Foreclosure Help

There have always been homeowners who, for whatever reason, one day have trouble making their mortgage payments. Circumstances change, people lose jobs, medical bills overwhelm or any number of bad things happen. It can happen to the best of us. It's beginning to happen more often in many parts of the country as some of the adjustable rate mortgages suddenly require much larger mortgage payments. And, some buyers who were encouraged to stretch more than they should have to buy a home, will now find themselves in trouble.

If you know you've got a problem, the first thing to do is not panic.  It's so easy to say, so hard to do! Don't panic, but also don't avoid the situation. It's important to intervene early in order to have the best chance of a good outcome for you and your family. Approach your lender immediately when you know you've got an issue. Many of them want to work with you to find a way for you to keep your home if at all possible.  Remember that it's expensive for them to take your home and resell it. And, in this buyer's market it's definitely not easy money for them! Often lenders will try to help you restructure your mortgage. That may mean adding a little to future payments to make up for missed payments. It may even mean they forgive some debt. Your situation and your lender's policy will be unique. But rest assured that there are other options than walking away or declaring bankruptcy.

There are foreclosure counseling services out there, but you should be very careful. Many of them are simply looking to prey on people who already are feeling desperate. HUD (Housing & Urban Development) a federal government department has certified certain homeowner counseling agencies. You can be sure that these agencies are not looking to take advantage of your situation. You can find a list of these agencies on HUD's web site at: http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm

And, if I can ever be of assistance, please don't hesitate to call! There have always been people available to help me when things looked dark. I'm happy to pass that along when I can!

Buying Help for Those Who Serve

It is a continuing vexation to me that some of the most important people in our communities can't afford to buy housing! I fret over this, but Long & Foster and their affiliated companies has now done something about it!

Health care workers, teachers, firefighters, police and armed forces personnel can now get some help with buying their own home! This new program uses Prosperity Mortgage to give great deals to these deserving servants. In addition to very attractive interest rates, these mortgage programs provide up to 100% financing, and allow the seller to help with up to 4% of closing costs. There is also a $500 credit at closing to help with anything left over. The program can be used to buy a first home or move up to a larger one. For those who have less than stellar credit, this program has help there as well. Most borrowers will qualify for this program!

There are a lot of other associated benefits and I'll be putting the details of the entire program on my web site http://www.JulieEmery.com later today. In the meantime, you can call me directly at 540-270-2742 or call Sal Rotante with Prosperity Mortgage at 703-303-0356 and tell him I sent you!  By the way, Sal is who we used for our mortgage when we bought our home and I can't recommend him highly enough!

If you know anyone working in these service industries, please pass this information along to them.  Too many people think it's simply impossible for them to ever own a home. But it's often not true and this program could make a difference for many of them!

Cuban Food Comes to Warrenton

Mojitos and Tapas is an exciting new restaurant in Warrenton. As a big fan of Cuban food, I've been eagerly awaiting this opening and I was there with bells on for lunch on its first day.

There was a crowd there to try out the newest spot in town. It's so nice to have something new that's not a chain!

While the wind was cold and blustery outside, you feel warm as soon as you step in the doors. The decor immediately tells you you're in a warmer climate than the outside thermometer indicates! The bold red behind the bar immediately grabs your attention!

The menu is extensive, with much of it made up of tapas, small savory bites meant to be shared. Bring your friends and try a few of these. Tapas originated in Spain and seem to now have made their way to almost every corner of the world. The tapas I tried were terrific and I especially enjoyed my garlic fix! Enjoy your tapas with Cuban bread and a glass of wine, beer or sangria. Or, of course, you can try their signature drink, a mojito, from Cuba. They've got a larger variety of mojitos than I've ever seen and I lived in Miami for 13 years!

The service is warm and friendly. And there were surprisingly few first day glitches for a new restaurant.

You can find more information on their web site http://www.mojitosandtapas.com

I definitely recommend the food and will be going back soon with friends!

October Numbers Mixed

The October numbers are out for our local multiple listing service and they are a mixed bag. The number I'm following most closely right now is inventory. Overall in the region, that number is falling month over month. However, year over year, we're still way above what we had a year ago. And, the worst news from my perspective, is that the number of new listings coming on the market exceeded those going under contract by about 3 to 1. In Fauquier County we've got approximately 16 months of inventory currently. In Culpeper County we've got about 22 months.  That's if things continue to go under contract at the same rate and if nothing else comes on the market.  Both of those are unreasonable assumptions.

The only reason these numbers aren't worse is that a lot of sellers have taken their homes off the market.  That's good news. With the current level of inventory we need a change in one or more of these three elements:

1. Sellers pull listings off the market (preferably for more than one year).

2. Buyers start coming out in droves to buy up current inventory.

3. Prices and/or interest rates plunge in order to pull more buyers into the market.

It is hard to see any of these things happening in enough volume in the short term to turn this market around significantly. My prediction at this point in time is that the market will remain very soft throughout 2007.

I'm not an economist and there's certainly a good chance that I'm completely wrong. And, there can always be unforesee events that completely change the picture. But right now I haven't got even a hint of good news for you sellers.

For all you buyers, enjoy being in the driver's seat! But remember that some day you'll be the seller and what goes around comes around! Try not to leave the seller laying wounded on the floor!

I'd love to hear what you're experiencing in this market, whether you're a buyer or a seller. Let's hear from you!

For more information on buying or selling, please visit my web site at http://www.JulieEmery.com

Unreasonable Sellers

I've turned down a couple of listings in the last two weeks. Understand that no real estate agent wants to turn down a listing and the potential for a commission! It's never something I do lightly.

But there are still sellers out there who are reluctant to accept current market conditions.  And, I understand where they're coming from.  I've heard "I need to get more money than that so I can buy what I want." The sad answer is that buyers could care less what you want. When you go shopping for your next home, you won't care a fig about the sellers predicament except insofar as that improves your negotating position. It's true for the potential buyers of your home as well.

A couple of sellers have properties that they bought as investments at the tail end of the red hot market. They tell me they will actually lose money now if they sell at the price I tell them they can get. And, again, they're right. And, again, buyers just don't care. I had to tell one seller today that I believe it will be several years before they're able to sell their property for a high enough price that they'll have a gain on the sale.

I've also had a seller whose home needed significant cosmetic improvement. They told me that they had no money with which to make those improvements. Again, I understand a cash crunch!  I've had plenty of them myself. But the truth is that what is selling right now are homes in excellent condition that are priced very aggressively. If you're not going to do what's necessary to make your home shine and you're also completely unwilling to lower the price to what the market will bear, there's really no way for me to help you.

And, I want to help you! I'm working with plenty of sellers where we're partners at beating a tough market. Even on the worst days I still feel good about how we're pursuing their goals.

Another agent this week said she's very frustrated that she's lost several listings this year to agents who promised the sellers a much higher sales price than they could possibly obtain. And that's tough! You know that the home will sell for that. In fact, I had one seller tell me they suspected they were being bamboozled. But hope springs eternal! I understand how hard it is to go with who you feel is the best agent when there's someone else who is absolutely sure they can get you more money! I'd just say, be wary. You know what they say about if it sounds too good to be true! There are plenty of agents who will tell you what you want to hear and are banking on getting you to lower the price to a more reasonable number down the road.

The latest numbers show that inventory is no longer decreasing locally. That means prices will continue to fall. But that's the subject of my next blog entry! So for now, just keep in mind that it's a tough market out there and you need to price your home aggressively and make sure it's in top condition!

For more tips for sellers, see my web site at http://www.JulieEmery.com

Vote!

Whatever you do today, please take time to go vote!  It makes a difference!

And, I'd like to ask you to take the longer view, the larger approach to voting. As a REALTOR, I'm a member of the National Association of REALTORS.  Like most professional associations, they're more than happy to share with me who they believe I should vote for based on how well they support the issues that put money in my pocket.

I haven't looked at their recommended list and I won't.  I hope we're all making decisions based on larger issues than our immediate financial well being. And, my personal opinion is that there is way too much special interest influence in politics in this country. I'm not going to be a party to that!

So, do go and vote. It's an important election. It may be one of the most important you'll have an opportunity to participate in! If you've got children, vote to set a good example for them if for no other reason! And, after you've voted, take a minute to pat yourself on the back!  You deserve it!

Ballot Question Number 3

Since the election is only a few days away now (along with the end of all those awful TV ads!), it makes sense to talk about a real estate related ballot question you'll be seeing on Tuesday.

The question is whether there should be a constitutional amendment permitting localities to grant real estate tax breaks for homes and businesses in designated areas in order to encourage conservation, redevelopment or rehabilitation.

There are current tax exemption programs but they are lmited to renovation, expansion or reconstruction of structures. The thinking in expanding this to new construction is that it will encourage new development in areas that are considered blighted. This is clearly less of an issue in much of the Piedmont than it will be in some of the larger cities in Virginia.

However, this would apply to all localities if it passes and so it makes sense to contemplate what, if any, effects it would have in our area.

First of all, there are some areas of some communities where this could be used to make a real difference. If the amendment passes, localities would have the option of adopting ordinances spelling out eligibility criteria for the tax exemption. The exemption could be as much as 50% of the increase in the assessed value resulting from the new construction. Localities would not only determine the size of the exemption, but also for how long it would remain in effect.

But most of us don't see any blighted areas in our neck of the woods.  I think in areas where this is a problem, this is a solution that would seem to make sense. But what additional powers would it give communities here locally and what would be the effects of that?

Could developers persuade local authorities to write the rules broadly enough to open the door to development with exceptionally favorable tax treatment? Would it encourage development in areas that most residents would prefer to see protected? The wording seems broad enough that vigilence will be required on a local level to prevent misuse. But then, shouldn't we as citizens be practicing vigilance in regards to our government all the time, at all levels?!

On that note, please remember to get out there and vote on Tuesday!

Workforce Housing

We have a guest blogger today.  His name is Chris Moyles and he is with the Rapidan Better Housing Corporation, a housing oriented non-profit. This is actually taken from a longer post on a local list-serve. But I thought it a timely and important topic for discussion. I'm anxious to hear your thoughts!

As Is Properties

The new regional sales contract has substantially changed contract language regarding properties that are sold "as is" and I think it's worth spending some time talking about how these changes affect both buyers and sellers.

First of all, properties are sold in "as is" condition, when the owners are not willing to spend any money to improve or repair the property. This could be because they are selling in a tough market and are already in danger of not even breaking even on the sale. It could be that it requires so much work that it's only feasible to sell as a fixxer upper. Or in these days when we all lead such busy lives, it could be that there's just no time available to do the repairs that most of us would do to get a house ready to sell.

The new sales contract is much more specific and detailed in regards to these properties. First of all, the sellers can define which parts of the property are in "as is" condition. So, if the dishwasher isn't working and you're not going to repair or replace it, but everything else is fine, you can indicate that the dishwasher conveys "as is". You can decide that the entire property is "as is" which would mean that any contract could not be contingent on a home inspection. There could be an inspection done for information purposes but that information could not be used to get out of the contract.

The new language that's really changed things here, though indicates that if the property is sold "as is" all references to property condition are struck in the contract. And, if there are repairs that are mandated by the lender, those repairs are the responsibility of the buyer.

It's probably easiest to explain the effects of this by talking about a potential scenario. Let's say you have a contract on a property that's being sold "as is". Your lender requires a termite inspection, and, by the way, most do. The inspection shows extensive termite damage. The lender requires that this be repaired prior to settlement. The bill for this is $10,000.

You now have a dilemna. You have to come up with the $10,000 to pay for the termite repairs/treatment or walk away from this house. But if you walk away, you're doing so without grounds per the contract and you stand a very good chance of losing your earnest money deposit.

You can see how this could easily get complicated and expensive! My first advice is be sure you understand what you're getting into with "as is" properties. And, if you go in with your eyes wide open, I'd suggest trying to minimize your exposure with a small earnest money deposit. Obviously that requires the cooperation of the seller and if I'm the seller that's not in my best interests! But, at least you're now forewarned!