Jan 2010 Newsletter intro

Dear Nalls Home Partners Clients, Friends and Family:

Chief cook and bottle washer come to mind this week as we personally hand stuffed thousands of gift magnets into envelopes to send to our clients, customers and friends. Rather than calendars, this year we made a list of important phone numbers, like utilities and county services, that should be useful to have handy. A few people called asking about their 2010 calendar magnets though, so we had some of those printed as well. If you are not on our Snail Mail list and would like to receive either 2010 magnet, please give us a call and we'll be happy to send you one or both.

While we stuffed, our assistant Becky kept reminding us to get the articles written for this electronic newsletter. And of course, business went on with Tom taking three new listings and receiving a number of contracts. It is that kind of broad based business model - one that mixes traditional, time tested real estate practices with new technologies and ideas - that makes our group work so well. So we talk about ways to further improve our website while we still stuff envelopes ourselves once a year. When it is time to list your home, we post high resolution color photographs to literally dozens of websites but we still pick up the phone and call prospective buyers too. It's the best of both worlds.

In addition to the commonly used numbers on our magnet this year, we are continuing to add to the referral resources listed on our website. These are businesses of all sorts, but mostly those associated with houses and real estate, that we can personally recommend. If you have or know of a business that you would like us to include, please pass their information on to us. We are always happy to expand the list.

Finally, a shameless plug to our friend and client Andrew Berman's business, Spectrum Printing and Graphics in Rockville, that stepped up heroically and turned letterhead and envelopes around for us in about 48 hours when we realized that we had run short for this big mailing. Also to Herman and Malka Stopak at Creative-Potentials  for their patience with all the last minute additions to the magnets. Our business is truly a team effort and we are so grateful for all the great businesses that support us!

All the best -
 
Barbara, Tom, Susan and Harrison

Long and Foster Real Estate, Inc

PROPERTY INSURANCE

Recently we heard from a client who unfortunately had pipes freeze and break in the bitter cold last week. It started a conversation about homeowner's insurance claims and property resale. This has become a problem in the past few years as insurance companies are increasingly reluctant to insure both properties that have had claims or homeowners that have made claims. Yes, that's right, they get you twice. Say for example you make a claim for damage caused by a sewer backup and then decide to move two years later. Your purchaser may have trouble insuring the property even if they go to another company because the address is "tagged" in a national database. If they can get insurance, they may ask you to pay the difference in the premium, which can be as much as 200% higher than it would normally cost. You can always say no, but it certainly complicates the deal. To make matters worse, YOU may have similar issues getting insurance for the house you are trying to buy because the same national database tagged your personal information. And because part of the insurance application requires listing previous residences, having a spouse apply for the insurance doesn't work. We've tried. The "penalty period" for a claim is usually about 5 years.


The Maryland Association of Realtors has a helpful pamphlet on the subject  Click HERE for a copy of the pamphlet . Of course the best advice you can get will be from your insurance agent. We refer Al Fuentes and Curt Sumpter at State Farm Insurance in Bethesda 301 657 2323 if you need a name.

Our new Website!

Our New & Improved website is up!  check it out and let us know what you think!

WWW.NALLSHOME.COM

FHA Announces Policy Changes to Address Risk and Strengthen Finances

New Measures Will Help FHA Better Manage Risk, While Maintaining Support for the Housing Market and Access for Underserved Communities

WASHINGTON – Federal Housing Administration (FHA) Commissioner David Stevens today announced a set of policy changes to strengthen the FHA’s capital reserves, while enabling the agency to continue to fulfill its mission to provide access to homeownership for underserved communities. The changes announced today are the latest in a series of changes Stevens has enacted in order to better position the FHA to manage its risk while continuing to support the nation’s housing 
market recovery.

The FHA will propose to take the following steps: increase the mortgage insurance premium (MIP); update the combination of FICO scores and down payments for new borrowers; reduce seller concessions to three percent, from six percent; and implement a series of significant measures aimed at increasing lender enforcement. U.S. Housing and Urban Development Secretary Shaun Donovan previewed the changes in December of last year, noting that the FHA would announce additional details before the end of January.

“Striking the right balance between managing the FHA’s risk, continuing to provide access to underserved communities, and supporting the nation’s economic recovery is critically important,” said Commissioner Stevens. “When combined with the risk management measures announced in September of last year, these changes are among the most significant steps to address risk in the agency’s history. Additionally, by continuing to provide affordable, responsible mortgage products, FHA will support the housing market’s recovery. Importantly, FHA will remain the largest source of home purchase financing for underserved communities.”

Announced FHA Policy Changes:

1. Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lending
• The first step will be to raise the up-front MIP by 50 bps to 2.25% and request legislative authority to increase the maximum annual MIP that the FHA can charge.
• If this authority is granted, then the second step will be to shift some of the premium increase from the up-front MIP to the annual MIP.
• This shift will allow for the capital reserves to increase with less impact to the consumer, because the annual MIP is paid over the life of the loan instead of at the time of closing
• The initial up-front increase is included in a Mortgagee Letter to be released tomorrow, January 21st, and will go into effect in the spring.
2. Update the combination of FICO scores and down payments for new borrowers.
• New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA's 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%.
• This allows the FHA to better balance its risk and continue to provide access for those borrowers who have historically performed well.
• This change will be posted in the Federal Register in February and, after a notice and comment period, would go into effect in the early summer.
3. Reduce allowable seller concessions from 6% to 3%
• The current level exposes the FHA to excess risk by creating incentives to inflate appraised value. This change will bring FHA into conformity with industry standards on seller concessions.
• This change will be posted in the Federal Register in February, and after a notice and comment period, would go into effect in the early summer.
4. Increase enforcement on FHA lenders
• Publicly report lender performance rankings to complement currently available Neighborhood Watch data - Will be available on the HUD website on February 1.
• This is an operational change to make information more user-friendly and hold lenders more accountable; it does not require new regulatory action as Neighborhood Watch data is currently publicly available.
• Enhance monitoring of lender performance and compliance with FHA guidelines and standards.
• Implement Credit Watch termination through lender underwriting ID in addition to originating ID.
• This change is included in a Mortgagee Letter to be released tomorrow, January 21st, and is effective immediately.
• Implement statutory authority through regulation of section 256 of the National Housing Act to enforce indemnification provisions for lenders using delegated insuring process
• Specifications of this change will be posted in March, and after a notice and comment period, would go into effect in early summer.
• HUD is pursuing legislative authority to increase enforcement on FHA lenders. Specific authority includes:
• Amendment of section 256 of the National Housing Act to apply indemnification provisions to all Direct Endorsement lenders. This would require all approved mortgagees to assume liability for all of the loans that they originate and underwrite
• Legislative authority permitting HUD maximum flexibility to establish separate "areas" for purposes of review and termination under the Credit Watch initiative. This would provide authority to withdraw originating and underwriting approval for a lender nationwide on the basis of the performance of its regional branches

In addition to the changes proposed today, the FHA is continuing to review its overall response to housing market conditions, and continuing to evaluate its mortgage insurance underwriting standards and its measures to help distressed and underwater borrowers through FHA/HAMP and other FHA initiatives going forward.

###

HUD is the nation's housing agency committed to sustaining homeownership; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development ad enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.

 Thank you Deb Levy for sharing this information with us...

Washington Post: When does refinancing make more sense than a loan modification?

Post has a great article discussing re-fi vs the new government mandated loan modification: 

http://www.washingtonpost.com/wp-dyn/content/article/2010/01/14/AR2010011405331.html

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The Truth about Foreclosures

Im sure you hear the same commercials on the radio that we do,  That terrible commercial where an excited young woman is describing to her friend how she got a 3 bedroom house for only $26,000!!! and how her monthly payment is only $250?!  What a great deal!  Then the commercial tells you to call some special number and sign up for an exclusive list(that you will have to pay for)  that will let you know where to find a home just like the one mentioned, "For a fraction of the cost."  In theory those commercials are true. There is a home that exists that is a foreclosure,that you can buy for $26k. That is where the truth ends in that commercial.  in the DC Metropolitan area specifically,  any home that you could find for $26k  would most likely need another $50k  of work to renovate it to even liveable condition. Another truth about most foreclosures,  They are Not finance-able, you cannot obtain a mortgage to pay for them,  because the condition they would be at that price of under $30k...would be decrepit at best, and  banks do not finance homes in very bad conditions.  There is an FHA  203k loan program (further explained here) intended specifically for fixing up foreclosed homes.  This is a loan specifically for the fixing up work that needs to be done on the house, not the actual purchase price of the home. 
The truth is, if you want to get the extreme deals available on the foreclosure homes you need to be able to purchase the home Cash, and you have to budget 10, 15 or 20 thousand dollars above your purchase price to fix up the foreclosed/REO home. 

DO not pay for any service that supposedly gives you access to a list of  foreclosed properties.  Email us.  we can and will give you the same list of properties, for free, and  we can give you honest advice, representation, and tell you what you need to do to prepare for the purchase of a foreclosure/REO home.

Gift Financing Discussed by WSJ

http://online.wsj.com/article/SB10001424…

Wall street journal presents an interesting story about Gift finanancing, internationally.

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Fannie Mae To allow Rent-to-own in forecosures

Video from Wall Street Journal Online

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Prime mortgage delinquencies

14.41% of US loans are delinquent. what does this mean for our economy? this number is higher than it has ever been before.

"Post from November 2009"

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Montgomery county MPDU's

Here is some information about Montgomery county marylands Equitable housing program, Developing moderately Priced Dwelling Units. Please Do not hesitate to contact us If you have any questions.

http://www.rockvillemd.gov/residents/MPDU/

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Fall Market

I love the Fall. We always get a small upswing in the market of serious buyers and really good listings and all the Realtors are back at work full time, nice and rested from summer vacation. Kids are settled into the school year and the Holidays are coming. Good, good, good. Interest rates, which dropped below 5% for thirty year fixed this month (!), are driving a fairly strong market. That, and the First Time Homebuyer Tax Credit I talked about last month seem to be working their magic. According to the National Association of Realtors, pending home sales have increased for seven straight months, the longest period since this index began in 2001. Interesting. This Fall the office is running particularly smoothly too because we have a great new assistant working with us, Harrison Beacher. Harrison is taking care of our administration and some of our marketing. He’s the guy that makes sure your open house ads are correctly placed and tracks our sales to settlement. Huge job but not so big that he hasn’t had time to sell. TWO transactions of his own already and assisted on two more. He’s really on the way to an outstanding real estate career. He’s the handsome dude on the right in the new team picture. Harrison is also helping bring us into the 21st Century with a minimum of trauma. He is twittering and blogging away on our website and on Facebook, keeping all of our listings fresh and in the public eye as well as digging out some fascinating real estate articles and information to keep us all abreast of breaking news, statistics, trends and the ever changing government programs that effect our industry. Maybe it’s that 2008 diploma from Tom’s alma mater, Georgetown University that makes him so good In any event, we welcome you to check out our website blog, friend us on Facebook or follow us on Twitter to see what we’re talking about. All the best – Barbara and Tom Long and Foster Real Estate, Inc

Originally posted 10.22.09

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The Department of Housing & Urban Development's Making Home Affordable Program

http://makinghomeaffordable.gov/

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Originally posted October 2009

Great Washington Post article on Home Values and School Proximity

http://www.washingtonpost.com/wp-dyn/con…

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Follow Us on Twitter!

https://twitter.com/NallsHome

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Under Contract- Close to Clarendon Metro – Totally Renovated!

1909 Rhodes Street North #21

Arlington VA 22201

$294,5000

Barbara Nalls and Long & Foster Real Estate are pleased to present this opportunity to own one of the rare over-size one bedroom condos in wonderful Colonial Village. Completely renovated this summer, the unit now boasts a fully updated eat-in kitchen with new appliances, hardware, fixtures, counters, ceramic tile flooring, custom lighting and plenty of room for your kitchen table; a renovated hall bath with beautiful new ceramic tile floors and shower bath, all new fixtures and lighting; a foyer entry and large bright Living/Dining room com bright Pergo floors; a generous bedroom with a huge walk in closet, two very private exposures, new lighting, Pergo floors and plenty of room for an office or sitting area. And at 647 square feet of living space the unit has the extra room and a floorplan that separates the bedroom and living areas by a hall creating the feel of a small home detached home. All this, lovely fresh paint, three huge closets, extra storage in the building and the marvelous convenience and security of Colonial Village – so close to Metro, shopping, resturants and all that Arlington has to offer. Welcome Home!

Barbara and Tom Nalls

Barbara’s Cell -240 602 9035

Tom’s Cell – 301-237-5170
Nalls Home Partners, LLC
Long and Foster Realtors
4733 Bethesda Avenue
Bethesda MD 20814
240 497 1700
www.NallsHome.com
BarbaraNalls@Gmail.com

tomnalls@gmail.com

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Originally posted 9.01.09

Under Contract! Great New Listing in Kenwood Forest!

6689 Fairfax Dr, Chevy Chase MD 20815

Townhouse / Condo

Three Bedrooms – Two and a Half Baths

$539,000
Best of Everything!
Bright, updated 3 bedroom, 2.5 bath townhouse in a pretty courtyard on the quiet side of popular Kenwood Forest! Generous room sizes, hall/foyer entrance, main floor powder room, spacious living room, separate dining room with French doors to huge new deck, table size kitchen, large master bedroom and two additional bedrooms, two renovated full baths upstairs. Hardwoods though-out, full attic with pull down stairs for storage. Easy condo living – all exterior maintenance and groundskeeping covered in one low fee – leaving you your weekends to enjoy the new farmer’s market and all the rest that downtown Bethesda has to offer just two blocks away. That means Metro too! Welcome Home!

–
BE the CHANGE you wish to see…
Barbara Carnemark Nalls
240 602 9035
Nalls Home Partners, LLC
Long and Foster Realtors
4733 Bethesda Avenue
Bethesda MD 20816
240 497 1700
www.NallsHome.com
BarbaraNalls@Gmail.com
Barbara@NallsHome.com

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Originally posted 09.18.09

COUNTDOWN!!

Okay, we admit it. Realtors are always saying it’s a great time to buy and sell when maybe, sometimes; it is only a pretty good time or not such a bad time… We are the Salespeople that Cried Wolf.

But right now the market in our area is very, very strong and it really and truly is a great time to sell a home. The reason for it: the First-time Homebuyer Federal Tax Credit is set to expire at the end of November and everyone and their mother is out trying to get something under contract in time for a November settlement. Of course, not everyone qualifies and it tends to stimulate homes under $400,000 which only makes up a portion of our areas home sales. But when a $200,000 condo sells, the owners move up to a $500,000 town house and those owners move up to an $800,000 single family home, etc. You get the idea. Stimulus.

So, two things you should know.

First, if you are even THINKING about selling your home, call us right away. Remember that a 45 day window for loan approval means that buyers are frantically trying to get themselves under contract before October 15th. The first time and move up buyers are out NOW – and bidding on everything they see. Our open houses are packed and we are getting multiple offers on many, many properties again. After October this is likely to slow way down.

Finally, we really believe that the credit has been a major boom to the real estate market in our area and hope it is extended. If you agree – and we encourage you to look into the pros and cons to make up your own mind – you might consider an email or phone call to your elected representative letting them know that you support an extension.

Oh! And to everyone that is happy with their place and has no intention of selling their home – we’re glad! We probably sold it to you and that’s what we like to hear…:-)

All the best -
Barbara and Tom

What’s Your Home “Worth”?

With the upturn in the local real estate market – and it is BUSY out there, let me tell you – we are getting lot’s of calls asking us “what’s our house worth?” A variation on that theme are the buyers that, having seen a property that catches their fancy, will take a look at the list price and then ask us “what do you think it’s really worth”

“Well,” I say, “you’re the one that lives there, you tell me!”

Of course, I know that what they are really asking for is a dollar figure of fair market value because they are thinking about putting their home on the market (or refiancing or fighting an assesment, and we are here for that too!) And buyers are always right to evaluate past sales when considering an offer. No one wants to pay more than they have to for a home.

But sometimes in their zeal to take advantage of market conditions, buyers and sellers miss the most important aspect of a home sale – how does the property fit your personal needs? So when a seller says “I think it is a good time to sell” we always do a needs assesment to make sure that they really have “outgrown” their home or that downsizing makes sense. And the first question we ask is ‘do you like living here?’ When a buyer tries to decide between potential properties, we always try to find the one that makes sense first, and look at the “deal” second. After all, actually living in a house that is too large/small or in an inconvenient location for your family doesn’t feel like a very smart choice a year later, regardless of what a steal it might have been at the time.

So, just a reminder, as we head into what is sure to be a very brisk Fall market: we are here to help with both the dollars and the SENSE of your next home purchase or sale. Call us any time!

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Barbara and Tom Nalls
Long and Foster Real Estate, Inc.

Barbara’s Cell: 240-602-9035

Tom’s Cell: 301-237-5170

Office: 240-497-1700

Originally posted 08.27.09

Are You Ready To Own Washington DC Area Real Estate?

You’ve finally decided you want to buy a piece of Washington DC Area real estate. What do you do now? Here are a few tips for getting the best deal for your money:

Check Out Your Credit
The first thing you’ll want to do is order a copy of your credit report from the three major credit bureaus: Experian, TransUnion, and Equifax. Look for inaccuracies in:
• Name
• Address
• Creditors
• Late payments
• Delinquencies

After you’ve reviewed your credit report and know your credit score, you’re ready to make improvements to your report. You can send a written “Notice of Correction” to the credit bureaus. It can be up to 200 words. If needed, you can explain why you fell behind on a particular debt, and every time a lender accesses the report, they’ll see your explanation.

It can take several months to for your credit score to go up. However, it’s well worth the effort to get a better interest rate. It can save you thousands on your Washington DC Area real estate.

What’s Next?
Before you start looking at properties, it’s a good idea to get a pre-approval letter from a lender. The lender will take into consideration your income and credit history. Then they’ll determine what loan amount you can be approved for. We have a list of lenders that we do business with every day that can help you and, more importantly, who you can trust.

Most pre-approval letters list the maximum amount that you are approved for, not necessarily the amount you can afford. Look carefully at your budget so that you don’t get too excited about the number and get into more house than you can afford. A good lender will help you be honest with yourself about this

A pre-approval letter will give you and us an idea of what houses to look at, so no time is wasted seeing properties that you can’t afford. Prospective sellers may also give your bid more weight if you have a pre-approval letter.

Are you a first-time buyer? You have just made a fabulous decision for your future. There are tons of great buys in the Washington DC Area real estate Call us anytime at 240 602 9035 or email at Nallshome1@gmail.com

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Originally posted 1/09/09

Knocking Politely on the Front Door of the 21st Century

It was bound to happen sooner or later – Nalls Home Partners is Blogging! (For those of you who are guessing, yes, of course, it’s Barbara. But for the record, I will be STRONGLY encouraging Tom, Ron, Susan and Harrison to take a turn What this means is that you will be able to check in for up to date LOCAL Washington DC Metro Area real estate news and information: Market trends, Montgomery County and DC housing prices, Interest rates and transaction legislation. I will try to stay current – but please be patient through the website transition – and will be particularly looking forward to your comments!

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Originally posted 12/10/2008