NAR Video Explaining The FHA Increase That Will Take Effect April 1 2012

In a recent blog post, we brought you information on the changes to the FHA costs that will be taking effect starting April 1.  The National Association of Realtors has produced a video which explains the changes, and why they are being implented.

Midtown At Alexandria Station Condos |
Alexandria VA CDPE Listing Agent Helps Another Homeowner Avoid Foreclosure With A Short Sale

Midtown Alexandria Station Condos Across From Huntington Metro

 Just Sold – 2451 Midtown Avenue, Unit 1515

Still having that ‘new home smell’, the contemporary condos for sale at Midtown at Alexandria Station appeal to a lot of Alexandria VA buyers who are looking at condos close to metro.  Shortly after purchasing a unit here, this homeowner experienced a financial hardship. 

With an FHA loan, the homeowner applied with Wells Fargo Home Mortgage and was accepted into FHA’s Preforeclosure Sales Program and also received a monetary incentive.  The time period for the short sale approval was 35 days.

This home had also been previously listed with another broker and did not sell.  If you are facing a financial hardship and would like to see if you qualify to sell your Alexandria VA home as a short sale, please be sure to visit my website for a confidential analysis.  Experience counts, and as a Certified Distressed Property Expert (CDPE) and a Certified Default Resolution Specialist, I have the training and sale experience to help.  Short sales are not like traditional sales, so be sure to consult with an Alexandria VA listing agent who is qualified to help.

If you currently have an FHA mortgage and are experiencing a financial hardship, you must meet the following criteria to be eligible to participate in the Preforeclosure Sales Program:

• The property must be owner-occupied, no “walk-a ways” or investment properties. Exceptions: when it is verifiable that the need to vacate was related to the cause of default (job loss, transfer, divorce, death), and the subject property was not purchased as rental investment, or used as a rental for more than 18 months.

• The Mortgagor must be 31 days or more delinquent at the time of the Preforeclosure Sale closing.

• The Mortgagor must provide documentation substantiating a reduction in income or an increase in living expense, and documentation that verifies the Mortgagors need to vacate the property (if applicable).

Alexandria VA Short Sale | Price Reduction | Condo At Huntington Metro
Midtown At Alexandria Station
2451 Midtown Avenue #1515, Alexandria VA 22303

Midtown at Alexandria Station condos is a fairly new subdivision with luxurious and contemporary building amenities including:

* – state of the art internet cafe

* – high-tech gym/fitness center

* – outdoor pool, jacuzzi

* – outdoor kitchen

* – party room

* – concierge service

* – secure building entry

* – covered garage parking

Not to mention that it is directly across the street from Huntington metro at the end of the yellow line.  Unit 1515 is available for resale as a short sale, pending lender approval.  There is only one lender involved with the sale of this Alexandria VA condo, and the short sale process has already been started, BPO bank appraisal has been done, lender just needs a buyer who wants to fairly new condo priced thousands below the other units for sale at Midtown at Alexandria Station.

Please note that current builder sales are restricted to owner-occupants only.  This is a unique opportunity for an investor to purchase right now.  Midtown at Alexandria Station is an FHA approved subdivision.

The Commonwealth of Virginia has just given consumers hoping to buy their first home in Alexandria VA over 15 millions reasons to get off the fence and purchase a home.  This aid which encourages buyers to use the Virginia Housing Develpment Authority (VHDA) program is ideal for those who are currently renting and are indecisive about getting into the real estate market.

For more information, view the full article as reported by the Alexandria Times newspaper.

As a buyer’s agent, I can tell you first hand that there are so many opportunities right now.  There’s no sense of urgency like there was in the past sellers market, and buyers can protect themselves with necessary inspections in addition to seller or bank paid closing costs.  All of the foreclosure homes that I have sold resulted in the buyer receiving closing cost assistance.

This is very important because as the cost of living continues to increase, many buyers find it harder to save extra money for down payment plus closing costs.  Buyers now have the advantage of these down payment assistance programs to help defray the costs of securing a home.  Typically, closing costs run between 2-3% of the sale price, depending on the financing and can be negotiated between the buyer and seller.

If you are concerned about closing costs, or if you’re curious about the steps in the home buying process please contact me for a consultation.

The term ‘short sale’ has definitely gained popularity with the Alexandria VA real estate market over the past year.  While a short sale may not be suited for every homeowner, here are some basics to let you know how we help those who may be a candidate for a short sale.

The factors necessary in order to move forward with the short sale process:

• The homeowner may be behind on payments.  You don’t have to be behind on mortgage payments to qualify for a short sale.  Every bank, and every situation is different.
• There is little or no equity in the house, or homeowner owes considerably more than what the house is worth.
• The homeowner can prove a legitimate hardship.

Once the homeowner is aware of all options with the current mortgage company and if the owner chooses to proceed with a short sale, then we prepare the ‘Short Sale Package’ and submit it to the lender.

The short sale process for FHA loans if different than the process for VA and conventional loans.  With FHA loans, the homeowner must have written acceptance into the HUD short sale program prior to listing the home.  With conventional mortgages, the seller can proceed to market the home in the MLS and receive offers.  Based on the total amount owed on the home (which could include late payments, taxes, HOA/condo fees, mechanics liens), and a market analysis, we help determine the asking price for the home. 

The mortgage company may not explicitly offer a bottom line figure for what will be acceptable, so the market analysis proves to demonstrate what buyers are currently paying for similar homes.  This information is also included in the prepared short sale package to help strengthen the owner’s case for the approval.

The average time for a home to successfully close with a short sale is 60-90 days.  The benefits to the homeowner include the relief of no longer carrying a mortgage that is not affordable, and still being able to purchase a home.

As with a seller-owned resale home, the home is aggressively marketed both online and in print publications to secure a buyer.  As with all transactions, all financial information is kept in confidence, so you will never see our listings blatantly advertised as short sales.

If you’re selling your Alexandria VA home and your listing agent is not welcoming FHA and VA buyers, then your home may be on the market a lot longer, and it could eventually sell for less money.

The VA Loan is made available to veterans and active duty service members for the purchase or refinance of a primary residence or the refinance of another property on which a VA loan already exists.  Some additional basics include:

• Standard Maximum Loan is $417,000
• Standard Maximum Loan-To-Value is 100%, meaning that you can finance 100% of the purchase price, there is no down payment required
• Debt-to-Income Maximum is 41%
• Jumbo Maximum Loan is $1,000,000
• Jumbo Maximum Loan-To-Value is 85.425%

The FHA loan is made available to the general public and is available to any qualified individual for the purchase or refinance of another property on which an FHA loan already exists.  The primary benefit of the FHA loan is a lower down payment requirement and less stringent underwriting standards as compared to most conventional loan programs.  Some additional basics include:

• Standard Maximum Base Loan up to $362,790
• Temporary Jumbo Maximum Loan is $729,750
• Maximum Loan-To-Value is 97.75%
• Up front Mortgage Insurance Premium is 1.5% of base loan amount, which can be financed into the loan
• Annual Mortgage Insurance Premium is 50 basis points of base loan amount
• Debt-to-Income Maximum is 43%

But what does all of this mean to you if you’re selling?  It means that when the market was hot, it was common for buyers with conventional loans to beat out other buyers with VA and FHA loans due to the more strict financing rules.  Listing agents should make it known and openly advertise: "FHA and VA buyers welcome!"  That way you’ve made it clear as a seller that you’re open to entertaining all offers, not just offers where the buyer is receiving conventional financing.  Don’t let buyers guess and assume.  By opening yourself up to flexible financing, you open your doors to more buyers and increase the chances of getting your home sold quicker and for more money.

Buyers: Find out if you’re eligible for the VA loan.

Sellers: FREE Book on ‘How To Sell Your Home For Top Dollar Fast’