If you are interested in taking advantage of the homebuyer tax credit and buy a home in Northern Virginia, the clock is a-ticking. Seventy days to find your home sounds like a lot of time, but it will surely go by very quickly as you are competing with throngs of other buyers looking to cash in.
A word of caution: beware of writing offers on short sale listings. These transactions typically take 60 days or more to get to closing after you’ve ratified your contract. Keep in mind, you must close by June 30 to receive the credit. If you get under contract right at the deadline of April 30, you’ve only allowed yourself 61 days to get your deal closed.
If you or someone you know would like to buy a home in Northern Virginia, contact me anytime at 703-403-0536 / patrick@patrickduffyrealtor.com.
You see the foreclosure notices in the local paper and you hear they conduct these auctions “at the courthouse steps”. The courthouse isn’t the first place on your list of places you want to be.
Well, it’s actually a place brimming with opportunity for Northern Virginia real estate investors. Just take a look at how many people faithfully show up day in and day out hoping to snatch up a property.
Here are four things (this is certainly not all-encompassing) to consider before joining in the great poker game that is bidding at foreclosure auctions:
Decide what your goals are. Are you looking for a long or a short term investment? Long term will mean having your money tied up for longer and a smaller, but steady stream of income (renting the property). Short term will mean a larger lump sum back with a quicker recovery of your investment and profits (selling the property).
Do your research before and after getting involved. These transactions involve a significant amount of risk. I highly recommend getting a “lay of the land” before you ever participate. Go as a spectator a few times – see how the bidding process typically unfolds, see how various people operate, who bids on what. And once you are “in the game”, extensive research is required for each property you are considering buying. How much is the property worth? Are there any title issues that could impact me? Has the roof caved in on the house? I can’t stress enough, the importance of having good, reliable information before you bid on a property.
Get your team in place. Some team members you will need are a REALTOR, title company, insurance agent, and a licensed contractor for repairs and/or renovations.
Get your money ready. If you’ve won the bidding on a particular property, a minimum deposit, usually around $15,000-$20,000 will be required immediately. From there, (typically) you will be required to close within 15 days. That means getting your cash and/or financing lined up quick. Keep in mind there are significant monetary penalties if you do not close on time.
Buying properties at auction can be a very lucrative investment. I advise you to seek the services of an experienced real estate team when engaging in any form of real estate investment. Please feel free to contact me anytime to see how I can help you invest in Northern Virginia real estate at 703-403-0536 / patrick@patrickduffyrealtor.com.
Stay tuned for future posts with tips on foreclosure auctions and real estate investing.
Last November, when Congress approved an extension on the first-time homebuyer tax credit, potential homebuyers who missed the original deadline were excited. It was another chance to buy a Woodbridge home for sale and receive an often badly needed $8,000 on their tax return.
Real estate agents were excited as well, because the tax credit extension expanded to include “upgrade” buyers – those who wanted to replace their current home with a bigger one. The possibility of selling a home was higher than it’d been in a while. However, expansion to include upgrade buyers wasn’t the only change.
If you’re hoping to buy a Woodbridge home for sale and take advantage of the tax credit before the new 2010 deadlines, here are a few things to keep in mind:
Two dates are crucial. You must sign a contract before April 30. The closings must be complete by June 30. One of the best ways to make sure things go smoothly is to get pre-approved for a mortgage before you go home shopping. Pre-approval tells you, as well as the seller, exactly how much home you can afford. This way, you don’t waste your time or the seller’s.
Negotiate without emotion. Potential buyers have lost the home of their dreams because they became competitive. If you’re negotiating for closing costs, housing price or anything else, make sure that your requests are reasonable. Don’t change something “just because.”
Taxes must be mailed in. Due to people trying to scam the system, you won’t be able to file your taxes electronically; you’ll have to mail them in. Make sure you’re using the right forms, and, if you need your tax refund by a specific time, you might want to file early.
Documentation is truly priceless. Again, thanks to scammers, buyers will have to include a signed mortgage statement, proof of residency and a driver’s license with their taxes.
You still have until April 30 to sign a contract on a Woodbridge home for sale to get the tax credit. Today’s real estate market is beneficial for buyers. Put it to work for you!
If you’d like to take advantage of the homebuyer tax credit, I can help. Call me right away at 703-403-0536 or email me at patrick@patrickduffyrealtor.com so we can beat the deadlines.
A Loan Modification is a change to one or more of the terms of a loan. For example, this could take the form of a lower interest rate, as in going from 7.5% to 5.5%. Or, it could involve extending the term of the loan, as in going from a 30 year term to a 40 year term. Whatever the case may be, the goal is to reduce the mortgage payment to one that the homeowner can manage and allow them to maintain ownership of their home. In many cases, the lender seeks to reduce the mortgage payment to 31% of the homeowner’s before tax income. For example, if you are making $5,000 each month – the terms of your loan would be modified so that your mortgage payment does not exceed $1,550 each month.
To obtain a Loan Modification, the homeowner must exhibit a verifiable hardship that makes it impossible for them to make the payments on the current terms of their mortgage. The hardship could be one or more of many things such as job loss, illness, death, payment increase due to interest rate adjustment, etc. Much like when the homeowner applied for their mortgage, they will apply for the modification and supply the lender with needed documentation to substantiate their case for the need of a loan modification.
Once initially approved, the lender will place the homeowner on a trial modification (trials periods can range from 3-6 months) in which the homeowner will have their payment reduced and will have to exhibit that they will be able to make the payment. After the successful completion of the trial period the modification will be fully reviewed and either granted or denied.
This was a brief overview of what a Loan Modification is and the process involved. If you would like to pursue a Loan Modification, I urge you to do some research. As always, I am here to help you with alternatives to foreclosure at phone: 703-403-0536 or email: patrick@patrickduffyrealtor.com.
Links:
Forum with over 20,ooo members, sharing their loan modification stories (successes and failures) – http://www.loansafe.org
The new stimulus plan has given many people new hope for their housing futures. At first, many worried that the stimulus package would merely help the banks and other financial institutions and not the actual homeowner looking to buy a home. But, it has become clear that the people who really win with the new plan are those who count—prospective home buyers.
Stimulus for Banks and Buyers
The stimulus package provides huge tax rebates in 2009, and while that is a limited provision, the savings are enormous for those who get out there and buy a new home. The fact that the stimulus plan includes relief for the struggling financial industry also helps buyers by making it more likely they will be able to obtain loans.
Stimulus for Luxury Properties
The stimulus package gives the two major government mortgage companies Fannie Mae and Freddie Mac more power and allows for larger loans for higher priced properties. That is a big incentive if you’re looking to buy in a major metropolitan area because you will now be able to get a loan secured by Fannie or Freddie.
The economic boost from the stimulus package will require a little time to really become apparent, but it is working, even now. Slowly the market is rebounding and new home buyers are able to take advantage of loans and tax incentives while getting houses at prices that are extraordinarily low.
If you would like more information on how the stimulus package can help you buy a new home, give me a call at 703-403-0536 or email me at patrick@usrlty.com.
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