June Rodgers

Facing Foreclosure: A Special Report from Cyberhomes.com

2011-02-28T12:40:00.000-08:00

Facing Foreclosure: A Special Report from Cyberhomes.com

Most popular mortgage apps for iPhone | Inman News

2011-02-17T12:20:00.000-08:00

Qualifying for a Short Sale in Fairfax County

2011-02-01T22:11:00.000-08:00

Short Sale Hardships – Qualifying For A Short Sale

Since the decline of the real estate market began in 2007, many homeowners have seen their property values decline, and are in a situation where they owe more than the property is worth. Many of these homeowners think they are entitled to a short sale because they lost equity; Unfortunately, just because your home’s value has declined,you don’t necessarily have a valid hardship. Lenders will consider short sales for a homeowner only if they experience the following hardships:

Job Loss or loss of income
Business Failure/Unemployment
Illness And Medical Costs
Divorce
Death Of Spouse
Natural Disasters
Bankruptcy

Here are a few examples that do not constitute a hardship:

Bad Purchase Decision/Overpaid for the home
Unhappy With Location
Pregnancy
Walk Away
Home Value Declined/Loss Of Equity

The lender(s) will need additional proof:, there are three more things a lender will require to qualify you for a short sale.

Home’s Value Has Dropped –You must provide comparable sales that show your home is worth less than what you paid.

Mortgage Is Near Or In Default - Although you don’t have to be in default to qualify for a short sale, you have to prove that if action isn’t taken soon, you will eventually default. It used to be that lenders would only consider a short sale if the owner was in default, but this changed as lenders realized there are other factors that can contribute to a default.

Seller Has No Assets – The lender will request copies of recent tax returns, financial statements, and will ask if you own any other real property. If the lender discovers you have the ability to pay the shortfall, they will not approve your short sale.

If you have assets, but not enough to cover the shortfall, the lender may still approve the short sale. If you have money in savings accounts, a 401k, IRA’s, stocks, or if you have equity in another property, the lender will require that you pay a part of the short sale deficiency before pursuing a short sale, contact an experienced short sale agent, and always seek legal counsel. Qualifying for a short sale can be very difficult, but if you feel you have a valid hardship, a short sale is the best alternative to foreclosure.

Foreclosure Freeze

2010-11-12T08:01:00.000-08:00

Foreclosures are setting new tremors across the country as a result of new revelations about possible botched foreclosure affidavits. An elaborate system designed to assure good title to your home and solid assets on lender books has shaken up the banking industry.

Courts rely on sworn affidavits as evidence and it appears that a large number of affidavits were signed and not read. If an affidavit has not been read, then it is possible that lender claims are wrong. Since it is not clear which affidavits are accurate and which are not, massive numbers of audits will now be required to find out if owners have unfairly lost their homes. Court systems and title insurance companies are now beginning to tighten standards to protect homeowners. Many areas have set up foreclosure freezes and state prosecutors have begun to investigate past foreclosures for evidence of fraud. Because homeowners have missed payments, few foreclosures are likely to be reversed as a result of affidavit uncertainties; however, other questions bring uncertainty within the financial system.

At a time when a quarter of all residential sales involve foreclosures, it is in everyone's best interest to be certain that titles are clear and court actions are property conducted.

2010-04-23T09:51:00.000-07:00

Chances are...you or someone you know is facing the possibility of foreclosure. But you need to understand that you are not alone!

Today, 1 out of every 6 homeowners in America is behind on mortgage payments. These are tough and frustrating times. Now more than ever, it's important to identify your options. Foreclosure can be avoided, your credit can be saved and your financial future can be salvaged.

Through my experience handling distressed properties, I've found that homeowners today have more questions than answers about their circumstances. I have created a website http://www.fairfaxcounty-shortsales.com/ to help you understand the possible solutions to foreclosure, as well as to provide a detailed explanation of short sales, which could be the best course of action for some homeowners.

Q: What Happens When I Miss My Mortgage Payments?

Foreclosure may occur. This is the legal means that yur lender can use to repossess (take over) your home. When this happens, you must move out of your house. If your property is worth less than the toal amount you own on your mortgage loan, a deficiency judgment could be pursued. If that happens, you not only lose your home, but you may also owe the loss to the lender(s) in a deficiency judgment. Both foreclosures and deficiency judgments could seriously affect your ability to qualify for credit in the future. So you should avoid foreclosure if at all possible.

Q: What Should I Do?

1. DO NOT IGNORE THE LETTERS FROM YOUR LENDER. If you have having problems making your payments, call or write your lender without delay. Explain your situation. Be prepared to provide them with financial information, such as your monthly income and expenses. Without this information, they may not be able to help.
2. Stay in your home for now. You may not qualify for assistance if you abandon your property.
3. Seek expert assistance in negotiating with the lenders and exploring alternatives. An experienced distressed property expert can assist you in finding alternatives to foreclosure. As a 30 year real estate veteran and a Certified Distressed Property Expert (CDPE), I can help you through this difficult time and save you from foreclosure.

Q. What Are My Alternatives?
You may be considered for the following:

Special Forbearance. Your lender may be able to arrange a repayment plan based on your financial situation and may even provide for a temporary reduction or suspension of your payments. You may qualify for this if you hae recently experienced a reduction in income or an increase in living expenses. You must furnish the proper financial information to your lender to show that you would be able to meet the requirements of the new payment plan.

Mortgage Modification. You may be able to refinance the debt and/or extend the term of your mortgage loan. This may help you catch up by reducing the monthly payments to a more affordable level. You may qualify if you have recovered from a financial problem and can afford the new payment amount.

Pre-Foreclosure or Short Sale. This will allow you to avoid foreclosure by selling your property for an amount less than the amount necessary to pay off your mortgage loan.

You may qualify if:
1. Your loan is at least 1 month delinquent
2. You are able to sell your house with 3-5 months
3. You owe more than your obligations on the property

Deed-in-lieu of Foreclosure. As a last resort, you may be able to voluntarily "give back" your property to the lender. Thsi won't save your house, but it is not as damaging to your credit rating as a foreclosure.

You may qualify if:
1. You are in default and you don't qualify for any of the other options
2. Your attemps at selling the house before foreclosure were unsuccessful

Q. What the Main Points I Should Remember?
1. Don't lose your home and damage your credit history.
2. Call or write your mortgage lender immediately and be honest about your situation
3. Stay in your home to make sure you qualify for assistance
4. Arrange an appointment with a real estate agent certified and experienced in distressed properties.
5. Explore every alternative to keep your home
6. Beware of scams
7. Do not sign anything you don't understand! And remember that signing over the deed to someone else does not necessarily reliev you of your loan obligation.

Act Now! Delaying Can't Help! If you do nothing you will lose your home and your good credit!

For detailed information visit http://www.fairfaxcounty-shortsales.com/ to learn your options. Sign up for a free report to be emailed to you.

Luxury Garage Townhouse For Sale in Vienna Tysons Near Metro

2010-04-13T13:08:00.000-07:00

Click here Gina Pl. to view my virtual tour of this gorgeous townhouse in the heart of Tysons

What is Green? Key Components of a Green Home

2010-03-10T12:22:00.001-08:00

What is Green?

Everything seems to be "going green" these days - from cars, to companies, to coffee. However, sometimes it can be hard to tell what that really means, especially when it comes to your current or future home.

Building green means incorporating environmental considerations and resource efficiency into every step of the home building and land development process to minimize environmental impact. During the design, construction, and operation of a home, energy and water efficiency, lot development, resource efficient building design and materials, indoor environmental quality and homeowner maintenance should all be considered. Although we cannot entirely avoid affecting the environment when a house is built, green building can work toward minimizing that environmental impact.

The concept of green building isn't new — our great-grandparents built climate-appropriate homes using locally-available materials. Today's green homes incorporate not only climatic considerations, but are resource and energy efficient, safer for occupants, and often less expensive to maintain.

The 7 Guiding Principles of Green Building

Lot Design, Preparation and Development
Resource Efficiency
Energy Efficiency
Water Efficiency
Indoor Environment Quality
Operation, Maintenance and Homeowner Education
Global Impact

Green building will continue to grow over the next five years to $96-$140 billion market despite current negative market conditions. The global green building market today is said to be at around $36-$49 billion for residential and nonresidential buildings compared to the 2005 value of $3bn for nonresidential and $7bn for nonresidential.

"Green building has expanded rapidly due to a number of factors such as growing public awareness of green practices, heavy increase in government interventions, and recognition by owners of the bottom line advantages," says McGraw Hill. "In fact, green building has grown in spite of the market downturn. Green seems to be one area of construction insulated by the downturn, and we expect green building will continue to grow over the next five years despite negative market conditions."

Where Did the Shadow go?

2010-03-10T11:05:00.000-08:00

Where Did the Shadow go?

Live, Work, Shop, Play and Ride Metro in Metro West

2010-03-08T13:17:00.000-08:00

South of the Vienna-Fairfax-GMU Metro Station and north of Route 29, Pulte Homes has designed a new transit-oriented, mixed-use community that incorporates a variety of town homes, condominiums, apartments, convenience retail, commercial office, day care and public spaces. Metro West creates a new, pedestrian-friendly interface with the Vienna Metro Station, a town center plaza combining retail and public outdoor activity space, pedestrian connections to East Blake Lane Park and a new public use recreation/community center.

The project provides a long-anticipated, four-lane divided boulevard to connect Lee Highway with Vaden Drive Bridge to enhance circulation in and around the Metro Station area. The project anticipates acquisition of surplus land owned by WMATA that will allow the redesign and reconstruction of Saintsbury Drive east of Vaden Drive . The goal is improved pedestrian interface with the Metro Station for the new and existing communities.

The project includes a bridge crossing of Hatmark Branch and realignment of the City of Fairfax Connector Trail to improve pedestrian connections to the Metro Station and the project from communities west of the park.

Metro West implements the Policy Plan of Fairfax County by concentrating development next to a Metro station. It furthers the Smart Growth Principles of the Metropolitan Washington Council of Governments. The Metro West plan results from a multi-year collaborative effort among neighborhood associations, a citizens’ working group, the Fairfax County Department of Planning and Zoning, the Washington Metropolitan Area Transit Authority and the Virginia Department of Transportation.

Participation and suggestions from these parties have given Metro West a vastly improved plan. The Smart Growth Alliance, in fact, has recognized the Metro West design as contributing land use, transportation and environmental advantages to Fairfax County and the Washington region.

Community Benefits

Metro West gives neighbors around the region improved, safer access to the Vienna-Fairfax-GMU Metro Station and a creative, balanced and pedestrian-friendly destination, activity, recreation and retail center.

Transportation

Improved, safer Saintsbury Drive adjacent to Metro frontage
Extended Vaden Drive south as boulevard to Route 29/Lee Highway
Pedestrian and bicycle connections throughout Metro West to Metro Station and surrounding neighborhoods
Resident and worker parking in garages and structures, street parking available for visitors and shoppers

Town Center and Community Center

A minimum of 100,000 square feet of retail, service, institutional and governmental space, including a 29,700 square foot public community and recreation center and 300,000 square feet of office space
Activity center for events, possible in-season ice skating
35 percent of redevelopment area is open space

Park, Stream, Trail Improvements

Improved access to East Blake Lane Park
Network of all-weather pedestrian and bicycle trails to Metro Station and Metro West
Pedestrian bridge across Hatmark Branch

Office Space and Other

Office and retail offer work opportunities for area residents within walking distance of their homes
Office workers from outside the area have incentive to use Metro

To view an interactive map and learn more about Metro West visit http://metrowestva.com/siteplan.html.

Pulte, the primary developer of the Metro West mixed use project is prepared to initiate site work and construction of infrastructure improvements in March 2010. Construction of the entire project will take several years to be completed.

Vienna VA Home Prices and Sales as of 2/01/2010 - Average Home Price $629,000

2010-03-08T10:48:00.001-08:00

Median List Price

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Oakton VA Home Prices and Values as of 2/01/2010 - Average Home Price $485,000

2010-03-08T10:45:00.000-08:00

Median List Price

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Stategic Foreclosure vs Short Sale

2010-03-04T16:14:00.000-08:00

Homeowners who owe more on their mortgage than the actual house value are considered “underwater” or “upside down.” The number of Americans in this situation continues to increase. Today, at least one in five homeowners owes more than their home is worth.

The action these homeowners are considering taking is just walking away from their obligation, what is known as a strategic foreclosure.

There are however, drawbacks. A homeowner who defaults on their home loan can face serious consequences:
* The homeowner's credit rating can be severely affected. It could take 7 or more years to recover during which time securing a loan of any kind is almost impossible.
* The borrower could be held liable for the difference between the actual mortgage and the purchase price when the loan servicer sells the property. This is known as a "deficiency judgment" and lenders can seek repayment for years to come.

There are, however, some states which are non-recourse states. In a non-recourse mortgage state, borrowers are not held personally liable for more than the home’s value at the time that the loan is repaid. The lender may recoup some of its loss through foreclosure. However, the lender may not sue the borrower for additional funds. If the foreclosure sale does not generate enough money to satisfy the loan, the lender must accept the loss.

Each non-recourse state has its own anti-deficiency statutes that prohibit lenders from seeking judgments. In a few cases, anti-deficiency statues do allow lenders to collect a limited amount of money from the borrower (such as the difference between the debt and the fair market value of the property).

Note that in some states (such as California) non-recourse laws apply only to “purchase money” loans (i.e. original home loans that are used to purchase property). Almost all HELOCs and home equity loans are considered recourse loans and lenders for these loans may sue borrowers to recoup loss. (Except in some cases where the second mortgage lender forces the foreclosure. See: HELOC Foreclosures). There has been some speculation that mortgage refinances do not constitute “purchase money” loans. However, there have been no cases to determine this issue one way or the other.

Anti-Deficiency / Non-Recourse States

Alaska, Arizona, California, Connecticut, Florida, Idaho, Minnesota, North Carolina, North Dakota, Texas, Utah, and Washington

One Action States

In some states, lenders are only permitted a single lawsuit to collect mortgage debt. This plays out differently depending on the state’s laws. In New York, for example, a lender must choose between the actions of foreclosing on the property or suing to collect the debt. The following states have some type of one action statute:

California, Idaho, Montana, Nevada, New York, and Utah

Often, a successful short sale mitigates the consequences and may cause the lender in a recourse state to decide to not pursue a deficiency judgment. Foreclosure is a last option.

If you are "underwater" or considering walking away from your mortgage obligation, please consider pursuing a short sale. I have the training and expertise to assist you in your negotiations with the lender. Please contact me for a free, no-obligation appointment.

2010-03-02T10:06:00.001-08:00

Great News for First-Time Home Buyers:
New VHDA Income and Sales Price/Loan Limits

Effective yesterday, March 1, 2010, more first-time home buyers may qualify for a Virginia Housing Development Authority FHA Plus or Homebuyer Tax Credit Plus loan, offering affordable fixed rates plus down payment and closing costs assistance. VHDA increased income limits in all areas of the state and sales price/loan limits in most areas. To review the summary of the new limits and specific details visit www.vhda.com/loanlimits.

Home Affordable Refinance Program (HARP) Extended One Year

2010-03-02T07:27:00.000-08:00

The Federal Housing Finance Agency today announced the extension of the Home Affordable Refinance Program, (HARP), a refinancing program administered by Fannie Mae and Freddie Mac, to June 30, 2011. The program is a key component of the Administration’s Making Home Affordable Program announced last February. The HARP program expands access to refinancing for qualified individuals and families whose homes have lost value. The program was set to expire on June 10 of this year.

“FHFA has reviewed the current market situation and the state of mortgage insurance availability and has determined that the market conditions that necessitated the actions taken last year have not materially changed,” said DeMarco. “Accordingly, to support and promote market stability, and to encourage lenders and other mortgage market participants to fully adopt the HARP program, including the implementation of the October 2009 expansion of loan-to-value ratios (LTVs) to 125 percent, FHFA is authorizing the extension of HARP until June 30, 2011.”

In 2009, Fannie Mae and Freddie Mac purchased or guaranteed more than 4 million refinanced mortgages. Of this total, 190,180 were HARP refinances with LTVs between 80 percent and 125 percent. The HARP began in April 2009 and has grown over the past few months. For more information on Fannie Mae and Freddie Mac refinance activity, see FHFA’s monthly Foreclosure Prevention & Refinance Report. Additionally, homeowners can visit www.MakingHomeAffordable.gov for additional information on the program.

The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks. These government-sponsored enterprises provide more than $6.3 trillion in funding for the U.S. mortgage markets and financial institutions.

Eligibility
You may be eligible for a Home Affordable Modification if you:
• Own a 1- to 4-unit home that is your primary residence.
• Got your mortgage on or before January 1, 2009.
• Have a mortgage payment (including taxes, insurance, and homeowners association dues) that is more than 31 percent
of your gross (pre-tax) monthly income.
• Owe less than or equal to $729,750 on your first mortgage

In my experience most Loan Modifications are taking longer, but I have seen the timeline shortening up lately. Still with the current market I believe it's best to extend this program for another year to allow ample time for these modifications to work themselves through the system.

For more information on whether you qualify for a Loan Modification visit the Making Homes Affordable website.
The FHFA official press release on the Loan Modification program

Obama Administration providing $1.5 billion to assist homeowners in 5 states

2010-02-24T04:01:00.001-08:00

Last week, President Obama announced a plan to direct $1.5 billion in aid to distressed homeowners in states hit hardest by the housing crisis.

The money is earmarked for Arizona, California, Florida, Michigan and Nevada. According to the administration, the average home prices in these states have fallen by more than 20 percent since the housing peak in 2006. Money will come from the $50 billion set aside in 2009 for the Troubled Asset Relief Program (TARP).

Funding will be made accessible to state housing agencies, who will be expected to create programs to help homeowners struggling to meet their mortgage obligations, either because of unemployment, carrying a second mortgage or being “underwater” (owing more than their home is worth).

US Treasury Issues New Short Sale Guidelines

2010-02-18T11:31:00.000-08:00

A new government program, Home Affordable Foreclosure Alternatives Program (HAFA), has finally issued its official guidelines for short sales. The idea is to streamline short sales so the homeowner can avoid foreclosure. It provides incentives to homeowners who are looking to sell. The program takes effect on April 5, 2010, although servicers may implement it right away. The program is scheduled to end on December 31, 2012.

What does HAFA do?

It provides an alternative for homeowners who are HAMP eligible and unable to keep their home
Uses borrower's financial and hardship information already collected during application for consideration of a loan modification
Allows borrowers to receive pre-approved short sale terms before listing the property, including the minimum acceptable net proceeds
Uses standard processes, documents, time frames and deadlines
Requires borrowers to be fully released from future liability for the first mortgage debt
Provides financial incentives for borrowers, servicers, and investors.

Who is eligible for HAFA?

Must be a principal residence
First lien originated before 2009
Mortgage delinquent or default is reasonably foreseeable
Unpaid principal balance no more than $729,750
Borrower's total monthly payment exceeds 31% of gross

These are the highlights of the program. For more detailed information or for expert short sale assistance, please call my team, Rodgers Realty Group, June Rodgers at 703-281-3830.

English Oaks Subdivision in Oakton VA

2010-02-12T09:42:00.000-08:00

As a ReMax realtor in the Vienna and Oakton areas of Fairfax County, I welcome you to visit a new web site for a beautiful residential community called English Oaks in Oakton, VA, just minutes from the Vienna metro, I66, Tysons Corner, Fair Oaks, Fairfax and Fair Oaks Hospitals, schools, shopping, and restaurants.

English Oaks is an elegant community amidst the Washington metropolitan area. Situated in the heart of Oakton,Virginia, it offers a quiet suburban living experience and is one of Northern Virginia’s most desirable neighborhoods.The English Oaks community consists of 85 luxury townhouses with two-car garages and 27 single family homes resting on 33 acres surrounded by trees and open grassy areas. This peaceful community is beautifully landscaped and maintained and is an oasis from the outside world, yet one can walk to the shopping center, library, banks, and elementary school. For those tennis lovers, there is a lovely set of tennis courts in the community for all residents to use. Please take a moment to look at the web site, http://www.englishoakshoa.org.

Please let me know if you would like to be updated on homes for sale or other activity in this community or if you would like further information about the area.

I will bring you news on other noteworthy communities in future blogs. If you are looking for a realtor, please do not hesitate to contact me at 703-281-3830 or junerodgers@remax.net. View me on the web at www.JuneRodgers.com

All the best,
June

Capital Beltway HOT Lanes Project

2010-02-02T13:17:00.000-08:00

Work continues on the Capital Beltway HOT Lanes Project, which is transforming the Beltway as we know it. The project replaces all bridges and sound walls and reconstructs interchanges to accommodate two additional lanes in both directions. Single-occupant drivers will pay to access these express lanes, while carpoolers and motorcyclists can ride for free. The new lanes will provide capacity for express bus service in this corridor. Tolls will reimburse the State for costs of construction. Motorists in the existing non-HOT lanes will continue to ride for free.

2010-02-02T13:03:00.000-08:00

The Transformation of Tysons Corner

With construction underway and the arrival of rail imminent, Tysons Corner is being transformed into a vibrant 21st century urban center that addressed the challenges of sustainable growth, energy conservation, environmental protection, affordable housing and safe communities. As envisioned by the Task Force, Tysons Corner will be a pedestrian-friendly urban center where people, live, work, play, shop, worship, and even retire. Metrorail service from Falls Church to Wiehle Avenue in Reston, including four stations in Tysons Corner, will begin by December 2013. A Tysons circulator system will evolve as development occurs throughout Tysons. The vision calls for the creation of eight distinct districts oriented to four rail stations and laced with 160 acres of parks and open space.

The Mosaic at Merrifield

The Mosaic will be located south of Lee Highway (Route 29) and will contribute greatly to the revitalization of the Merrifield area. The project's rezoning has been approved and the Board established the Mosaic District Community Development Authority for the 31-acre development. Visit www.mosaicatmerrifield.com

Springfield Mall

Springfield Mall is planned to be transformed into a pedestrian-oriented town center of mixed retail, office, hotel and residential uses, with transportation improvements being a key component. The plans involve a multi-phase renovation over a period of years. Some of the changes are already evident as the Mall prepares for interior renovation. Visit www.springfieldtowncenter.com.

From Lorton Prison to Laurel Hill

For the better part of a century, one of the most beautiful parcels of land in Fairfax County was restricted , and to a extent, hidden from public view. The redevelopment and re-use of these 2300 acres is another outstanding Fairfax County project The Lorton Arts Center is now open. Visit the web site at www.lortonarts.org.

BGS3 Helps Homeowners Avoid Foreclosure

2010-01-23T11:08:00.000-08:00

BGS3 Helps Homeowners Avoid Foreclosure

Why Real Estate Investment Makes Better Sense Than Investing in Stocks

2010-01-23T11:03:00.000-08:00

There are distinct advantages to real estate investment despite the millions of dollars investors have made in the stock market. In fact, investing in real estate for profit is one of the most popular approaches to generating additional income in the United States today.

In this article, we'll consider just a few examples to illustrate why careful and intelligent real estate investment might make better sense to an investor than stocks. Before we get started, though, it should be mentioned that investing in real property is not a bed of roses without risk, and does include several downsides worth understanding.

Real Estate Investment Downside

1. Liquidity - Real property typically cannot be converted to cash overnight. Whereas stocks can be sold with a phone call, the process of liquidating equity in a real estate investment can take months.

2. Slow Market Reaction - Real property has a slower reaction time than the stock market and therefore requires more patience on the part of investors. Whereas the ups and downs of stocks are in real time and thereby allow you to gauge your gains or losses minute-by-minute, this is not the case with real estate investing. You might have to wait months (probably years) before you discover the real worth of your investment.

3. Less Certainty about Market Value - The stock market is more efficient when it comes to market value than investment in real property. When you purchase or sell a stock, for instance, you can be sure that the price was indeed the "correct" price for that stock on that day and at that time because the existing price for the stock incorporates and reflects all relevant available information about the company such as earnings. This is not the case with real estate value. The buyer and seller must discover the correct value on their own, whether it is too high or too low. This, of course, is why experienced investors research the local market and use real estate investment software to run and rerun the numbers.

Real Estate Investment Upside

1. Leverage - Real property allows you to borrow money to make the purchase; generally not something you can do when buying stocks. Moreover, the stock market, by law, limits the amount of leverage (margin) you can use to buy stock whereas there are no such limits with real estate. You can purchase investment property with a small amount of your own money without any constraint other than a lender's willingness to fund the property.

2. You Can Purchase under Market Value - It's generally tough to find "under valued" stock on a regular basis, whereas-especially in this troubled economy-you can purchase properties at discounts far below market value if you dig deep enough.

3. You Get the Benefit of Depreciation - One of the beauties about investment property is the tax benefit you get through depreciation deduction (or "cost recovery"). Defined as a loss in value to a property over time as the property is used, depreciation is a non-cash tax shelter deduction in full compliance with the tax code in which the government allows you to assume that the buildings (not the land) are wearing out over time and becoming less valuable, thereby permitting you to take a deduction for that presumed decline in the value of your asset.

4. Market Conditions are Localized - Whereas a downturn in the stock market could affect everyone involved wherever they live, barring a national collapse of the economy, home values might drop in one city without affecting property values in other cities. This enables you to protect yourself with a "geographically diversified" portfolio of property investments to hedge against this type of event.

6. You Can Control Property Value - Investment property is unlike other investments because its value is mostly controlled by the investor. With some non-superfluous capital improvements and/or diligent property management, investors regularly increase the value of their investment properties. This is not the case with stocks.

If done correctly, real estate can be one of the best investments you've every made. Contact an expert real estate professional like myself to guide you through the process (www.junerodgers.com) 703-281-3830

10 Important Facts about the Extended First-Time Homebuyer Credit

2010-01-21T06:24:00.001-08:00

IRS Special Edition Tax Tip 2009-13

If you are in the market for a new home, you may still be able to claim the First-Time Homebuyer Credit. Congress recently passed The Worker, Homeownership and Business Assistance Act Of 2009, extending the First-Time Homebuyer Credit and expanding who qualifies.

Here are the top 10 things the IRS wants you to know about the expanded credit and the qualifications you must meet in order to qualify for it.

1. You must buy – or enter into a binding contract to buy a principal residence – on or before April 30, 2010.

2. If you enter into a binding contract by April 30, 2010 you must close on the home on or before June 30, 2010.

3. For qualifying purchases in 2010, you will have the option of claiming the credit on either your 2009 or 2010 return.

4. A long-time resident of the same home can now qualify for a reduced credit. You can qualify for the credit if you’ve lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the new home is purchased and the settlement date is after November 6, 2009.

5. The maximum credit for long-time residents is $6,500. However, married individuals filing separately are limited to $3,250.

6. People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after November 6, 2009. The full credit is available to taxpayers with modified adjusted gross incomes up to $125,000, or $225,000 for joint filers.

7. The IRS will issue a December 2009 revision of Form 5405 to claim this credit. The December 2009 form must be used for homes purchased after November 6, 2009 – whether the credit is claimed for 2008 or for 2009 – and for all home purchases that are claimed on 2009 returns.

8. No credit is available if the purchase price of the home exceeds $800,000.

9. The purchaser must be at least 18 years old on the date of purchase. For a married couple, only one spouse must meet this age requirement.

10. A dependent is not eligible to claim the credit.

For more information about the expanded First-Time Homebuyer Credit, visit IRS.gov/recovery.

Learn the Truth About Short Sales

2010-01-18T02:16:00.001-08:00

Short Sale Myths
A short sale can be an excellent solution for homeowners who must sell and owe more on their homes than they are worth. Unfortunately, a number of myths about short sales have developed, and it is important to understand the reality of this process should you find it meets your current needs.

Myth #1 – The Bank Would Rather Foreclose than Bother with a Short Sale
This is one of the most common misconceptions. The reality is that banks do not want to foreclose on your property because the foreclosure process is incredibly costly. Banks, investors, and even the federal government have all publicly stated that if a person is qualified for a short sale, the deal needs to be considered. Overwhelmingly, banks receive more on their investment through a short sale than a foreclosure.
The qualifications for a short sale include:

1.Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
2.Monthly Income Shortfall – “You have more month than money.” A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
3.Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.

Myth #2 – You Must Be Behind on Your Mortgage to Negotiate a Short Sale
While this may have previously been the case, today lenders are looking for verifiable hardship, monthly cash flow shortfall, or pending shortfall and insolvency.
If you meet these three requirements and believe that you soon may be unable to afford your mortgage, act immediately. Any delay could limit your options. Do not wait until the countdown clock to foreclosure has started and you have even less time left.

Myth #3 – There is Not Enough Time to Negotiate a Short Sale Before My Foreclosure
This is a myth that probably hurts homeowners the most. Many do not realize that foreclosure is a process, and that there is time to make decisions that may result in better outcomes.
The foreclosing party—in most cases a lender—can stall a foreclosure up to the final day of the process. Today, many lenders will stall a foreclosure with as little as a phone call from you explaining that you are trying to sell, and almost all lenders will stall a foreclosure with a legitimate contract. For real estate professionals who understand foreclosures and short sales, there is time available until the foreclosure process is complete.

Myth #4 – Listing My Home as a Short Sale is an Embarrassment
It is understandable to have reservations about letting the world know that you owe more on your home than it is worth. However, according to recent estimates, more than one out of eight homeowners in the U.S. is in the same situation. You are to be congratulated for admitting you need help, taking action, and finding a professional who can work with you toward a solution.
With recent estimates showing 40-60% of U.S. sales will be short sales or foreclosures, you are not alone.

Myth #5 – Short Sales are Impossible and Never Get Approved
This is a complete falsehood. Are short sales more difficult to execute? Yes. Do you, as a homeowner, need to learn about a new process? Yes. Are they impossible? Absolutely not.
For example, agents with the Certified Distressed Property Expert® (CDPE) Designation receive thousands of short sale approvals on a monthly basis. These professionals have undergone extensive training in methods to help homeowners in distress and process short sales. While there are no guarantees in any transaction, more and more short sales are being approved regularly. This is far from an impossible process.

Myth #6 – Banks are Waiting on a Bailout and Not Accepting Short Sales
You may have heard this, but the reality is that banks (and the U.S. government) are trying to do anything they can, within reason, to avoid foreclosing on properties. It is preposterous to believe they would deny a short sale in hopes that some future legislation would pass and pay them for losses.
Today, more banks are aggressively pursuing short sales and working with agents who understand how to process them. Freddie Mac recently hosted a national training Webinar for real estate agents where they expressly stated the organizational goal of “eliminating distressed assets through modification or short sale.”

Myth #7 – Buyers are Not Interested in Short Sale Properties
This is a myth that potential sellers hear all the time. Thankfully, this is just not true. In fact, many agents are getting calls from buyers who say they only want to look at foreclosure and short sales.
For buyers, short sales and foreclosures have become synonymous with “good deals.” More specifically, international buyers are targeting these properties. Listing with an experienced agent who is educated in the short sale process will provide you with a great chance of quickly seeing a contract on your property.

In conclusion, Agents with the CDPE Designation have been trained in all aspects of the short sale process, and know how to deal with the parties involved in foreclosures. Finding a CDPE can explain what options you have, and get you on the path to recovery.

For expert advice visit www.junerodgers.com

President Obama modification program helps 100,000 borrowers

2010-01-15T14:04:00.001-08:00

Los Angeles, CA (Corporate Asset Management, LLC) -- With expectations for millions of foreclosures, lenders have approved more than 100,000 troubled mortgages for homeowners participating in an Obama administration mortgage-assistance program from trial three-month plans into permanent, more affordable loans, the Treasury Department said Friday.

So far, 66,000 borrowers have accepted the offer under the program, known as the Home Affordable Modification Program, or HAMP, according to a Treasury report.

"Treasury is committed to working with servicers and borrowers to sustain this improved pace," said Phyllis Caldwell, Treasury's Homeownership Preservation Office director.

That number is up from the program's December data, which showed that only 31,382 troubled mortgages converted from trial three-month plans into permanent programs. Specifically, 112,521 permanent modifications have been approved by loan servicers.

As part of the program, roughly 850,000 homeowners have their median monthly payment reduced by more than $500 a month.

According to the Treasury report, 902,620 trial three-month modifications have started since the program's inception, up from 759,058 last month. Also, 1.2 million modification offers have been extended to borrowers by the end of December, up from roughly 1 million offers in November.

Meanwhile, roughly 8 million to 13 million foreclosures are expected to take place over the next five years, according to the Congressional Oversight Panel for the $700 billion bank-bailout program.

A number of the major banks made major strides in making trial modifications permanent. Bank of America Corp. (BAC, Trade ) experienced a major improvement. It approved 3,183 permanent modifications by the end of December, up from 98 at the end of November. In addition, the company started 206,775 trial modifications, the report said, up from 158,462 in the previous period.

Citigroup Inc. (C, Trade ) approved 4,999 permanent modifications by the end of December, up from 271 in the previous period, according to the report. Citigroup started 119,097 three-month modifications under the plan by the end of December -- up from 103,478 in November.

Through the end of December, J.P. Morgan Chase & Co. (JPM, Trade ) had 7,139 trial modifications made permanent, up from 4,302 at the end of November. It had 156,359 three-month trial modifications started under the program as of the end of December, up from 143,027 started under the program at the end of November.

Wells Fargo & Co. (WFC, Trade ) has 126,413 trial modifications started, up from 104,808 trial modifications at the end of November and 6,423 permanent, up from 3,537 permanent modifications using the program in November.

As part of the program, mortgage servicers receive an up-front payment of $1,000 for each successful modification after completion of the trial period, and "pay for success" fees of up to $1,000 per year for three years, as long as the borrower remains current. Servicers that fail to meet their obligations could have incentive payments withheld.

Lenders also have provided thousands of modifications outside of the Obama program.

However, Henry Sommer, director at the National Association of Consumer Bankruptcy Attorneys in Philadelphia said that those modifications are generally less beneficial to the homeowner than modifications under the White House program. He added that he worries homeowners eligible for the HAMP program are being steered into less-favorable private modifications set up by lenders.

Foreclosure Experts at USHUD.com Caution Consumers of New Pitfalls

2010-01-12T13:33:00.001-08:00

In a move to combat a historical foreclosure crisis, Congress passed legislation the last week of 2009 increasing federal support to Fannie Mae and Freddie Mac, the two largest players in the American mortgage industry.

While heralded as positive by many in the housing industry, leading real estate foreclosure experts at USHUD.com and its parent company Heavy Hammer, Inc., warn that homeowners should be wary of high-risk loan programs targeting those with poor credit, and homebuyers should follow proven guidelines when purchasing foreclosure properties.

Heavy Hammer, Inc., CEO Michael Urbanski said homebuyers are ultimately responsible for recognizing what they can and cannot afford.

"To make the best decisions for their families and themselves, homeowners and potential homeowners need to be aware of the hazards that will inevitably present themselves," Urbanski said. "Avoid making the hasty or careless decisions that sent so many other American homebuyers into foreclosure. Exercise personal responsibility, capitalize on available industry intelligence, and seek the advice of experts who can help navigate the challenges and pitfalls of today's real estate foreclosure landscape."

While there is no substitute for the personalized guidance of a USHUD.com expert, Urbanski suggests homebuyers adhere to these guidelines:

* Budget carefully. Know what you can spend each month on your mortgage, adding 5 percent for maintenance. Do not rely on a future increase in income.

* Save first. If you have no savings for a 3.5% down payment, do not buy a house. Savings is a habit you have to learn before taking on the responsibility of home ownership. Start an aggressive savings plan today.

* Do the math. If buying a house will deplete your entire savings account, save more. You should have at least 1% of the value of the home remaining in your savings for incidentals after closing.

Headquartered in Annapolis, Md., Heavy Hammer, Inc., is an online networking and consulting company committed to advocating for the American homebuyer, connecting them with trusted experts and valuable resources. Driving one of the most widely used suites of foreclosure Web sites, Heavy Hammer delivers all-inclusive, completely free lists of foreclosure properties to more than 500,000 homebuyers each month. In business since 1998, Heavy Hammer has focused on geographically-based ad serving technology and processes that allow thousands of professionals to target a specific location and connect directly with consumers in their respective locations. Starting with USHUD.com in 1999, this group of sites now includes many others including more than 30 state- and region-specific sites.

After a Painful 2009, Northern Virginia Area’s Prospects Improve

2010-01-12T11:57:00.001-08:00

Federal spending, the engine that drives the region, should fuel a slow but robust recovery that will materialize sooner here than in most other parts of the country, local economists say. Stephen S. Fuller, Director of the Center for Regional Analysis at George Mason University, forecasts that the region’s economy will grow 2.8 percent in 2010 and 4.0 percent in 2011. That would surpass projections for the U.S. economy to grow 2.2 percent in 2010 and 2.8 percent in 2011.

Over the next several years, the Federal Government is planning to hire as many as 120,000 workers in the region for various agencies, including the Department of Veterans Affairs, the Department of Labor, and the Food and Drug Administration. The expansion would not only boost employment but also absorb a portion of the homes for sale.

Jobs lost in 2009 should be offset in 2010, Fuller said, with a net gain of 23,900 positions by year’s end. That number is projected to grow to 34,900 in 2011 and 42,000 in 2012.

The region’s unemployment rate, though, is likely to rise slightly before it falls. Fuller forecasts that the rate will peak at 6.4 percent in June, typically the month with the highest rate, from 6.2 percent in October. Then it is expected to fall below 6 percent by the end of the year.

US Treasury sets guidance to simplify 'short sales'

2010-01-12T11:48:00.000-08:00

The U.S. Treasury set a plan for mortgage companies to speed "short sales" of homes and other loan modification alternatives to stem a rising tide of foreclosures.

The Home Affordable Foreclosure Alternatives Program provides financial incentives and simplifies the procedures for completing short sales, a growing practice in which a lender agrees to accept the sale price of a home to pay off a mortgage even if the price falls short of the amount owed, according to an announcement on the Treasury's website.
Guidelines address barriers that have often sidelined short sales by setting limits on the time it takes a bank to approve an offer, freeing borrowers from debt and capping claims of subordinate lenders.
The incentives, first announced in May, expand on the government's Home Affordable Modification Program, known as HAMP, that has seen limited success in lowering payments for distressed homeowners. The Treasury earlier on Monday stepped up pressure on mortgage companies to make permanent the 650,000 trial modifications they have started.

"While HAMP program guidelines are intended to reach a broad range of at-risk borrowers, it is expected that servicers will encounter situations where they are unable to approve" or offer a modification, the Treasury said in its announcement.

Financial incentives for completing short sales or similar deed-in-lieu transactions -- in which the deed is simply transferred to the lender -- include a $1,000 payment to servicers, and a maximum of $1,000 to go to investors who sign off on payments to subordinate lien holders, the Treasury said. Borrowers would receive $1,500 in relocation expenses.
Short sales are favored by real estate agents and community groups over foreclosure because they can preserve the borrower's credit rating and leave the property in better condition than when a homeowner is evicted. While primary lenders typically realize steep losses, their recovery is typically far better than under foreclosure.

But short sales have been frustrating for borrowers and real estate agents, often hung up by negotiations with multiple lien holders and mortgage insurance companies. Real estate agents have complained that sales fall through as lenders bicker over the sales price, what they should receive from the proceeds, and whether the borrower will be held accountable for the debt in the future.

Among requirements, mortgage servicers have 10 days to approve or disapprove a request for short sale, and when done the transaction must fully release the borrower from the debt.

It also prohibits mortgage servicing companies from reducing real estate commissions on the sale, a practice that has dissuaded many agents from taking short sale listings.

In one of the most contentious issues gumming up negotiations between lenders, the guidance caps the aggregate proceeds to subordinate lien holders at $3,000.

Second lien holders in recent months have begun demanding more money from the first lender, seller, buyer or agent in exchange for releasing their claim, agents have said. Because primary lenders would face larger losses in a foreclosure, some subordinate lenders have felt empowered, the agents said.

The largest second-lien holders are Bank of America Corp, Wells Fargo & Co, JPMorgan Chase & Co and Citigroup Inc.

Second lien holders may proceed with a short sale outside of the Treasury program, if they felt the cap was too low, a Treasury official said in October.
"If there was a short sale program that didn't recognize the second lien holder position, it could have pretty damaging consequences for the industry,"

Buying a Home? Now you can get up to $8,000 back, through April 30, 2010.

2010-01-12T11:45:00.000-08:00

IT’S A GREAT TIME TO BUY.
The government recently expanded the first-time homebuyer tax credit through April 30, 2010, and added a new homebuyer tax credit for existing homeowners who are interested in purchasing a new home. With mortgage rates still at historic lows, and plenty of affordable homes still on the market, this may be a great time to buy.
IS IT A GREAT TIME FOR YOU TO BUY?
How Much?
10% of the home price, up to $8,000 for qualified first-time homebuyers, or people who have not owned a home in the preceding 3 years, or up to $6,500 for qualified existing homeowners who have lived in their home for 5 of the last 8 years.
How Does It Work?
It’s for principal single-family residences, including condos and townhouses. It shows up as a credit on your income tax. The tax credit does not have to be repaid if you live in the home for a minimum of 3 years.
Who Qualifies?
Individuals with adjusted gross income up to $125,000 (or $225,000 if filing jointly) are eligible for the full tax credit. The credit is phased down for those earning more.
Like any good thing, there must be rules. You have to buy before April 30, 2010, settle by June 30, 2010, and live in the home as your principal residence for at least 3 years (Military families are exempt). Transactions must close no more than 60 days after April 30, 2010. Plus there are income guidelines, and other checkpoints to see if you qualify. Purchaser must attach documentation of home purchase to tax return. Ask your tax advisor for details on how the new law affects you or visit http://www.irs.gov/newsroom/article/0,,id=206291,00.html for more information.

Northrop Grumman to move to D.C. area

2010-01-05T11:53:00.000-08:00

Defense contractor plans to identify a site by spring

Giant defense contractor Northrop Grumman said Monday that it plans to move its corporate headquarters from Los Angeles to the Washington area by 2011, solidifying the growing importance of Washington as a center for the defense industry and other businesses.

Northrop executives said they are looking for a site in Maryland, Virginia or the District and plan to identify one by this spring.

The company, whose biggest customer is the Pentagon, makes military planes, tanks, ships and other equipment. It has about 40,000 employees in the Washington region and 120,000 around the world. About 300 employees would move with the headquarters.

"We are a global security company, and all of the federal processes, whether the executive branch or Congress, are in the Washington area," said Wes Bush, Northrop's chief executive and president. "We think we'll be able to do a better job for our customers and our company by having our corporate office there."

Bush said the company is looking for the best tax incentive package in each jurisdiction. Maryland is home to Lockheed Martin, the biggest U.S. defense contractor. And Virginia is home to General Dynamics, another major defense player. Other defense contractors, including Boeing and Raytheon, also have offices in the region.

Defense industry experts say the move suggests that Northrop and other contractors might fear the prospect of shrinking Pentagon budgets and feel a need to be closer to their biggest customer as competition for a smaller number of deals intensifies.

Other big companies also have found the area attractive recently, with defense contractor SAIC saying in September that it would leave San Diego and move its headquarters to McLean, Va.

Over the summer, Hilton Hotels began moving the first batches of its employees from its longtime corporate headquarters in Beverly Hills, Calif., to a new corporate office in Tysons Corner, Va.. And in April 2008, Volkswagen moved its corporate offices from Auburn Hills, Mich., to Herndon, Va.

Robert A. Peck, the former president of the Greater Washington Board of Trade, said those decisions indicate that the Washington region is becoming more of a powerhouse in attracting big companies.

"The Washington area has finally broken through as an area that companies see as corporate headquarters," Peck said. "If you leave L.A. or Chicago for the D.C. area as your headquarters, that says something."

He said the recession has helped showcase the D.C. area because its economy is more resilient and stable than many parts of the country, which are struggling financially.

"Buildings and housing hold their value more here," Peck said. "The workforce is stable. The city has turned into an interesting place. And people recognize how much business is here.

"There were always lobbyists and government contractors here, but now there's also IT firms and biotech and Hilton and Marriott," he said. "It is a strong regional economy with the government anchoring it."

Steven A. Silverman, head of Montgomery County's economic development office, called the Washington region the epicenter of the nation's economy. "If you look at what's happened in terms of the financial world," he said, "everybody understands business is now getting done in Washington, not in New York City."

Northrop's headquarters has been in the Los Angeles area for decades, and the company's change of its corporate headquarters is seen as a blow to California, economic development officials say.

10 Ways to Protect Yourself from Mortgage Fraud

2009-10-14T15:10:00.001-07:00

Many of the challenges homeowners and home buyers are confronting today are the result of unscrupulous mortgages extended over the past several years. Help protect yourself during the home buying process with these tips from the American Homeowners Foundation and the American Homeowners Grassroots Alliance, www.AmericanHomeowners.org, or in Canada, with tips found at www.genworth.ca:

1. Deal only with reputable mortgage bankers or mortgage brokers. Get recommendations from neighbors and friends who dealt with them as customers. Check on the mortgagor’s record with the local Better Business Bureau and state licensing authority. As a Member of the Top 5 in Real Estate Network®, I can also provide you with many credible mortgage resources.

2. Ask how long they have been in the business, and be wary of working with someone with less than five years experience, no matter how reputable their employer may be.

3. Unlike professional real estate agents like myself, mortgagors owe you no fiduciary duty. While it is in the long-term interest of mortgage lenders and brokers to treat consumers fairly, for many, that doesn’t stand in the way of charging higher fees or interest rates. Always get quotes from at least three mortgage lenders and/or brokers, and make sure each one knows you are doing so.

4. Since you’ll be providing them the most comprehensive personal financial information you’ll ever provide any company, ask the lender to describe their data security policies, both online and offline.

5. To reduce the likelihood of overpaying for a home, make sure that you review recent selling prices for similar homes in the same neighborhood before you make an offer. I can provide you with a detailed analysis of the homes in our communities.

6. Set aside some extra money for closing costs. One of the vexations of real estate financing are the differences in estimated settlement costs on the Good Faith Estimate (GFE) forms, and the actual settlement costs, which very often include several hundred additional dollars worth of previously undisclosed and creatively named fees.

7. Pick the right kind of mortgage. Interest rates are higher on 30 year fixed rate loans than on 15 year fixed rate loans. Adjustable rate mortgages are always a gamble. You may well save money over the first few years if interest rates are dropping, but predicting their direction further out is very speculative. Prepayment penalties can more than offset any savings if the rates go up after that and you want to refinance.

8. Get pre-approved for your loan. Even though there is a glut of homes for sale in most areas right now, a mortgage loan pre-approval is essential to many sellers, and gives a big negotiating advantage to buyers in almost all cases.

9. It is important to review loan documents in advance and understand all the terms. Don’t be afraid to ask questions. Try to avoid loans with prepayment penalties if at all possible.

10. Save all the copies of all documents you receive and/or provide mortgage lenders or brokers.

For more advice on how to secure the best mortgage in today’s challenging economic times, please e-mail me directly. I can help you make sense of the current mortgage landscape and the ever-changing credit standards