Can You Read Me Now?
July 18th, 2008 categories: Military Installations, Relocating
One of North Stafford’s favorite hideaways is none other than the local library, specifically, the John Musante Porter Branch. Built in 1992, with an architectural design unlike most other community libraries, the Porter branch is conveniently situated in the center of North Stafford’s most populous area, and just down the street from three of its local schools, North Stafford High School, H.H. Poole Middle School, and Park Ridge Elementary. Additionally, within a couple of miles are North Stafford’s most popular home subdivisions:
- Park Ridge
- Hampton Oaks
- Augustine
- Amyclae
- Berkshire
- Austin Ridge
- Autumn Ridge
- Whitson’s Ridge
For those that like to stop in just to relax and still catch up on their news the old fashion way, hard copy instead of the web, there’s plenty of comfortable seating and with accompanying desk space, but also assorted seating throughout the building. For those who prefer the comfort of online information, there are a number of computer stations and free Wi-Fi for those who carry their laptop with them.
For a bit of cultural enrichment, the library’s ArtPoint program highlights the many local artists offering live entertainment, painting exhibits, story telling, and various other forms of media.
So, for those new to the North Stafford community, or those who’ve witnessed the steady stream of more and more traffic lights moving into the neighborhood the past few years, stop by your local library, whether by day or night, and enjoy the wealth it has to offer. As someone has said, “a library is an arsenal of liberty.” For most of us, its only a few blocks away and certainly worth the journey.
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Do You Like To Play Dominos?
July 14th, 2008 categories: Finance, Market Trends
“IF you can keep your head when all about you
Are losing theirs…”
While the weekend past didn’t witness the height of the current mortgage crisis, the announcement of the financial troubles of Fannie Mae and Freddie Mac resulted in both to lose half their stock value, and more than a bit hand wringing by the Treasury Secretary, Henry M. Paulson. Fortunately, despite the government’s longstanding claim of not backing the debt of both these agencies, in the midst of a near financial stroke, Mr. Paulson seemingly did a “one eighty” by announcing on Sunday that the government would not let either of these agencies fail. One could hear the loud and long sigh of relief from Main Street to Wall Street upon hearing Paulson’s words of assurance. Unfortunately, the weekend’s news came on the heels of IndyMac Bank’s collapse and subsequent takeover by the Federal Deposit Insurance Corp (FDIC) on Friday. Predictably, the mortgage crisis dominos continue to fall with little relief in sight.
With many analysts indicating that failed banks are “lagging” and not “leading” indicators, how much more ”road kill” will the mortgage mess deliver? Will the next casualty be another national bank like Wachovia or Wells Fargo, or, is it the local banks who are due to walk the sub-prime gangplank? And, just who caused this mess in the first place? A sample line-up of likely suspects would probably look something like AJ Nisen’s list:
-
Sub-prime Mortgage Brokers
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Banks
-
Rating Services (Standard & Poors, Moody’s, etc.)
-
Wall Street Investment Banks
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Bond Insurers
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Government Agencies (The Federal Reserve, Congress, Federal Trade Commission, The Accounting Regulatory Agency, just to name a few)
While his list is fairly comprehensive, what about the borrower? Was the borrower asleep when the lender was explaining the loan options to him? Does the borrower have a responsibility to do a risk assessment/analysis at some point prior to committing to the loan? Or, are they blameless?
What about the borrower’s real estate agent? What are their fudiciary duties? Since many of us don’t “pre-qualify” our buyers any longer, can we look after their best interest in what loan vehicle they choose? Or, do we simply take the word of the lender, even one we aren’t familiar…you know, the internet kind.
Well, enough of the finger pointing. Where we sit is the reult of a journey chock full of bad choices by many of those involved. It didn’t happen overnight. As Robert Louis Stevenson said, “Sooner or later in life, we all sit down to a banquet of consequences.” Little did we know that in this case, the meal just happens to be gruel!
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A Beach With a View
July 8th, 2008 categories: Entertainment, Military Installations
It seems that as the end of June rolls around, its thoughts of how we’re going to spend July 4th that begins to be discussed. Another day of having friends over for the annual backyard BBQ? Another evening of local fireworks, all seventeen minutes.
Fortunately, for Virginians, specifically, Northern Virginians, there are plenty of options outside of the normal fare. For us beach lovers, Virginia Beach is only a couple of hours away from historic Fredericksburg. And, if you choose to avoid the Interstate, the ride can be extremely enjoyable along the Virginia countryside. If you haven’t, make the trip via US17 and the Tidewater Trail. You’ll not only avoid the trucks and wall to wall traffic, but you’ll get a glimpse of a relatively unmolested area of the state. This ”road not taken” is the perfect place to put the top down, relax, and just enjoy the beauty the tidewater area has to offer.
Viriginia Beach on July 4th weekend is not for the faint of heart, unless you like lots of traffic, crowds, and lines. But, once you get there, there’s lots to do & see, and no shortage of good places to grab a bite to eat. If you’re like me and you’re an early riser, and even if you prefer to sleep in, for breakfast you’ve got to stop at Mary’s Restaurant on 17th Street. It’s not only a favorite of the locals but offers a wide variety of choices for breakfast. For those on a budget (hmmm…”beach budget”…is that an oxymoron?), you can take advanatage of the Early Bird Special which costs only $2.50, runs until 9:00AM, and features:
2 eggs any style with grits, toast
and choice of 2 bacon strips or 2 sausage patties
(Substitute home fries or spiced apples
instead of grits for 40¢)
OR
2 eggs any style and 2 pancakes with
warm syrup and whipped margarine
Whether it’s the bargain you’re looking for, or a bit more in the morning, you’ll enjoy the warm embrace of Mary’s atmosphere and service as well.
The city has a wide variety of activities available on the 4th, from their normal beach tourist offerings, to those tailor made for Independence Day. If you’re like me, you’ve probably had your fill of T-Shirt, Tattoo & trinket shops, but the good news is, there are plenty of other activities to enjoy beginning with a day on the beach and in the ocean, and ending with a casual stroll along the famous Boardwalk. It provides plenty of room whether you navigate it by bike or foot.
Prior to the evening’s fireworks, we had the opportunity to listen to the symphony orchestra of Virginia, Symphonicity accompanied by the Virginia Beach Chorale. After an enjoyable hour of tunes that spanned the spectrum from Broadway to patriotism, we sttled down a bit after 9:00 for what most of the crowd had travelled miles to see, the Fireworks show. We weren’t disappointed!
Since the fireworks are actually launched from a barge a few miles off shore, and can be seen from miles around, it isn’t a must to get “good seating”, however, 20th street appeared to be the location of choice for the best viewing. And, if you want to sit back, relax, and do so with a bit of room, do yourself a favor and take a seat on the grass between the hotels and the boardwalk, instead of the beach. You’ll be glad you did.
Unless you’re staying in a hotel within walking distance the the beach, you’ll have to decide where you want to park. If you’re driving, you can’t beat the free parking in the Convention Center parking lot. You may have to walk a few blocks to the beach, but, after all the fireworks and fun are over with, and you’ve made it back to your car, amid the barely moving bumper to bumper traffic, it’ll only take you a few minutes to leave the parking lot. With the Convention Center’s departing traffic a priority, the local police force very conveniently directs the parking lot’s traffic seamlessly into the normal flow of departing city traffic, making it a much smoother departure from the city than those parked closer to the beach.
Next July 4th, consider doing something a bit different than the normal holiday backyard BBQ. For those of us with military ties, if you don’t want to fight the Virginia Beach crowds & prices, there are a number of places to stay, like Langley AFB, Ft Story, and Oceana Naval Station, among others. The accomodations are clean, well kept, and pretty much what you can expect, and the prices can’t be beat. But remember, you’ll have to supply your own sun block!
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What’s “short” About A Short Sale - Part II?
June 29th, 2008 categories: Finance, Market Trends, Real Estate News, Repairs
So, despite the promise and benefits of a “short sale“, why do they seldom work? Why does there seem to be such a huge disconnect between the seller and their real estate agent, and the lender?
Unfortunately, there are a number of reasons for the general failure of the short sale process.
1) One of the biggest obstacles to a successful short sale is the lack of communication between the listing agent and the lender. Coordination between the real estate agent, who has listed the property, and the lender, or the asset manager handling the property is crucial for a successful transaction. Communication between the asset manager and real estate agent is problematic at best. In almost all short sale cases, attempts to contact the lender’s loss mitigation department or asset manager are rarely successful.
As any agent whose handled a short sale transaction will tell you, in a transaction whose success depends on coordination, frequent and easy communication with the asset manager handling the transaction is rarer than rare. Despite agent’s best efforts, it’s normally a struggle (and that’s putting it midly!) to contact the lender’s point of contact. Building this bridge between the listing agent and the lender is crucial to the success of any short sale. Without this relationship, the short sale is destined to be Dead on Arrival (DOA).
2) The asset managers are overwhelmed by their case loads. Like most of America, lenders were blind sided by the subprime mortgage mess, and are in the crisis management mode attempting to stop the financial bleeding. In other words, the lender’s employees, especially those in loss mitigation, are peddling as fast as they can.
3) The real estate community, much like the lenders on the other side of this short sale joy ride, are, in most cases, lacking the preparation needed to properly market the property in coordination with the lender. To begin the process of coordiation with the lender, the listing agent must compile a full package with supporting documentation from the seller. Rarely, if ever, will the lender even begin to listen to an agent without a complete short sale package in front of them. This short sale submission package should include, among other things:
1. A synopsis of items enclosed.
2. Completed financial disclosure.
3. A hardship letter, preferrably hand written. Remember, this the opportunity to relay the seller’s “story” to let the lender know why they’ve missed payments and won’t be able to make them in the future.
4. Purchase contract.
5. Net sheet or HUD1.
6. Proof of income for the last two pay periods.
7. Copies of last two bank statements.
8. Copies of last two years tax returns with W-2s and 1099s.
9. Third party authorization form.
Some additional items that may be helpful include, a Broker Price Opinion (BPO) or Comparative Market Analysis (CMA), neighborhood foreclosure stats & proof of active listings in the area that are priced low but aren’t selling. All of these will assist you in presenting the seller’s case to the lender.
Pricing the property correctly is another must. A simple method is to take the low end of the comparables, and price the property $10,000-$20,000 lower. It’s important to price the property to peek interest, but the pricing needs to be realistic as well.
An opportunity for a short sale is beneficial to both the seller and lender. For both parties, it’s an escape from a difficult financial predicament. The seller unloads a property they can no longer afford, as does the bank, with minimal damage to the credit rating they need for future investments. The bank, unlike a foreclosure, can avoid managing a property, and unload one on much better terms than if foreclosed.
With the attractions of the short sale option, we can only hope the practice gets much better before the window of opportunity for this “bargain” creeps closed. There’s work to be done on both sides of the transaction. For lenders, establishing a routine and regular avenue of communication with the real estate agent listing the property is a necessary first step. For agents, taking the time to learn the steps necessary to comply with lender requirements might make the coordination process on the other end a bit easier to navigate. In either case, progress is measured in dollars, not finger pointing. So, what are we waiting for?
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What’s “short” About A Short Sale?
June 24th, 2008 categories: Market Trends, Real Estate News, Repairs
During the past couple of years the real estate community has been up to its proverbial eyeballs with short sale properties. But, for many, at first “blush”, the term short sale didn’t mean much other than another transaction opportunity with real estate. However, as many Realtors & their clients alike have learned, dealing with a “short sale” can be anything but short.
According to REALTOR.ORG, a short sale is, ”when the net proceeds from the sale of a home are not enough to cover the seller’s mortgage obligations and closing costs, such as property taxes, transfer taxes, and the real estate practitioner’s commission.” In other words, the proposed sales price is short of what is required to pay off the home loan or mortgage. You might ask, “why would the bank/lender allow a home to be sold for less than what is owed. To put it simply, short sales are normally done prior to a home going into foreclosure in order to save money. Yep, to save money. According to the Virginia Association of Realtor’s special counsel, Lem Marshall, outside of the loss incurred to pay off the mortgage, lenders spend approximately $65,000 dollars on foreclosed properties. So, as you can see, to begin with, it makes sense for the bank to consider a short sale in order to head off further expenses resulting from the expenses of a foreclosed property. But, the benefits of a short sale aren’t simply financial. There are other benefits as well.
In the communities plagued with foreclosed properties, neighborhoods often begin to go downhill in a hurry due to the lack of attention to the foreclosed properties. Since these properties are no longer occupied, they are often neglected and rarely properly maintained. Often, they are vandalized.
Remember, banks aren’t in the property management business, nor do they want to be. But, unlike foreclosures, in the case of a short sale property, the occupants inhabit the house, and are there to look after the property. While they may have ceased making their mortgage payments, in most cases, the owners or tenants remain in the house until it is sold, or when repossessed by the bank in the case of a foreclosure. A short sale is also in the best interest of the home owner.
Homeowners facing a possible foreclosure can avoid the stigma, embarassment and credit problems a foreclosure entails. By opting for a short sale, homeowners not only can remain in their home, but the damage to their credit score is small compared to the penalty they face if their home is foreclosed on. Most lenders report “settled” upon successful closing of a short sale instead of the term “foreclosed.” Recent reports indicate the owners who complete short sale proceedings (who have missed 2-5 mortgage payments) have their credit score affected by only 30 to 60 points. Conversely, for those suffering through a foreclosure, their credit score will be penalized 140 to 200 points, or more. That’s a huge difference. So, as you can see, a short sale in lieu of a foreclosure makes sense for all parties involved. But, if that’s the case, why are so few short sales successful? Why is it so difficult to get to a Win-Win scenario? Who is to blame? More importantly, what remedy is their for a process designed to prevent property foreclosure, yet rarely does? We’ll leave those questions for Part II of our short sale discussion.
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From Where I Sit
June 23rd, 2008 categories: Relocating
My daily morning cup of coffee is normally accompanied by a review of the morning’s news. One of the places I turn first for fresh career related information is an interesting blog site, the BloodHoundBlog. The “Bloodhound” is a blog different than your routine real estate information site. As a matter of fact, some might see it more as a real estate agent boiling pot, or revolution in the making. Many of its contributors are the “underground” pioneers who are changing face of real estate marketing. Its author, Greg Swann, describes the blog’s mission this way:
“Welcome to BloodhoundBlog, the national real estate industry marketing and technology weblog written by, for and about realestate professionals. Better yet, welcome to the wired world of real estate. We are busily inventing Real Estate 2.0 — technology, marketing, service and salesmanship. Like all Bloodhounds, we are smart, frisky and fiercely independent. We are committed to an idea of excellence that will flush the bums, the con-men and the crybabies out of the real estate industry. If you yearn to have your failures excused, your moral lapses absolved or your boo-boos kissed, seek elsewhere. But if you are sick to death of mediocrity — welcome home.”
One of their more recent blog articles entitled, The world you find is the world you’re looking for… , reminded me of a tale about attitude that I heard many years ago. Like many, I, too, have a tendency to complain and whine at times. Life can get the best of us every now and then, and it’s worthwhile to be reminded that it really is how we look at things that makes all the difference in the world. That story goes something like this….
A family, the Novaks, were moving from a city in Pennsylvania to a small western town. They had packed everything in their SUV, made the cross country trip, and were pulling into the outskirts of their small town they would call home. As they got close to town, they decided to pull into what looked like an old convenience store or service station with a porch out front. As they pulled up, they noticed three older gentlemen on the porch in chairs talking to one another and seemingly enjoying each other’s company. As the Novaks headed into the store, one of the older gentleman got up to say “Hi” while at the same time asking Bob Novak if he could assist him in anyway. Bob responded to the older man by informing him that the Novaks had been transferred to a new job in this town, and that they were just arriving after driving cross country from Pennsylvania. Bob then asked the older man what they could expect in this new town, what was it like? After commenting that he hoped their cross country trip had gone well, and before directly answering Bob’s question, the older man asked Bob what the city was like that he had come from? Bob responded that the Novaks didn’t really care too much for Harrisburg. The traffic was bad, his wife didn’t find too much to get inolved with, it was difficult for their kids to ever find activities that they liked, and that it just didn’t seem to suit them very well. As he patiently listened to Bob’s words, a warm smile appeared on the older man’s face. When Bob finished speaking, the older man, placing his hand on Bob’s shoulder, looked at him, and replied that he was sorry to inform him that this new town, his new home, was alot like the town he had come from.
A week later, another family, relocating to that small western town, pulled into that same convenience store. Like the Novaks, the Parker family had travelled hundreds of miles cross country in their move to this town they would call their new home. As they had every weekday morning for the past ten years, the same three older gentlemen were gathered on the convenience store’s porch enjoying one another’s company. As the Parkers got out of their car and headed into the store, one of the older men stood up to greet Jack Parker who was heading for the store’s front door. The older man stuck out his hand to shake Jack’s hand while asking him how he could assist him. Jack Parker responded by informing the older man that his family was moving to the town and had just driven cross country, but had decided to stop at the convenience store before heading into town. Jack then asked the older man if he could tell him a little bit about the town. The man responded by saying he was glad they had taken a break and stopped before proceeding into town. But, then, before answering Jack’s question, he asked Jack what the city was like that he had come from. Smiling, Jack responded that they were sorry they had to move. They loved the city they had moved from. Jack’s wife was involved in different women’s social groups, the kids were involved in various sporting activites, not to mention Scouts, and the family was busy in a local church where they developed some lasting, enduring friendships. It was very difficult to leave a city they all enjoyed so much. As he listened, the older man couldn’t help but smile and slowly nodded his head. When Jack was finished, the older man leaned forward, placed his hand on Jack’s shoulder and said, “Jack, I think you’ll find that our town is alot like that.”
Life can be tough and unforgiving at times. And, as we’ve all heard, “No one said it was going to be easy.” Life is a season of lessons learned, so, let’s make the most of them. Or, as Hubert Humphrey said:
“Oh, my friend, it’s not what they take away from you that counts. It’s what you do with what you have left.”
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