Written by Nikki Smith | 19 August 2010

Closing attorney Jackie Kurz finds her greatest satisfaction at the settlement table as the ink dries and she sees the smiling faces of homebuyers and sellers, all eager to begin a new chapter of their lives, knowing she played a part in making it all happen.

"Having a hand in creating that happiness is very rewarding," the Pennsylvania native said.

Kurz starts a new chapter of her own this week as she returns to Federal Title & Escrow Company. After more than two years, and two states, she is ready to pick up right where she left off, creating a settlement experience for each client that is seamless and painless.

Written by Federal Title | 18 August 2010

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

Fenty launches SW Waterfront demolition Washington Business Journal: Hogate's restaurant, at 800 Water St. SW, was bulldozed to make way, eventually, for a massive, $1 billion mixed-use development on the waterfront.	Re-examining closing costs DC Urban Turf: The Washington Business Journal reported this week that closing costs in D.C. and Maryland are well below the national average.
Banks ease lending standards for first time in four years CNBC: The Fed found that the easing in loan standards was occurring primarily at the country's largest domestic banks, while many smaller banks continued to struggle.	How low can mortgage rates go? Smart Money: With mortgage rates hovering near 40-year lows and selling prices still depressed, many potential borrowers are wondering whether rates have further to fall.
Mortgage lenders must tell borrowers 'worst-case payment' Housing Wire: Under the new rule lenders must disclose a "worst case" example showing the maximum rate and payment possible over the life of the loan.	Geithner sees U.S. role in mortgage market Wall Street Journal: Geithner called the debate over how to remake the $10 trillion mortgage market "one of the most consequential and complicated economic policy problems we face as a country."

Written by Federal Title | 17 August 2010

Mayor Adrian Fenty kicked off the demolition of Hogate's restaurant on the Southwest Waterfront — literally, behind the controls of a bulldozer — in an event best described as one part economic development announcement, one part campaign function, the Washington Business Journal reports.

Hogate's, at 800 Water St. SW, will be bulldozed to make way, eventually, for the Hoffman-Struever Waterfront LLC's massive, $1 billion mixed-use development on the waterfront. In the meantime, the building site will function as, well, something. We don't know yet, but city officials suggested a playground, a farmer's market or "temporary uses for several months at a time."

Perhaps a future home for the Washington Kastles? Or Cirque de Soleil? We'll see.

Full article...

Written by Nikki Smith | 17 August 2010

A recent survey from Bankrate.com showed homebuyers in Maryland and the District of Columbia pay closings costs that are below the national average. That was good news on its own.

When I began digging through the details of the survey, I discovered this chart that breaks down closing costs for each state and separates origination fees from title & closing fees. That's when I learned (or confirmed, rather) homebuyers who select Federal Title for their closings pay well below average across the board.

For starters, closing costs across the nation averaged $3,741, according to Bankrate.com. The research was based on a $200,000 loan and a 20 percent down payment. 

The survey shows that the average homebuyer in Maryland pays $1,921 in title & closing fees. A homebuyer who settles the same real estate transaction through Federal Title pays $1,465.

And in D.C. the survey shows the average homebuyer pays $2,322 in title & closing fees. If the homebuyer had settled that property address with us, he would have paid $1,905 for the same title services.

Homebuyers in Virginia should be most excited of all: Closing costs average $2,355 across the state — exceeding the national average — but when Federal Title is on the case, closing costs come in at $1,509.

While these numbers are great, it's not the only factor to consider when choosing a title company. Beyond our competitive prices, at Federal Title we've built a reputation of exemplary customer service. We've bought and sold houses of our own, so we know how it feels to be a homebuyer or seller, to expect quality service for your dollar.

With this in mind we are working to improve our technology to make the closing process even more seamless and painless. This will free up time for our humans to tend to each client, which can only improve the title services we provide.

Written by Nikki Smith | 17 August 2010

Average closing costs in Maryland and the District of Columbia are less than the national average, according to the results of an annual survey by Bankrate.com.

Closing costs averaged $3,741 nationally, according to the survey, which was based on a loan amount of $200,000 and included loan origination and title fees.

Here's a breakdown of states in the Washington Metro Area, where Federal Title primarily works:

Maryland	$3,402	No. 38
District of Columbia	$3,685	No. 22
Virginia	$3,883	No. 19

 

Written by Federal Title | 17 August 2010

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

D.C. mayoral candidates' visions of economic development  Washington Post: Since the recession began, Fenty has been criticized for focusing too heavily on real estate projects at the expense of other industries that might lead to jobs.	Are individuals liable when homeowner's association is sued? Los Angeles Times: Generally, liability does not attach to individual owners in a common interest development, but there is always a risk that it might.
5 mistakes home builders make Wall Street Journal: if you’re trying to find buyers in this slow market, here are five ways builders waste money or, as we see it, five mistakes builders make that turn off home buyers.	Library from the future set to land in Southeast DC Mud: London-based David Adjaye is responsible for the ultramodern architecture that is slowly giving a hip new face to the District's libraries.
Va. gets $249.5 for education CNBC: Under the law, the federal aid only can be used for compensation and benefits and other expenses related to hiring, retaining or rehiring school employees.	Integrity Homes sells planned homes at National Harbor Washington Business Journal: Potomac Overlook will include 86 townhomes and four single-family homes at the corner of Waterfront Street and National Harbor Boulevard.

Written by Todd Ewing | 11 August 2010

Until recently, lenders did not require condominium purchasers (borrowers) to obtain property insurance coverage beyond that provided in the condominium association’s master policy. That all changed last year due to new condominium lending guidelines imposed by Fannie Mae (FNMA) and FHA, which now require purchasers to obtain H0-6 insurance policies.  

In general, the condominium master insurance policy only covers “from studs out;” it does not cover “wall in.” For example, the master policy would cover such things as the roof, exterior, common areas, and elevators. It does not cover such things as flooring, wall coverings, and other improvements made within the unit. Nor does it cover the unit owner’s personal belongings or protect the unit owner against personal liability occurring within the unit. 

Written by Joe Gentile | 10 August 2010

Most homeowners know about the Homestead Program; most homeowners do not know about the Maryland Homeowners’ Property Tax Credit Program. This article answers many of the common questions we hear from Maryland homeowners regarding property taxes.

What is the Maryland Homeowners’ Property Tax Credit Program?
The Homeowners’ Property Tax Credit Program allows credits against the homeowner's property tax bill if the property taxes exceed a fixed percentage of the person's gross income.

Does Maryland Have a Senior Citizen Property Tax Credit as well?
Unlike the District of Columbia, Maryland does not have offer Senior Citizen Tax Credit, instead the Homeowners’ Property Tax Credit has no age requirements, just income requirements.

What are the requirements for eligibility?
The four basic requirements include:

1.    In order to apply for the credit, you must own the property.
2.    The property must be your principal residence.
3.    Your net worth must be less than $200,000.00.
4.    Your combined gross household income cannot exceed $60,000.00.

How is “principal residence” defined?
For the purpose of the Homeowners’ Property Tax Credit, a principal residence is a property where you live at least six months of the year, including July 1. If you are a recent home purchaser, it must be your intention to live at the property as a principal residence. Exceptions are made for individuals unable to live at the property for health or need of special care.

Does the value of the property count towards the “net worth”?
No, the value of the property on which you are seeking the credit does not count towards the net worth. Neither do any qualified retirement savings nor any Individual Retirement Accounts.

What counts toward my “income”?
Income is defined as all household income.  The only exceptions are for dependents or household members that are paying rent or room and board.

How much can be saved?
The tax credit is based upon the amount by which the property taxes exceed a percentage of your income according to the following formula: 0% of the first $8,000 of the combined household income; 4% of the next $4,000 of income; 6.5% of the next $4,000 of income; and 9% of all income above $16,000.

Example:  If your combined household income is $32,000, your tax limit is $1,860.00. You would be entitled to receive a credit for any taxes above the $1,860.00.

When should you apply?
The Homeowners' Tax Credit is not automatically granted and you must apply every year by no later than September 1 on a standard application supplied by the Department of Assessments and Taxation. However, it is to your advantage to submit the application by May 1 so that any credit due you can be deducted beforehand from the initial July tax bill.

How do I get the application?
Just follow this link: http://www.dat.state.md.us/sdatweb/HTC-60.pdf

Written by Federal Title | 29 July 2010

The Washington area's gains in home prices outpaced the national average in May, rising 7.4 percent over May 2009, the Washington Business Journal reports.

That was well ahead of the average national median price increase of 4.6 percent for the 20 markets surveyed in the S&P/Case Shiller Home Price Index. Washington had the fifth-best year-over-year gain in the latest survey.

Full story...

Written by Federal Title | 29 July 2010

Summer is a busy time for everyone, but particularly for military members and their families. Whether it’s moving to a new base or traveling to a duty station, members of the military have many obligations that could impact their tax situation. Here are 10 IRS tax tips military members should keep in mind this summer to help with filing a tax return next year.

Moving Expenses
If you are a member of the Armed Forces on active duty and you move because of a permanent change of station, you can deduct the reasonable unreimbursed expenses of moving you and members of your household.

Combat Pay
If you serve in a combat zone as an enlisted person or as a warrant officer for any part of a month, all your military pay received for military service that month is not taxable. For officers, the monthly exclusion is capped at the highest enlisted pay, plus any hostile fire or imminent danger pay received.

Extension of Deadlines
The time for taking care of certain tax matters can be postponed. The deadline for filing tax returns, paying taxes, filing claims for refund, and taking other actions with the IRS is automatically extended for qualifying members of the military.

Uniform Cost and Upkeep
If military regulations prohibit you from wearing certain uniforms when off duty, you can deduct the cost and upkeep of those uniforms, but you must reduce your expenses by any allowance or reimbursement you receive.

Joint Returns
Generally, joint returns must be signed by both spouses. However, when one spouse may not be available due to military duty, a power of attorney may be used to file a joint return.

Travel to Reserve Duty
If you are a member of the US Armed Forces Reserves, you can deduct unreimbursed travel expenses for traveling more than 100 miles away from home to perform your reserve duties.

ROTC Students
Subsistence allowances paid to ROTC students participating in advanced training are not taxable. However, active duty pay – such as pay received during summer advanced camp – is taxable.

Transitioning Back to Civilian Life
You may be able to deduct some costs you incur while looking for a new job. Expenses may include travel, resume preparation fees, and outplacement agency fees. Moving expenses may be deductible if your move is closely related to the start of work at a new job location, and you meet certain tests.

Tax Help
Most military installations offer free tax filing and preparation assistance during the filing season.

Tax Information
IRS Publication 3, Armed Forces’ Tax Guide, summarizes many important military-related tax topics. Publication 3 can be downloaded from IRS.gov or may be ordered by calling 1-800-TAX-FORM (800-829-3676).

Written by Federal Title | 29 July 2010

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

Intervention helped avert 2nd depression  The New York Times: Economists argue without the Obama administration’s fiscal stimulus program, the nation’s GDP would be about 6.5% lower.	Is the real estate market turning around? Seeking Alpha: But here is probably the most significant statistic: home ownership rates have fallen to 66.9 from a high of 69.2% in 2004.
For housing outlook, look past tax credit to jobs Wall Street Journal: The future of home buying will rely less on real-estate fundamentals and more on how consumers view job prospects.	Home ownership falls to lowest level in 11 years CNN Money: Almost 86% of U.S. homes were occupied in the second quarter, with owner-occupied housing comprising 57.3% of all housing units.
Housing recovery about timing, location CNBC: Conditions are hardly uniform. Some cities, such as Washington, D.C. have better job markets, so they have suffered less or in some cases recovered more quickly.	Home prices increase in May Calculated Risk: Seasonal adjustment is probably being distorted by irregular factors. These distortions could include distressed sales and the various government programs.

Written by Federal Title | 28 July 2010

While the nation's housing market struggles amid a sudden downdraft that has once again battered sales, the Washington region appears relatively insulated and poised for a turnaround, the Washington Post reports.

Home-buying activity in the second quarter was well above where it was in the comparable period a year ago, and homes sold more quickly and at higher prices, according to a study compiled by the Delta Associates consulting firm and Metropolitan Regional Information Systems, the local multiple listing service.

"We feel quite comfortable in saying that the bottom has passed in this region," Sandy Paul, Delta's national research director, to the Post. "But if the national and global economies take a turn for the worse, all bets are off."

Written by Federal Title | 28 July 2010

The District of Columbia is currently in a very aggressive posture regarding collection of revenue from real property taxes and assessments, including vacant properties. Properties may be reclassified as “vacant” or “blighted” retroactively, resulting in enormous real property tax liabilities, as these properties are taxed at the rate of $10 per $100 of assessed value.

There has been a never-ending stream of legislation changing the laws regarding the tax rate for vacant property, as D.C. balances its need for cash against the outraged cries of property owners required to pay a truly exorbitant tax rate of $10 for every $100 of assessed value for certain vacant properties.

In the latest change to the vacant property tax laws, D.C. will go to four real property tax classifications, effective October 10, 2010:

• -Class 1: Occupied residential property and certain vacant land located in residential zones;

• -Class 2: All property which is not Class 1, 3 or 4; usually commercial property;

• -Class 3: Vacant property which is not “blighted”, taxed at $5/$100 of assessed value. Vacant building owners are exempt from paying the Class 3 property tax rate if the property is for sale or rent, subject to probate proceedings, under active construction or rehab or there is a pending application for an administrative predevelopment proceeding.

• -Class 4: Blighted buildings, deemed to be unsafe or unsanitary by DCRA, and taxed at $10/$100 of assessed value.

Written by Federal Title | 28 July 2010

If you're familiar with the Homestead Exemption, you're likely aware that effective immediately, the Office of the Recorder of Deeds (ROD) and the OTR will only accept the June 2010 updated Homestead Application. For your convenience, you may download the updated Homestead Application form from our website.

Note that, with the new application, supporting documents are required at the time of submission: DC driver’s license, car registration and voter registration showing the address of the new DC residence, and DC income tax return (first and signature page only)or D-4 Withholding Allowance Certificate. OTR no longer accepts “pending” responses; the application will be returned to the applicant.  
If you undertake to file Homestead Applications for your purchaser clients, you must be aware of the new rules.

Here Thanh-Thuy "Twee" Nguyen, manager of the Homestead Unit, answers questions regarding this new policy:

 

Q.  Will the previous (2009) form still be allowed, or only the June 2010 form? As of what date?

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TN: We are still accepting the old applications at present, because the public announcement has not been sent out on the new applications. We anticipate October 1, 2010 to begin sending back applications that are not updated and without supporting documents.

 

Q. When will your new policy of requiring supportive documentation (voter registration, driver’s license, DC tax return) with the application go into effect?

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TN: It has been put into affect since April 1, 2010. We just sent back 1700 applications without supporting documents.

 

Q. Do you require that the driver’s license and voter registration show the address of the property to which the homestead application applies?

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TN: Yes, all supporting documents have to be consistent with the homestead address.

 

Q. For “new arrivals”, they will not file a DC tax return until 2011. Will an allowance be made for this?

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TN: For those who are recent arrivals to DC and do not meet the filing requirements, they do not have to submit an income tax filing.

 

Q. Whether the applicant is a “new arrival” or a DC resident moving into a new home in DC, is it best to wait until all documentation is in place before filing, or should they file and supply documentation when it is available? Can additional information be supplied by fax or email, or should they file at OTR in person?

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TN: Under DC code 47-850, owners have to be domicile in the District in order to be eligible for the homestead deduction. We strongly encourage owners to submit the homestead application when all supporting documents are available. At minimum, a driver’s license and voter registration should be available. As stated in question #4, income tax filing are not required if they do not meet the filing requirement.

 

Q. Must the application with supportive documentation be filed within 30 days of moving into the new residence?

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TN:  An owner has up to 6 months to file their homestead deduction to claim their homestead deduction. Under DC Code 47-850.02, (c) “If a properly completed and approved application is filed during the period October 1 through March 31 of the tax year, the real property shall receive the deduction for the entire tax year. [I]f a properly completed and approved application is filed during the period April 1 through September 30, the real property shall receive 1/2 of the deduction for the second installment only.”  Owners do not have to submit their homestead applications during closing date, when they do not have any indicators of domicile status.

 

Written by Federal Title | 28 July 2010

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

What might move mortgage rates in the weeks ahead? Mortgage News Daily: The movement of mortgage rates was more reflective of competition and "turn times" in the primary mortgage market. This has been a theme lately.	Home sales surge in June with inventory at 42-year low Reuters: But downward revisions to sales estimates for April and May left a picture of a weak housing market and perceptions of moderated economic growth.
Americans more trusting of financial industry The Atlantic: Since the financial crisis, banking, stocks, and the rest of the market have slowly begun to heal. Despite a relatively weak second quarter, Americans are feeling better about finance.	Housing shortage on the horizon? Smart Money: Take a step back from the current doom and gloom of foreclosures and declining sales and focus on the low construction levels over the past few years, some say a housing shortage might be in the offing.
Don't hold your breath for a bounce in home prices Forbes: Despite four years of falling prices and recent signs that they were finally bottoming out, homes are expected to lose still more value in many metro areas over the next year.	D.C. law expands no-smoking around buildings Washington Business Journal: Building owners and property managers in D.C. as of Tuesday will be allowed to post signs barring smoking within 25 feet of their outer walls.