Celebrating 3 Years!

Wow, how time flies! Three years ago this month, I started blogging about Loudoun County real estate and the area in general. Back in 2006, there were very few Realtors blogging across the U.S. let alone Loudoun County (there were less than a few dozen across the entire U.S. at the time).

Today, that number is much higher yet, LoudounScene.com and LoudounForeclosures.com continue to be one of the best and most up to date sources of local information and resources for home buyers, sellers, investors, residents and the mass media.

Thank you to all of you who have commented on and been loyal readers of LoudounScene.com and LoudounForeclosures.com. Without you, there would be no Loudoun Scene or Loudoun Foreclosures and I would not be able to say, “Celebrating 3 years!”

Loudoun County Neighborhood Stabilization Program Update

Loudoun County held a meeting last Friday to discuss the Neighborhood Stabilization Program. Loudoun invited a select handful of folks to answer questions and provide feedback on putting together an RFP in order to apply for the Neighborhood Stabilization Program funds and how to most effectively use those funds.

Those in attendance included local bank representatives, a Dulles Association of Realtors staff member, a couple of Realtors (including myself) and various Loudoun County government staff. The Neighborhood Stabilization Program will be a collaborative effort on the part of those in the county government and lending and real estate industry so it was important to hear from people representing each of those areas.

Here are some of the Loudoun County Neighborhood Stabilization Program highlights and updates…

• Loudoun is fighting an uphill battle – Fairfax and Prince William Counties already got approval for the Neighborhood Stabilization Program ($2.8M and $4.1M), but Loudoun didn't get a dime
• Because of not already being approved, Loudoun has to submit an RFP (due January 30, 2009)
• Loudoun is shooting for the minimum – $2 million per allocated neighborhood
• Loudoun has already determined the required 3 neighborhoods that meet the requirements of the program, but the county is not releasing which 3 neighborhoods they've selected (?)
• Loudoun has determined that the types of properties within those 3 neighborhoods that qualify under the program's rules are town homes (no condos, single family, etc)
• There are some issues with legal language of contracts that need to be addressed prior to the RFP being submitted (don't ask me for details – it's all lawyer lingo)
• Loudoun is shooting for the minimum – $2 million per allocated neighborhood
• After surveying properties throughout the county, Loudoun determined that the majority of properties need "minimal to moderate" rehab costs
• They're going to be using some, if not most of the money to buy, rehab and flip properties

Here are some of the issues I have/see…

• When Loudoun surveyed the properties, they never once went inside any of the properties. With the majority of the necessary rehab work being on the inside of foreclosure properties, Loudoun has no idea of what the true costs of doing rehab on these properties will really be 
• Because they have no real idea of what the true costs per property will be, they're whole plan and budgeting of the money will be off 
• Rather than flipping a total of maybe 12 to 15 properties ($2M divided by average cost of property + rehab), why not focus on helping out the community and residents in ways to reach more people (how about 50 people) and those such as teachers and firefighters who can't afford to live in the same county they work in…(more to come on that in a future post)
• Loudoun must have dropped the ball or pissed someone off in Richmond because Fairfax County and Prince William County had no problem getting money for the program, but Loudoun didn't get any an now has to apply for the bare minimum (I have four words for you conspiracy theorists – "opposition of Grantor's Tax")

• Rather than flipping a total of maybe 12 to 15 properties ($2M divided by average cost of property + rehab), why not focus on helping out the community and residents in ways to reach more people and those such as teachers and firefighters who can't afford to live in the same county they work in…(more to come on that in a future post)

Though no process nor government program is perfect and most have some flaws, I think that the Neighborhood Stabilization Program is a good thing overall.

But Loudoun must make sure that it spends the money wisely and in the best interests of the neighborhoods and people it's supposed to serve – not for the self interest of Loudoun County government or revenue. This is especially true when you consider that $2 million is a drop in the bucket for a county that has $62.7 billion (with a "b") in total real estate values and hundreds of foreclosures on the market at any given point in time.

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"Loudoun appeals to Richmond for funds" – Washington Business Journal

New Law Affects Those Behind On Mortgage Payments

Already behind or about to be behind on your mortgage payments? Facing foreclosure? If so, check out this post over at LoudounForeclosures.com regarding a new Virginia law that took affect July 1.

Looking For Loudoun County Foreclosures, REO, Short-Sales, Other Deals?

If you’re looking for foreclosures, REO, short-sales, distressed properties and other great real estate deals in Loudoun County, Virginia you’ll want to check out Loudoun Foreclosures. This new blog brings your attention to the best real estate deals in Loudoun County, Virginia regardless of who the agent, broker or home builder is. You can find basic information about the featured properties along with the reasons why they’re such a great deal.

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