Written by Federal Title | 22 July 2010

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

Home mortgage rates have yet to fuel home sales Washington Post: Mortgage rates for 30-year fixed loans were unchanged this week at the lowest point in decades, but it hasn't been enough to jump-start the housing market.	Obama housing score card Calculated Risk: The Obama Administration released the June Housing Scorecard today. The graphs are a little hard to read, but they do provide a list of sources.
Parking space becomes living space Wall Street Journal: The site of the city's first purpose-built indoor parking garage has been transformed into a loft-like rental building with some of the highest asking rents in SoHo.	Economic future 'unusually uncertain' Washington Times: Fed chair Bernanke told the Senate that the central bank is reviewing its own options for further stimulating economic growth.
Maryland's highest court rules on Arundel Mills slots Washington Business Examiner: Maryland’s highest court has ruled that Anne Arundel County voters can decide whether to allow a slots parlor at Arundel Mills Mall.	Reasons your lender can cancel or delay your closing Washington Examiner: The rules aren't new, but Fannie will enforce them more vigorously. For borrowers, it means certain actions are likely to delay a mortgage closing.

Written by Federal Title | 21 July 2010

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

Homesellers have little leverage Smart Money: Many are finding that the only real tool they have to lure buyers is the asking price – and it isn’t providing much leverage.	Builder confidence in new homes lowest in a year USA Today: Home builder confidence fell for the second month in a row as an expired federal tax credit and public unease over the economy depressed housing demand.
Real estate doldrums on Gulf Coast beaches The New York Times: In a beach town, where sales and rentals of vacation homes are the life’s blood of the economy, the economic impact has been deep.	New plans for old Washington Star printing plant DC Mud: The city will renovate the interior, redesign the exterior and incorporate the largest green roof owned by the District government.
Forget the double-dip, where's the recovery? Housing Wire: "I don't know that we’ll see a double-dip recession, either–but for an entirely different reason. I’m not so sure we ever really ended the first one."	Monument Realty to begin Chinatown condo project Globe St: Based on the interest it is currently fielding from association groups, more than likely Monument will be developing office condos.

Written by Amy Bales | 20 July 2010

Curiously, I received several calls this week inquiring whether filing a Chapter 13 bankruptcy would “automatically” eliminate a second mortgage. The simply answer is “maybe.”  

If the amount of your first mortgage is greater than the current value of your home then the bankruptcy court has the ability of declaring any second mortgage or HELOC loans unsecured debt by virtue of the fact that the value of the home does not support the mortgages.

Declaring the second mortgage or HELOC as unsecured debt has the effect that now these mortgages are treated as any other unsecured debt (i.e. credit card) and the amount that the homeowner is required to payback is determined by their income.   

As many homeowners took out Home Equity Lines of Credit (HELOC) prior to the mortgage meltdown, which was fueled by inflated appraisals and undemanding lending practices, they are now left with mortgages on their homes that exceed the current value of their real estate.

Furthermore, several personal finance advisors have been urging that obtaining credit after filing bankruptcy is not as difficult as we have been led to believe. Therefore, it seems that more and more people are at least contemplating the possibility of filing for Chapter 13 bankruptcy.

Written by Federal Title | 20 July 2010

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

Extra credit checks make some lenders anxious Washington Post: People who applied for a mortgage as of June 1 might notice their debt under renewed scrutiny days before they are scheduled to complete a home purchase.	Little, no money down mortgages still available Washington Examiner: Homebuyers with little money for a down payment are finding more home loans available for a low, or even no, down payment.
Debunking rumors of housing sales tax Washington Post: The levy is aimed at high-income taxpayers, leaving most people untouched. And it will not take effect until Jan. 1, 2013.	How we sold a house Wall Street Journal: The worst of the home-price nosedive may be over, but selling a home can still feel like an agonizing stalemate.
Homebuilders less confident in housing market Washington Times: Homebuilders' confidence in the housing market has sunk to the lowest level in more than a year, more evidence that the economic recovery is slowing.	Uncle Sam still saving D.C. real estate Washington Business Journal: A shift from the planning stages of stimulus and regulation initiatives to full-scale implementation yielded robust gains for Metro D.C.

Written by Federal Title | 19 July 2010

Please be advised of two pressing issues affecting the title industry:

The first issue is the new Homestead requirements. To submit homestead applications, the Office of Tax and Revenue now requires the following criteria to prove domicile: 

1) Property is owner occupied;
2) The District is permanent home for an indefinite period of time;
3) owner has abandoned their previous legal domicile; and
4) owner has initiated the transfer of domiciliary indicators to the District of Columbia. 

The domiciliary indicators are:  DC Driver’s License, DC Vehicle Registration, DC Voter Registration, and DC Income taxes. 

All documents must have the address of the new property, making it very difficult for settlement attorneys and agents to submit the homestead application on behalf of their clients.  At this time, the DCLTA suggests that its members counsel their clients that they will need to take on the responsibility of submitting their own homestead applications.

The second issue is the new recording procedures at the Recorder of Deeds.  As many of you are aware, the Recorder of Deeds has completed its move.  Unfortunately, new procedures have been put in place which slow down the process of recordings tremendously.  The new standard is 5 business days before we can get documents on record.  With the current procedures, it is possible for recordings to take weeks before they are recorded.  These new procedures are not in the best interest of the District of Columbia, its citizens and our industry.

Your DCLTA is working with the Office of Tax and Revenue as well as with the Recorder of Deeds to solve these problems.  Please feel free to forward to me any inquiries or comments.  I may be reached via email at This e-mail address is being protected from spambots, you need JavaScript enabled to view it or via phone at 202-537-0343

Written by Federal Title | 19 July 2010

Montgomery County’s comprehensive approach to prevent foreclosures has been recognized with the Best Government Initiative Award from the Housing Association of Non-profit Developers.

The award recognizes the comprehensive approach taken by the County’s Department of Housing and Community Affairs to prevent foreclosures, mitigate their impact and preserve affordable housing.

DHCA’s initiatives include providing $9.5 million to nonprofit developers and the Housing Opportunities Commission to acquire, rehabilitate and sell or rent foreclosed homes; organizing meetings for at-risk home buyers; offering housing counseling; working with area banks and realtors; matching state foreclosure prevention funding; enhancing code enforcement; and hosting an annual Housing Fair and Financial Fitness Day.

More on Maryland foreclosures

Written by Joe Gentile | 19 July 2010

You have been searching for months and have found your dream home, but suddenly something goes wrong and you want out.  Before you do that, you want to make sure you can get back your earnest money deposit.

It is not easy for a purchaser to get back an earnest money deposit, after all, if it was, what would be the point?  An earnest money deposit, or EMD, proves to the seller that the purchaser is serious about purchasing the property, since it provides a level of comfort to the seller that the purchaser is intending to complete the transaction.  

Typically the deposit is held by either the title company or the real estate broker and is credited back to the purchaser on the HUD-1 Settlement Statement at closing.

However, when something goes wrong, the question often arises, how do I get my deposit back?  The process is explained in Paragraph 4.B. of the GCAAR Regional Sales Contract.  

The quickest and easiest solution is for both parties to sign a release of contract and provide in the release written instructions on the manner in which the deposit should be disbursed.  If the two parties do not agree on how to release the funds, the matter must go before a court of competent jurisdiction, which will provide an order on how funds are to be released.  

* Please note that neither the settlement company nor the real estate broker can determine who is right or wrong and release the deposit. They either need agreed upon written instructions by both parties or a court determination.  

Even if it is obvious that one party is right and deserves the deposit, it cannot be released without one of the above.  This may sound unfair, especially to a buyer who is clearly deserving of receiving back a deposit, but if the buyer and seller cannot agree, they need to have the court decide the outcome, not the settlement company.

Fortunately, in my experiences, the two parties typically come to an agreement before having to go to court since often it is not worth the time or expense to fight it out.  However, it is a good idea for the purchasers to know that their deposit can be tied up for up to several months if things turn ugly.

Written by Federal Title | 19 July 2010

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

Mortgage rates remain at lowest level in decades USA Today: Mortgage rates were unchanged this week at the lowest point in decades, but it hasn't been enough to jump-start the housing market.	Foreclosures fall 5% CNN Money: The number of foreclosure filings of all types -- including notices of delinquency, auction notices and repossessions -- fell during the first six months of 2010.
Feds: No need to change rate despite slowing in housing Housing Wire: Data on production and spending remains aligned with expectations, but the pace of economic expansion looks to be slower than previously predicted.	FHA may require 10% down for low-credit score qualifiers Housing Wire: FHA is proposing to update the combination of credit and down payment requirements for new borrowers, reduce seller concessions.
The states and the pains to come The Commercial Observer: The nation's governors focus on persistent gaps in state and local budgets and on engaging the federal government for additional stimulus funds.	Homeowners association: The new foreclosure CNBC: HOAs can swoop in, take title, boot the borrower and either rent or sell the home for a good six to 12 months before the bank comes in.

Written by Federal Title | 16 July 2010

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

Where we live: NoMa, Northeast Washington, D.C. Washington Post: Plans for the old railroad yard and warehouse district north of Capitol Hill and Union Station call for more development over the next couple of decades.	Retail sales weak in June Washington Business Journal: Sales not including automobiles, gas stations and restaurants were down 0.5 percent from last month.
Canal Park plans its debut in Southeast DC Mud: Green features include a linear "rain garden," combination of large and small open spaces and prominent water features like ponds, fountains and seasonal ice rink.	Commercial real estate shows faint pulse MSNBC: Albeit the upturn is weak and still mainly confined to the coasts, the commercial real estate industry is rising to the dawn of a national rebound
Parkside development on the skids DC Mud: For those who've grown weary of all the Benning Road plans for development, with little action to follow, the worst fears may have been confirmed at a Zoning hearing.	Home sellers slashing prices while banks mow the law MSNBC: We knew the price stabilization was largely due to increased buying activity on the low end from the home buyer tax credit. The issue now, front and center, is foreclosures.

Written by Matt Bales | 07 July 2010

On July 2, President Obama signed the Homebuyer Assistance and Improvement Act of 2010. A principal provision in the Act affects those who entered into a binding purchase and sale contract on or before April 30, 2010 to buy a credit-qualified home.  

The Act extends the deadline to close from the original June 30, 2010 deadline to September 30, 2010.

The change in the law did not extend the time to actually buy a home. It simply extended the deadline to close on a purchase contract that met the April 30, 2010 binding contract date.

This extension of time was granted because the rush of purchase contracts that met the April 30, 2010 deadline overloaded lenders with paperwork they could not process by the June 30, 2010 finalization date. Taxpayers that have not previously entered into a pending contract to buy a qualifying residence by April 30, 2010, would not qualify for the Homebuyer Credit unless Congress extends that deadline.

IRS Information Release 2010-080 discusses this homebuyer tax credit extension to September 30, 2010, and it alerts taxpayers to the documentation required to be attached to their tax returns in addition to completing Form 5405, First Time Homebuyer Credit and Repayment of the Credit.