New Homes in Loudoun County, Virginia, Buyer REBATE

LET'S GIVE SOME CREDIT TO FOLKS THAT GOT THE SHORT SALE TO THE CLOSING TABLE. 

If you read the saga of my Short Sale adventure for the past week, you'll be interested to know that we did close.  If you missed that post, just look at what we were faced with on the 15th of April.  See HURRAY - IT CLOSED!

Who are the parties involved?

• Seller
• Seller's Agent/Broker
• Buyer
• Buyer's Agent/Broker
• Seller's Lender(s) and or Servicing Company(s)
• Buyer's Lender
• Title entity. 
• Home Inspector if included in the Contract of Sale.
• Termite Inspector if required by buyer or buyer's mortgage company.

BRINGING EVERYONE TOGETHER.  That's a lot of parties to bring together.  However, agents who are experienced with case management see this list of parties as "routine".  With a Short Sale, nothing is routine.  Closing a Short Sale is a Herculean task that requires a lot of hard work on the part of all parties involved.  The buyer's agent has the task of keeping the buyer in the contract because, until the seller's lender provides the contract approval, the buyer can walk.  Their earnest money doesn't get deposited until the seller's lender has approved the sale.  The date for closing is included in the seller's lender's approval letter.  At that time, and only until that letter is received, does the time run for deposits, home inspections, termite inspections, etc. 

I have read that only about 10% of Short Sale listings ever make it to the closing table.  Based on the Short Sale referrals I make to my Broker Network and the ones I have brokered over the years, I believe that is a fairly accurate statistic.  The reasons would be many.

• Banks let the property go to foreclosure.
• Sellers not able to establish "hardship".  This buyer's job was relocated to a southern state.
• Sellers not willing to accept any deficiency payments.  Seller executed a note for $15K for the 2nd.
• Listing agents not experienced with Short Sale process. 
• Listing agent failure to perform "due diligence on seller's loan(s).
• Buyers not prepared to wait for the process to work through.  My buyers were the soul of patience.  Of course, we did continue to preview new listings and stay on top of the market. 
• Changing market while awaiting for the final bank "approval".
• Many agents don't show Short Sales because of the propensity of the seller's bank to reduce the    agent's commissions. 
• The "Third Party Contingency" requires the buyer to lose many of the consumer protections found in normal real estate contracts.  This property is in good condition with minor repairs needed. 
• Although reading and signing the "as is" clause of the Short Sale contingency, many buyers still expect the seller to make repairs. 
• Although advised of the necessity to have patience, buyers often give up and move to different properties they believe will close faster with firm terms and conditions in a normal Contract of Sale.
• Buyers' lender not available timely to provide financial follow through demanded by the seller's lender.
• Buyers using lenders not acceptable to the seller's lender due to inability to assure funding. 
• Buyers writing offers with short closing dates, repair conditions, offers below the seller's desired net.

SO MANY THINGS THAT CAN GO WRONG.  IS THERE ANY WONDER THAT SO FEW CLOSE?? 

Some things that help Short Sale contracts get to the closing table is good communication between the listing agent/broker and buyer's agent/broker.  Communication between the seller's lender and the seller's listing agent is often not reliable. 

SO, WHEN A SHORT SALE DOES CLOSE, I LIKE TO THANK THE FOLKS THAT MADE IT POSSIBLE. 

Thanks to my buyer's loan officer.  I did recommend this loan officer to my buyers along with two others whom I know well and have closed many sales.  One just couldn't match the rate offered by Bill and the other didn't return the buyers phone call the day they were shopping rates and selecting a loan officer. 

Bill Hylind is the hero in this transaction.  He exhibits all of the qualities I love in a good loan officer. 

Bill Hylind answers his phone when he's at his desk or available by cell.

Bill Hylind provides GFEs and TILs to the buyer AND to the buyer's agent throughout with revisions. 

The mortgage company is a major local company with direct lending ability. 

The buyers changed financing type during the processing.  Bill was on top of it with an excellent rate.

Bill Hylind is very experienced (I've known him for about 10 years) and has established good sources and routines with the industry (quick appraisal), processor and underwriter.  When things need to move quickly, he knows how to get them done.

INTRODUCING BILL HYLIND. Photo provided by Bill Hylind.

Bill Hylind  Chevy Chase Bank  Phone: (410) 872-8460  Fax: (410) 312-0301  wghylind@chevychasebank.net

This is the kind of relationship that I like with a loan offier.  My buyers are very appreciative of the hard work Bill Hylind did for them and think that Lenn walks on water for recommending him.

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988, E-mail.

SHORT SALE CLOSED!  

THE SAGA OF A SUCCESSFUL SHORT SALE.  Remember that Short Sale I wrote about last week?  The contract was written on January 25th.  We've suffered one delay after another, no contact, mistakes on the listing agent's HUD-1 (perhaps I'll write about that some day).  My buyers and I have continued to tour homes, but never found anything they like as much as the one on which we had a contract.  We just wanted to stay on top of the market. 

Then on April 15th, I got word that the bank had approved the corrected HUD-1 IF we could close -

IN TEN DAYS.  GEEZ! 

April 15th:  BANK APPROVAL LETTER RECEIVED contingent on settlement on or before April 24th.

April 15th:  Faxed bank approval letter and contract to loan officer. 

April 16th:  Buyers drive from Waldorf to Columbia to deliver docs to lender. 

April 17th:  Home inspection performed.   Furnace needs servicing which buyers will do after closing.

April 17th:  Termite inspection performed.  Clear.

April 17th:  Appraiser inspected the home.  Nice gentleman.  No listing agent.  No comps. 

April 20th:  Buyers visit banks to arrange for funds transfer.  Try to get $100,000 in 3 days.

April 20th:  Loan goes to Underwriter.  Approved conditioned on appraisal. 

April 21st:  Appraisal received.  Back to Underwriter.

April 22nd:  Final loan commitment received.

April 24th.  SETTLED. 

                                               IT WAS WORTH WAITING FOR!

                          ~~~~~~~~~~~~~~~~ Post from April 15th ~~~~~~~~~~~~~~~~~~

Contract offered by buyer - January 25th

Contract accepted by seller - January 29th.

Final ratified contract Feb. 13th.

Wait, wait, wait.

Addendum from bank 2 weeks later on a Friday with 72 hours to accept.

Counter-offer received from bank 2 weeks later.

Accepted by buyer in 2 hours.

Wait, wait, wait, wait.

Approval letter from bank 3rd week in March, wrong amount.

Wait, wait, wait, wait.

Second approval letter received today, must close by April, 24th.

Inspection scheduled for Friday.

Termite scheduled for Friday.

Appraisal ordered today.

Earnest money deposited today.

Trying to get HOA docs.

Are there any more Monkey Wrenches that the banks can throw in??

Do my buyers and I intend to close on the 24th??

You bet we do! 

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988, E-mail.

Just a few miles east of the lovely town of Lovettsville Virginia, is a new home community with homes ready to be built.   These homes are about 10 miles to the Dulles Greenway and 4 miles from MARC Train.

                                     LOVELY MODEL OF NEW HOMES IN LOVETTSVILLE

Fore more information, visit the builder's listing for this home model.  Priced in the $700,000s and $800,000s, home buyers need only a $5,000 deposit to put one of these fantastic homes under contract.

Our Homefinders.com Buyers REBATE for thes homes is $10,000.  Call Lenn for more information.

Contact Lenn Harley to tour new homes in Lovettsville.  Don't forget about the Homefinders.com, new home buyer's REBATE.  Your rebate for any of the homes above is $4,000.

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988, E-mail.

LOVETTSVILLE IS A LOVELY VILLAGE IN WESTERN LOUDOUN COUNTY WHERE WE HAVE MORE HORSES THAN PEOPLE.   Loudoun County requires a minimum of 3 acres to keep horses.  With the exception of the center of town in Lovettsville, much of Lovettsville is 3 acres or more. 

These new homes are all in wonderful communities with easy access to the Dulles Greenway, Route 7, Route 15 and Route 50 and 2 miles from MARC Train Station.  See map below. 

CLICK THE PRICE BELOW FOR MORE INFORMATION ABOUT THE HOMES TO BE BUILT.

Contact Lenn Harley to tour new homes in Lovettsville.  Don't forget about the Homefinders.com, new home buyer's REBATE.  Your rebate for any of the homes above is $4,000.

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988, E-mail.

NEW HOMES IN LOUDOUN COUNTY VIRGINIA PRICED UNDER $400,000 are all in Western Loudoun County. 

These new homes are all in wonderful communities with easy access to the Dulles Greenway, Route 7, Route 15 and Route 50.  See map below. 

CLICK THE PRICE BELOW FOR MORE INFORMATION ABOUT THE HOMES TO BE BUILT.

Contact Lenn Harley to tour new homes in Western Loudoun County.  Don't forget about the Homefinders.com, new home buyer's REBATE.  Your rebate for any of the homes above is $4,000.

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988, E-mail.

HOME OWNERS EVERYWHERE.  YOU NEED TO PAY ATTENTION TO YOUR HOME OWNERS INSURANCE. 

YOU MAY BE READY FOR A PRICE REDUCTION, especially if you have been smart and not made claims. 

What we have found over the years with our own homes and those of our buyers is that you should use home Homeowners Insurance sparingly and only for major repairs that you cannot fix yourself or pay for repairs yourself. 

One of our buyers found that the premium for his new home was extremely high because he had made 4 claim for his existing home.  Some of the repairs that he had filed claims for were minor things that he could easily have had repaired himself. 

Missy Caulk has posted a wonderful post with a well produced video about taking control of your Homeowners Insurance. 

This is good advice that will help home owners, new and existing home owners across the country. 

Thanks Missy.  I'm sending a link to this to agents in my network. 

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988, E-mail.

BROKERS OPEN HOUSE * MEET AND GREET *  ENJOY LUNCH *  TOUR A BEAUTIFUL LUXURY HOME IN LEESBURG * SEE WHAT WESTERN LOUDOUN COUNTY HAS TO OFFER *

Brokers Open * Brokers Open * Brokers Open * Brokers Open * Brokers Open

18131 Perthshire Court, Leesburg, Loudoun County, VA 20175.  LO6790712

1:00 p.m. to 4:00 p.m., BROKER OPEN HOUSE IN LEESBURG, Western Loudoun County, Virginia.

Come join us for a tour of this beautiful home in one of leesburg's most attractive luxury home communities, SHENSTONE.  Every home on 3 acres or more for privacy and views of the rolling hills of Leesburg, County Seat for Loudoun County.  One of Loudoun County's most beautiful luxury home areas.  Call Lenn for Directions, Map below. 

LIST PRICE:   $999,990

Named for William Shenstone 1714 - 1763 was an English poet and one of the earliest practitioners of landscape gardening through the development of his estate.  Toll Brothers, developer and builder of Shenstone in Leesburg maintained the Shenstone dedication to beautiful landscaping in the design of this lovely community with winding roads, preserved areas of mature trees, natural streams and lovely landscape planning for each home site. 

SHENSTONE, THE COMMUNITY - LOCATED JUST 2 MILES WEST OF THE TOWN OF LEESBURG, VA.

THE PROPERTY FOR SALE - LOCATED ON A QUIET STREET IN SHENSTONE, SURROUNDED BY BEAUTY.

THE COMFORTABLE AND QUALITY INTERIORS WILL APPEAL TO A NEW FAMILY.

On the left is a spacious Conservatory for entertaining.   On the right is the Family Room w/Fireplace.

The lovely Magnolia Tree in the front yard was lovingly planted by the owners for growing beauty over the coming years. 

Note the three sided brick construction for lasting beauty and maintenance free exterior. 

LOVELY INTERIOR AREAS FOR QUIET, COMFORTABLE AMBIANCE. 

State of the art Kitchen with lots of eating space and cooking appliances for the chef.

To the right is the dramatic and welcoming main stairway from the Open Foyer to the Upper Level.

Spacious Hardiplank Deck offers room to enterain with a spectacular view of the community.

To the right is the spacious lower level Recreation Room with bar including sink, frig and dishwasher.

TO SEE MORE PHOTOS OF Foyer, Living Room, Dining Room, Kitchen, Breakfast Area, Deck, Office/Library, Owner's Bedroom Suite, Finished Lower Level with more Bedroom, Full Baths, Recreation Room and Exercise area, visit the Homefinders Photo Gallery.

Located just 2 short miles West on Route 7 in Shenstone, across from the Beacon Hill Golf Club.  

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988.  Real estate brokerage for Loudoun County VA real estate.

All homes sold by Homefinders.com and our network partners convey with a FREE One Year Home Warranty.

SEPARATING FACT  (and a bit of opinion) FROM RUMOR ABOUT VA LOANS IS LONG OVERDUE. 

WE CONTINUE TO READ POSTS and ARTICLES THAT NEGATIVELY DESCRIBE THE VA LOAN AS:

1.  VA LOANS TAKE TOO LONG.  Compared to what?  The guidelines provide a 10 day window for the appraiser to complete the appraisal.  Then the LAPP lender/underwriter will issue a CRV, Certificate of Reasonable Value.  If the buyer is not working with a LAPP lender, the CRV will take a few days longer.  Either way, you're still within a window of no more than 17 days or so.  That's a time on which, in my experience, you can rely.  When I refer a buyer to a loan officer, once the loan application is made, the contract in the hands of the loan officer, ask for a screen print of the VA appraisal order.  See Appraisal Order below.  Notice that the mortgage company is a LAPP lender, Lender Appraisal Processing Program.  This appraisal was ordered on March 26th and received on March 31st at $5,000 above contract price with no conditions.  I was sure the appraiser would condition the appraisal on installing a railing on the basement steps, but did not.

LAPP Lender Eligibility
Only supervised lenders and non supervised lenders who have been approved for the automatic authority by Central Office (262a) are eligible to apply for LAPP participation. Source:  Office of Veterans Affairs.

2.  VA LOANS HAVE TOO MANY "CONDITIONS".   This is an often used excuse for discouraging a buyer who has VA eligibility.  Seems to me that, if the VA appraiser is observing "condition" that involves safety or value, that those defects should have been remedied prior to listing a home for sale.  The appraiser is providing the lender with a CRV, Certificate of Reasonable Value, meaning, if there are condition that affect the reasonable value of the property, they property is appraised for the value on the Appraisal Report as long as the "conditions" meaning defects are remedied.  I have not found, over the years, that VA appraisers are more critical of property condition than appraisers for FHA financing.  With low down payment conventional loans, low appraisals are not unheard of. 

3.  VA LOANS ADD COSTS TO THE SELLER.  VA loans do not permit the VA buyers to pay for lender fees or termite inspections.  That has never been a barrier to our buyers using their VA eligibility because

*  The lender fees can be limited in the VA Addendum.  We limit the lender fees to $500.  If a VA approved mortgage company is charging more than $500 in lender fees, use another mortgage company.  Too often buyers are attracted to low interest rates and don't understand that the high lender fees can add just as much to their closing.

*  The termite inspections fee is only going to be $50-75 in my area.  I just pay the dang thing when the termite inspection is done.  Simple solution. 

4.  VA LOANS ADD TOO MUCH PAPERWORK.  What paperwork??  One stinking piece of paper, the VA Addendum. 

5.  MY SELLER DOESN'T WANT TO SELL WITH A VA FINANCED BUYER.  The seller doesn't want to or have they been advised by their listing agent that they shouldn't?  If the seller/listing agent is fearful of a CRV for value, perhaps the property is seriously overpriced.  Or, if the seller/listing agent is fearful of "conditions", perhaps some repairs should be made before listing the property for sale. 

DON'T FORGET.  The VA loan is a true ZERO DOWN loan up to the limit in your geographical ares. 

DON'T FORGET.  The seller can pay the buyer closing costs.  In fact, the buyer can also pay down debts for the VA buyer.  Talk to your lender about the limits.  It's a LOT higher than you think. 

This post inspired by a very interesting article by George Souto describing a transaction for a VA home buyer.

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988, E-mail.

DOCUMENT BELOW REDACTED FOR PRIVACY OF THE BUYER/SELLER/LENDER.

JUST RECEIVED FROM FANNIE MAE. 

Don't guess.  Read it for yourself.  From the horse's mouth.

Announcement 09-05 R April 21, 2009

Amends these Guides: Servicing

Reissuance of the Introduction of the Home Affordable Modification

Program, HomeSaver Forbearance^TM, and New Workout Hierarchy

                       ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

This release is easy to read and is sufficiently detailed to answer any questions from any ActiveRain members.

BTW, this is not the only loan modification program offered to home buyers.  Rather than quote snippets, just read the announcement.  I don't see this information as particularly important for real estate agents or brokers unless they are in need of loan modification.  Goodness knows, the incomes of many real estate agents and brokers has fallen off the cliff in the past couple of years and many are, indeed, in distress. 

I'm quite sure that all ActiveRain financial industry members have already received this announcement.

                                                         Don't follow this fellow around.

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988, E-mail.

This post by Jeff Dowler includes advice that may not be limited to Jeff's market area.

I've advised many home buyers to investigate their tax assessment process for their area for two years now. 

This is a good reminder for agents and home owners/buyers.  Contact your local tax assessor's office and get the procedures.  It could save you a lot of money every month.

i reduced my real estate bill by $1500 a year two years ago. 

It works.