The quality of homes built during the real estate market boom and the homes prior to the homes built during a more normal market can be completely different.  Some builders had been cutting corners to meet the demands of a “hot” market.

This is becoming more evident as home inspections are being done on these homes when they go on the resale market.   Lower quality homes decrease the value of a home and can push the homeowner into foreclosure because of their inability to sell their home for enough to payoff their mortgages.

 Losing one’s job, the death of a spouse or unexpected medical conditions could cause the homeowners to no longer be able to pay their mortgages. The new home could quite possibly have been put into larger and riskier mortgage than they needed or possibly could not afford..

Inspections for these homes in the resale reveal that they are not worth what they were a couple years ago, and they were never worth what they were sold for in the first place because of crummy construction and expectations created by a housing bubble.

The Federal Transit Administration has approved the final design phase of the long-sought extension of Metro to Dulles International Airport, but the FTA won’t commit any federal funds for actual construction until the Metropolitan Washington Airports Authority ensures it has sufficient funds to cover risks and prove the project will be completed on time and within budget. 

The schedule shows a 2012 completion date for phase 1, which would extend the new "Silver Line" from the East Falls Church Metro station on the Orange line in Arlington County to Wiehle Avenue in Reston. The second phase is expected to be done in 2015 and would extend beyond the airport into Loudoun County.

When purchasing a home, whether new or resale, it is essential to have the property checked by an  independent home inspector to assure everything is built up to standard and decrease the likely hood of encountering  problems after  you move in.   Home inspections done by independent home inspectors go beyond basic county inspections.    

Your home is a major investment and it is important to get an independent  inspector to check the electrical, heating, plumbing, and the overall structural of the home before firming up the purchase.  A good inspector will be your greatest advocate in determining and defining the merit of the home.

If  the inspector has any issues with your home, you will be in a position to ask for repairs or your money back for the home. Thousands of dollars have been saved by having  an inspector look at what is in the home and how it needs to be changed.

A final walk-through should also be done and  is typically done the day of or the day before closing.  A final walkrough inspection is important  because it’s your last chance to inspect the property before closing.  The purpose of  the walk-through inspection is to make sure the property is in the same condition as it was on the day you agreed to buy it, that any home inspection items that the seller and you agreed upon were in fact taken care of,  and that all heating, electrical and plumbing are in working order.

HOA and Condo Associations are feeling the pinch from the economic down turn. Many homeowner and condo associations are running into issues collecting dues from some of its members. The homeowner may no longer be able to afford their monthly dues or are not willing to pay. They just turned in the keys, moved and can’t even be found.

The homeowners association may have to raise the association fees for dues paying residents, lower expenses or cut in services to replace the missing revenue. Some associations have even gone bankrupt.

Fannie Mae and Freddie Mac’s underwriting changes, in addition to severe new restrictions by private mortgage insurers, could tighten the availability of loans to condo buyers in the future. The new restrictions will also make it harder for condo owners to refinance.
Fannie Mae’s new procedures requiring loan officers to research upfront the key characteristics of condo projects — their legal documentation, the adequacy of condo association operating budgets, percentage of unit owners who are late on association-fee payments, percentage of space allocated to commercial use and percentage of units owned by investors — must now be performed upfront by loan officers. Not only is this time-consuming and costly, but Fannie Mae expects the lender to warrant the accuracy of its research.
Fannie Mae spokeswoman Marilyn Kornfeld said the new procedures are designed to “protect borrowers and manage increased credit risk in the market.” But some lenders may discontinue condo financing because of all the restrictions and changes.
Freddie Mac has issued similar new guidelines. Freddie Mac spokesman Brad German acknowledged that the changes would make condo loans “more labor- and paper-intensive for the lender” but said weak sales, growing numbers of financially troubled projects and declining property values made them necessary.

Source: WashingtonPost.com (Saturday, April 19, 2008)

One Loudoun, a proposed upscale mixed-use village and future home to the World Trade Center Dulles Airport, will begin ground breaking in the fall of 2008, according to One Loudoun’s website.

The Trade Center will be located at the southwest corner of Route 7 and Loudoun County Parkway on 360 acres and is expected to provide the County with significant tax revenues.

One Loudoun will offer offices, upscale retail, luxury hotel, movie theater, and homes built around a central park setting. One Loudoun Place is projected to generate up to 14,000 new jobs and promote both international trade & domestic investment from around the world.

The project will include construction of an interchange at the intersection of Route 7 and Ashburn Village Boulevard, giving much needed traffic relief on Route 7. It will also donate a new elementary school site and construct new ball fields for public use on an adjacent county-owned site.

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.

In May or June, 2008, Gov. Tim Kaine will propose legislation to the House and Senate that will restore two regional transportation funding districts voided by the state Supreme Court and also cover growing cost overruns for highway maintenance statewide.

He will require that the legislation passed include enough money to keep pace with increasing road repair and upkeep costs and not shift the political burden of raising taxes onto local govements.

Like many areas throughout the nation, Loudoun County is feeling the pinch in its budget, due to escalating gas prices and the slump in its housing market.

Budgets are being tightened to preserve funds for essential public service transportation such as police cars, ambulances and school buses. But county officials say there is not a lot they can do to save money. Children still need to be transported to and from school, and residents feel safer when police cruisers patrol the streets.

Escalating gas prices may also lead to field trips and other extracurricular activites being curtailed in the public school system.

But local government agencies have the advantage of lower gas bills than consumers by being exempt from gas taxes. They also can save money by pooling resources.

The drop in housing prices and decline in home sales gives Loudoun County no option but to raise taxes to accommodate the needs of the fast-growing Loudoun school district, which is expected to swell by more than 3,000 students in the fall, officials said.

The Loudoun County Board of Supervisors, struggling with a sudden downturn in the housing market and a population that grows ever larger, approved a 19 percent increase in the property tax rate that will send the average bill soaring by more than $300 this year.

The tax-rate increase is necessary to make up for an unexpected drop in assessments across the county. The plan is expected to result in a 6.5 percent increase in the average homeowner’s tax bill. The budget year starts July 1.

Loudoun County, declared the nation’s fastest-growing large county by the U.S. Census Bureau,
has struggled over the years to keep up by investing enough in public safety and its overburdened schools. This fall, the school system is expected to grow by 3,270 students, enough to nearly fill a high school, a middle school and an elementary school, district officials have said.

Information from: The Washington Post, http://www.washingtonpost.com