Happy Halloween!
October 31, 2008 by Danilo Bogdanovic
Filed under Fun/Leisure
How To Buy Freddie Mac-Owned Properties With Closing Costs Paid Plus a 1.5% Rebate
October 30, 2008 by Danilo Bogdanovic
Filed under Buyer Resources
Freddie Mac is following in Fannie Mae's footsteps by selling their foreclosed properties directly on the open market. Freddie Mac's program is called HomeSteps and utilizes a network of real estate agents/brokers throughout the country to sell the properties and represent buyers. (Yes, the brokerage firm I'm with, Market Advantage Real Estate, and I are part of Freddie's network)
Freddie Mac's HomeSteps program is currently two huge incentives for buyers and buyer's agents/brokers:
- Freddie Mac will pay up to 3.5 percent of a buyer's closing costs*
- Freddie Mac is offering selling agents/brokers (aka Buyer's Agents/Brokers) a 1.5 percent bonus on top of the broker commission already being offered (which ranges from 2 to 3 percent of the sales price)*
*Please see Freddie Mac Terms and Conditions for more details.
How do these two incentives benefit you as a buyer?
The first one is a no-brainer. You get your closing costs paid up to 3.5 percent of the sales price. Since closing costs typically run in the 3 percent range, this incentive should cover all of your closing costs leaving only the down payment amount due at settlement.
As for the second one, let me explain…
If you hire me as your Buyer's Agent, I will rebate any amount of commission/bonus paid to my broker above 3 percent of the sales price back to you on any and all Freddie Mac properties you purchase that offer the rebate.
For example…If the commission being offered is 2.5 percent and the bonus is 1.5 percent, you will receive 1 percent back as a rebate. If the commission being offered is 3 percent and the bonus is 1.5 percent, you will receive 1.5 percent back as a rebate.
Why "give away" my commission like that? Because I believe that making 3 percent of the sales price as a commission is fair and anything above and beyond that seems like a second-helping when you're already full.
How do you search for Freddie Mac-owned properties? The brokerage firm I'm with, Market Advantage Real Estate, has made it easy for you. They've added a search feature that allows you to search for Freddie Mac-owned homes only. This will help filter out the "noise" and allow you to only search those properties owned by Freddie Mac. (The search feature may not be pretty, but we were focused on getting a functional resource out to consumers ASAP)
If you'd like more information about any of the Freddie Mac-owned properties you come across in your search or have questions about how the process works, please email or call me - danilo.bogdanovic@gmail.com - 703.582.5900.
How To Buy Fannie Mae-Owned Properties With Zero Money Down, No Mortgage Insurance
October 29, 2008 by Danilo Bogdanovic
Filed under Buyer Resources
A little-known fact is that you can buy Fannie Mae-owned foreclosed properties with as little as zero money down with no Mortgage Insurance. Fannie Mae is selling their properties through a program called "HomePath" and they're selling them for 50 to 75 percent of what they were worth just a few years ago.
Fannie Mae also offers a program called "ExpressPath" which is a financing option provided by Fannie through a Fannie-approved lender. ExpressPath financing can provide qualified borrowers up to 100% financing on select Fannie Mae properties.
How do you search for Fannie-owned properties? The brokerage firm I'm a part of, Market Advantage Real Estate, has made it easy for you. They've added a search feature that allows you to search for Fannie Mae-owned homes only. This will help filter out the "noise" and allow you to only search those properties owned by Fannie Mae. (The search feature may not be pretty, but we were focused on getting a functional resource out to consumers ASAP)
How do you find out more about ExpressPath financing? Just click here.
If you have questions regarding the process, don't hesitate to contact me directly or check out the FAQ section on Fannie's web site. Here's an excerpt:
How is buying a home owned or managed by Fannie Mae different from other home purchases?
Usually, when you buy a home, you deal with a seller who lives in the home. However, the homes sold by Fannie Mae are unoccupied. Fannie Mae has acquired these properties through foreclosure, deed in lieu of foreclosure, or forfeiture.
Can I buy a house directly from Fannie Mae without going through a real estate sales professional?
No. Fannie Mae depends on the expertise of local real estate sales professionals and accepts offers only through our real estate listing agents. You may work with any real estate sales professional to submit an offer to the real estate agent who has listed the property.
If you'd like more information about any of the Fannie Mae-owned properties you come across in your search or have questions about how the process works, please email or call me - danilo.bogdanovic@gmail.com - 703.582.5900.
Related Posts
How To Buy Freddie Mac-Owned Properties With Closing Costs Paid Plus a 1.5% Rebate
Condo Owners Still Need Their Own Insurance
October 29, 2008 by Danilo Bogdanovic
Filed under Buyer Resources, Homeowners
If you're buying a condo or own one already and think that the master insurance policy provided by your condominium association provides you with all the protection you need, you may want to read the fine print. Master insurance policies cover "limited common elements" and "general common elements", but do not cover your personal belongings nor improvements. You still need your own insurance to protect your valuables and any improvements you've done within your home.
So what exactly does the master insurance policy cover? It covers problems and issues relating to "limited common elements" and "general common elements". Here's the definition of each:
- "Limited common elements" refers to space outside your unit that is not accessible to everyone living in the condominium property, and is reserved exclusively for use by one or more, but less than all, of the unit owners in the condominium. Examples include balconies, roof decks, parking spaces and storage areas.
- "General common elements" refers to those portions of the property used by all the unit owners in general. Everything that is not a unit (the space where each owner lives and owns) or a limited common element is a general common element. Examples include foundations, roofs, slabs, boiler rooms, laundry rooms, perimeter walls, common stairs, building lobby, trash areas, water mains, utility rooms and the land the condominium property is on.
Notice that nothing in either definition mentions personal property or improvements being covered.
For example, let's say water flooded into your property, damaged your walls, ruined your newly-installed hardwood floors and your 42-inch plasma and you had to rent temporary housing while the repairs were made. The damage to the walls would be covered by the master insurance policy, but your newly-installed hardwood floors, 42-inch plasma and temporary housing would be your own problem to deal with (and pay for).
To cover yourself, you need an insurance policy knows as an "HO-6". This a separate policy that cover personal losses. It should also cover things that your master insurance policy does not such as vandalism, theft in your property and personal liability coverage.
How much does an HO-6 policy cost? Generally between $250 and $350 per year. That's a small price to pay considering what typical replacement costs are for items such as floors, tv's, computers, appliances and temporary housing.
If you don't have your own insurance already, the first step is to take a close look at the terms and conditions of your master insurance policy (your condo association can provide you with that) and see what is and what isn't covered. Then talk with your insurance agent to see what kind of supplemental coverage you need in the form of an HO-6 policy.
Don't be like most and wait until something bad happens. With an HO-6 policy being relatively low in cost yet, covering so much, it's well worth it and every condo owner should have one.
Tip: When looking for HO-6 policy providers, start with the company that issued the master insurance policy for your condominium property. The reason to start there is because, should a claim on both the master insurance policy and the HO-6 policy be made, the same company covers both claims rather than two different companies having to litigate the issue of who covers what.
Though this information came from credible sources, make sure that you check with an insurance professional for guidance on this issue.
LoudounScene.com Makes Agent Genius “Most Sphere’d” List
October 28, 2008 by Danilo Bogdanovic
Filed under News
Warning: This is shameless self-promotion :) I'm proud to announce that LoudounScene.com has made the Agent Genius "Real Estate's MOST Sphere'd" list of real estate blogs in North America. AgentGenius, a top national real estate magazine/blog, launched their new Agent Genius Sphere service for consumers and real estate professionals today and this list is part of that service.
The list includes real estate blogs and bloggers that I have looked up to and learned a great deal from making this a huge honor. Jim Duncan put it well in a related post this morning,
If you’re a consumer curious about what some of the best and brightest real estate minds have to say, or if you’re in real estate and want to learn about real estate trends, technology, mortgage news, even finding a local real estate professional and general movements within the industry, check them out.
And if you're from Virginia, you should be proud. Eight of seventy-five real estate blogs/bloggers on the list are from Virginia! Here are the other seven:
Congratulations to everyone on the list (especially those from Virginia)!
Disclaimer: I'm a writer on Agent Genius, but had nothing to do with the selection process nor did I even know they were launching the Sphere or News services.
Look Out For “Hope Now” Scams Preying on Troubled Homeowners
October 25, 2008 by Danilo Bogdanovic
Filed under Homeowners
Every time there's turmoil, the scum of the earth come out of their holes to prey on people. This time around, they're preying on troubled homeowners by pretending to part of the foreclosure prevention program "Hope Now" (which is a completely legit government program that actually works).
Here's how far these scam artists have gone…
They've copied the Hope Now web site and then send those looking who land on it looking for help to a different pay site. They're also sending out mailers almost identical to the ones Hope Now sends out that direct homeowners to a site that charges for advice.
HOPE NOW Executive Director Faith Schwartz told the meeting of the Fed’s advisory panel that one scam involved the creation of a Web site that mirrored the alliance’s own site down to small details. That Web site has since been shut down.
She also said ‘copycat’ mailings had been going out that match letters HOPE NOW sends to distressed homeowners, but which contained a different toll-free number to call for assistance. The homeowner is then charged a fee for making the call.
“All of the regulators and all of us need to be vigilant about making sure that all services are free. We have to get out to the media and the public that counseling should be free, validate who you are talking to,” she told Reuters. via Reuters.
So be careful out there and always double-check everything so you don't get swindled by some of these scam artists and scum of the earth.
And yes, the Hope Now web site linked to at the top of this post is the real-deal Hope Now web site.
Hat tip to The Real Estate Bloggers
Van Metre Homes 15 to 20% Off in Broadlands, Lansdowne, Stone Ridge
October 24, 2008 by Danilo Bogdanovic
Filed under New Construction/Builders
Van Metre Homes is running a 20 percent off sale on all new "spec" homes in the Broadlands, Lansdowne and Stone Ridge communities in Loudoun County between now and October 31. Van Metre Homes is also offering 15 percent off on all to-be-built homes in those communities through the end of the month.
Here are the types of homes and starting prices in the different communities:
Van Metre Broadlands - Hedgewood Neighborhood
- Courtyard Collection single family homes - starting in the mid $400K's
- Classic and Estate Collection single family homes - starting in the high $500K's
Van Metre Broadlands - Parkgrove Neighborhood
- Windsor Collection estate homes on 3/4 to 1+ acre lots - starting in the mid $700K's
Van Metre Lansdowne Town Center
- Linden Row 1-car garage townhome condos - starting in the upper $200K's
- Berkeley Row 2-car garage townhomes - starting in the upper $300K's
Van Metre Stone Ridge
- Mercer Park 4-story elevator and garage condos - starting from the low $200K's
- Hamilton Grove Collection 2 car garage townhomes - from the low $200K's
- Cameron Park Collection 2-car garage luxury town homes - starting in the mid $300K's
- Savannah Collection single family homes - starting in the upper $300K's
- Courtyard Collection single family homes - starting in the low $400K's
If you'd like more information about any of the communities, Van Metre Homes models, available lots or how to negotiate even more off the prices, send me an email or call me any time - danilo.bogdanovic@gmail.com - 703.582.6900 (cell).
Interest Rates Drop As Fast As They Rise
October 23, 2008 by Danilo Bogdanovic
Filed under Mortgage/Lending
Just last week, interest rates took their biggest jump in 21 years. Today, they dropped almost as much as they rose last week - almost a 1/2 point. The national average for a 30-year fixed-rate mortgage (with no points) went from 6.74 percent to 6.32 percent.
Wondering why interest rates are so volatilite? Bankrate has a pretty good explanation as to why we're seeing these crazy swings in interest rates. Here's an excerpt:
Mortgage rates' volatile behavior is part of the credit crisis. There have been wide swings in various interest rates and bond yields in the last few months, and mortgages aren't immune.
Three events are combining to push down on mortgage rates this week. First, governments and central banks in North America and Europe have been trying to loosen lending among banks, so that banks then will become more willing to lend to businesses and consumers. This week, that effort began to show results, as interbank lending rates fell.
Second, stock prices have been falling. Investors respond by pulling some money out of the stock market and buying bonds, including mortgage-backed securities. As a result, bond yields fall — and mortgage rates follow.
Third, it becomes increasingly clear that the U.S. economy is in recession, and investors and economists are coming around to the idea that the recession will be deep and long-lasting. Interest rates tend to fall in recessions.
Several buyers I'm working with held off on putting an offer on a property because of the jump in rates last week, but are now ready to move forward due to the drop in rates. If you're a buyer who put things on hold last week as they they did, here's your chance to get back in near the same rate as a few weeks ago.
Have a Question? Instant Message Me
October 22, 2008 by Danilo Bogdanovic
Filed under Fun/Leisure
In order to provide those of you who like use to chat/IM as a means of communication, I have installed a Google Chat widget on my blogs. Now, you can ask me a question or contact me for any reason through chat/IM. And no, you don't need to have a Gmail or Google Talk account to use it.
Here's how it works…
Under "Contact Me" on the column just right of this post, you will see the following widget:
Just click on the link and a chat window will pop up so you can send me an IM immediately. Since I have access to my Google Chat IM/chat on my laptop, desktop and Blackberry phone, I will get it wherever I may be.
Hint: If the icon on the widget is green or orange, it means that I'm available. If it's red or gray, it means that I'm not available at the moment, but will be in the very near future. (Though I'm available through IM from the early morning hours until the late evening hours, I do enjoy my alone time and time with friends and family)
And if you missed my earlier post, you can now also text me. That widget is also on the right hand column. It looks like this:
Just type in your cell phone number and text message and click the red button that says "Send TXT Message". I'll get the text right away and will respond as soon as possible (typically within 15 minutes).
Loudoun Assessor Releases Forecast of 2009 Assessed Values
October 21, 2008 by Danilo Bogdanovic
Filed under Taxes
According to the Loudoun Times-Mirror, the Loudoun County Assessor's office released a report that says that assessed values throughout Loudoun will be an average of 11 percent below 2008's assessed values. In addition, here are some of the other stats they released:
Single-family homes on parcels of less than 1 acre in Sterling are being assessed on average 25 percent below the previous assessment, while townhouses are down 36 percent and condominiums are down nearly 57 percent.
Also seeing big drops are homes in Sugarland Run, with single-family homes, townhouses and condos experiencing declines between 15 percent and 20 percent; Potomac (including Cascades and CountrySide), which is seeing declines between 12 percent and 20 percent; and Leesburg, which is seeing declines between 16 percent and 28 percent, depending on the type of home.
Meanwhile, values in the Dulles District, which includes communities in the southeast corner of the county, are seeing the smallest drop in values, with 2009 assessments trending about 2 percent to 8 percent below 2008.
Sounds like they did more homework than last year, which is great. But there are a few things they could clarify some more:
- Is the Assessor's office factoring in whether a property that sold was a bank-owned or short-sale property when it comes to comps/market value?
- How exactly did the Assessor's office come up with an 11 percent average drop in values throughout Loudoun County?
On a side note…The drop in assessed values along with other issues is sure to send the Loudoun County budget shortfall and deficit much higher than expected. This will create even greater financial turmoil for the county than projected. I'll be writing more about that shortly…
Related Articles
"Assessor's Concerns Go Public" - LoudounExtra.com
"Loudoun County Home Assessments Drop by 12%" - Channel 8 News
