Written by Federal Title | 13 May 2010

A daily dose of headlines for real estate agents, mortgage lenders and consumers.

More U.S. sellers cut prices as tax credit ends CNBC: Sellers slashed a total $25 billion in April from asking prices. The average discount on reduced homes held at 10 percent from the original listing.	From Hamptons to Tahoe, summer home sales rise Business Week: The price of properties in countryside, coastal, and ski resort locations, often used as second homes, fell by more than 12 percent in 2009.
How to tap banks for real estate loans Forbes: Right now, holders of cash are royalty. Some banks will lend, but only if the borrower puts down 30% or 40% and can prove the property is gushing cash.	States: Let taxpayers pay your mortgage CNN Money: Giving people free money to cover their home loans is just one way that states like Florida plan to use $1.4 billion the federal government is sending their way.
How to gauge your home's worth Forbes: Foreclosures have driven sale prices down, and there are fewer non-foreclosure sales to use as comparables. Additionally, homes may be sold below their value.	Demand grows for FHA mortgages The New York Times: FHA has taken on a bigger role in the mortgage industry, it has seen its default rate rise and its reserve fall below levels mandated by Congress.

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Headlines compiled by Strategic Research.

Written by Federal Title | 12 May 2010

A daily dose of headlines for real estate agents, mortgage lenders and consumers.

DC Area home sales jump in April Washington Business Journal: Residential sales in the mid-Atlantic region were up 25% from a year earlier, with the average number of days on the market down 26 percent,	Sheridan Station breaks ground in Anacostia DC Mud: The 344 mixed-income housing units are funded in part thanks to a $20 million HOPE VI competitive grant that the District of Columbia Housing Authority received from HUD.
Tax credit helped housing market bounce back USA Today: It's unclear if the market will continue to rebound, though, now that the federal first-time home buyer tax credit has expired.	Whole Foods to open next week in Chevy Chase DC Mud: The neighborhood-transforming grocer is putting the finishing touches on its Chevy Chase store, located just over the DC border at Wisconsin Place.
Construction resumes at 1015 Half Street, DC Globe Street: 1015 Half St., SE, has restarted construction on the 400,000-square foot office project after inking a $26 million contract with Skanska USA Building last week.	Top 10 metros for median price-growth, decline Inman News: NAR reported the median single-family existing-home price rose in 91 of 152 metro areas in the first quarter compared to the same quarter last year.

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Headlines compiled by Strategic Research.

Written by Todd Ewing | 11 May 2010

Given that homebuyers are confronted with monumental tasks in the home-buying process, it should be expected that many of the finer details are entrusted to their real estate agent or mortgage lender.  After a lengthy home search, contract offers and negotiation, gathering financial information for loan application, and making moving arrangements, the average homebuyer has had their fill.  

Unfortunately, the choice of a settlement or title company is not high on a homebuyer’s priority list, and the homebuyer often defers to their real estate agent or mortgage lender to make this choice for them.  

Deferring this choice to others, may be the costliest decision in the real estate transaction.  

First and foremost, homebuyers should understand that it is their choice to pick the title & settlement company. In a recent cost-comparison survey among Washington, D.C. area title & settlement companies, the results showed a $1,342 difference in title charges between the lowest and highest quotes of nine competing title & settlement companies.

Written by Federal Title | 11 May 2010

A daily dose of headlines for real estate agents, mortgage lenders and consumers.

New rules making tax credit closing deadlines tough to meet Washington Post: Mortgage industry leaders say some buyers who are seeking the tax credits won't get a cent because the clock will run out on them.	A bullish view of housing construction Wall Street Journal: The current construction rate is too low to keep up with the increasing demand for housing that comes from population growth and the formation of households.
Tips for troubled borrowers National Real Estate Investor: Burying one’s head in the sand like an ostrich is not a prescription for success. Here are five steps to work through loan problems with your lender.	In these markets, housing has a long way to go MSNBC: Like cities in California, Florida, Nevada and Arizona, Atlantic City saw a dramatic run-up in prices during the housing boom.
Trend of U.S. mortgages underwater grows: Zillow Reuters: The percentage of American single-family homes with mortgages in negative equity rose to 23.3 percent in the first quarter from 21.4 percent in the fourth quarter.	High-end homeowners falling into foreclosure trap CNBC: The deterioration comes just as housing experts say that foreclosures in the low- and mid- ends of the housing market are showing signs of stabilization.

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Headlines compiled by Strategic Research.

Written by Nikki Smith | 10 May 2010

An article in this weekend's Washington Post discusses how new regulations could make it tougher for homebuyers to meet the June 30 closing deadline in order to cash in on the federal governments $8,000 tax incentive.

Written by Federal Title | 10 May 2010

A daily dose of headlines for real estate agents, mortgage lenders and consumers.

Bernanke sees 'reasons for optimism' Business Week: Latest survey of banks’ senior loan officers, show most banks reported unchanged lending standards over the past three months.	Home inventory rises in many cities Wall Street Journal: The supply of homes available for sale in 27 major metropolitan areas at the end of April was up 2.6% from a month earlier.
Banks should make loans to sound borrowers Huffington Post: Regulators must do all they can to help banks make loans to creditworthy borrowers, a development that's critical to strengthening the economic recovery.	Where Americans are losing the most home equity Forbes: Nevada and Florida were some of the hardest-hit states when the real estate market unraveled in 2007, and the pain there persists.
Fed seen as unlikely to raise interest rates in 2010 Housing Wire: As unemployment is expected to stay high and home values depressed over the next several years, conditions look ripe for exceptionally low interest rates.	Increase in household size could slow economic recovery USA Today: The number of people living under one roof is growing for the first time in more than a century and could reduce demand for housing and slow the recovery.

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Headlines compiled by Strategic Research.

Written by Nikki Smith | 07 May 2010

Though the federal government closed the door on the $8,000 homebuyer tax credit, real estate professionals remain optimistic that homebuyers looking to take advantage of low mortgage rates and home prices will not be deterred.

But what are the odds that the influx of buyers lured by the tax incentive could find themselves underwater or in a foreclosure situation in the coming years? Hopefully, with stricter lending standards and industry reform, the odds aren't great.

First-time homebuyers in today's market are more cautious than before, said local real estate journalist Michele Lerner, who spoke to an intimate audience of aspiring homebuyers and real estate agents at the Gallery Neptune in Bethesda.

"Buying a home is both a financial and emotional decision," Lerner said, noting that first-time homebuyers don't always think about buying a home as an important long-term decision. "It's not just about buying, it's a lifestyle change."

Lerner spent several months interviewing real estate agents, mortgage lenders and attorneys from all over the country to write her book "Homebuying: Tough Times, First Time, Any Time," a collection of 20 years of experience writing about housing and real estate condensed into 11 chapters.

Amazon.com calls it a "MUST for anyone thinking of buying a home."

In doing the research for her book, Lerner said she was surprised by the contrasts she observed after talking to experts in local markets around the U.S. While national reports have painted a dismal picture of the housing market on the whole, pockets do exist where the outlook is not nearly as bleak.

Lerner, a long-time resident of the Washington Metro Area, pointed to the nation's capitol as a case in point. Lower levels of unemployment and incomes that rank above the national average have sheltered the District from the worst of it, while other areas such as South Florida and California have not been so lucky.

Sounds like all the more reason for homebuyers to do their due diligence, which is where a book like Homebuying can come in handy. To avoid the mistakes of homebuyers in recent years, Lerner says homebuyers should not only develop a realistic budget, but develop relationships with professionals they can trust: "The relationships you build with your real estate agent and lender will make or break your decision to buy a home," she said.

Lerner's work is regularly featured in the Washington Times "Friday Homebuyer Guide. " You can also check out this sample chapter and purchase your own shiny copy of the book at Lerner's website.

Written by Nikki Smith | 07 May 2010

Buying a home is an important financial decision that should be considered carefully. Homebuyers must become familiar with the various stages of the home-buying process, including deciding whether it's the right time to buy a home or not and factors to consider in determining how much they can afford to spend. 

Learning about the sales agreement, how to use a Good Faith Estimate to shop for the best loan optins, required settlement services to close the loan and the HUD-1 Settlement Statement received at closing will increase the odds of a happy transition from renter to homeowner.
 

 

Find this graphic, along with valuable pages of information about the homebuying process, in HUD's Settlement Cost Booklet, updated in March 2010.

Written by Federal Title | 07 May 2010

A daily dose of headlines for real estate agents, mortgage lenders and consumers.

Report: Washington area at high risk for home price decline Washington Examiner: Unemployment rates and affordability ranked relatively well, but prices declining prices hurt Washington's score in the 2010 Risk Report.	The $2.3 trillion yard sale Newsweek: Having waged a battle against financial mayhem for the last two years, the Federal Reserve is tentatively declaring victory.
Why Freddie Mac sees home prices slipping this year Wall Street Journal: Freddie Mac warns about four big risks it sees for home prices that could further decline nationally before any sustained turnaround begins.	America's most expensive homes Forbes: You'd never know the country was in a recession based on the cost of these homes. In fact, pricing for this small group of properties is even stronger than last year's list.
Jumbo loans get cheaper, still tough to qualify Wall Street Journal: Signs show as credit standards have become tighter and home prices begin to stop falling, more banks may begin offering competitive rates on jumbo loans.	Oil spill could further paralyze Florida economy The Atlantic: No one wants to visit beaches where oil mingles with the seashells in the surf. That's why Florida is desperately hoping the recent spill in the Gulf of Mexico can be contained.

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Headlines compiled by Strategic Research.

Written by Joe Gentile | 06 May 2010

Almost all title company material and information is geared toward the purchaser, but what about the seller?  After all, just like it takes two to tango, you cannot buy without a seller.

The reason title companies focus on the buyers is because, in the DC metro area, it is the purchaser who chooses the title company. This does not mean that the seller should not become informed and not be aware of the fees that are being paid to the title company.