never been more valuable than it is right now in this current real estate market. �

Clients often ask: What exactly does a title company do?� And the easiest answer that I give them is, "Take a look at our website and view the videos."�

At Federal Title, we conduct an extensive search of public records to verify the seller's right to transfer ownership.� The purpose of all this research is to discover claims or defects (a.k.a. "clouds") that limit the owner's right in transferring the property.

Lenders require title insurance when the purchaser obtains a mortgage to finance the purchase; this type of insurance is often called a lender's title insurance policy to cover the bank's interest in your property and to safeguard first position as a lien holder on your property. �

At the time of closing an owner's title insurance policy is also issued which protects you as the purchaser at the closing. An owner's policy is your assurance of protection against economic loss if a title defect is ever discovered and a claim filed against your property. �

The insurance premiums are only collected once, and your coverage will remain consistent for as long as you or your heirs retain an interest in your property or until you refinance the property at which point a new policy is issued.

Without the protection of an owner's policy, you may be in jeopardy of losing your investment which stems from a cloud on title that does not appear in the public records such as:

Forged legal instruments (deeds, mortgages, wills, releases of mortgages)
Improperly recorded legal documents�
False impersonation of the true property owner
Undisclosed heirs
Issues involving improper marital status�
Documents executed under false powers of attorney
Deeds drafted by persons lacking legal capacity
Undisclosed spouses
Issues of rightful possession of land; which arise when a foreclosed property owner claims that they did not receive proper notice of the foreclosure.�

In the event that a claim is filed against you as owner of your property, the title insurance will cover your legal expenses, court costs and related fees. If the claim against the property is valid, then the title insurance company will reimburse you for your loss up to the amount of the policy.�

At Federal Title our attorneys are diligent in reviewing all documentation in an effort to assist buyers with the often times unexpected yet frequent legal matters that arise during the purchase and sale of real property.� At Federal Title and Escrow 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/0ODLsf

What is title insurance?

2011-09-27T10:19:00.001-04:00

As we have stated before, it's a great time to buy real estate.� However, due to the banking industry's foreclosure problems due to improper documentation and representation, title Insurance has never been more valuable than it is right now this current real estate market. �

Clients often ask: What exactly does a title company do?� And the easiest answer that I give them is "take a look at our Federal Title and Escrow website and view the videos."�

At Federal Title and Escrow, we conduct an extensive search of the Florida public records to verify the seller's right to transfer ownership of the Florida property.� The purpose of all this research is to discover claims or defects (a.k.a. "clouds") that limit the owner's right in transferring the property.

Lenders require title insurance when the purchaser obtains a mortgage to finance the purchase; this type of insurance is often called a Lender's Title Insurance Policy to cover the bank's interest in your property and to safeguard first position as a lien holder on your property. �

At the time of closing an Owner's Title Insurance Policy is also issued which protects you as the purchaser at the closing. An Owner's Policy is your assurance of protection against economic loss if a title defect is ever discovered and a claim filed against your property. �

Without the protection of an Owner's Policy, you may be in jeopardy of losing your investment which stems from a cloud on title that does not appear in the public records such as:

Forged legal instruments (deeds, mortgages, wills, releases of mortgages)
Improperly recorded legal documents�
False impersonation of the true property owner
Undisclosed heirs
Issues involving improper marital status�
Documents executed under false powers of attorney
Deeds drafted by persons lacking legal capacity
Undisclosed spouses
Issues of rightful possession of land; which arise when a foreclosed property owner claims that they did not receive proper notice of the foreclosure.�

At Federal Title and Escrow our attorneys are diligent in reviewing all documentation in an effort to assist buyers with the often times unexpected yet frequent legal matters that arise during the purchase and sale of real property.� At Federal Title and Escrow 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/OVAXr6

Real estate round-up: September 27

2011-09-27T08:49:00.001-04:00

Check in every business day for the latest edition of Real Estate Round-up, where we post a list of our favorite real estate news stories from DC and beyond.

Headlines from the DC Metro Area:

Are LeDroit Park and Bloomingdale DC's hottest rehab market?
DC Urban Turf

Over the past year, homes sold "as-is" which, in real estate parlance, means "what you see is what you get" are scooped up after a short window on the market, renovated from top to bottom (and in some cases enlarged) and back up for sale several months later.

Is the new rate worth the refinance?
Washington Times

If making the higher payments does not affect other financial aspects of your life, it would make sense. If the higher payment would result in taking away from important investments, such as a college fund or a retirement account, you may not want to be in the position of a required 15-year payoff.

Michelle Rhee sells at a slight loss
Curbed DC

The house in 16th Street Heights that Michelle Rhee had listed back in April sold at the end of August for less than she paid for it in 2007. She had paid $855,000 then, and the final sales price was $841,000.

The Yards virtual tour
DC Metrocentric

Developer Forest City gives a sneak peak of the development with this great fly through of how all the projects will looks once complete, including the Yards Park, Foundry Lofts, Lumber Shed, and more.

National real estate news stories:

Why rent when you can nest?
The New York Times

The children of baby boomers have inherited an expectation of early independence that in today's economy is hard to sustain, and many of them are moving back home � if, of course, their parents live in a place that holds the potential for jobs.

Rate drop spurs home refinancing
Wall Street Journal

The 30-year fixed-rate mortgage dipped below 4%, possibly triggering a refinancing boom for many of the same borrowers who already have taken advantage of rock-bottom interest rates.

http://twlv.net/oSYnvs

Real estate round-up: September 26

2011-09-26T08:31:00.001-04:00

Check in every business day for the latest edition of Real Estate Round-up, where we post a list of our favorite real estate news stories from DC and beyond.

Headlines from the DC Metro Area:

What happened to the proposed 20-percent down payment rule?
Washington Post

The 20-percent proposal is still alive, but it's temporarily bogged down in agency reviews of the roughly 12,000 comments filed by interest groups and individuals. It almost certainly would not be ready for adoption until the first quarter of 2012.

Historic celebrity homes attract tourists
Voice of America

Elvis Presley's Graceland and George Washington's Mount Vernon are two of the most popular, but there are also small houses devoted to preserving the memories of the celebrities who once lived there.�

In spots, buyers gain edge again
Washington Times

Sales chances are calculated by dividing a month's sales figures by the inventory on the last day of the month, resulting in a percentage. A figure below 20 percent indicates a buyer's market. Higher figures mean we're in a balanced market or a seller's market.

National real estate news stories:

5 steps to creating a property website with Wordpress
Inman News

The ability to create a unique property website is not only a fantastic listing tool, but an effective way to compete in search with national syndication sites, including Trulia and Zillow.

Quick refi may ding credit
Bankrate.com

You can comparison shop mortgage lenders in a relatively short (two weeks) time period, and that will only count as one inquiry on your credit score because it's clear you're shopping for a mortgage.

Don't drive yourself crazy, consider the commute
HSH.com

When you buy a home, you buy neighbors, amenities, a lifestyle…and a commute. If you're about to commit to a home purchase, apply the brakes until you understand the implications of the home's location, location, location.

http://twlv.net/nhJymc

Real estate round-up: September 23

2011-09-23T09:19:00.001-04:00

Check in every business day for the latest edition of Real Estate Round-up, where we post a list of our favorite real estate news stories from DC and beyond.

Headlines from the DC Metro Area:

Caveats for helping children buy a house
Washington Times

Some parents are opting to help their adult children get into the real estate market by giving them cash for a down payment, co-signing a home loan or arranging a rent-to-own scenario.

Homeowners guide to confusing crime statistics
Sun Gazette

Numbers are only an indication of the past. It's still important to be proactive instead of reactive. A home security system can help protect your home and family during this period of uncertainty and into the future.

National real estate news stories:

Buying a home safer investment than gold
Inman News

Among current homeowners, 80 percent said they plan to buy another home in the future and 57 percent said owning a home is among the best long-term investments they could make.

Mortgage rates at their lowest rate in 60 years
ABC News

But as anyone who has ever purchased a home knows, there is much more to consider when thinking of the bottom line on a home purchase or refinance. But if you shop around and check old documents, you could shaving hundreds of dollars off closing expenses.

Property prices near coast holding up better
Miami Herald

In Florida, the coastal market had 5,101 existing home sales in the first quarter, the highest total in five years. But a large number of distressed sales dragged average prices down 14 percent. Among non-distressed properties, prices went up 0.4 percent.

http://twlv.net/eMtDTE

Property tax reassessments in Maryland

2011-09-22T12:06:00.001-04:00

One of the most frequent requests at closing is how often does the State of Maryland assess property values for tax purposes.� In Maryland, properties are reassessed every three years.� The State of Maryland provides a detailed explanation of the workings of the tax process on its website.

Also available are reassessment maps for every county in Maryland, which allow you to view when reassessments will take place. �

Below is the current map for Montgomery County, Maryland:

Area 1	Assessment Area 1 will be reassessed for January 1, 2013
Area 2	Assessment Area 2 will be reassessed for January 1, 2014
Area 3	Assessment Area 3 will be reassessed for January 1, 2012

http://twlv.net/OV3oKH

Real estate round-up: September 22

2011-09-22T09:06:00.001-04:00

Check in every business day for the latest edition of Real Estate Round-up, where we post a list of our favorite real estate news stories from DC and beyond.

Headlines from the DC Metro Area:

Close quickly and get better mortgage rates
HSH.com

Once your loan is approved, you'll need to schedule your closing. It can often be more difficult to get a slot with a settlement agent at the end of the month, so be as flexible with your time as possible.

Refinancing? Inquire about the 'Reissue Rate"
ABC News

Conventional wisdom is that it takes somewhere in the 5 to 7 year range to recoup the point that you would pay upfront on a loan, which is good for buyers to keep in mind when they are envisioning how long they will live in the property they are purchasing.

Existing home sales rise
Washington Post

The NAR's chief economist Lawrence Yun said in a statement that rising rents, low mortgage rates and increased investor interest in gobbling up foreclosed properties may account for the uptick.

National real estate news stories:

So what could go wrong?
St. Augustine Record

Home ownership should be hassle free, but when it comes to real estate, there's a lot at stake.� Title insurance covers the hidden risk that goes along with home ownership. �

Higher mortgage rate fees proposed
Bankrate.com

A deficit-reduction package released Monday proposed that Fannie Mae and Freddie Mac increase fees by one-tenth of one percent for new, guaranteed mortgages. Rates could be set higher than that in areas where there is more risk of foreclosure.

Title fees hard to swallow when refinancing a mortgage
Los Angeles Times

Home buyers and refinancers should shop around when it comes to title insurance. Rates charged by each company can vary by hundreds of dollars.

http://twlv.net/2Xr9gW

Real estate round-up: September 21

2011-09-21T11:55:00.001-04:00

Check in every business day for the latest edition of Real Estate Round-up, where we post a list of our favorite real estate news stories from DC and beyond.

Headlines from the DC Metro Area:

Time to refinance ... again?
Washington Post

For starters, figure out what your monthly payment would be at the new rate. Compare it with what you're paying now and decide whether the savings � if any � will offset the cost of refinancing the loan.

Points and low interest rates: A primer
DC Urban Turf

Charting the market: Prices lift in Northern Virginia
Washington Times

Median sales prices in Alexandria, Arlington and the District are back up to where they were in 2005 - the year sales started to decline.

National real estate news stories:

The Academy Award for best real estate video goes to...
Inman News

A real estate agent in Los Angeles produced a "movie short" about a Hollywood Hills listing, marketing it as a sizzling Hollywood Hills bachelor's home and reeled in (pardon the pun) a buyer in less than 30 days.�

Is it possible to build a house for $1,000?
Wall Street Journal

The prototype house boasts a modular layout with hollow brick walls with steel bars for reinforcement and wooden box beams. It is designed to withstand a magnitude 8.0 earthquake.

The buddy system, or the buyer's broker
The New York Times

So why should a buyer bother using an agent? In a nutshell: to protect his or her interests in an expensive, often complex purchase.

http://twlv.net/fQiYbv

Independent agencies reject affiliated business arrangements: Washington Post

2011-09-20T14:54:00.001-04:00

Over the weekend, the Washington Post Real Estate Section published an article by nationally syndicated columnist Ken Harney describing a sea change in the title insurance industry where transparency and honest rates are becoming more commonplace.

Toward the bottom of the story was a nice mention of Federal Title and our REAL Credit program as shining, local example of a title company rejecting the old practices of the title insurance industry in favor of a business model that benefits consumers.

Needless to say our office was pretty thrilled.

We believe consumers should know they have the right to choose their title company based on factors such as price, customer service, years in business, responsiveness and reliability.

We encourage homebuyers to shop for title services and offer them a breadth of information on our Web site to help them make the decision that is best for their situation. For years we've published our rates on our Web site and offered homebuyers and their agents a free online closing costs calculator to help them gauge how much money will be needed for settlement.

If Harney's article is any indication of the future of the title insurance industry, then it seems Federal Title's business model is finally becoming the norm instead of the brow-raising exception to the rule.

And the rest of the pack is following suit, as Harney writes: "A handful of agents in states where regulations permit discounts off closing-packages are now offering them. Plus growing numbers of title agencies are gearing up software platforms to provide services to consumers: online rate quotes, transaction updates �notifying customers about the status of their title order. Some are even e-mailing documents in advance of closings for customers' inspection, rather than hitting buyers with last-minute settlement surprises."

http://twlv.net/PHtvSA

Why condo owners need an HO-6 policy

2011-09-20T11:51:00.001-04:00

Last week we posted a pretty lengthy article about insurance for condo owners entitled, "Condo insurance considerations."

The piece delved into the differences between a Master Policy, which is what your condo association carries to protect the building and its common elements, and the Unit-Owner Policy otherwise known as an HO-6 policy. An HO-6 policy picks up where a Master Policy leaves off, protecting the inside of the unit as well as the owner's personal belongings. Items like replacing cabinets, appliances and flooring are also covered by the Unit-Owner Policy.

Earlier this month, our friend Michele Lerner who has written about Federal Title on many occasions, published a piece with the Washington Times entitled, "Insurance a must-have for condo owners." Her piece does an excellent job of expanding on the types of scenarios a condo owner might encounter where the HO-6 policy would come into play. �

"Condo owners need to understand that the master policy for the condo association often covers the buildings to reconstruct them as they were built originally and will not cover improvements, such as updated kitchens or hardwood flooring, that have been added to a home."

http://twlv.net/TsM2TP

Real estate round-up: September 20

2011-09-20T08:51:00.001-04:00

Check in every business day for the latest edition of Real Estate Round-up, where we post a list of our favorite real estate news stories from DC and beyond.

Headlines from the DC Metro Area:

New refinancing options for lower title fees
Washington Post

In the Washington area, Federal Title & Escrow provides as much as to $1,100 off total closing costs for home buyers who use its online "Real Credit" software platform for their transactions.

Insurance a must-have for condo owners
Washington Times

Homeowners need to make an estimate themselves of how much it would cost to replace all their clothing and personal items in case of a total loss because of a fire or some other disaster.

National real estate news stories:

Top 10 home improvements that pay you back
AOL Real Estate

It's a buyer's market, and between tighter purse strings and plenty of properties to choose from, shoppers want homes that are move-in ready and free of the need for home improvement projects that will add to their own bottom lines.

There's more to refinancing than low rates
Bankrate.com

Closing costs are critical to the decision, and you typically don't know the exact closing costs until the day before closing. You have to decide if it's worth chasing these lower rates.

The newest threat to home prices
CNN Money

On Oct. 1, higher limits are slated to drop back down again in expensive markets nationwide � ranging anywhere from $483,000 in counties like Monterey, Calif., to $625,500 in cities like New York and Washington.

Saving on mortgage taxes
The New York Times

It's important to inquire about a mortgage assignment at the very beginning of the refinancing process, mortgage experts say, because locating and transferring all the necessary paperwork could be time-consuming.

http://twlv.net/7sMlna

Real estate round-up: Septmeber 19

2011-09-19T08:41:00.001-04:00

Check in every business day for the latest edition of Real Estate Round-up, where we post a list of our favorite real estate news stories from DC and beyond.

Headlines from the DC Metro Area:

Washington economy grows 3.6 percent
Washington Business Journal

Washington also ranks as the third-fastest growing metropolitan economy, behind Boston's 4.8 percent growth in 2010 and New York City's 4.7 percent growth.

Local resources offer to help BRAC families
Washington Examiner

Thousands of BRAC families are moving to the Washington area, with communities near Fort Belvoir, Fort Meade and the Mark Center area of Alexandria expecting the biggest impact.

Mortgage Q&A: Deciphering the Adjustable Rate Mortgage
Washington Times

Because rates are so low right now, ARMs are, indeed, adjusting downward. But the APR on an ARM is meaningless because we know rates won't remain unchanged.

National real estate news stories:

Decoding the wide variations in house appraisals
The New York Times

Owners, the experts said, should provide comparable listings, walk appraisers through the house, and point out improvements and unique features.

Mortgage rates drop to another record low
Bankrate.com

The benchmark 30-year fixed-rate mortgage fell 3 basis points this week to 4.32 percent, the lowest level the fixed rate has reached since Bankrate started the weekly mortgage survey nearly 26 years ago.

Buying and selling homes in hard times: Stuck in Miami
Wall Street Journal

Home prices in Miami have fallen by more than half, according to the S&P/Case-Shiller 20-city composite index, to levels not seen since 2003.

http://twlv.net/ihPPWB

Real estate round-up: Septmeber 16

2011-09-16T08:19:00.001-04:00

Check in every business day for the latest edition of Real Estate Round-up, where we post a list of our favorite real estate news stories from DC and beyond.

Headlines from the DC Metro Area:

Agents embrace social media
Washington Times

Approximately 84 percent of agents use social media in some form, according to November statistics from the National Association of Realtors.

Young homeowners zero in on region's urban areas
Washington Examiner

The shift is a product of changing population trends�� including the rise of the city during the last decade�� and the housing crisis that left many potential homeowners gun-shy.

Is green good for home resale value?
Washington Post

"The case needs to be made [to lenders] that, hey, these [highly efficient] houses will cost less to operate, so they should be worth more."

National real estate news stories:

Straightening out a wrong property line
Chicago Tribune

The title insurance policy is the document issued by the closing agent or title company that guarantees your ownership to the land

When real estate agents make referrals
The New York Times

Called the Real Estate Settlement Procedures Act, or RESPA, the law also requires disclosures of affiliated or shared ownership businesses and a good-faith estimate on closing costs.

More home sellers paying full real estate commissions
Sun Sentinel

Agents also have to help arrange financing and title insurance to keep the sales moving toward the closing table.

http://twlv.net/lt4l4p

6 real estate headlines: 15-September

2011-09-15T08:06:00.001-04:00

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

Homeowners: Beware of post-Irene scams HSH.com: No matter if your home was affected by Hurricane Irene or any other natural disaster, a call to your insurance company should be the first call you make.	To protect real estate assets be prepared Washington Post: Couples who own real estate before marriage may take advantage of a particular form of title known as "tenancy by the entirety."
Do you have to escrow for taxes? Washington Post: If you are buying a home in the District and putting down 20 percent or more, you have the right to pay your own real estate taxes and insurance.	Six steps that could boost refinancing Wall Street Journal: Demand for new loans or refinancing remains muted, underscoring reasons why policy makers at the White House and Federal Reserve are thinking about new ways to help more homeowners refinance.
Jumbo loans make a come-back in metro market Washington Examiner: Jumbo loans in the $1 million to $3 million range, with interest rates between 4.25 percent and 4.75 percent, are available to buyers with credit scores of at least 740.	What $1.2M buys you in DC DC Urban Turf: The second most-expensive home on the DC market is listed at $12 million. Here's a look of some other million dollar homes.

http://twlv.net/l1Kgvt

REAL™ Credit OK'd by D.C. government

2011-08-31T12:28:00.001-04:00

We've caught a lot of flack lately over our REAL Credit™, with some of our competitors saying the progressive program is a violation of D.C. Code.

After consulting the District of Columbia's Department of Insurance, Securities and Bank (DISB) for guidance, DISB released a bulletin clarifying their position. According to DISB, a title company may provide a settlement discount (e.g., REAL Credit™) to a homebuyer so long as the credit is tied to an "action that improves the efficiency of the settlement transaction, such as applying electronically." �

Real Credit™ is allowed

Federal Title's REAL Credit™ is perfectly legal since it is awarded to a homebuyer only when a homebuyer or the homebuyer's agent orders settlement services through the online order system.

DISB approved Federal Title's REAL Credit™ on the basis that it (1) improves the efficiency of the settlement transaction; (2) does not rebate any of the title insurance premium; and (3) is awarded to a homebuyer exclusive of whether the homebuyer elects to purchase owner's title insurance coverage.

Federal Title's proprietary online order & workflow system allows for a more efficient, transparent and error-free closing. In regards to ordering settlement services, scheduling and notification, the online system:

Automatically confirms an order notifying all parties to the transaction together with a guaranteed quote for costs of title charges and transfer/recordation taxes.
Automatically disseminates e-mail correspondence, with embedded online forms, to all parties (e.g., title abstractor, land surveyor, real estate agents, lenders, homebuyers, and sellers)
Automatically delivers a preliminary HUD-1 to the lender to assist in the preparation of an accurate Good Faith Estimate

What's not allowed

Essentially, a title company may not offer a discount or credit unless it provides a "reasonable basis" for doing so.� In other words, a title company may not rebate, or provide a credit against, any cost of the title insurance premium or provide a credit to a homebuyer which is contingent on the purchase of owner's title insurance. �

According to our contact at the DISB, who is tasked with aggressively monitoring title insurance activities and enforcing D.C. Law, the following are examples of discounts or practices that would be prohibited:

A title company may not offer to match or beat any competitor's fees
A title company may not offer to purchase a home warranty on behalf of a homebuyer
A title company may not offer a settlement discount that requires a coupon
A title company may not offer a settlement� discount "at the closing table" as a result of negotiations by any party during settlement
A title company may not offer a settlement discount only if a settlement client does not qualify for a reissue rate

DISB is charged with the enforcement of a recently enacted statute (D.C. Official Code � 31-5041.07), which prohibits a title insurer from inducing a homebuyer to purchase title insurance. http://twlv.net/ukXhQw

Standard v. Enhanced coverage: Land survey matters

2011-08-23T13:07:00.001-04:00

As a homebuyer in the District of Columbia, Maryland and Virginia, you have a choice between two types of owner's title insurance coverage�� Standard (Limited) Coverage or Enhanced Coverage. When deciding on which coverage, you may consider the possibility of being forced to remove a structure because it extends onto adjoining land or easement.

The Standard owner's title insurance policy contains 4 basic insuring provisions including (1) title being vested other than as stated, (2) any defect in or lien or encumbrance on the title, (3) unmarketability of the title, (4) lack of a right of access to and from the land.�

While the coverage under the Standard policy is broad, the policy form excludes coverage for certain matters that are traditionally outside the scope of a title search of the public records.� One of those excluded matters concerns existing encroachments of structures or encroachments created subsequent to the date of the policy.� In other words, the Standard policy includes an exception for survey matters.

Unlike the Standard coverage, the Enhanced owner's title insurance coverage insures against forced removal of a structure (except for boundary walls and fences) due to an encroachment. Moreover, the Enhanced coverage covers the insured in the event that, after the date of policy, someone else builds a structure that encroaches on to the insured's land.

Specifically, the Enhanced policy covers the insured in the event the insured is forced to remove an existing structure because it extends on to adjoining land or on to any easement, or it violates a subdivision restriction, or it violates an existing zoning law.�

There are many other insuring provisions to consider when selecting the type of owner's title insurance coverage and I invite all of our prospective homebuyers to take a look at our Comparison of Coverages.

http://twlv.net/300JbQ

Understand mortgage fraud to avoid it

2011-08-17T14:39:00.001-04:00

Mortgage fraud investigations have skyrocketed since the financial crisis began in 2008, and a recent report released by the FBI's white collar crimes division indicates the number of investigations has steadily increased in the years since.

If that's not bad enough, apparently now the mafia is getting involved in the scheming, drawn by the chance to rake in "high profits through illicit activities that poses a (relatively) low risk for discovery.

As a homebuyer, you should familiarize yourself with the concept of mortgage fraud in its many forms.

As defined in the FBI's report, mortgage fraud is "a material misstatement, misrepresentation, or omission relied on by an underwriter or lender to fund, purchase, or insure a loan. This type of fraud is usually defined as loan origination fraud. Mortgage fraud also includes schemes targeting consumers, such as foreclosure rescue, short sale, and loan modification."

Buying a house is likely the biggest financial decision you will ever make. Select real estate professionals who understand your needs and look out for your best interests. The Internet is a great place to get started on your search, but you should supplement that information with input from your friends, family & neighbors who've recently bought or refinanced a home.

To get a sense of the types of questions you should ask at the beginning of your homebuying adventure, check out these pamphlets created by the Federal Trade Commission that cover deceptive mortgage ads, buying a home and tips for homeowners.

http://twlv.net/QBZoCP

Title insuance Q&A

2011-07-29T13:42:00.001-04:00

What will standard title insurance cost?
Standard Owner's Title Insurance premium is based on your purchase price.� Enter your purchase price and answer a few other questions here to obtain an instant quote for the cost of both standard and enhanced owner's title insurance.

What would enhanced insurance cost?
Enhanced Owner's Title Insurance premium based on your purchase price. Enter your purchase price and answer a few other questions here to obtain an instant quote for the cost of both standard and enhanced owner's title insurance.

How many claims do you see made against title insurance policies each year, or what percentage would you say?�
Matters arising post-settlement covered by the terms of an owner's title insurance policy occur in approximately 5% of all transactions that we close. Poor record-keeping by local government represents a good portion of these matters which results in such matters as unpaid taxes (tax liens) (i.e., prior years' taxes not properly reported by the governmental authority). Other common matters include non-terminated lines of credit and previously unreleased deeds of trust (mortgages) of prior owners, mis-indexed judgments/liens against prior owners, unpaid condo/HOA dues, seller fraud (e.g., imposter spouses, acquiring/drawing on/of lines of credit immediately prior to closing), and forgeries/unauthorized deed transfers in the chain of title.

What percentage of your clients buy enhanced vs. standard?
It's approximately 50/50 for enhanced v. standard.�

What percentage of your clients waive/decline owner's title insurance coverage?
Less than 1% of homebuyers decline owner's title insurance coverage.

I've read the descriptions of the two types of insurance on your website and I'm still trying to determine if it's worth it for me to buy owner's title insurance.� Am I insuring against the possibility of losing my home or against the legal fees I might have to pay to get the title cleared?� Do you have more details/ fine print on the two policies than what is on the website?
You are insuring against the potential of both (title failure and legal fees to defend title).�
http://twlv.net/04JRIW

6 real estate headlines: 29-June

2011-06-29T10:15:00.001-04:00

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

6 real estate headlines: 24-June

2011-06-24T10:03:00.001-04:00

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

6 real estate headlines: 23-June

2011-06-23T11:03:00.001-04:00

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

6 real estate headlines: 22-June

2011-06-22T10:18:00.001-04:00

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

6 real estate headlines: 21-June

2011-06-21T10:10:00.001-04:00

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

Reissue rates... Explained

2011-06-16T10:45:00.001-04:00

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.

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

2011-06-16T09:15:00.001-04:00

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

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

2011-06-15T12:13:00.001-04:00

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:

Search the title and identify superior and subordinate liens;
Gather information and prepare the form required by the lender to obtain a payoff statement;�
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;
Prepare HUD-1 closing statements;
Communicate information between the parties to the transaction; and
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;

Clear title issues which require the services of licensed real estate attorneys;
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;
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;
Counsel the homeowner on the impact of filing for bankruptcy protection generally or as it relates to a short payoff and/or foreclosure; and
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

6 real estate headlines: 14-June

2011-06-14T09:05:00.001-04:00

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

6 real estate headlines: 13-June

2011-06-13T09:03:00.001-04:00

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

6 real estate headlines: 03-June

2011-06-03T10:02:00.001-04:00

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

6 real estate headlines: 02-June

2011-06-02T13:02:00.001-04:00

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

6 real estate headlines: 31-May

2011-05-31T09:56:00.001-04:00

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

6 real estate headlines: 27-May

2011-05-27T09:38:00.001-04:00

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

How short sales and foreclosures impact your credit score

2011-05-25T15:36:00.001-04:00

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. **

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

6 real estate headlines: 25-May

2011-05-25T09:37:00.001-04:00

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

6 real estate headlines: 24-May

2011-05-24T10:14:00.001-04:00

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

6 real estate headlines: 20-May

2011-05-20T09:27:00.001-04:00

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

6 real estate headlines: 19-May

2011-05-19T09:23:00.001-04:00

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

6 real estate headlines: 18-May

2011-05-18T13:51:00.001-04:00

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

Jim Morrison grew up around here Curbed DC: In one of his old homes, the current owner says the ghost of The Doors lead singer still comes around once in a while to spook her out a little bit.	Bank denied your refi? Join the club Bankrate.com: Two of the biggest impediments to refinancing under HARP are having mortgage insurance on the loan or having a second mortgage.
Housing starts drop 10 percent CNN Money: Housing starts, the number of new homes being built, fell 10.6% in April to an annual rate of 523,000 units, down from a revised 585,000 in March, the Commerce Department said.	Tough housing market slams Realtor income Housing Wire: Realtor income dropped every year since 2002 when the peak salary hit $52,200 and salaries are down 34.7% between then and 2010.
Bad weather adds to home builders woes Washington Examiner: Housings starts in the U.S. unexpectedly fell in April as flooding and tornadoes in the South shut down construction sites and homebuilders continued to struggle almost two years into an economic recovery.	U.S. mortgage applications rise Washington Post: Mortgage applications in the U.S. increased last week to the highest level since December as cheaper borrowing costs made refinancing more attractive.

http://twlv.net/O1WDTq

6 real estate headlines: 17-May

2011-05-17T13:46:00.001-04:00

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

Financing foreclosed homes The New York Times: For would-be owner-occupants without cash, the federally insured 203(k) loan is key. Borrowers can roll projected rehab costs into the loan.	The costs of buying and selling Patch.com: The purchase price of a house is only part of the total cost associated with a closing � here's a list of associated fees that you should be aware of ahead of time.
Safeway plots mixed-use development Tenleytown Washington Post: Tenleytown could become the third in a string of redevelopment projects Safeway has begun in order to expand and update its stores and leverage its Washington-area real estate holdings.	The Post's HUD investigation: How damning? Washington City Paper: HUD hit back against reporter Debbie Cenziper's overall conclusion, arguing that the HOME program has been largely successful.
10 cities where rents are spiking US News & World Report: Eventually, higher rents could turn many tenants into buyers, since purchasing a home will start to seem like a bargain compared with sending a monthly check to a landlord.	Economists disagree on meaning of 'recovery' Inman News: The continuing plague of distressed properties is feeding a cycle wherein distressed sales push prices downward, which creates more negative equity among homeowners.

http://twlv.net/jA5Zt6

6 real estate headlines: 16-May

2011-05-16T09:25:00.001-04:00

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

5 refi blunders to avoid Bankrate: When interest rates are low, plenty of homeowners rush to refinance before evaluating the true consequences of their actions.	Pace of foreclosures slowed further in April� Washington Examiner: The decline had less to do with any turnaround in the housing market than with foreclosure processing delays that appear to be getting worse.�
Virginia home sales resilient despite no tax credit VAR Buzz: When the federal home buyer tax credit ended in mid 2010, many real estate markets across the United States started to falter and decline.	Is the Miami condo revival the real thing? Wall Street Journal: The city's condo inventory has started moving again, as prices have been cut dramatically. The persistent, unanswered question, of course, is where all the money to build out the next wave of new condos is going to come from.
How lower loan limits will affect DC housing DC Urban Turf: What the change means for borrowers is likely higher down payments and interest rates, and dealing with more stringent underwriting guidelines from lenders.	Education and homeownership go hand in hand National Association of Realtors: The Home Ownership Participation for Everyone (HOPE) Awards were held last week.

http://twlv.net/UoGvGf

6 real estate headlines: 12-May

2011-05-12T10:50:00.000-04:00

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

Rent or buy: A matter of lifestyle The New York Times: As this year's spring buying season nears its peak, the relative merits of renting and buying are closer than they have been since the housing bubble began inflating almost a decade ago.	Florida shows signs of recovery National Mortgage News: Florida existing home sales increased 13% and existing condominium sales increased 29% over the first quarter 2010, according to the Florida Association of Realtors.
Sales volume up, but home prices falling Wall Street Journal: A Realtors' trade group says existing-home prices rose in 34 out of 153 metropolitan statistical areas in the first quarter compared to a year ago	Florida existing homes, condo sales jump Housing Wire: Florida existing home sales followed the national trend upward in the first quarter, jumping 13% compared to the year prior to more than 44,500 homes statewide.
Facebook founder 'likes' homeonwership Inman News: Unconfirmed reports, indicate Mark Zuckerberg purchased a $7 million property in a northern Palo Alto neighborhood near University Avenue.�	Timing the real estate market MD Suburban Homes: Just like the mighty oak, the best time to buy a house was 25 years ago. The next best time to buy is now. Interest rates are pretty damn low, and prices have retreated to pre-bubble levels.

http://twlv.net/LaF7MV

6 real estate headlines: 11-May

2011-05-11T08:28:00.001-04:00

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

DC home sales in April 2nd highest since 2006 DC Urban Turf: While pending sales in April fell by 4.8 percent when compared to the heavy level of activity in March, the sales figures still represented the fourth highest monthly total in the past 45 months.	Looking for a cheaper mortgage? Try FHA HSH.com: Until recently, FHA mortgages were less popular than conventional mortgages because they require both upfront and monthly mortgage insurance premiums, full documentation of income and assets, and limit the amount you can borrow.
How to go green? Look to DC's Ledroit Park The Atlantic: Located a little over a mile north of downtown D.C. and bordering Howard University, LeDroit Park was once a planned, architecturally unified, and carefully landscaped suburb carved out of rural land.	How does a condo differ from a co-op? Bankrate.com: Co-ops and condos, both of which are common-interest developments featuring for-purchase apartment units, require little or no maintenance on your end.
No end in sight for National Mall sprawl Washington Examiner: From the National Park Service's point of view, the Mall's sprawl was nipped in the bud when the Reserve Act, passed in 2003.	Reports of mortgage fraud reach record levels Wall Street Journal: Reports of mortgage fraud, which have been increasing since the housing boom, rose to their highest level on record in 2010, Treasury Department figures showed.

http://twlv.net/4jadOI

6 real estate headlines: 10-May

2011-05-10T14:06:00.001-04:00

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

Alexandria Waterfront plan advances Washington Examiner: Over the loud protests of residents, the unfinished Alexandria waterfront plan is moving ahead to the City Council for approval.	Home market tumbles Wall Street Journal: U.S. home values posted the largest decline in the first quarter since late 2008, prompting many economists to push back their estimates of when the housing market will hit a bottom.
28 percent of homeowners underwater Housing Wire: Home values in the first quarter fell 3% from the prior quarter and are now nearly 30% lower than the June 2006 peak.	How to sell in tough times CNN Money: Nearly five years into the housing bust, when many experts thought the real estate market would at least have stabilized, sales and prices are still dropping in most of the country.
6 ways buyers can boost qualifying income Inman News: Borrowers without the income required to qualify for the mortgage they need have many possible options.	Homeowners drowning in negative equity CNBC: If you have no desire or need to sell your home, then falling home prices are just on paper and likely temporary, right? Depends on how you look at it.

http://twlv.net/EYJP0X

Post occupancy (a.k.a. rent back) agreements

2011-05-09T17:25:00.001-04:00

You just signed a contract to buy your dream home, the one with the white picket fence, the game room and the custom kitchen.� The only issue is that the sale of your property is taking place on June 20, while this house will not be ready until June 25.� Immediately you call the buyers of your property, and while they have no problem waiting to move into the property, the lock on their loan expires on June 20.� Now what?

The solution is a simple one, and it is frequently used.� The Post Settlement Occupancy Agreement, sometimes also called a Rent Back Agreement, is an agreement whereby the buyer of a property agrees to allow the seller of the property to stay on at the property past the settlement date. �

Typically the seller agrees to pay the buyer a per diem fee in exchange for being permitted to stay in the property past the closing date.�� Usually the per diem charge is the equivalent of the buyers PITI (Principal, Interest, Taxes, Insurance) on the property and, if applicable, condo dues or homeowner's association dues.� This way it is not costing the buyer anything to allow the seller to stay on. �

Also, typically a security deposit is withheld from the seller's funds by the title company.� This is a way for the buyer to be protected and make sure that the seller has not damaged the property during the rent back period.� After a final inspection at the end of the rent back period, assuming that everything goes well, the buyer informs the title company to release the security deposit back to the sellers.� If there is a problem during the final inspection, the buyers and sellers need to come to an agreement on how the security deposit is to be distributed.

The purpose of the security deposit is to make sure that there is no damage to the property during the rent back period.� It is not to be withheld as an escrow for repairs that were discovered in the original home inspection.� Often buyers will attempt to use the rent back security deposit to cover home inspection item repairs that were never completed, but this is an improper use.

Also, creation of a rent back agreement does not create a Landlord-Tenant relationship.� The standard GCAAR form that most agents use in the DC metro area makes this point clear.� The District of Columbia recognizes tenant rights such as the tenants first right of refusal, so the distinction is an important one. �

Post Settlement Occupancy Agreements are quite common and they offer a great solution to the difficulties of timing the purchase settlement and the sale settlement in a manner that is convenient for all parties.

http://twlv.net/kWC0iN

6 real estate headlines: 09-May

2011-05-09T08:30:00.001-04:00

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

DC defends Live Near Your Work Washington City Paper: The best way to get people to live near where they work is to help create affordable housing, and the best way to get people to live near transit is to make transit an excellent service.	White House data reveals fragility of housing Housing Wire: The Obama administration released April's Housing Scorecard Friday, detailing housing data and trends from March compiled from the Department of Housing and Urban Development and the Treasury Department.
More homebuyers should put faith in Good Faith Estimate Washington Post: A recent survey found the GFE may not be improving shopping as intended. After receiving the disclosure, 56 percent of buyers say they did no comparison shopping among lenders.	Mortgage delinquencies post big drop in March Wall Street Journal:Mortgage delinquencies fell by 12% in March, the biggest monthly drop since the housing bust began, to the lowest level since 2008, an improvement driven by declines in the number of newly delinquent loans.
Tyson's new look could spread to Fairfax Washington Examiner: A new look for streets and sidewalks at the remade Tysons Corner is set become a template for redevelopment throughout Fairfax County, signaling a move away from traditional suburbia to a collection of mini-cities.	Inflation? Worry about recovery first Inman News: All of the debasement/inflation howling boils down to one thing: how you feel about the Fed's quantitative easing ("QE") operations. None of the hard data supports the howlers.

http://twlv.net/GOQF0N

6 real estate headlines: 06-May

2011-05-06T10:29:00.001-04:00

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

Baby boomers DC's fastest growing population Washington Examiner: More empty nesters and twentysomethings are living in the District and are largely responsible for the city's first population boom in 50 years, new census data show.	A look inside the foreclosure pipeline CNBC: The subprimes, Alt-A's, the bad lending of the housing boom, have largely moved through the system already, and big banks and servicers are getting more aggressive with loan modifications.
So, you're self-employed and want to buy a home DC Urban Turf: Self-employed borrowers can get the same interest rates as their salaried peers, but they have to go a little farther to show lenders they're capable of borrowing a sizable sum of money.	Vets: Don't overlook a VA loan for refinance HSH.com: If you have improved your credit, been self-employed long enough for your income to be counted, if your condo has obtained VA approval, or if you can get a better interest rate with VA financing.
Mortgage rates hit 5-month low Housing Wire: Freddie Mac released its mortgage rate findings, which show the 30-year, fixed-rate mortgage dropping to 4.71% and the 15-year FRM hitting a new yearly low of 3.89%.	Madonna's childhood home priced for a song Wall Street Journal: Madonna shared the two-story colonial with her seven siblings until she left home at the age of 18 to become, well, Madonna.

http://twlv.net/IINfIt

Live Near Your Work

2011-05-05T11:30:00.001-04:00

The DC Office of Planning is now searching for three District employers to partner in a pilot program that will offer homebuyers up to $12,000 toward their down payment and closing costs on a home near their place of employment or transit.

"OP will match employer contributions (up to $6,000 per participating employee) to attract and retain DC residents, with the primary purpose of encouraging employees to live close to their place of employment and/or transit," according to a statement.

A Request for Applications (RFA) for up to $200,000 in matching homeownership grants, to be administered by qualified DC-based employer was released for the pilot program known as Live Near Your Work on April 29, 2011.

Applications for consideration in the first round of selection are due June 17, 2011. Applications received after this deadline will be considered in the second round of selection, with an October 7, 2011 deadline, if three partners are not selected in the first round.

We will keep you posted as this story develops. http://twlv.net/zPB2Pj

6 real estate headlines: 05-May

2011-05-05T10:29:00.001-04:00

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

DC wants to pay you to live near your work Washington City Paper: The Office of Planning is launching a pilot program that will match employer grants of up to $6,000 per person for closing and down payment assistance on homes near Metro stations and bus lines.	Bin Laden's $1M mansion no 'spartan cave' Inman News: Unquestionably, the most interesting piece of real estate on the entire planet today is the "mansion" compound where Osama bin Laden was found.
Bid a fond adieu to the living room Washington Examiner: According to a study by the National Association of Home Builders, by 2015 the living room may vanish from new homes.	Can mandatory mediation save DC homes from foreclosure? Washington Post: The law covers residential loans in the District secured by a deed of trust or a mortgage that was used to acquire or refinance real property.
When does a short sale make sense? Wall Street Journal: For a bank to consider a short sale, you must owe more than your house is worth and demonstrate hardship.	Is home ownership overrated? Smart Money: Decades of policies designed to foster home ownership are being reexamined, from taxpayer support for the giant mortgage agencies to the tax deduction for mortgage interest.

http://twlv.net/hmvMjK

6 real estate headlines: 04-May

2011-05-04T13:27:00.001-04:00

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

To rent or to buy? Washington Post: There is a chance that federal policy could back away from the pro-ownership stance that has been in effect for decades.	3 reasons every homeowners needs title insurance HSH.com: The robo-signing scandal and the explosion of mortgage fraud make it clear that--given the reliance on computer data--title insurance is more necessary than ever.
Appraisals still a problem Economist's Outlook (NAR): Appraisal issues continue to be a problem according to the latest Realtors® Confidence Index Survey. Respondents reported delays, lower sales prices, or cancellations in 35 percent of recent transactions.	2000-2010: Not a 'lost decade' for real estate Speaking of Real Estate (NAR): Housing values in every state went up to some extent (except in Michigan, which, let's face it, has economic problems that extend well beyond residential real estate between the years 2000-2010).
Size of Eastern Market project stalls approval Washington Examiner: The chief complaint has been that the Pennsylvania Avenue building is about 20 feet too tall compared with neighboring structures.	Take a bite out of closing costs CNN Money: Closing costs are certainly a consideration for both new loans and refinancing. But it's important to not lose sight of what should be your first priority � getting the lowest rate possible.

http://twlv.net/vcxpgy

Florida existing home sales increase

2011-05-03T14:54:00.001-04:00

Florida's existing home and condominium sales rose in March 2011, according to the latest housing report released by Florida Realtors.

Existing home sales increased 12% during March 2011 with a total of 18,522 homes sold statewide compared to 16,540 homes sold statewide in March 2010.� Florida's median sales price for existing homes last month was $126,300 compared to a year ago figure of $136,000 which is a 7% decrease.

In addition, in Florida's year-to-year comparison for condominiums, 9,703 units sold statewide in March 2011 compared to 7,830 units in March 2010 for an increase of 24%. The statewide existing condominium median sales price last month was $84,300, whereas in March 2010 it was $94,800 for an 11% decrease.

Seventeen of Florida's metropolitan statistical areas (MSAs) reported higher existing home and existing condominium sales in March 2011.� This is the fourth consecutive month that Florida Realtors has reported higher year-over-year existing home and existing condominium sales across the State of Florida.�

Ample supply of available housing at very attractive prices coupled with historically low interest rates and restored consumer confidence are fueling the apparent uptick in real estate sales across the Sunshine State.�

Furthermore, a strengthening economy will continue to support this upward trend in real estate transactions in Florida.� Interested buyers should consult with a highly qualified Florida Title Insurance Company to guide them through the purchase process.

http://twlv.net/efweTm

6 real estate headlines: 03-May

2011-05-03T10:23:00.001-04:00

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

Shopping for title services can save you a bundle HSH.com: Lenders normally require borrowers to pay for lender's title insurance, which protects the lender against liens and title defects. Homebuyers can also purchase owner's title insurance to protect their investment.	New federal loans allow homeowners to finance energy efficiency DC Urban Turf: Backed by the Federal Housing Administration (FHA), the loans will offer homeowners up to $25,000 to make energy-efficient improvements.
Can the mortgage industry pull together? Wall Street Journal: The Mortgage Bankers Association tapped David Stevens, the former commissioner of the Federal Housing Administration and Obama administration housing adviser, as its new chief executive officer in March.	Grab a second home bargain CNN Money: Before leaping in, though, you need to ask yourself two questions: Why is this happening now? And how can I take advantage of it?
4 ways to ace your home inspection Bankrate.com: Avoiding a money pit is one reason to hire a home inspector, but savvy homebuyers can get more value than that from the building inspection.	10 tips for surviving the housing market CNBC: The economy is starting to improve but the housing market has yet to show any significant signs of recovery, which has homeowners nervous.

http://twlv.net/Mu5R17

6 real estate headlines: 02-May

2011-05-02T10:22:00.001-04:00

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

Buying is cheaper than renting Bankrate.com: The trend is expected to continue through the rest of the year as the rental market gains strength. Rents have started climbing and apartment vacancies have been dropping.	The mysterious charms of DC's alleys Washington City Paper: Unlike in older cities, where alley dwellings were constructed later as real estate pressures mounted, DC alleys were built in conjunction with middle-class housing in the years of the city's rapid expansion following the Civil War.
Downtown faces stiff competition from redeveloped 'burbs Washington Examiner: Downtown's property tax rate of nearly 1.9 percent is nearly double the rate in most suburban office hubs like Alexandria, Rosslyn or Bethesda.	Foreclosure side effect: Bidding wars Housing Wire: The factors feeding the competition stem from the fact that many traditional homeowners can't or won't sell, leaving deal-hungry buyers clamoring for bank-owned foreclosures.
Do homebuilders have a future? Wall Street Journal: Bargain-priced foreclosures remain stubborn competition. Would-be buyers can't qualify for mortgages. High unemployment rates persist.	How borrowers could lose with new mortgage rules HSH.com: In the end, the Federal Reserve standards go as far as possible to assure the best interests of the lending community the Fed is supposed to regulate.

http://twlv.net/4z3ujk

6 real estate headlines: 29-April

2011-04-29T10:17:00.001-04:00

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

A new template for smart growth Washington Post: Shifting demographics, along with increasing consumer interest in a more-urban existence, are redefining the real estate market.	Projects shelved spring back to life The New York Times: Factors contributing to the building trend include higher rents, aging office stock and a possible decline in labor costs.
Weighing whether to buy a vacation home Wall Street Journal: With an increasing range of options�from managed resorts in the Maldives to a self-owned bungalow in Bali�deciding what type of vacation home to own, and what investment risks to take, is becoming a more complicated process.	Homeownership drops Housing Wire: While the homeownership rate across the country continues downward after the housing crash, a recent survey from Pew Research showed 81% of adults still believe buying a home is the best long-term investment a person can make.
How history killed the suburb The Atlantic: Projected growth in housing demand is going to come largely from young people who are much more comfortable with urban lifestyles and from retiring baby boomers who no longer need large amounts of house and yard space.	6 tips to help you avoid real estate law suits Inman News: Even if you have adequate errors and omissions insurance coverage, being a defendant in a lawsuit can have a huge negative impact on both you and your business.

http://twlv.net/dV9z71

Transfer taxes, real property taxes... Explained

2011-04-28T11:44:00.001-04:00

"In this world nothing can be said to be certain, except death and taxes," Ben Franklin once famously said. Yet when it comes to taxes on real property � especially for first-time homebuyers � we find much uncertainty and confusion exists.

Homebuyers should expect to pay two main types of taxes on their homes, 1) transfer taxes are non-recurring and paid once at settlement and 2) real property taxes are recurring and paid semi-annually (when you pay depends on where you live).

Transfer Taxes

Aside from the down payment, transfer taxes are often the single largest expense a homebuyer will pay at settlement. Transfer taxes are also known as recordation taxes, stamp taxes or grantee taxes but are all lumped together on the HUD-1 settlement statement and identified, collectively, as "Transfer Tax."

For example in Montgomery County, Maryland, a homebuyer will customarily pay one-half of the total county transfer tax, state transfer tax and recordation tax. The total of these three taxes will be collected as a single line item on the HUD-1 and called "Transfer Tax."

Even more confusing in the District of Columbia and Virginia, the law requires homebuyers to pay the "Recordation Tax," yet federal regulation requires those recordation taxes to be lumped together and identified on the HUD-1 as "Transfer Tax."

For the purpose of this discussion, the term "Transfer Tax" will include any and all one-time, non-recurring, taxes customarily paid by the homebuyer at the time of closing.

Transfer taxes vary depending on where the property is located, which may lead some homebuyers to think they are being penalized if purchasing a home in a city or county with a higher transfer tax rate, such as the District of Columbia.

While it's true that transfer taxes for DC properties are significantly higher than in Maryland or Virginia, the overall amount a homeowner will pay in taxes evens out over time thanks to property tax rates.

Property Taxes

Homeowners are typically expected to pay their property tax bill in two installments spread over the year. (For a summary of real estate tax rates by jurisdiction, including when property tax payments are due, see the homebuyer tax section of our website.)

As mentioned above, the District of Columbia may have one of the region's highest transfer tax rates, but it also boasts the region's lowest property tax rate at just $0.85 per $100 of assessed value. In Bethesda, Maryland the property tax rate is $1.027 per $100 of assessed value, while homeowners in Arlington County, VA pay $0.958 per $100 of assessed value.

Tax Comparison

Let's see how the taxes shake out for a homeowner in Washington, DC versus Bethesda, MD versus Arlington, VA over the course of 10 years, assuming tax rates remain unchanged. Remember: "Transfer Taxes" include ALL state recordation taxes and state/county transfer taxes as customarily apportioned, by jurisdiction, between the homebuyer and seller.

This figure also assumes that the purchase 1) is an owner-occupied residential purchase and, 2) that the homebuyer is a first-time homebuyer. Let's use $500,000 as our purchase price with 20 percent down:

�

Total taxes paid (estimate)
$500,000 purchase price

Jurisdiction	Transfer taxes	Property taxes	Total
District of Columbia	$7,250.00	$36,762.50	$44,012.50
Bethesda, Maryland	$4,052.50	$51,350.00	$55,402.50
Arlington, Virginia	$2,999.70	$47,900.00	$50,899.70

As you can see, the total amount of transfer tax plus property taxes paid over 10 years is far less in the District of Columbia compared to Maryland and Virginia.

This is partly because of the lower annual tax rate of just $0.85 per $100 of assessed value, and largely due to the Homestead Deduction, which homeowners qualify for so long as the property is their principal residence. Individuals who own multi-unit dwellings with five or less units also qualify for the deduction so long as they occupy one of the units.

Now, let's try the same thing, only this time we'll use $300,000 and $700,000 price points:

�

Total taxes paid (estimate)
$300,000 purchase price

Jurisdiction	Transfer taxes	Property taxes	Total
District of Columbia	$3,300.00	$19,762.50	$23,062.50
Bethesda, Maryland	$2,362.50	$30,810.00	$33,172.50
Arlington, Virginia	$1,999.82	$28,740.00	$30,739.82

�

Total taxes paid (estimate)
$700,000 purchase price

Jurisdiction	Transfer taxes	Property taxes	Total
District of Columbia	$10,150.00	$53,762.50	$63,912.50
Bethesda, Maryland	$6,052.50	$71,890.00	$77,942.50
Arlington, Virginia	$4,999.58	$67,060.00	$72,059.58

First-time Homebuyers

Homebuyers who have not owned property in Maryland and the District of Columbia may be exempt from paying their portion of transfer and recordation taxes. Unfortunately for Virginia homebuyers, no tax incentive exists.

To qualify for the transfer tax exemption in Maryland, all buyers must be first-time homebuyers. So, for example, if a wife owned a condo prior to marriage and now wants to purchase a house with her husband who is a first-time homebuyer, the exemption would not apply.

Furthermore, if you are purchasing as a "first-time homebuyer," and you intend to take title in the name of your revocable trust, or another type of entity, you will not qualify for the tax exemption in Maryland.

In the District of Columbia, the program is known as DC Tax Abatement, and, for a purchase price of $332,000 or less, it provides an exemption from the DC 1.1% Recordation Tax and an allowable credit from your seller(s) of 1.1% equal to the DC Transfer Tax. This is a 2.2% swing in favor of the homebuyer!

Additionally, the DC Tax Abatement program excuses first-time homebuyers from having to pay real property tax on their property for five years beginning October 1 following the date of closing. To qualify,� first-time homebuyers must 1) prove they live in DC, 2) must not have owned a property in the District for one year prior to the closing date, 3) meet the income requirement and 4) meet the purchase price requirement.

In sum, homebuyers can expect to pay two kinds of taxes on their property: transfer taxes and property taxes. Even though transfer taxes may be higher from one jurisdiction to the next, it doesn't necessarily mean a homebuyer is guaranteed to pay more taxes over the course of his/her ownership. First-time homebuyers may be eligible for tax exemptions.

For more information on taxes paid at settlement or during the course of homeownership, please contact the team at Federal Title.

http://twlv.net/R28pRt

6 real estate headlines: 28-April

2011-04-28T10:13:00.001-04:00

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

The Donald's real estate record Wall Street Journal: Though he's flirting with a presidential run, Donald Trump is a developer first. (As well a reality-show star, author, New York icon and hairstyle inspiration to millions.)	Prince William and Kate's starter home valued at over $76 million Curbed DC: Clarence House, where Middleton and Prince William will live once married, is valued at more than $76.68M and worth 343 times the average newlywed starter home ($223,282) in England.
Region's home price recovery tops U.S. in February Washington Examiner: Northern Virginia and the District are leading the rise in prices locally while the Maryland suburbs lag.	Home prices drop in 19 U.S. cities Washington Post: But economists and real estate agents are noticing what they call a key first step for any housing recovery: a drop in the glut of homes for sale in markets hit hardest by foreclosures.
Search to Web to save on title insurance Philly.com: The one-time cost is usually paid at closing. Most buyers use the insurer their lender or lawyer recommends, though a 1974 federal law gives purchasers the right to choose.	Affordable rental housing scarce Washington Post: Analysts say they expect rents to keep climbing as developers try to ramp up new projects and catch up with demand.

http://twlv.net/9WqDTa

House tries to speed up short sales

2011-04-27T14:43:00.001-04:00

Short Sales. These two words strike fear in buyers, agents and title companies. Whenever we receive a contract for a short sale, there is an immediate push to get out the seller HUD-1 to the short sale lender, ASAP!

We get calls from everybody involved to drop everything and get that short sale HUD-1 out for review immediately. We're told that any delay by us will delay the settlement.

The reality is that after we send out the short sale HUD-1, the short sale lender doesn't even bother to review it and approve it for months. I've had plenty of frantic calls from listing agents insisting that the short sale HUD-1 needs to be sent out by the end of the day, only to not get an approval (and thus a closing) for six months. In some cases, the response has taken even longer.

Apparently Reps. Tom Rooney (R-Fla.) and Robert Andrews (D-NJ) have heard about these issues as well. They recently introduced a bill in the House of Representatives that would require mortgage servicers to respond within 45 days of receiving a short sale request.

As might be expected, the National Association of Realtors immediately backed the bill. The hope is that the bill will assist homeowners who are unable to avoid foreclosure, since the lengthy delays often correspond with the seller's inability to make timely monthly payments.

Even if the bill is passed, it remains to be seen if it is practical. Often approvals are needed from multiple entities, and obtaining approvals from all the parties in 45 days may be difficult. Also, the bill requires that the servicer must send notification to the borrower within the deadline whether or not the request is approved, changed or if additional information is needed.

So this does leave a servicer the opportunity to ask for additional information, thereby extending the deadline.

Despite this, passage of the bill could be a significant step in improving the short sale process, and saving all of us in the real estate industry some stress when it comes to a short sale closing.

http://twlv.net/B0hMKA

6 real estate headlines: 27-April

2011-04-27T10:12:00.001-04:00

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

Residential development heats up as demand swells Washington Examiner: Condominium sales increased by 44 percent last year in the District, compared with a 14 percent increase regionally.	Lenders, appraisers catching up with green homes HSH.com: Many who improve their homes with energy-efficient products do so with high hopes of return, only to find that their appraisals are disappointingly low. The reason is inadequate appraiser training.
Buyer's market? Stressed sellers say not so fast Wall Street Journal: A nearly five-year slide of home prices has left many sellers unable or unwilling to lower their prices.	Mortgage denied: Sometimes for no good reason CNN Money: Getting a mortgage just keeps getting tougher, and many homebuyers are getting rejected for loans they could easily afford.
Realtor.com rolls out iPad app Inman News: Agents need to make sure the information they're putting into their multiple listing service is as accurate, up-to-date, and detailed as possible,	Home loan applications rise Bankrate.com: The index that measures home purchasing activity was up 10 percent to the highest level in more than four months. That jump was driven largely by a 17.6 percent increase in applications for so-called government loans.

http://twlv.net/DBqKib

Pending settlement reached in JPMorgan Chase class-action military mortgage lawsuit

2011-04-26T13:10:00.001-04:00

Earlier this year, JPMorgan Chase admitted to improperly overcharging thousands of military service members on their mortgages and foreclosing on their homes. As the result of a class-action lawsuit filed in a federal court in Beaufort, South Carolina, JPMorgan has agreed to pay $56 million to settle those claims.

The pending settlement includes the following terms:

A total of $27 million will be paid to approximately 6,000 active-duty service members who were overcharged on their mortgages, and will also be used to lower interest rates on their mortgages and to return homes that were improperly foreclosed on.
Approximately $6 million in payments have already been made to service members who were overcharged on their mortgages.
Approximately $6.4 million will be paid to service members who may have undergone 'wrongful foreclosure practices.'
Another $8 million will be paid in legal fees to the service members' attorneys
JPMorgan will be required to reduce interest rates on all deployed service members' mortgages for one year to 4%
All houses that were improperly foreclosed upon, but remain unsold, are to be returned. �
For those houses already sold, JPMorgan will pay the service members the fair market value of the property.
JPMorgan will forgive any outstanding mortgage balances for those service members who were improperly foreclosed upon.
Any remaining unused funds will be donated to the charity of choice selected by the U.S. military.

The above-referenced terms have been agreed to by all the parties involved, however the final approval of the settlement has yet to be issued by U.S. District Judge Margaret B. Seymour. http://twlv.net/NMK4PT

6 real estate headlines: 25-April

2011-04-25T10:09:00.001-04:00

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

7 basic facts about home insurance HSH.com: Whether you're a first-time homebuyer or a veteran homeowner, understanding home insurance is critical for protecting your investment.	4 costly homebuying contract errors Bankrate.com: When buying a home, mean what you say and say what you mean when filling out the contract.
How solar panels affect home value DC Urban Turf: The value of adding solar panels to your home is two-fold: yearly savings on your utility bills and the value the panels add to the home if you plan on selling it.	Senate report lays bare mortgage mess Wall Street Journal: The report shows Wall Street in gritty, day-to-day detail, angling to profit from a booming mortgage market, and then scrambling to cope with its collapse.
New apps help homebuyers Market Watch: Instead of jotting down notes on paper while walking through an open house, buyers are bringing up listings on their iPads and sending e-mails to their agents.	FHA vs. private loan insurers Washington Post: It's true that the FHA has just gotten a little more expensive, but it may still have the total package you need to do the deal.

http://twlv.net/JlSZQy

6 real estate headlines: 22-April

2011-04-22T11:09:00.001-04:00

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

DC's oldest house? [POP]: The District's oldest house wasn't actually built in DC, but was moved here in six separate railroad cars from Danvers, Massachusetts.	Obama: Housing probably biggest drain on economy Wall Street Journal: Underwater borrowers aren't spending much because they've lost wealth and job mobility is hindered because people can't easily sell their homes and move, he said.
Impact of first-time homebuyer tax credit still felt HSH.com: The Treasury Department is now estimating that improper deductions worth more than $500 million have been taken under the government's tax credit program for first-time homebuyers.	Does private mortgage insurance have a place in the new mortgage order? CNBC: It's no surprise that the private mortgage insurance industry is fighting hard against proposed new risk retention rules for the mortgage industry.
New commonsense mortgage rule Bankrate.com: It was the lack of basic, commonsense rules that allowed lenders to give out mortgages to people who clearly couldn't afford them during the housing bubble.	DC's Top 10 green neighborhoods DC Urban Turf: Earth Day is today, so in honor of this annual day of environment awareness, MRIS has compiled a list of the DC area's top ten green neighborhoods.

http://twlv.net/vpCsXz

6 real estate headlines: 21-April

2011-04-21T08:09:00.001-04:00

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

First-quarter foreclosures fall; March numbers raise concerns Washington Examiner: Many experts had predicted that states would see an increase in filings during the first half of 2011 as the national investigation into the foreclosure process wound down.	5 rookie homebuyer mistakes HSH.com: If you're a mortgage newbie, don't get caught making an error that could cost you big money. Here are five home financing mistakes that rookie homebuyers make, along with tips on how to avoid them.
Will tenant purchases continue? Washington City Paper: Why is leaving the Trust Fund mostly empty a problem? Part of the reason: Timing is important. There's only so much affordable housing in the city.	'Uneven' housing recovery continues CNN Money: First-time buyers purchased 33% of homes in March, down from 44% in March 2010. Investors accounted for 22% of sales, up from 19% a year ago. All-cash sales were at a record high in March, accounting for 35% of existing home sales.
Fed offers up two options for protecting lenders Washington Post: Many within the industry said the legal protections offered under option one would work best for consumers as well as lenders. Without such protections, consumers will end up paying more for the mortgages they want, they said.	The uncertain future of TOPA DC Urban Turf: The sluggish real estate market of the past few years has resulted in the fund losing money since it gets money primarily from deed transfer taxes.

http://twlv.net/2MWWah

Short sale headaches

2011-04-20T11:16:00.001-04:00

It's bad enough that a short sale can take six months to close.� It's even worse when the short sale payoff lender decides at the last minute to change the terms of its agreement. �

Can they do this?� In short, yes.

After all, they are the ones who are agreeing to take less than what is owed in order to complete the transaction � they are under no legal obligation to agree to do this. �

Here are some recent short sale nightmares that I have seen:

Despite the HUD-1 having been first provided to the two short sale payoff lenders in November, a final approval was not obtained until April.� The problem that arose was that one of the short sale lenders would only approve a commission of 3% in the transaction, since they determined that the listing agent and the buyer's agent both worked at the same brokerage, and the short sale lender would not allow more than 3% commission to one broker.� The broker agreed to lower the commission from 5% to 4%, but the short sale lender would not allow this to net out of their funds, consequently meaning that the seller had to come out of pocket for the additional 1% (roughly $14,000).� This was not a problem for the seller, but the short sale lender determined that if the seller could come up with an additional $14,000 to pay the broker, then the seller could pay that $14,000 over to the short sale lender.� Thus the short sale lender increased their required payoff by an additional $14,000.� Since now the seller had to come up with an additional $28,000, he was no longer able to complete the deal.� The broker relented and had to agree to lower the commission on the HUD-1 to 3%, at which point the short sale lender also agreed to lower their payoff by $14,000, but only if the commission remained at 3%.

Often commissions are whittled down by the short sale lenders, and often at the last moment.� The most common scenario involves the short sale lender requiring that the seller come up with a specific amount of funds to close, say $5,000, but the seller not having this money.� The only way to close is for the agents to lower their commission so that the closing can take place.

Another nightmare situation involves seller closing cost credits to the purchaser.� Often the short sale lender will either not allow the credit at all or limit the amount of the credit.� Purchasers and agents should be careful when negotiating a short sale contract that the agreed upon seller closing cost credit may not survive the short sale approval process. http://twlv.net/urqPzv

6 real estate headlines: 20-April

2011-04-20T08:14:00.001-04:00

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

New prototype for mortgage forms coming in May Wall Street Journal: The planned revamp of the forms borrowers receive when taking out a home loan is a key priority of the new Consumer Financial Protection Bureau, which was created as part of the Dodd-Frank financial overhaul law.	City development oversight board in the works Washington Examiner: The transition report released by Mayor Vincent Gray's administration earlier this year called for a quasi-governmental entity that would oversee all major city projects.
Why it's good to be apprised of where appraisal fees go Washington Post: When you pay $450 to $550 at settlement for an appraisal on a home purchase or refinancing, do you assume that all or most of the money is going to the appraiser who performs the valuation?	Former church to become condos DC Mud: Scheduled to break ground the first quarter of 2012, the plan is for a six-story, 37 unit condo building at 2105 and 2107 10th Street.
How to buy at real estate auction Baltimore Sun: So you've seen an advertised auction property and you'd like to take a closer look? Here are some best practices for pursuing real estate at auction.	New home construction hits 6-month high Richmond Times Dispatch: New homes can spur job growth. Each new home built creates the equivalent of three jobs for a year and generates about $90,000 in taxes, according to the National Association of Home Builders

http://twlv.net/KdhVU9

Homeowners Assistance Program cutoff date changed

2011-04-19T18:22:00.001-04:00

In 2009, Congress passed the Expanded Homeowners' Assistance Program ("HAP") to assist military members suffering as a result of the housing bust across the country. As part of that bill, assistance was to be given to members of the military receiving PCS orders through September 30, 2012.

However, as the Army Corps of Engineers has recently reported, of the $855 million designated for the program, approximately $763.8 million has already been used on behalf of 5,093 homeowners. There are another approximately 4,500 military members who have been deemed eligible to receive benefits, and the funding is dwindling rapidly. Additionally, new applications are still being submitted for consideration at approximately 300 per month. As a result of the funding issue, the cutoff date for those receiving PCS orders has been moved up by 2 years to September 30, 2010.

Military members who otherwise may have been eligible for benefits under HAP may no longer be able to receive benefits because they were in the middle of a deployment and therefore unable to receive their permanent PCS orders while deployed. In a recent article in the Army Times, Karen Jowers stated that the Army has proposed a policy change which would allow deployed personnel to still be considered eligible for benefits if: (1) they were forward deployed from March 1, 2010 through August 31, 2010, (2) received PCS orders within 45 days of their return from deployment and (3) met all the other eligibility requirements for expanded HAP assistance. It is expected that a decision on this policy change will occur in the next week or two.

Even if the proposed policy change is adopted, it is unclear whether or not additional funding will be allotted to the expanded HAP program. While government purchased HAP homes are being sold, with the proceeds being added back into the funding pool, it is possible that there are still not enough funds available to cover the losses military members face on the sale of their properties.

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6 real estate headlines: 19-April

2011-04-19T08:24:00.001-04:00

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

Geometric precision awaits Arlington's Lee Heights Curbed: Angles abound for this 4 bed/4 bath home without a single square room in sight. Looks like the architect got a little carried away with their protractor and ruler, but they made good use of the lot that has only .26 acres.	For region's town centers, identity is key Washington Examiner: As planners contemplate hacking Tysons' massive blocks into smaller, more pedestrian-friendly ones with Metro building three stations in the area, experts note creating a sense of place doesn't have to be a massive undertaking.
Arlington real estate tax unchanged for FY 2012 Arlington Real Estate News: The proposed FY 2012 Arlington County budget has no increase for the property tax rate for the county. The current tax rate: 95.8 cents per $100 assessed value will remain the same for 2011.	New broker compensation rules may not solve woes Washington Post: Readers may be incredulous to learn that until April 1, it was legal for a mortgage broker to steer a borrower to a loan that benefited the mortgage broker to the detriment of the borrower.
Foreclosed? The tax man may want� a piece CNN Money: In general, if you lose your home to foreclosure or short sale, where you sell your home for less than you owe, the IRS won't add insult to injury by counting the difference as income, at least until 2012, when the act expires.	A green roof 3 years later The Hill is Home: A green roof system is green both because it's planted with all sorts of vegetation and because it harbors many environmental benefits.�

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