Title Theory vs. Lien Theory: In a Title State, the lending institution holds title to the property in the name of the borrower through a Deed of Trust. In a Lien State, the deed stays with the borrower (mortgagor), and the lender (mortgagee) places a lien on the property using the mortgage instrument. Generally, foreclosure in Title States occurs through a non-judicial proceeding, while Lien States are conducted via judicial methods; however it varies with each state.

Both Washington DC and Virginia are Title States. A Trustee’s sale is the only type of allowable foreclosure sale in DC and is more common than a Sherrif’s/Judicial sale in Virginia. Please note: There is NO right of redemption once the property has been foreclosed (meaning the bank becomes the owner) in either of these jurisdictions.

area info, Investing, Real Estate, The Market, Things to Do

BRAC-133 in Alexandria VA (Mark Center)-Infrastructure Impact

Posted on April 24, 2011 by Kristen K. Foley, REALTOR®

In an article written by: Dak Hardwick and Don Buch for the Cameron Station Compass

“BRAC-133”, scheduled to be fully open and operational by September 15, 2011, will bring approximately 6,400 DOD personnel to the West End of Alexandria. As this building is owned by the federal government, it is not subject to local zoning rules and regulations. However, over the past two years, various citizens’ groups and the City of Alexandria have been working to help mitigate the impact of BRAC-133 as a consequence of its being located in a semi-residential area with a limited transportation infrastructure.

Short/Mid-Term Road Improvements — If you’ve been in the Seminary Road/Beauregard Street area recently, you’ve probably seen some ongoing road construction. The City of Alexandria is undertaking some minor road improvements, including a “triple left” from westbound Seminary onto southbound Beauregard in an effort to alleviate some of the BRAC-bound traffic. Construction of several additional improvements will begin in late winter 2011/early spring 2012 and are expected to take two to three years to complete.

BRAC Transportation Management Plan — DOD and the City of Alexandria have been working on an extensive Transportation Management Plan (TMP) that offers a variety of traffic mitigation efforts. There will be frequent peak period shuttles from five different Metro stations. That includes service between the King Street station and Mark Center every ten minutes on a service open to public ridership.

Long Term Transportation Improvements — In early February, the Virginia Secretary of Transportation announced plans to pursue a new HOV ramp from the northbound HOV lanes of I-395 to westbound Seminary Road (reversing at evening rush hours). The estimated cost of this project is approximately $80 million. Although some questions remain about the exact scope and scale of the project, the Alexandria City Council has endorsed the proposed ramp and is currently working with the Virginia Department of Transportation (VDOT) to move it forward as expeditiously as reasonably possible.

As many would expect, this project may also significantly affect Real Estate Values and requirements in the Alexandria Area, most pronouncedly on the West End of the city. The demand both for homes to purchase and to rent near the new center will undoubtedly increase as this project moves forward.

area info, home for rent, Investing, Real Estate, The Market

Repealed Landlord Law! Yea NAR!

Posted on April 19, 2011 by Kristen K. Foley, REALTOR®

Congress passed legislation last week that repeals a provision in the small business legislation enacted last year that requires landlords to report any work done on investment properties totaling $600 or more, and to provide 1099 forms to vendors that provided the services.

Realtors^® fought against this provision, arguing that the amount of paperwork generated would be onerous to landlords and any real estate practitioners employed by landlords. Lawmakers finally agreed that the provision was an example of overreach by Congress that was not intended to burden small property owners and managers.

Even President Obama agreed back in November of 2010, “It just involves too much paperwork, too much filing.”

Decorating, DIY, House and Home, Real Estate, The Market, Tips and Tricks

Give your home more value to buyers with landscaping

Posted on April 8, 2011April 8, 2011 by Kristen K. Foley, REALTOR®

Weichert Insights:

Landscaping really does make a difference – both positively and negatively. Not only does a well-landscaped home have a higher perceived value than one with a plain lawn, but one with a minimal landscaping effort actually can detract from a home’s value. Luckily, landscaping projects don’t have to cost a lot and should be seriously considered by any homeowners planning to put their home on the market. Here are a few tips to get you started on developing a landscaping plan:
•    Start by measuring your property and then sketching out a basic layout, including all of the areas where you would like to add landscaping and make improvements. Once that is done, you can add costs to each and see how much can reasonably be accomplished given your budget.
•    Be practical when deciding on your plan. While they might not sound glamorous, sensible improvements such as irrigation, fencing, lighting, equipment storage, privacy, and security can protect your property value far more than a formal garden with walls and water features.
•    Consider enlisting the help of a professional who can help you best allocate your landscaping dollars. Ask your friends and neighbors for recommendations, especially those whose yards you admire.

Where To Find The Best Landscaping Company In Your Area (mydecorarticles.com)
This Year Develop a Landscape Plan to Fit Your Budget (mytowncryer.com)
7 Gardening Mistakes to Avoid This Spring (mytowncryer.com)
Easy Landscaping Ideas For the Home (mydecorarticles.com)

area info, open houses, Real Estate, Things to Do

Open House-Alexandria, VA-Sunday, April 10, 2011, 1pm-4pm

Posted on April 7, 2011 by Kristen K. Foley, REALTOR®

1100 Quaker Hill Drive, #1, Alexandria VA 22314

Beautiful Condo in quiet community with an open floor plan that makes the large rooms seem even more spacious. Two entrances on two levels. Great kitchen that has friendly pass-through to dining room. Master BR w/walk in closet. Welcoming patio entrance just steps from parking. Luxury bath w/sep shower and jacuzzi tub. Tons of storage space. Enjoy Pool and Pond. Just min. to King Street metro, old Town and I-495.

Financing-home loans, Real Estate, The Market

FHA – Seasoning requirements

Posted on March 28, 2011 by Kristen K. Foley, REALTOR®

HUD has published the final version of its predatory lending rule established to combat “flipping.” Flipping is the term used to describe the resale of a recently acquired property for an artificially inflated value. Under the new rule, recently flipped properties are not eligible for FHA mortgage insurance.

Some of the other features of the rule include:

Only the owner of record may sell a home to an individual who will get an FHA mortgage. It cannot involve the sale or assignment of a sales contract.
Resales occurring 90 days or fewer after the purchase of the property are not eligible for FHA insurance.
Resales occurring between 91 and 180 days after purchase will be eligible only if the lender obtains an additional independent appraisal based on a resale profit percentage threshold established by the FHA. Lenders may prove that the increased value of the property is due to rehabilitation.

In areas where flipping is a problem, HUD may require that lenders provide additional documentation to sup-port the value of the property. This would supersede the 91–180 day rule shown above.

Make sure you are working with an agent who is aware of these rules if you are seeking an FHA loan..you could end up in default if you find out too late in a transaction to purchase a home that meets this criteria. Also verify any additional risk layering that your specific lender may use to protect themselves that adds additional requirements to the above noted.

Hope this helps!

What is mimimum FHA downpayment for a Kentucky FHA Loan (kentuckyfhaloan.wordpress.com)
Important Changes from the FHA (atsukorealtor.wordpress.com)
FHA Says: “Flip On” (cashflowpropertiesphoenix.wordpress.com)

Financing-home loans, Real Estate, The Market

First-Time Homebuyers

Posted on March 25, 2011March 25, 2011 by Kristen K. Foley, REALTOR®

Quoted from:

Focus on First Time Homebuyers by Tim McLaughlin

There has been a dramatic shift occurring in the housing sector. According to Realty Times, of the 8.4 million people who have purchased a home in the last two years, 41 percent of them have been first time buyers. This number is up from 35 percent in 2007, and experts believe this growing demographic will influence the home-style landscape in the years to come for first time purchasers.

Today’s first time homebuyers have as much desire to establish household independence as their parents did, but the economic environment has impacted their preferences to some degree. This demographic is much more aware of both how much home they need and what they can afford. But they also have specific preferences in layout, efficiency and neighborhood type according to recent statistics.

On average, over the past few years, first time buyers are buying smaller, lower priced houses than trade up buyers are, the majority buying homes with avg. square feet under 2,500. This buying preference is partially affected by the economy and by maintenance costs, according to Realty Times.

In addition, first time homebuyers seem to have a different mindset regarding a home purchase. They look at the transaction as securing a place to live in first and foremost. While they have less to spend, they want the space they can afford put to the most effective use. This means that the practical spaces they will use every day, like kitchens, laundry rooms and the master bedroom, are their key focus. They appreciate open spaces that can be defined by furniture rather than walls and hallways. Additionally, home location appears to be important to these buyers, who have a keen interest in transit oriented communities. This makes urban areas highly appealing, as well as suburban areas with walk able town centers.

Of biggest concern to this subset appears to be financing questions: qualifications, the right loan structure with the least amount of money down, and understanding an approval process that is much more cumbersome than what their parents had to deal with.

This market is a tough one to navigate…we have very low inventory because of sellers still waiting for appreciation before they will list, but plenty of buyers out looking to take advantage of the great interest rates and loan programs to get into their first home or move up into their “forever home”. In this environment, it is so important to have a Realtor you trust to help you navigate the offer process as well as all of the steps between the contract signing and settlement. Between the appraisal, the home inspection, rent-backs and more…it is important to choose someone you like and trust and who keeps current on laws, best practices and the market pulse to guide you through the process (regardless of how many times you have bought and/or sold a home).

Loan help for first-time buyers (bbc.co.uk)
Four New Mortgage Need-to-Knows for First-Time Homebuyers (walletpop.com)

Financing-home loans, Real Estate, The Market

Rent vs. Buy

Posted on March 23, 2011 by Kristen K. Foley, REALTOR®

Deutsche Bank released a very interesting study this week showing that renting a home costs US households more than paying a mortgage for the first time in at least two decades. The rent-buy ratio, or rent as a percentage of after-tax mortgage payments, is based on figures that Deutsche Bank compiled from NAR and the REIS information service. Rent amounted to 100.2% of home-loan costs in last year’s fourth quarter, the highest level since calculations began in 1991.

So dissecting this: renting is now more costly than buying, rates have come back down this week ….it is a great day to buy OR SELL a house!

Owning vs. Renting (mobilebaldwinhomes.wordpress.com)

area info, Homes for Sale, open houses, Real Estate, Things to Do

Alexandria VA Open House…steps to Shirlington…Sunday March 27, 1-4pm!

Posted on March 22, 2011 by Kristen K. Foley, REALTOR®

3777 GUNSTON RD #541, Alexandria VA 22302

Fantastic 2-lvl, end-unit in the great community of Parkfairfax. High-end SS appliances,granite,tiled floor/backsplash. Crown molding/ recessed lighting. Solid wood doors, gleaming parquet floors and literally just steps to the Shirlington Footbridge & Metro bus!!! Overlooks gorgeous park-like courtyard! Washer/Dryer in unit. Community has amenities such as: Pool, Tennis Courts, Rec Facility, Tot-lot/playground, grilling areas and courtyards. Easy access to I-395 and just steps to the Shirlington Footbridge and metrobus.