The Short Sale Post Mortem
September 3rd, 2010 Categories: Home Selling, Real Estate 101
So you’ve successfully navigated your way through a short sale – the first thing most homeowners do is breathe a HUGE sigh of relief. Well, I said most…
It’s important to realize that after the bank approves the sale, and you go to settlement, it’s not over. You really need to know this going in – there are two really important steps that need to be addressed after the sale:
1. The release of liability from the bank (s)
2. Understanding the tax implications of what just happened
Looking at #1 you need to realize that if the bank just approved a sale that shorted them $50,000 you are still obligated to pay that amount. After all, you signed a note as a promise to pay the entire amount. So you’re on the hook, unless you can negotiate a release. You can sometimes offer them an amount for them to release you – say $10,000… (please realize there is no “normal” in the process so all of my examples are just that, examples) and it’s then done and over. If not, and you make no attempt the bank has a limited time (I believe it’s 7 years) to come after you for the total that you owe. OR
they might just sell the debt to a debt collector – in any case, unless you have that release you are on the hook.
Part 2 is actually based on part 1. So, if you are relieved of $40,000 worth of debt, guess what, Uncle Sam wants their piece of it and it’s now considered income on which you owe TAX! There are a few exceptions proving insolvency being one of them, but you need to factor this into the whole picture when contemplating a short sale.
I realize that none of this is chosen lightly and most of the time, you have no choice. I understand that – who could have foreseen the economy and housing prices so depressed? Many homeowners are simply a victim of poor timing.
Having said all of that, just be sure you realize what happens AFTER you think it’s over – because it’s most likely NOT. You still have some work to do, but understanding all of the steps up front will help ease you through the process. If you’re looking for an outstanding agent to help guide you through the short sale process in Northern Virginia, please don’t hesitate to call me. And call sooner rather than later, when we can still help!
Have a super Labor Day Weekend everyone!
Jennifer
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Northern Virginia Housing Market, August 2010
August 16th, 2010 Categories: Market Stats
So MRIS (the Metropolitan Regional Information Systems – our local MLS provider) just put out their monthly statistics and I thought I’d share with you what they compile – just as I track
ratified contracts, they track that and a lot more – they are interesting to say the least…
Overall, in Arlington County we are in better shape today than we were at this point last year – in almost every category except for the fact that across the board, inventory is down… For specifics, in Arlington County year over year, we see more new listings, more closed sales, more pending transactions (under contract) a higher median sales price, a higher percentage of list price received at the time of sale and fewer days on market… all things that point to an improving market. If you just look at JULY, we are seeing the effects of the shift of buyers forward due to the federal tax credit – for JULY only, we see fewer new listings, fewer closed and fewer pending transactions. However, we do see the higher sales price and fewer days on market – the inventory numbers for single family homes are down 19% but interestingly the inventory for condos/townhomes is up 13%
When looking at Fairfax County, the numbers are a little lower, but still not bad – year over year we are seeing a small increase this year, but we are seeing fewer closed and pending transactions. However, all else is in good shape including median prices seeing an increase and days on market a whopping 45% decrease this year (81 last year compared with 44 this year). Inventory as a whole for both single family homes and condos/townhomes is also down in Fairfax County.
And for Loudoun County – we see relatively the same patterns. slightly higher listings, lower closed sales and pending transactions. Higher median prices and lower days on market. The one thing that stands out in Loudoun County is that they actually have seen an increase in inventory at 2.1% – it’s small, but a positive fact!
What does all this mean? Buyers are buying – after all, with interest rates hovering around 4.5% you’d be crazy not to consider it!! (I actually wrote a contract over the weekend for buyers who just this morning were quoted 4.25%!!!!) Sellers, if priced properly are selling their homes – we just need more inventory – So if there’s anything you think I can help with, please don’t hesitate to pick up the phone and call, text or email – I’d be happy to discuss your real estate needs with you.
Happy Monday!
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Condo Focus – Hyde Park in the Ballston Neighborhood
August 3rd, 2010 Categories: Arlington Dirt, Condos
I was contacted by a homeowner last night who owns a unit in Hyde Park and it reminded me what a great, often overlooked building this is. Hyde Park was built in 1973 and was originally apartments. In 1980, the 322-unit complex was converted to condominium where units originally sold from around $30,000 to around $90,000.
There are 68 Studio units, approximately 138 1-bedroom units, 36 1-bedroom/den, 69 2-bedroom/2-bath and just 11 3bedroom units, one on each floor. The units feature large
balconies, super-sized floorplans, most have parquet floors.
Probably the few drawbacks I can see are that there are community laundry rooms, although they are outfitted with the latest and greatest front load, ultra efficient washers and dryers, and the washers are no charge – you only pay to dry – there are 2 laundry facilities on each floor. Another drawback is that the condo fee is slightly higher here than in neighboring buildings – however, all utilities are covered, so that’s a plus! The complex management is located on-site and there are businesses located on the main floor – so when you see a 1st floor unit, it’s actually on the 2nd floor (much like what you might see in Europe… only not!)
As for activity – there are currently NO units in this building for sale – there have only been 11 closed transactions year-to-date and 3 are currently under contract awaiting settlement. The details are as follows:
1 studio sold for $196K
5 1br units have sold for a median price of $295K (see this article for a discussion on why MEDIAN is more accurate than average) and 2 are currently under contract
1 1br/den unit is under contract with a list price of $329K
3 2br/ba units have sold for a median price of $413K
1 3br/2ba unit sold for $445K
If you are considering the Ballston neighborhood and looking for a condo, I highly encourage you to take a look at Hyde Park – it’s a great building! Of course, you have to wait until there are units active on the market – THUS, if you are a Hyde Park homeowner and considering selling your unit, now might be an excellent time – have you seen those interest rates lately? Give me a call to get a plan in place to get yours sold quickly!
Happy Tuesday
Jennifer
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Giving Back
July 28th, 2010 Categories: Arlington Dirt
In October, I will be participating in The Leukemia & Lymphoma Society’s (LLS) Light The Night Walk. Light The Night is the nation’s night to pay tribute and bring hope to people battling cancer.
I’m raising money to support the fight against blood cancer. The funds I raise for Light The Night will help find better treatments and cures for blood cancers so patients can live better, longer lives. You can join me in the fight by making a donation or by registering for the Walk and fundraising.
The Walks take place in the evening and walkers carry illuminated balloons — white for patients and survivors, red for supporters, and gold for those who have lost their battle to blood cancer. Anyone can take part — children, adults and seniors are welcome! It’s a casual fundraising event with music, food and fun prior to the Walk. It’s an amazing night! The Northern Virginia Light The Night Walk will take place on Saturday, October 2 at the Reston Town Center. To learn more go to www.lightthenight.org/nca.
Please join the fight by making a donation through my fundraising page. Just go tohttp://pages.lightthenight.org/nca/Reston10/jklaussen to make a secure, tax-deductible donation to The Leukemia & Lymphoma Society. Any amount donated will help to make a difference in the lives of those affected by blood cancer. Your generosity is appreciated!
Please feel free to forward my request to your friends and family. The more people we have joining the fight, the closer we are to finding a cure!
Thanks for your help!
Jennifer Klaussen
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