This Newsweek article is a great summary of some post-election options for mortgage relief.

Of course, having both a president and a president-elect (as well as an outgoing and an incoming Congress), might further complicate a bailout.

Seriously, it matters who you choose to represent you in the sale of your home.  If you ever had any doubt, check out the following blogspot which oh so accurately catches the lousy photos permeating the real estate world.   A friend of mine pointed me to this site and I think it is spot on!  http://lovelylisting.blogspot.com/

Why do realtors post such bad pictures or none at all?  My sense is it is for one of the following reasons:

1.  A photographer costs money - it is cheaper to use a digital camera and most Realtors aren’t professional photographers.
2.  Some Realtors simply don’t understand yet that the buyer rules out properties immediately with no photos or bad photos.
3.  There is nothing good to photograph!  Foreclosures are especially in bad shape.

Our philosophy is to portray the home for what it is.  There is a buyer for every piece of real estate - at the right price.

Credit for this blog is given to GCAAR.  www.gcaar.com

Fannie Mae will no longer require borrowers to put up an extra 5% down payment when purchasing homes in areas deemed “declining markets.” Fannie Mae had been hearing concerns from REALTORS® and others for months that the policy was bad for housing because it discouraged consumers from buying in markets hardest-hit by foreclosures. NAR met several times this spring with Fannie Mae officials and sent letters reflecting members’ unease with the policy. Under the policy change, borrowers can get loans up to 95% loan-to-value, even in markets in which prices have been falling. Prior to the change, borrowers could only get loans up to 90% to give lenders a 5-percentage-point cushion to protect against possible price declines in the future.

The new policy takes effect June 1, and Freddie Mac has said it will also scrap this policy

With the recent pick-up of foreclosure activity in the DC area, many of our clients are calling to ask if this is a buying opportunity for investment properties. It’s common knowledge that you can get a great deal in a foreclosure sale, right? The current market might prove that common knowledge isn’t always right!

In a Washington Post article on February 2nd, a foreclosure auctioneer was followed through several auctions held in northern Virginia. He stood on the front steps of the county courthouse in Prince William, and auctioned off many houses. One in Woodbridge went for $380,515. A house in Manassas went for $244,000. It was a lonely job that day - no one showed up at the auction. Not the bank, not investors, not even a curious pedestrian! The houses went to the bank for the balance of the mortgage. And therein lies the rub!

Many homes bought at the very top of the market with 90% or 100% financing are under water - in other words, the house isn’t worth what is owed to the bank. Typically, the bank will buy the home for the mortgage balance, and then hire a Realtor to sell the home at market value. In the end, the market still relies on real estate professionals to price, market, show, and finally settle these homes.

If you hear about a foreclosure on a home you are interested in, either as a new primary residence or a rental-income opportunity, please give Brandon Green & Associates a call to review the different strategies available to purchase foreclosed homes.