REAL™ Credit OK'd by D.C. government

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:

1. Automatically confirms an order notifying all parties to the transaction together with a guaranteed quote for costs of title charges and transfer/recordation taxes.
   
2. 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)
   
3. 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

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

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

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

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

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

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

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

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

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

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

How Do I Qualify for a Reissue Rate Discount?

A reissue rate is available to a homebuyer when:

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

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

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

Do I have to use the same Title Insurance Underwriter?

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

�

What is the Amount of the Reissue Rate Discount?

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

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

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

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

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

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

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

�

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

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

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

�

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

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

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

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

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

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

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

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

http://twlv.net/vXspYe

6 real estate headlines: 16-June

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

Tips for saving on title insurance MortgageLoan.com: At its most basic, title insurance protects the lender and sometimes the owner from possible loss of the property if someone else claims ownership on after the closing.	Double dip? Not in Washington, D.C. The New York Times: The Greater D.C. metro is an economic powerhouse. It currently ranks as the nation's eighth largest; with 5.5 million people and nearly $400 billion in economic output.
Maryland urges struggling homeowners to seek mortgage help Baltimore Sun: The number of delinquent borrowers here and nationally has eased in the last year after a rapid increase fueled first by bad lending practices and then by a deep recession.	Mortgage bankers push FHA to adopt e-signatures Housing Wire: The MBA said by allowing e-signatures on all forms, there would be less paperwork lost, fewer possibilities for fraud, a reduction in the time it takes to close a loan and lower costs for borrowers.
Angry homeowners 'foreclose' on lenders The New York Times: Owners of a house in Florida have engineered a reverse foreclosure against a bank. That makes two so far this year. Just one more, and it's officially a trend, right?	Senate lawmakers want tough approach in foreclosure talks Wall Street Journal: Senate Democrats on are calling on a federal bank regulator to take a tougher approach in fixing problems in banks' home-foreclosure practices.

http://twlv.net/9Qfm4D

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

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

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

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

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

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

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

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

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

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

http://twlv.net/oihuWz

6 real estate headlines: 14-June

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

Major changes likely to QRM program Inman News: The proposed QRM standard would push nearly a third of American borrowers out of the market, especially first-time home purchasers, minorities and moderate-income families.	Mortgage rates love economic slow times HSH.com: While we remain about a third of a percentage point above our October 2010 rock-bottom levels, we should be nearing a place where refinance opportunities start to show.
Banks get 30 more days to fix foreclosure problems Wall Street Journal:� Banks are required to hire an independent consultant to conduct a "look back" at foreclosure proceedings from 2009 and 2010 to evaluate whether they improperly foreclosed.	Homebuying: Is now the best time to buy? CNN Money: Given the recent lackluster jobs report and the million-plus homes in foreclosure, no one is expecting a robust about-face anytime soon.
How GIs fight foreclosure proceedings Bankrate.com: The HAP expansion only applies to defense personnel who purchased their homes before July 1, 2006, and sell them by Sept. 30, 2012, pending availability of funds.	Where we live: Stanton Park Washington Post: Stanton Park wasn't so quaint and neighborly in the 1980s, when longtime residents say crime was plentiful and neighborhood issues included vacant, dilapidated houses.

http://twlv.net/6XGGOJ

6 real estate headlines: 13-June

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

DC home sales in May highest since 2005 DC Urban Turf: New pending sales increased 6.5 percent over the 5,170 contracts signed in April and a whopping 43.1 percent over the 3,849 contracts signed in May 2010.	Put your child to work in real estate Inman News: There are probably lots of things your child can help you with, such as answering phones, helping with your website, stuffing envelopes, or cleaning the office.
Changes in refinancing The New York Times: Market changes are especially striking for those borrowers with loans taken out before the 2008 financial crisis.	Never built: A gallery of Washington projects Washington Business Journal: Ever wonder what could have been? Here's a preview of the National Building Museum's forthcoming exhibit.
Naysayers not satisfied with Alexandria Waterfront Washington Examiner: Alexandria officials have tweaked the city's hotly debated waterfront plan, but opponents say changes don't go far enough to address concerns that Old Town is too congested.	Palisades development digs in DC Mud: The for-sale units are on track to occupy prime clifftop real estate overlooking the Potomac River in the Palisades, now that Duball has purchased the project and brought in a new architect.

http://twlv.net/cV6V9k

6 real estate headlines: 03-June

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

In Washington, a housing thaw Wall Street Journal: While the area remains a buyer's market, anecdotal evidence suggests the tables are slowly turning, especially for properties in the city and inner suburbs.	H Street NE's soft middle DC Mud: For now it looks as though a functioning trolley line will connect the two ends of H Street before there is much reason to hop off in the middle.
Audit reveals IRS problems with homebuyer credit Washington Post: A review of a smaller sample of returns, supplemented with local real estate deed information, found that 30 percent "had no record of owning a home."	Ledroit Park brings neighbors together Washington Examiner: Today people are drawn to its relative affordability and prime location. The U Street and Shaw/Howard stops on Metro's green line are easily accessible, as are four bus lines.
Why is DC afraid of redistricting? Washington City Paper: There's a knock-down, drag-out fight in the Wilson Building over redistricting, and politically active residents are incensed that they'll be moved from one ward to another.	Lenders to pay for improper military foreclosures MSNBC: Two mortgage lenders will pay more than $22 million combined to settle federal civil charges that they improperly foreclosed on 178 military personnel, some of whom were serving in the Iraq or Afghanistan wars.

http://twlv.net/2Q4msu

6 real estate headlines: 02-June

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

Washington home prices beating double dip Washington Examiner: The region's continued recovery in the face of a national double dip is largely because Washington got a head start in recovering from the recession.	Real estate news: Home prices still falling Wall Street Journal: U.S. home prices fell 4.2% in the first quarter, hitting a new post-bubble low, according to the S&P Case-Shiller home-price indexes.
Homebuyers should act now; mortgage costs will rise HSH.com: Fannie and Freddie were originally created to promote home ownership in the U.S. by facilitating the sale of mortgages to private investors. At issue is the hybrid public/private model of the GSEs.	Case Schiller: DC home prices increase 4.3% DC Urban Turf: As home prices in the rest of the country continue to fall, the DC area (as defined by the index) continues to move in the other direction.
Where we live: Truxton Circle Washington Post: The neighborhood saw significant changes starting five years ago, when more than 40 rowhouses clustered around Bates Street went on the market at once.	Ontario Theater dreaming of condos Washington City Paper: With the housing market going absolutely bonkers in D.C., the longest-stalled projects are creeping closer to reality.

http://twlv.net/WQorLF

6 real estate headlines: 31-May

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

DC estate tax at $35M six months early Washington Business Journal: Every D.C. estate tax dollar received between April and September is a bonus and could be used to ease budget cuts.	Tax breaks for property losses Inman News: A "casualty" is damage, destruction, or loss of property due to an event that is sudden, unexpected, or unusual. Deductible casualty losses can result from many different causes.
Washington hot spot for young professionals Washington Examiner: Young professionals look for a home that is a good value, in move-in condition, includes all appliances and requires little to no renovations or improvements.	Be realistic when refinancing a home loan Bankrate.com: If your personal finances are less solid, you may have to overcome some obstacles before getting a new home loan.
Pending home sales dive in April Wall Street Journal: The number of people who signed contracts to buy previously occupied homes in the U.S. tumbled last month, the latest sign that the battered sector is struggling to rebound.	Five things to watch: Hello, summer CNBC: Analysts aren't looking for much good news in the struggling housing market, as a two percent decline is expected. Then again, there's good news if you're a prospective home buyer.

http://twlv.net/shlaow

6 real estate headlines: 27-May

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

Rates fall for 6th straight week Washington Business Journal: Signs of a slowing economy continued to bring mortgage rates down, with a 30-year fixed-rate mortgage falling to the lowest level of the year this week.	Who pays the most in property taxes? CNN Money: Two main factors contribute to property taxes: the amount of services local governments provide, and the revenue shared by state governments.
Counseling before borrowing The New York Times: Prepurchase education, although traditionally aimed at low- and moderate-income first-time buyers, is available to anyone.	Foreclosure sales high, but volumes drop Wall Street Journal: The foreclosure sales' data, and a drop in foreclosure activity suggest banks are moving cautiously.
This is what it takes to get approved for a mortgage HSH.com: Mortgage applicants must now meet strict debt-to-income limits, often set to 45 percent. This means that your monthly debts--housing costs, bills, etc.--may not exceed 45 percent of your documented monthly income.	Booming boomer population straining 'burbs Washington Examiner: As baby boomers enter retirement and begin collecting pensions and Social Security, government funding for those programs will be in trouble.

http://twlv.net/4SMex8

How short sales and foreclosures impact your credit score

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

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

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

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

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

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

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

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Starting FICO Score (range 300-850)	Type of Delinquency/Default	Impact on Credit Score	Length of Time for Credit Score to Recover
680 (low)	30 days late on mortgage	Decrease 60-80 points	9 months
	90 days late on mortgage	Decrease 60-80 points	9 months
	Short Sale (no balance shortfall reported)	Decrease 50-70 points	3 years
	Short Sale (balance shortfall reported)	Decrease 85-105 points	3 years
	Foreclosure	Decrease 85-105 points	3 years
720 (good, but not ideal)	30 days late on mortgage	Decrease 90-110 points	2-1/2 years
	90 days late on mortgage	Decrease 110-130 points	3 years
	Short Sale (no balance shortfall reported)	Decrease 95-115 points	7 years
	Short Sale (balance shortfall reported)	Decrease 130-150 points	7 years
	Foreclosure	Decrease 130-150 points	7 years
780 (prime)	30 days late on mortgage	Decrease 90-110 points	3 years
	90 days late on mortgage	Decrease 110-130 points	7 years
	Short Sale (no balance shortfall reported)	Decrease 105-125 points	7 years
	Short Sale (balance shortfall reported)	Decrease 140-160 points	7 years
	Foreclosure	Decrease 140-160 points	7 years

 

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6 real estate headlines: 25-May

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

Behind the numbers: A surprise from new home sales Wall Street Journal: Sales climbed 7.3% on a monthly basis to a seasonally adjusted annual rate of 323,000 in April, the Commerce Department said Tuesday morning. Economists had expected 300,000.	Where we live: Rollingwood Washington Post: The neighborhood, west of Rock Creek Park and south of East West Highway, started as a single 100-acre estate with a 30-room castle and grand gatehouse.
10 markets with fastest rising real estate prices Inman News: Two Florida markets saw the highest jumps: median list price in Fort Myers-Cape Coral rose 25.7 percent to $225,000, and the median in Miami rose 8.6 percent to $239,000.	Top 5 worst housing markets Bankrate.com: House prices fell in most of the country from the beginning of 2010 to the first quarter of 2011. Check out the five fastest-falling markets.
First-time homebuyers leading the way Washington Examiner: First-time homebuyers still play a leading role in the metropolitan area's real estate show, snatching up low-interest rates and freeing sellers who want to move up in the market.	It can pay to snoop on your neighbors Wall Street Journal: Going to the open house of a home for sale down the block may make you feel like a nosy neighbor. But there are good reasons, beyond sheer curiosity, to take a peek inside.

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