The senate did vote and pass an extension on when closings must occur for those buyers that qualify for the Homebuyer Tax Credit. The senate voted to extend the deadline to September 30, 2010.

Note - this still must be approved by the House and it still must be signed into law by the President. Thus the deadline as of this moment is still June 30th. The extension is actually part of a larger bill so there are still some obstacles to overcome.

Still, the good news is action is being taken towards getting an extension in place. It should be noted that the extension is only on when these deals must close by. Only those purchasers who had contracts ratified by April 30th qualify.

Home ownership is still the "American Dream" and if you plan to stay in one place for at least a few years, there has never been a better time to buy. Although it is likely our dreams are more modest than in the past, the great majority of Americans would prefer to own their home rather than rent.  "Owning a home" may also have a different definition that it did just a few short years ago. Maybe then, it meant we were making a mortgage payment rather than paying rent. Now it means we have finished making the mortgage payments. We have returned to some "old fashioned values" which would make our parents proud.

 This change in perspective is the direct result of an economic cycle unlike anything most of us have experienced. Like a homeowner considering a sale, prospective purchasers have considerably more to weigh than in the past. Have home values truly passed the bottom or will another wave of foreclosures occur and take prices down substantially farther? Will legislation continue to limit inventory growth? Will interest rates stay low? Will the first time and move up buyer tax credits be extended beyond the end of April? Should I buy now or should I wait?

 Many have been rewarded for staying on the sidelines over the last few years but at some point, the rearview mirror will show a missed opportunity.  There is substantially more information available today than there was when this cycle began. Depending upon what community within the Metropolitan area a buyer is considering, prices are still as much as forty percent below their peak. Last year at this time many were fifty percent below their peak and the year before, sixty.

If inventory is well managed, which it is in the bank's best interest to do, the worst is behind us. We should not expect double digit appreciation but double digit decline is unlikely. Banks are becoming more adept at modifying loans for distressed borrowers. Their goal is to keep the borrower in the home; a payment coming in while the home's value improves. Borrowers are more motivated to stay the course in an improving market.

 Strategic defaults will no longer be accepted by lenders and short sellers will no longer find lenders willing to forgive the deficit loan amount. We are already seeing lenders that foreclosed in 2007 begin to pursue the deficiency judgment recorded at foreclosure. Short sellers in that same time period who did not obtain a release of liability for their negative equity are now being sued in an effort to collect the deficiency. Many of these sellers were not aware that they still owed the money even though the bank released the lien. Their only choice now is to repay the debt or face bankruptcy. These collection efforts will discourage some from short selling and further limit inventory.

 If your plans include a home purchase in the nearer term, you will be hard pressed to find better circumstances. The tax credits may or may not be extended. Interest rates probably will not get lower and will likely rise. Unless there is further catastrophe, prices will stay flat or increase slightly. You may, just may, purchase for slightly less. If you choose to wait however, odds are, that you will pay more each month.

Our brand, CENTURY 21, is the most recognized name in real estate. The CENTURY21 system is comprised of over 8000 independently owned and operated real estate offices, world wide.  For several years, our firm has ranked in the top ten CENTURY 21 firms in the United States. I am extremely proud to tell the world that my company, CENTURY 21 New Millennium,  is now the Number 1 CENTURY 21 firm in the United States of America. I need to say it again. NUMBER 1! We are very proud.

So why is our success important to you? Obviously the real estate market since 2005 has been no gentler to real estate firms than it has to individuals. In a market where fewer homes are being sold, for less money, our business is up; considerably. We bring the same energy and discipline with which we run our business, to each client we represent. For us to be successful, our client needs to be successful first.

Everything begins with analysis, whether it pertains to our firms business plan or a custom marketing plan for a seller we represent. To develop a valid strategy, we need to first understand the competitive aspects of the market we are competing within. Only when we have the fact based understanding of our situation, will we have the confidence needed to make good business decisions. Our analytical skills set us apart and prepare our firm and our clients to position themselves effectively.

While it sounds rather simple, a written plan  is fundamental to success and is another area where our conduct sets us apart. Every entity and individual within our firm works from a written business plan. Every seller we represent collaborates in a written marketing strategy, which we implement together to meet the client's objective. Every plan is unique and based upon the individual circumstance of the seller.

Execution, accountability, and communication are key to our mutual success. We became the most successful firm in the most recognized brand in real estate by effectively representing one buyer and one seller at a time. We analyzed the competitive environment, made a plan and executed the plan each day.

Analysis of our circumstance today tells us we represent an abundance of ready, willing and able buyers for which we lack a sufficient inventory of homes. Simply put, we have buyers and we need listings. Our business is built upon referral of new clients from those we have served well in the past.

We need your help; and if they have a real estate need, your friends need our help. There is really no such thing as a simple real estate transaction today. An agent's performance can save or cost a buyer tens of thousands of dollars.  For sellers, the risk is greater. An agent that takes a casual approach to representation could cost a seller hundreds of thousands or put them into bankruptcy.  Our representation is thorough, honest, and our results speak for themselves. Please consider helping everyone by creating an opportunity for us to compete for their business.

Potomac Club

Potomac Club, is a gated community on 200 acres in Woodbridge, Virginia. Less than 5 minutes from I-95, Potomac Club offers a wide variety of housing styles and great amenities suited for busy professionals. Potomac Club offers you the ease of carefree living with amazing amenities in a tech-savvy urban environment.

 All homes in the community are condominium ownership.  Buyers can choose between stacked condominium style homes or townhomes. All homes have garages.

There is new construction going on within the neighborhood with the following builders:

M/I Homes $226,990 and up

Pulte Homes $254,900 and up

Ryan Homes SOLD OUT!

Some of the fabulous amenities of this community are:

• Gated Access
• 25-meter Indoor Pool open year-round
• Outdoor Pool, sundeck and wading area
• 3- story Climbing Wall
• Wi-Fi hot spots
• Fully equipped Athletic Club with certified trainers
• Members Lounge with cocktail tables, billiards, plasma TVs, bar, private terrace, a caterer's closet, and game tables.
• Meeting and entertainment facilities are available for homeowners to reserve for private functions.
• Wegmans and other many shops are within the community

Commuting

Potomac Club is conveniently located with easy access to I-95, Virginia Railway Express (VRE), and commuter bus routes.

• It's a short trip from Potomac Club to the VRE station at Rippon
• The VDOT commuter lot at Horner Road is less than 15 minutes from Potomac Club.
• There is bus service to the Springfield Metro as well as direct bus service to the Pentagon and Washington, DC
• Commuter parking lot at Route 234 and US 1 to board the express commuter bus to the PENTAGON and WASHINGTON, DC
• A short drive to the SLUGG Line Lots at Potomac Mills or Horner Rd.
• Quantico Marine Base, The Crossroads of the Marine Corp, is only 15 minutes away and Ft Belvior, the Pentagon and other military installations in the greater DC area are when easy commuting distance

Schools

Marumsco Elementary School

Rippon Middle School

Freedom High School

When Congress extended and expanded the federal homebuyer tax credit in November, it created an exciting opportunity for more consumers than the original version, adding repeat buyers to those that could benefit.

Much has been written about the tax credit created for first-time homebuyers. But many people may not realize that there is now an attractive opportunity for existing homeowners as well.

Now, repeat homebuyers who purchase a principal residence can receive a credit of up to $6,500 as long as they have been living in their current home for five consecutive years out of the past eight years preceding the purchase.

Income requirements have been relaxed as well. Under the new rules, the credits are available to single buyers with incomes up to $125,000 or married couples earning up to $225,000. Partial credits may be available to homebuyers who earn more.

"This is great news for all homebuyers," says Rick Davidson, president and CEO of Century 21 Real Estate LLC. "The expanded tax credit, combined with low interest rates, outstanding values and a great selection of homes is creating what may be a once-in-a-lifetime opportunity to get the home of your dreams at a price you can afford."

But buyers need to act quickly to capitalize on the tax credit.

Congress extended the credit until April 30, 2010, giving buyers who have signed a purchase contract by that date until June 30 to close on their home.

This may be an ideal way to maintain home ownership for consumers who have considered down-sizing--or moving up to match their current circumstances.

Port Potomac- Woodbridge, Virginia

Port Potomac, the gateway to the scenic Potomac shore of Eastern Prince William, features the intimate size and harmonious architecture of a traditional small village. Bordered by Powell's Creek and just a mile from the Potomac River, this community is exquisitely designed. With its natural setting and convenient access to all the charms of Prince William, Port Potomac is a living affirmation of all that is best in the Nation's Capital. 

Port Potomac is a planned community in Woodbridge, Virginia. It is located off of Route 1 with multiple entrances to the community.  There are both townhomes and single family homes that make up this amenity filled community

 The following builders are still building within the community:

Drees Homes- Single Family Homes

Ryan Homes- Single Family Homes

Some of the great amenities of the community:

• Fully staffed Energy Club and Fitness Center with state-of-the-art equipment and a full schedule fitness programs and activities.
• Floridian-style Great Room with a catering kitchen and bar area with a balcony overlooking landscaped gardens.
• Full-sized Indoor Pool that is open year round and Outdoor Pools surrounded by beautiful landscaping.
• Men's and women's changing facilities attached to the Indoor Pool and Fitness Center with lockers, showers and sauna.
• Business Center with boardroom-style meeting facilities, new computers, fax machine, printers and internet services.
• Well-stocked Library reading room area.
• Community Meeting-Activities Room that hosts HOA meetings, community readings, yoga classes and other events.
• Tennis Courts
• Playgrounds
• Neighborhood Shops and Restaurant

 Commuting

Port Potomac is conveniently located with easy access to I-95,Viriginia Railway Express (VRE), and commuter bus routes.  .

• It's a short trip from Port Potomac to the VRE station at Rippon
• There is Omniride bus service at Rt 234 and the Route 1 just south of Port Potomac. 
• Commuter parking lot at Route 234 and US 1 to board the express commuter bus to the PENTAGON and WASHINGTON, DC
• The same parking lot is home to a SLUG LINE with rideshare opportunities to both the Pentagon and Washington, DC locations
• Quantico Marine Base, The Crossroads of the Marine Corp, is only 8 miles away and Ft Belvior, the Pentagon and other military installations in the greater DC area are when easy commuting distance

Schools

 Williams Elementary

Potomac Middle School

Potomac High School

Child Care Centers-  Crème de la Crème Located within the community

Pet Food Pantry Donation Drive

Century 21® New Millennium and 1st County Mortgage are collecting

donations to help support the local Pet Food Pantry.

Why? Pets have become silent victims in Prince William County. Due

to the economic crisis, loss of jobs and homes, many pet owners are struggling to provide for their pets. Pet shelters are filled to capacity. By providing free food and treat donations, we can help some pet owners avoid the loss of their pet.

When? Saturday March 20th 11am-2pm

Where? The parking lot of the Government Center Professional Building,

12581 Milstead Way, Woodbridge, VA 22192. Located at the corner of Hoadly Road and Prince William Parkway.

How Can You Help? Drop off unopened cat and dog food and treats or a cash donation. Donations are tax deductible.

!!! FREE Tall Drink coupon from Starbucks for the first 100 donators !!!

1. Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, property taxes you pay, and some of the costs involved in buying your home.
2. Gains. Between 1998 and 2002, national home prices increased at an average of 5.4 percent annually. And while there's no guarantee of appreciation, a 2001 study by the NATIONAL ASSOCIATION OF REALTORS^Ò found that a typical homeowner has approximately $50,000 of unrealized gain in a home.
3. Equity. Money paid for rent is money that you'll never see again, but mortgage payments let you build equity ownership interest in your home.
4. Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.
5. Predictability. Unlike rent, your mortgage payments don't go up over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will rise.
6. Freedom. The home is yours. You can decorate any way you want and be able to benefit from your investment for as long as you own the home.
7. Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity. 

To calculate whether renting or buying is the best financial option for you, use this calculator courtesy of Ginnie Mae: http://www.ginniemae.gov/ypth/rent_vs_buy/Rent_vs_buy.htm.

Reprinted from REALTOR^® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS^®

Copyright 2004. All rights reserved.                        www.REALTOR.org/realtormag           

Ashland is a subdivision of 880 homes (detached homes and town homes) in Manassas, VA.  It is located between Spriggs Rd and Minnieville Rd in Manassas, Virginia.  It has easy access to 95 and commuter lots. 

There are a large amount of amenities. 

Children can play at any of the four playgrounds available on the grounds, which feature an assortment of slides, swings, and jungle gym equipment. Additionally, full sized basketball courts are located adjacent to two of the playgrounds.  There is a newly equipped exercise room which features a full range of state-of-the-art cardiovascular and strength training machines and is open to residents 24 hours a day, 7 days a week. In addition there are 2 outdoor gazebos available year round to residents. One of the gazebos is adjacent to one of the tot lots.

The outdoor pool and adjacent baby pool open on Memorial Day and close after Labor Day. An elevated sun deck with chaise lounges is a popular addition to this area. Access is granted to all residents with an Ashland Conservancy ID. Guest passes are also available for purchase at the pool. There is also a swim team to residents with children. The team meets daily during the pool season-Ashland Stingrays : www.ashlandstingrays.com

There are also three full-size tennis courts, which may be used anytime during daylight hours by residents.

Home Sale Information:

There are currently 2 homes FOR SALE in the Ashland Neighborhood and 3 homes have SOLD in the last 3 months. Home prices range from the $180's for the Townhouse units to the mid $400's for the Single Family Homes. 

 Commuting

• It's a short trip from Ashland to the commuter lot at Route 234 and Route 1.  There is an Express commuter bus to the Pentagon or Washington DC
• The same commuter lot is where the SLUG LINE with rideshare opportunities to both the Pentagon and Washington, DC locations
• Approximately 15 minutes to MCB Quantico

Schools

• Ashland Elementary is in the subdivision
• Benton Middle School is approximately 10 minutes
• Forest Park High is within walking distance to many of the homes in the neighborhood
• Minnieland is in the subdivision- Childcare

1. It protects your ownership right to your home both from fraudulent claims against your ownership and from mistakes made in earlier sales, such as mistake in the spelling of a person's name or an inaccurate description of the property.
2. It is especially important when purchasing a foreclosure property. Sometimes liens such as an IRS lien is filed after the purchase of the property.  It will protect your rights to the property.
3. There are Basic and Extended policies.  Extended policies will cover you for the entire time you own the home. You will want to ask the Title Company handling the closing about this.
4.  It's a one-time cost usually based on the price of the property.  If you refinance the property the title insurance policy will remain in effect.   
5. There are both lender title policies, which protect the lender, and owner title policies, which protect you. The lender will probably require a lender policy.
6.  Discounts on premiums are sometimes available if the home has been bought within only a few years since not as much work is required to check the title. Ask the title company if this discount is available.

FHA has formally announced the waiver of the 90 Day Flip Rule.  In the past, it a property was purchased by a private individual or LLC, FHA would not accept a transaction unless the new owner had been the owner of record for 90 days.  This meant that contracts (as well as date of the application and date FHA case number was pulled) has to be dated at least the 91^st day after the current owner went to recordation.  Only REO transactions (bank owned foreclosures and certain types of relos) were exempt from the 90 day rule. 

FHA has issued a waiver SUBJECT TO SEVERAL RESTRICTIONS - the main being for property sales prices that are 20% or more above the Seller's acquisition cost, a second appraisal is required.  The appraisal must contain specific comments from the appraiser regarding the increase.  ALSO, a property inspection is required and must be ordered by Intercoastal (the lender). 

Things to be aware of:

1.  All transactions must be an arm's length transaction with no identity of interest between Buyer and Seller or other parties participating in the sales transaction.  To make this determination the following applicable steps will be performed:

- The Seller holds title to the property

- LLCs, corporations or trusts as Sellers must have been established and operated in accordance with applicable State and Federal laws. Lenders must document the validity of the Seller.  Business licenses, State Department of Corporations status, and Attorney Opinions are examples of acceptable documentation.

- No pattern of previous flipping exists such as multiple transfers of title within a 12 month timeframe as indicated on the Chain of Title. 

- Document that property was marketed openly and fairly (MLS listing, advertised auction, etc.).  Note: Sales contracts which have been assigned to the current Buyer are not allowed.

2. For property sales prices that are 20% or more above the Seller's acquisition cost note the following:

- Appraiser must indicate that the Seller completed legitimate renovation, repair and rehabilitation work on the subject property to substantiate the increase in value - it is recommend the seller provide detailed information and receipts on all work performed.  If such work was not performed, Appraiser must provide appropriate explanation of the increase in value;

** AND **

- A full property inspection report must be ordered by the lender a copy provided to the purchaser prior to closing. The cost of this inspection will be charged to the Borrower as a POC item paid upfront (similar to collecting the appraisal fee upfront).  The inspector must not have any interest in the property or relationship with the Seller and may only be compensated by the lender.  Note that we cannot simply accept an inspection report completed by the purchaser after the fact.  The best way to do this is for the Lender to order the Home Inspection, having the buyer pay upfront at time of application for the cost.  The Home Inspector would still inspect the property as normal with the Realtor and/or buyer present.  The only difference is the original of the report would be provided to the Lender with a copy provided to the Purchaser/Realtor.  This way the buyer could avoid having to pay for 2 home inspections and the lender stays in compliance with FHA. 

Lake Ridge- A wonderful community in Woodbridge, Virginia

Lake Ridge is a large homeowners association located in Woodbridge, Virginia.  There are over 7700 property units situated on 4200 acres on the  banks of the Occoquan River Reservoir.  Property units include single family homes, townhomes, condominiums, and commercial properties.  Schools, shopping centers, and churches also within the community! There are a large amount of amenities which include five pools, a sprayground, a boat ramp, community centers, sports fields, tot lots, basketball pads, tennis courts, ... and so much more.

Lake Ridge is a very family friendly community with plenty of walking trails and sidewalks throughout the community.  During the school year there are plenty of programs for children including a pre-school program and many sports programs (T-Ball and Baseball, Soccer, and football).  During the summer months there are many different camps for the children of the community.

 Home Sales

Home prices in the community currently range from  $135,000 to $449,999. There are currently 26 homes for sale in Lake Ridge.  These homes are short sales, foreclosures and traditional sales.  Homes that have recently sold in the community range from $92,000 to $510,000 and average days on market is 35.  In the last 90 days 73 homes have been sold.

For more information about the Lake Ridge community or if you are interested in selling your home, contact us today!

There are many things to consider when hiring a contractor to do work on your home. Not all contractors are created equal.

1. Get at least three written estimates.
2. Get references and call to check on the work. If possible, go by and visit earlier jobs.
3. Check with the local Chamber of Commerce or Better Business Bureau for complaints.
4. Be sure that the contract states exactly what is to be done and how change orders will be handled.
5. Make as small a downpayment as possible so you won't lose a lot if the contractor fails to complete the job.
6. Be sure that the contractor has the necessary permits, licenses, and insurance.
7. Be sure that the contract states when the work will be completed and what recourse you have if it isn't. Also remember that in many instances you can cancel a contract within three business days of signing it.
8. Ask if the contractor's workers will do the entire job or whether subcontractors will do parts.
9. Get the contractor to indemnify you if work does not meet local building codes or regulations.
10. Be sure that the contract specifies the contractor will clean up after the job and be responsible for any damage.
11. Guarantee that materials used meet your specifications.
12. Don't make the final payment until you're satisfied with the work.

  Reprinted from REALTOR^® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS^®

Copyright 2004. All rights reserved.                        www.REALTOR.org/realtormag           

Waiting a few extra days or weeks to purchase a home this spring could cost buyers thousands of extra dollars as the office of Housing and Urban Development (HUD) implements several changes for loans guaranteed by the Federal Housing Authority (FHA).

Coming just weeks before the April 30 deadline for the Home Buyer Tax Credit and just days after the March 31 expiration of the Federal Reserve Board's mortgage backed securities purchase program (which has kept home loan rates artificially low for over a year), these FHA changes make it even more important to act now to save big.

Here are a few reasons why:

On April 5th, the cost of required up-front mortgage insurance for loans guaranteed by the FHA will increase from 1.75% to 2.25%. For a borrower purchasing a $200,000 home with a $7,000 down payment, the up-front mortgage insurance will increase by $965. Up-front mortgage insurance is typically financed in the final loan amount so the impact to a monthly payment will be minimal but overall, the increase is still borne by the borrower both upfront and monthly.

Later this spring, the amount of money that a seller can return to the buyer from their sale proceeds will be reduced from 6% to 3%. The reduction in these "seller concessions" can increase the amount of cash a buyer will be required to pay at closing by $6,000 for a home purchase of $200,000.

There is only one way to avoid being affected by all of these costly changes that lie ahead - submit all FHA mortgage applications by the last week of March.

1. Develop a master "to do" list so you won't forget something critical.
2. Sort and get rid of things you no longer want or need. Have a garage sale, donate to a charity, or recycle.
3. Don't throw out everything. If your inclination is to just toss it, ask yourself how frequently you use an item and how you'd feel if you no longer had it.
4. Pack like items together. Put toys with toys, kitchen utensils with kitchen utensils.
5. Decide what if anything you plan to move yourself. Precious items, such as family photos, valuable breakables, or must-haves during the move, should probably stay with you.
6. Use the right box for the item. Loose items encourage breakage.
7. Put heavy items in small boxes so they're easier to lift. Keep weight under 50 lbs. if possible.
8. Don't over-pack boxes and increase the chances they will break.
9. Wrap every fragile item separately and pad bottom and sides of boxes.
10. Label every box on all sides. You never know how they'll be stacked and you don't want to have to move other boxes aside to find out what's there.
11. Use color-coded labels to indicate which room each item should go in. Color-code a floor plan for your new house to help movers.
12. Keep your moving documents together, including phone numbers, driver's name, and van number. Also keep your address book handy.
13. Back up your computer files before moving your computer.
14. Inspect each box and all furniture for damage as soon as it arrives.
15. Remember, most movers won't take plants.

Reprinted from REALTOR^® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS^®

Copyright 2004. All rights reserved.                        www.REALTOR.org/realtormag           

This update from FHA was released on Friday January 15th, 2010, as an excerpt from the CFR (Code of Federal Regulations) without a corresponding Mortgagee Letter and contains information about FHA's policies regarding the waiver of the 90-day seasoning required for sellers.

Here are the 6 things you need to know about these changes:

1. Waiver takes effect February 1st, 2010 for a period of one year unless extended.
2. Investors are now exempt from the 90-day seasoning rule.
3. All transactions must be arms-length.
4. No identity of interest can exist between buyer and seller.
5. If sale price is 20% or more of the seller's acquisition cost, the lender must:
   a. provide supporting documentation and/or a second appraisal and
   b. order a home inspection of the property and provide it to the buyer.

To read the text of this waiver and specific details: http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf

This economic cycle began when the "Housing Bubble" burst and we can't expect  sustainable recovery until real property values improve.  When home values began to decline, accounting standards required that institutions mark their assets at fair market value.  While declines were modest initially, as inventory swelled, buyers lost confidence and the housing sector ground to a halt.  Home prices then began their freefall.

Throughout the boom, lenders made mortgages which relied more on the value of the home than they did the credentials of the borrower. There was little risk since prices were on the rise and if the borrower had problems, they could sell or refinance the home.  On a worst case basis where the lender had to foreclose, they were claiming an asset that likely was worth more than the loan amount.

Obviously, that's not the way things worked out.  Values plummeted.  Those owning the mortgages were then forced to mark the value of their collateral at the diminished market value.  This undermined capital ratios and put the nation's largest financial institutions on the brink of failure; some failed.

The Federal government stepped in with TARP and suspended the "Mark-to-Market" ??accounting standard.  Since TARP didn't buy the bad assets and instead recapitalized the banks, the impact of the problem was merely postponed.  Lending dried up, businesses contracted and started cutting jobs.  Those that lost their jobs then lost their homes. 

Foreclosures were then sold at distressed levels which set the value for like property and the spiral continued downward.  A substantial percentage of homeowners are now under water on their mortgage.  Estimates of the unrecognized loss are expressed in multiples of our nations Gross Domestic Product.  It is hard to comprehend the scale of risk.

If managed properly, we have now weathered the worst of the storm.  Government programs are in place that encourage foreclosure as a last resort which limits inventory.  Incentives for those qualified to buy a home are working.  Values in many markets are stable.  That doesn't mean the problem is solved; just solvable.

Banks are no longer eager to take a home and sell it as quickly as possible because values are no longer eroding.  Keeping someone in their home and parceling out inventory only when forced to will limit inventory and strengthen values.  In an appreciating market, borrowers are more inclined to stay the course.  Lenders' balance sheets improve.  Government can pull back their involvement.

While government intervention with taxpayer dollars was distasteful, once the decision to save the banks was made, there was no turning back.  If we remember that the fundamental cause of the banking crisis was the deterioration of home values, then it only makes sense that purging the bad assets over a protracted period of time will prevent further deterioration of values.  This, combined with improving property values, is the only sustainable recovery alternative.  The paper loss was just too large.

Even our government is not big enough to call a "do over."

The lender must disclose a good faith estimate of all settlement costs prior to closing.  There are some new guidelines that have been put out by HUD that protect buyers on these costs.   

If a buyer is required to bring money to the table, the funds must be certified if they are greater than $1000. 

The title company/attorney will tell you the required amount for:

1. Downpayment
2. Loan origination fees
3. Points, or loan discount fees, you pay to receive a lower interest rate
4. Appraisal fee
5. Credit report
6. Floor Cert.
7. Private mortgage insurance premium
8. Insurance escrow for homeowners insurance, if being paid as part of the mortgage
9. Property tax escrow, if being paid as part of the mortgage. Lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you.
10. Deed recording fees
11. Title insurance policy premiums
12. Title Search
13. Survey (Optional)
14. Inspection fees-building inspection, termites, etc.
15. Notary fees
16. Prorations for your share of costs, such as utility bills and property taxes
17. HOA Fees
18. Delivery Fees
19. Home Warranty  (Optional)

A Note About Prorations: Because such costs are usually paid on either a monthly or yearly basis, you might have to pay a bill for services used by the sellers before they moved. Proration is a way for the sellers to pay you back or for you to pay them for bills they may have paid in advance. For example, the gas company usually sends a bill each month for the gas used during the previous month. But assume you buy the home on the 6^th of the month. You would owe the gas company for only the days from the 6^th to the end for the month. The seller would owe for the first five days. The bill would be prorated for the number of days in the month, and then each person would be responsible for the days of his or her ownership.

 Some information has been Reprinted from REALTOR^® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS^®Copyright 2004. All rights reserved. www.REALTOR.org/realtormag           

When purchasing a home whether a foreclosure or owner occupied home there is a potential for hidden defects.  It is always recommended to have a home inspection done so you are aware of some of these issues and request to have them repaired by the seller. This can save you a lot of money in the futures.

No home is flawless, but certain physical problems can be expensive. Watch for:

1. Water leaks. Look for stains on ceilings and near the baseboards, especially in basements or attics.
2. Shifting foundations. Look for large cracks along the home's foundation.
3. Drainage. Look for standing water, either around the foundation of the home of in the yard.
4. Termites. Look for weakened or grooved wood, especially near ground level.
5. Worn roofs. Look for broken or missing copings and buckled shingles as well as water spots on ceilings.
6. Inadequate wiring. Look for antiquated fuse boxes, extension cords (indicating insufficient outlets), and outlets without a place to plug in the grounding prong.
7. Plumbing problems. Very low water pressure, banging in pipes.

Reprinted from REALTOR^® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS^®

Copyright 2004. All rights reserved.                        www.REALTOR.org/realtormag           

1. They don't ask enough questions of their lender and miss out on the best deal.
2. They don't act quickly enough to make a decision and someone else buys the house.
3. They don't find the right real estate professional who is willing to help you through the homebuying process.
4. They don't do enough to make their offer look good to a seller.
5. They don't think about resale before they buy. The average first-time buyer only stays in a home for four years.

Don't let these mistakes happen to you.  Contact the Magid and Barnett Team to get started on the right path to home ownership. 

 Reprinted with permission from Real Estate Checklists and Systems (www.realestatechecklists.com).

FHA Responds To Short Sales
A Special Industry Update

This update contains information about FHA's response to short sales as published in Mortgagee Letter 09-52.

Here are the 5 things you need to know about these changes:

1. Changes are effective immediately.
2. Borrowers are NOT eligible for new FHA financing if they pursued a short sale to take advantage of the declining market in order to acquire a similar or better property near their current residence.
3. Borrowers ARE eligible for new FHA financing if they had 0x30 on the mortgage in the last 12 months AND the proceeds from the short sale serve as payment in full.
4. Borrowers whose mortgage was in pre-foreclosure status at the time of short sale are NOT eligible for FHA financing for 3 years unless they qualify for an exception (see 4155.1, 4.C.2.1)
5. On an FHA refinance, borrowers ARE eligible if the current lender chooses to write down the mortgage due to declining values or reduction in income.

To read the mortgagee letter in full go here: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/

In the Northern Virginia area we are seeing more and more multiple offer situations.  It is becoming more of a seller's market and less of a buyers market.  Home prices are inching upwards in many subdivisions.

To increase your chances of getting your dream home instead of losing it to another buyer, follow the important tips below: 

1. Get pre-qualified for a mortgage and understand the different types of loans. You'll be able to make a firm commitment to buy and make your offer more desirable to the seller.  We can provide you with recommendations for a lender and make sure that you are comfortable with the type of mortgage and down payment.
2. Stay in close touch with your us to find out first about new listings that come on the market. And be ready to go see a house as soon as it goes on the market. 
3. Scout out new listings yourself. Look at Internet sites, newspaper ads, and drive by the neighborhood frequently. Maybe you'll see a brand-new "for sale" sign before anyone else. 
4. Be ready to make a decision. Spend lots of time in advance deciding what you must have so you won't be unsure when you have the chance to make an offer. What you may see today may be gone tomorrow.
5. Bid competitively. You may not want to start out offering the absolute highest price you can afford, but don't try to go too low to get a deal. In a tight market, you'll lose out. 
6. Keep contingencies to a minimum. Restrictions such as needing to sell your home before you move or wanting to delay the closing until a certain date can make your offer unappealing.
7. Don't get caught in a buying frenzy. Just because there's competition doesn't mean you should just buy anything. And even though you want to make your offer attractive, don't neglect inspections that help ensure that your house is sound.

Now that the new year is approaching, many people think about placing their home on the market. Making  your home more appealing for potential buyers will help you sell quicker and at a higher price. In preparation for this event, here are some low cost ways to spruce up your home.  

1. Paint rooms with neutral colors. This can make a world of difference.
2. Put away toys and clutter
3. Arrange furniture so that the rooms look as large as possible.  Sometimes removing a few pieces will help too.
4. Reduce the amount of personal items/photos so that the buyer can image themselves in the home.
5. Trim bushes so they don't block windows and cut down on light.
6. Edge the grass around walks and trees.
7. Keep your garden tools out of site.
8. Buy a new doormat.
9. Put a pot of bright flowers (or a small evergreen in winter) on your porch.
10. Put new doorknobs on your doors.
11. Put a fresh coating on your driveway.
12. Buy a new mailbox or paint existing one and add new numbers.
13. Use warm, incandescent light bulbs for a homey feel.
14. Polish or replace your house numbers.
15. Clean the gutters and leaves in the yard.
16. Put out potpourri or burn scented candles. (Baking scents work great in making a home feel welcoming)
17. Buy new pillows for the sofa.
18. Make a centerpiece for your table with fruit or artificial flowers.
19. Replace heavy curtains with sheer ones that let in more light.
20. Buy new towels.