Freddie Mac counts foreclosures as a major credit black mark for seven years and is now aggressively pursuing walk-away borrowers, where permitted by law. Sending the keys back to the lender comes with rigid consequences which should be fully understand before a foreclosure.

The borrower will be unable to get another mortgage through Fannie Mae for five years, unless there are “documented extenuating circumstances.” In that case, the prohibition is three years. Even after the prescribed time has elapsed, a borrower with a foreclosure in his/her file will have to make at least a 10% down payment and have a FICO credit score of at least 680 to qualify for a Fannie Mae loan.

The short sale is by far the better option to a foreclosure, provided there is evidence of hardship. A short sale occurs when home owners negotiate loan modifications with lenders and have portions of their principal debt forgiven. A Federal legislation was enacted last year to eliminate tax liability for the amount forgiven in a short sale. 

By contrast, the debt from a foreclosure is not forgiven, and according to the Internal Revenue Service, the borrower may have to pay taxes on the unpaid balance.

Beginning in the second week of May, economic stimulus payments will be mailed to more than 130 million households. To receive a payment, taxpayers must have a valid Social Security number, $3,000 of income and file a 2007 federal tax. Eligible people will receive up to $600 ($1,200 for married couples), and parents will receive an additional $300 for each eligible child younger than 17. Millions of retirees, disabled veterans and low_wage workers who usually are exempt from filing a tax return must do so this year in order to receive a stimulus payment.

The objective of the stimulus package is to boost the economy by giving taxpayers incentives to purchase goods or to invest. But many consumers may choose to save the extra funds for a "rainy day" or use it to pay off debts.

 Only time will tell if the economic stimulus payments will really work.

Nationally, existing-home sales are expected to hold fairly steady over the next few months, then rise later in the year and continue to improve in 2009, according to the latest forecast by the National Association of Realtors®.

The surplus of new homes inventory Loudoun County, Virginia is primarily due to overbuilding in speculation of higher housing demands in. As prices stabilized and then began to decline, spectators walked away from the homes causing a swift decline in the Norther Virginia market.

The real estate market in Loudoun County is in a state of correction and is not expected to return to normalcy until around 2010. The large inventory of foreclosures and short sales homes in Loudoun County are having a significant impact on home sales and market values in this area.

During the summer of 2007 there were 5,800 Virginia homes in foreclosure with 4,000 of those victims of the subprime loan implosion, according to the U.S.Department of Housing and Urban Development (HUD). Prince William and Loudoun counties ranked highest in the region’s foreclosure rates.

With the new year celebrated across the county it is a great chance to review the market in the past year.

With the sub-prime problems of 2007 the market has changed to a buyers market. This great oportunity gives buyers a chance to pick up some real bargains!

Despite the sub prime problems not effecting the market locally directly the indirect effect was through the negative publicity in the media on the market as a whole. However it must be remembered that the trends of the US housing market nationwide do not necessarily reflect local trends due to the size of the country and housing stock.

Houses are still selling and buyers are getting great deals which when the market grows in the coming years will prove to be a great investment.

If you are considering purchasing a home in Potomac, Sterling or anywhere in the area please call Shirley Chambers on 703-450-8398.

Loudoun Connection Article

October’s Numbers Are In!

With much in the national press about the real estate industry it is interesting to note that in October in the $200,000-$399,999 detached unit ranges there was a massive explosion of activity as people rushed to take advantage of relatively low interest rates and a wealth of property available in this buyers market.

That range consists of two bands, $200,000-$299,999 where there was in increase of sold homes up 200% and in the other $300,000-$399,999 there was an increase of 108%! Similarly for detached properties the number of days on the market fell back for this category after increasing in September.

If you are considering purchasing a property in Loudoun County then please get in contact with Shirley Chambers on 703-450-8398.

The Local Government has released latest figures for 2006 which show the development in the county over the last few years. The current population in the county was identified as 271,987 with projected growth at 468,541 by 2030.  Not only is the number of people expected to grow but the number of households is expected to also rise by 40% by 2016 to 130,111 households from 92,912 in 2006.  The figures also show that in Loudoun the percentage of the population that is 19 years and under was 31% which is 3% over the national average. This shows what a great place the area is for raising a family.

If you are thinking of moving to Loudoun County then contact Shirley Chambers today on 703.450.8398

See the full report in PDF format: http://www.loudoun.gov/business/growth_summary_2006/2006_gs.pdf