Woodbridge Virginia Real Estate News

Woodbridge Real Estate News You Can Use

Woodbridge Homes For Sale Leading The National Real Estate Recovery

Woodbridge Virginia Home Loans More Affordable As Lower Consumer Debt Frees Money For Home Loans

Folks, here is the short and sweet summary of the economic report below: Things keep getting better and better for home buyers and home sellers in Woodbridge.

Now, you folks who really dig statistics, percentages, index adjustments are welcome to read on from here...

According to the Federal Reserve, consumer credit debt fell in July by $21.6 billion, an annual rate of 10.5%. It was the biggest decline since recordkeeping began in 1943. Economists had forecast consumer debt would drop $4 billion. Total consumer credit debt in July was $2.47 trillion. Meanwhile, the figures for June were upwardly revised. Consumers reduced their borrowing in June by $15.5 billion.

The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications for the week ending September 4 rose 17% to 648.3 from 554.1 in the prior week. Purchase volume rose 9.5% to 304.1. Refinancing applications increased 22.5% to 2,651.2.

The Commerce Department reported gains in both trade imports and exports, which indicates that the worst recession since the 1930s may be ending. Imports in July rose 4.7% to $159.6 billion. It was the largest monthly advance since recordkeeping began in 1992 and the second monthly increase after 10 monthly declines. Exports rose 2.2% to $127.6 billion, the third straight monthly increase.

Initial claims for unemployment benefits fell by 26,000 to 550,000 in the week ending September 5. The figure was lower than the 560,000 that economists had forecast. The number of people continuing to claim jobless benefits in the week ending August 29 fell by 159,000 to 6.09 million.

The Reuters/University of Michigan consumer sentiment index for September increased to 70.2 from 65.7 in August. Economists had forecast a reading of 67.5.

The Commerce Department said wholesalers reduced their inventories by 1.4% in July, following a revised 2.1% drop in June. It was the 11th straight monthly decline. Meanwhile, sales at the wholesale level rose 0.5% in July, the third consecutive monthly gain.

Upcoming on the economic calendar are reports on retail sales on September 15, the housing market index on September 16 and housing starts on September 17.

Did this post tickle your curiosity?  CLICK HERE to send your question.  Answers shall be sent by email ONLY, unless you specifically ask for phone call.

You can get computerized, automatic, customized FREE ALERTS by email when new listings of homes that fit your wish-list are posted on the Realtor's MLS.  You'll find out about the newest listings before most Realtors know about them.

That way you'll know when your dream home hits the market.

Opportunities Are Everywhere...We Can Help You Find Your Dream Home.

 

 

 

 

 

Erick Blackwelder or Peggy James of Erick and Company - Exit 1st Choice Realty, Woodbridge VA. Realtors®, call 703-590-2252  list your property for sale or to  purchase a property in Lake Ridge, Westridge, Old Bridge Estates, River Falls, Middle County, Cannon Bluff, Meadowbrook Woods, Blooms Crossing, Manassas Park, Beaver Creek, Hunter's Ridge, Brittany,  Manassas, Montclair, Dumfries, Occoquan, Dale City, Nokesville, or anywhere in Prince William County.

 

      

 

President Lyndon Johnson lead a vigorous campaign through the halls of Congress that lead to Fair Housing legislation.  The Republican Party members in Congress backed Fair Housing, while most of the congressional Democrat Party members opposed Fair Housing.  Johnson, a Democrat, worked the phones day and night, calling congressional Democrats, calling in favors that persuaded enough Democrats to cross party lines and vote for Fair Housing, and against their party leaders.

 

Prince William Real Estate Market Turned Upside Down As Number Of Homes Listed For Sale Drops Below Number Of Homes Under Contract

Woodbridge And Prince William Homes For Sale Outnumbered By Homes Under Contract In The County

At 2:50 PM today, I ran my usual monthly search of homes for sale in Woodbridge and Prince William County.  1,768 homes "Active"... 1,866 "Under Contract".

Prince William County homes for sale are now outnumbered by homes under contract.

Number of homes actively listed for sale in the county today: 1,768.

Number of homes under contract in the county today: 1,866.

I am home resting while recovering from pneumonia... could my fever be causing a hallucination?

No hallucinations fans... the numbers are speak for themselves.

Roll back to January 2007.  Over 7,000 "Active" listings of homes for sale in the county, with less than 700 homes "Under Contract" pending settlement.

In April 2008, the number of homes for sale were down below 4,500, and the number of homes under contract pending settlement number over 1,560.  I blogged the exact numbers way back when... feel free to scroll back to that post for the exact count.

Going forward from April 2008, between 1,500 and 1,880 homes went from "Active" to "Under Contract" each month.

Meanwhile, the number of "Active" listings declined below 3,400 as we sweltered under the heat of summer 2008.

So, the market has officially flipped upside-down.

Upside-down with more sold than active.

Where is the CNBC camera crew?  Call Tom Brokaw out of retirement for a special bulletin on NBC.

What about you guys and gals at the Washington Post and Washington Times who quote me in your articles in the real estate sections?

Hey Fox News!  Send Jeraldo Reviera?

Did this post tickle your curiosity?  CLICK HERE to send your question.  Answers shall be sent by email ONLY, unless you specifically ask for phone call.

You can get computerized, automatic, customized FREE ALERTS by email when new listings of homes that fit your wish-list are posted on the Realtor's MLS.  You'll find out about the newest listings before most Realtors know about them.

That way you'll know when your dream home hits the market.

 

Opportunities Are Everywhere...We Can Help You Find Your Dream Home.

 

 

 

 

 

Erick Blackwelder or Peggy James of Erick and Company - Exit 1st Choice Realty, Woodbridge VA. Realtors®, call 703-590-2252  list your property for sale or to  purchase a property in Lake Ridge, Westridge, Old Bridge Estates, River Falls, Middle County, Cannon Bluff, Meadowbrook Woods, Blooms Crossing, Manassas Park, Beaver Creek, Hunter's Ridge, Brittany,  Manassas, Montclair, Dumfries, Occoquan, Dale City, Nokesville, or anywhere in Prince William County.

 

Equal Housing Opportunity

Woodbridge And Manassas Virginia Real Estate For Sale Bouncing Back

Still Sitting On The Fence Waiting For The Bottom Of The Market? 

Gentle reader, if you are a fan of this blog, you have perhaps noticed my series of reports month after month, quoting fast sales and falling inventory in 2008.

I have no opinion about the market direction.

I faithfully report the facts.

"The facts ma'am, just the facts please."  - Joe Friday, from the TV series DRAGNET

Here is more evidence from Forbes Magazine, a feature in a national publication reporting the rapid turn-around we are experiencing in the local real estate market.

To those who have tried to debate the facts I have reported, I give you a hearty NANNY-NANNY-BOO-BOO!!  See, I told you so.

Sign up for FREE ALERTS on our Website  at http://erickandcompany.com/search-for-homes.asp

That way you'll never miss the house you really need.

Opportunities Are Everywhere...We Can Help You Find Your Dream Home.

 

 

 

 

 

Erick Blackwelder or Peggy James of Erick and Company - Exit 1st Choice Realty, Woodbridge VA. Realtors®, call 703-590-2252  list your property for sale or to  purchase a property in Lake Ridge, Westridge, Old Bridge Estates, River Falls, Middle County, Cannon Bluff, Meadowbrook Woods, Blooms Crossing, Manassas Park, Beaver Creek, Hunter's Ridge, Brittany,  Manassas, Montclair, Dumfries, Occoquan, Dale City, Nokesville, or anywhere in Prince William County.

 

Equal Housing Opportunity

Woodbridge And Manassas Virginia Real Estate For Sale Bouncing Back

Still Sitting On The Fence Waiting For The Bottom Of The Market? 

Gentle reader, if you are a fan of this blog, you have perhaps noticed my series of reports month after month, quoting fast sales and falling inventory in 2008.

I have no opinion about the market direction.

I faithfully report the facts.

"The facts ma'am, just the facts please."  - Joe Friday, from the TV series DRAGNET

Here is more evidence from Forbes Magazine, a feature in a national publication reporting the rapid turn-around we are experiencing in the local real estate market.

To those who have tried to debate the facts I have reported, I give you a hearty NANNY-NANNY-BOO-BOO!!  See, I told you so.

Sign up for FREE ALERTS on our Website  at http://erickandcompany.com/search-for-homes.asp

That way you'll never miss the house you really need.

Opportunities Are Everywhere...We Can Help You Find Your Dream Home.

 

Opportunities Are Everywhere...We Can Help You Find Your Dream Home.

 

 

 

 

 

Erick Blackwelder or Peggy James of Erick and Company - Exit 1st Choice Realty, Woodbridge VA. Realtors®, call 703-590-2252  list your property for sale or to  purchase a property in Lake Ridge, Westridge, Old Bridge Estates, River Falls, Middle County, Cannon Bluff, Meadowbrook Woods, Blooms Crossing, Manassas Park, Beaver Creek, Hunter's Ridge, Brittany,  Manassas, Montclair, Dumfries, Occoquan, Dale City, Nokesville, or anywhere in Prince William County.

 

Equal Housing Opportunity

The Senate on Saturday passed a $300 billion housing rescue bill aimed at helping troubled homeowners avoid foreclosure.

President Bush is likely to sign the bill into law within days. After the law kicks in on Oct. 1, thousands of at-risk borrowers will be able to refinance their unaffordable old mortgages into new low-cost fixed-rate loans insured by the Federal Housing Administration (FHA).

The Congressional Budget Office estimates that 400,000 borrowers with $68 billion in loans may benefit from the program - but the bill allows for as many as 1 million or 2 million borrowers to participate in the program.

Here's what homeowners need to know.

Who's eligible?

"Qualified borrowers must live in their homes and have loans that were issued between January 2005 and June 2007. Additionally, they must be spending at least 31% of their gross monthly income on mortgage debt to be eligible for the program."

What does this mean to you?  If your loan was originated prior to 2005, or after June 30, 2007, you cannot participate, and the program is useless to you.  Also, if your mortgage payment is less than 31% of your gross monthly income before taxes, you are not elegible.

 

"They can be up to date on their existing mortgage or in default, but either way borrowers must prove that they will not be able to keep paying their existing mortgage - and attest that they are not deliberately defaulting just to obtain lower payments."

What does this mean to you?  Be prepared to fill out reams of papers, and be prepared to produce records documenting every dime you have spent over the past two years.  Every dollar you spent since you got your mortgage will be scrutinized.  Did you spend $27.95 (with tip) for dinner at Applebee's seven months ago?  Be ready to write a justification.

 

"Before homeowners can get FHA-backed mortgages, they must first retire any other debt on the home, such as a home equity loan or line of credit. Borrowers are not permitted to take out another home equity loan for at least five years, unless it's to pay for necessary upkeep on the home."

What does this mean to you?  If you have a home equity line of credit (HELOC) you must pay it off... every penny of it... If your HELOC balance is $15,000, get out your check book and stroke a check for $15,000 to the bank to pay off the loan, then close the account.  Wait a minute... if you have $15,000 cash floating around your checking account, how can you be in financial distress???

 

"To get a new home equity loan, borrowers will need approval from the FHA, and total debt cannot exceed 95% of the home's appraised value at the time."

What does this mean to you?  When your home gains value such that you have equity you wish to harvest with a HELOC, be prepared to submit another wheelbarrow load of papers to FHA, then wait a long time for a reply.  FHA won't be loaning you the HELOC, so be prepared to apply to your bank for your HELOC when FHA gives you approval.

 

How can you apply?

"Borrowers can contact their current mortgage servicer or go directly to an FHA-approved lender for help. These lenders can be found on the Web site of the Department of Housing and Urban Development."

 

How does the refinancing process work?

"This is a voluntary program, so lenders holding the original mortgage have to agree to rework a given loan before things can get started. The bill requires lenders to make major concessions, writing down the value of the loan to 90% of the home's current value. In areas where prices have plummeted by as much as 20%, that will mean a substantial loss for the lender."

"But lenders won't sign off on a workout unless they think that they'll lose less money on that than they would by allowing a home to go through the costly foreclosure process."

What does this mean to you?  Your current mortgage company has the right, privilage, and option to say "NO!!!".  Your mortgage company does not have to participate, meaning you are stuck with your current mortgage.  The vast majority of lenders prefer foreclosure over a work-out plan.  If your mortgage company says "No", you're stuck.  FHA cannot and will not "force" any lender to participate in this program.

 

"Based on that new appraised home value, the FHA lender must determine how much the original lender has to reduce the original mortgage, so that it will reflect 90% of the home's market value."

What does this mean to you?  If your mortgage holder is among the small hand-ful of banks who participate in work-outs, FHA will tell your note holder how much the bank will have to "eat".  The bank may not wish to eat that much of a loss, so they can say "No" and you're stuck.

 

"If the original lender agrees to the writedown, the new lender buys the old loan and takes over the reworked mortgage.

As part of the deal, the old lender writes off any fees and penalties on the original mortgage, including prepayment penalties, and accepts the proceeds from the new loan on a paid-in-full basis. Additionally, it pays the FHA an up-front premium equal to 3% of the mortgage principal."

What does this mean to you?  It means that your current mortgage company not only eats the loss, they also pay FHA a 3% fee.

 

What does it cost?

"There should be little up-front costs for borrowers to bear. Loan origination fees will vary by lender, but these can usually be paid by the borrower over the life of the loan in the form of a slightly higher interest rate."

 

There Are Strings

"However, the refinanced loans do come with many strings. For one thing, borrowers are responsible for paying an insurance premium to the FHA guaranteeing the loan, which will be 1.5% of the principal annually.

Borrowers also agree to share any profits from future home-price appreciation with the FHA. To do that, they'll pay a "3% exit fee" of the mortgage principal to the FHA when they resell or refinance.

Plus, they'll agree to pay the FHA 100% of any profits they realize from higher home prices if they sell or refinance within a year. So if the original loan principal is $200,000 and the home sells for $250,000, the borrower will owe the FHA $50,000, minus costs.

After a year, borrowers will share 90% of the profits with the FHA. The percentage keeps dropping in 10% increments to 50% after the fifth year, where it stays."

What does this mean to you?  It means that FHA will be your equity-share partner until you sell or refinance your loan.  You agree to share 50%-100% of any gain in value with FHA when you sell OR refinance to another loan.

If you sell in ten years, and after expenses of selling you have $100,000 equity, you only keep $50,000... FHA gets $50,000.

But wait... let's say that you want to refinance in five years because you can get a rate so compelling, you can't pass it up.  FHA will compute your equity when you refinance, and you pay FHA 50% of any gain in value when you refinance.

 

Here's the bottom line:  Take all the home owners with mortgage problems, bake them into a pie, and just a small sliver of the pie will qualify for this much bally-hooed bail-out.

 

Opportunities Are Everywhere...We Can Help You Find Your Dream Home.

 

 

 

 

 

Erick Blackwelder or Peggy James of Erick and Company - Exit 1st Choice Realty, Woodbridge VA. Realtors®, call 703-590-2252  list your property for sale or to  purchase a property in Lake Ridge, Westridge, Old Bridge Estates, River Falls, Middle County, Cannon Bluff, Meadowbrook Woods, Blooms Crossing, Manassas Park, Beaver Creek, Hunter's Ridge, Brittany,  Manassas, Montclair, Dumfries, Occoquan, Dale City, Nokesville, or anywhere in Prince William County.

 

Equal Housing Opportunity