Elaine VonCannon, ABR, SRES, REALTOR, Notary Public, Team Manager
In Colonial Virginia, wine was a staple. The House of Burgesses, passed an Acte governing vineyards in 1619. The Twelfth Acte stated that each settler was obligated to plant at least 10 vines for the purpose of making wine on his land. The colonial settlers could not transport all of the wine and provisions they needed so they began to establish vineyards to supply the colony. The Colonial tradition of having an estate with a vineyard was widely practiced in Virginia during Colonial times. Even to this day, Virginia has well established and new vineyards, from the mountains to the sea. This article will focus on wineries in Southeastern Virginia, home to vast numbers of colonial estates, waterfront estates, plantations, country estates --- and, high quality vineyards often planted with grapes from the old world.
Athena Vineyards
, 804-580-4944
http://www.atheanavineyards.com
With a grand opening scheduled for Memorial Day 2006, the three friends who began in the health care profession and opened a vineyard because they were inspired by the healthful qualities of wine will present their first vintages to the world. Athena Vineyards are located in Northumberland County. This new vineyard also hails as the first commercial vineyard in Northumberland County. With an assortment of Wiccomico Whites and some Cabernets and other varieties, Athena Vineyards has plenty of wine offerings to open its first season.
Belle Mount Vineyards,
800-335-5564
http://www.bellemount.com
Belle Mount Vineyards is in Virginia's Northern Neck, in the town of Warsaw. The parcel of land where the vineyards are located is within sight of the Rappahannock River, which feeds into the Chesapeake Bay. Belle Mount offers handcrafted wines and a unique, original selection of Chardonnay, Merlot, and Cab Franc grapes. This Northern Neck vineyard also grows the Norton grape, discovered in Richmond, Virginia. Wine tastings and tours of the vineyard and winery are free.
Bloxom Winery, Bloxom, Virginia
, (757) 655-5670
http://www.virginiawines.org/wineries/bloxom.html
Take the Chesapeake Bay Bridge Tunnel from Williamsburg/Norfolk/Virginia Beach north to the Eastern Shore of Virginia. Visit old world traditions when you visit the Bloxom Winery. This 35 acre Victorian farm has six acres of wine including Chardonnay, Merlot and Cabernet. Bloxom Winery is only open from June through September from 1-6 p.m. The chocolate enthusiast can indulge in the combination of free wine tasting and chocolate confections.
Hummel Winery, Montross, Virginia
, (804) 493-1544
Hummel Vineyards is tucked away near Westmoreland, in the Northern Neck of Chesapeake Bay Country. The sea air and surroundings are evocative of a country estate, with open wood beams in the traditional style sampling room. Tastings are $5 at Hummel Winery. Sandwiches and light gourmet food are also available to complement the wine.
Ingleside Vineyards, Oak Grove, Virginia,
(804) 224-8687
http://www.ipwine.com
At the intersection of the Potomac and Rappahannock Rivers, Virginia's Northern Neck is rich in history and classic and contemporary wines. Ingleside Vineyard's is part of the 3,000 acre Flemer estate. Planted in the fertile river land between the Potomac and Rappahnnock, 70 acres of grapes grow to their luscious fullness in a stable climate. The Vineyard has been producing wines with awards since 1980, and is run by Charles H. Flemer's great-great grandson. Basic tastings with a souvenir glass are $2.50 and Black Label tastings are $6.00.
Oak Crest Vineyard, King George, Virginia
, 540-663-2813
http://www.oakcrestwinery.com/
There are approximately 100 vineyards in Virginia, and each has its own unique approach. Oak Crest Vineyard is founded by a family that has been handcrafting wines since the 1960s. The Conrad Brandts opened the Winery in 2002, but it seems years have gone into the making of these grape connoisseurs. Known for their Bordeaux reds and Rhine style whites, this winery seems to have a healthy offering of Cabernets and Merlots and has just added some sweet blush wines to the menu. The tasting room is a traditional post and beam room. Tastings and tours are free. The winery is only open April 1 - Decmeber 23rd.
White Fences Vineyard and Winery, Irvington, Virginia,
(804) 438-5559 http://www.northernneckwinetrail.com/whitefences.html
The first White Fences vintages were presented at the Irvington Stomp in September 2005. White Fences is slated to open in the summer of 2006. Self-guided tours of the vineyards are available.
The Williamsburg Winery, Williamsburg, Virginia
(757) 229-0999 http://www.williamsburgwinery.com
This Williamsburg favorite has been producing wine since 1988. The Williamsburg Winery is known for its signature vintage, Governor's White, "the best selling wine made in Virginia". Sample some reserve stocks and varietal blends at this winery, too. Dessert wines include Late Harvest Vidal, Blackberry Merlot, and Rasberry Merlot. The Williamsburg Winery is close to downtown Williamsburg, just off Route 199 West towards Jamestown.
For information on properties in the Greater Williamsburg and Southeastern Virginia area, visit http://www.voncannonrealestate.com. Or, to find out about colonial estates, country estates, waterfront estates, farmettes, equestrian estates, estates with vineyards, historic estates and more, visit http://www.virginia-estates.com.
Thursday, March 10, 2011
Monday, February 28, 2011
Live and Play in Your Own Backyard: Golf Communities in Williamsburg
By: Elaine VonCannon ABR, SRES, REALTOR, Notary, Team Leader, Residential and Commercial Property Manager, Managing Partner VonCannon-Starke Commercial Division, Member of the National Association of Residential Property Managers, Award Winning Agent, RE/MAX Hall of Fame, Licensed in Virginia, Member of Commercial Council VAR, Director WAAR MLS Board
Golf has long been one of the favorite leisure activities of professional and retired individuals. In Williamsburg, Virginia and surrounding areas, the professional and retiree can play golf on many renowned golf courses. The devoted golf enthusiast may desire even more than this. For some golfers, the ultimate immersion in the sport means moving to a golf community. In and around Williamsburg, Virginia a concentration of great courses and elegant golf communities make it the perfect place for the golfer to live, work, or retire.
Check with individual communities, but most have additional amenities such as swimming pools, tennis courts, and restaurants. Home buyers at most golf communities may choose to live in Planned Unit Development homes with maintenance included for a monthly fee in addition to a homeowners association fee.
The Golf Club at Brickshire
In addition to being a Curtis Strange signature course, the Golf Club at Brickshire also offers the golfer opportunities to play emulation holes from August National, Saint Andrews, Pinehurst #2, and Riviera Country Club. Brickshire is a relatively new 18 hole course that is only three years old at the date of this writing and has been described as "player friendly" by avid golfers. Golf Digest recently gave the Brickshire course a 4 1/2 star rating.
Home buyers may choose from newly built and custom built attached and detached homes.
The Tradition Golf Club at Stonehouse This stunning 18 hole golf course in New Kent County Virginia has been described as a challenging course that is larger than life. Featuring oversized greens and tremendous vistas, it is characterized by deep bunkers and long carries. In 2002, Stonehouse was awarded 4 1/2 stars by Golf Digest.
Kingsmill Resort and Spa
Kingsmill is the oldest gated golf community in Williamsburg and is home to three 18 hole golf courses, a marina and a conference center. The River course was once the site of the PGA Tour and is now the location of the LPGA tour's Michelob ULTRA open. In 2004 the original architect, Pete Dye, returned to oversee The River's renovation, which included resurfacing of greens and the addition of new fairway bunkering. Some golfers prefer the Plantation course, an Arnold Palmer design with generous fairway landing areas and water near eight holes. The Woods Course, designed by Tom Clark, has unique features such as a double green with a bunker in the middle shared by the par-3 twefth hole and par-4 fifteenth hole.
Kingsmill is one of the most prestigious communities in Williamsburg. All homes are custom built.
Ford's Colony
Ford's Colony, like Kingsmill, has three 18 hole courses. All were designed by Dan Maples. Choose from the Marsh Hawk Course, Blackheath Course, or the Blue Heron Course. Visit http://wwww.fordscolony.com to take a virtual tour of each course.
Home buyers interested in living at Ford's Colony will find lots available for home building sites, newly custom built homes, and resells of custom built homes.
Greensprings Plantation
At Greensprings Plantation, golfers come from near and far to play 18 holes on the Williamsburg National Golf Course designed by Jim Lipe of Jack Nicklaus Design Associates.
Lots are available for home building sites, newly custom built homes and resells of custom built homes.
Governor's Land
Governor's Land is known for its high dollar elaborate homes and quiet seclusion on the James River. Two Rivers golf course was designed by the three-time golf architect of the year Tom Fazio. Admission to this course is only granted to members of the Two Rivers Country Club. This 18 hole course runs along the James River, which provides a scenic backdrop for a game. The design takes advantage of the natural contours of the river, marshlands, ravines, and woodlands.
Residents of Governor's Land enjoy full use of a marina, and life in the most exclusive, high end community in Williamsburg.
Home buyers may purchase lots to build new homes, newly custom built homes, or resells of custom built homes.
For the golfing enthusiast, an opportunity to live so close to the game is paramount. In Williamsburg Virginia, the golf capital of the East Coast, golf communities abound. Call me at 757-288-4685 or e-mail at voncannonrealestate@cox.net. I am a REALTOR who is in the know about these communities. I'll be happy to help you locate the home that fits your needs and lands you as close to the game of golf as you dream of being. Visit VonCannonRealEstate.com to view listings for Golf Communities in Williamsburg, VA.
Golf has long been one of the favorite leisure activities of professional and retired individuals. In Williamsburg, Virginia and surrounding areas, the professional and retiree can play golf on many renowned golf courses. The devoted golf enthusiast may desire even more than this. For some golfers, the ultimate immersion in the sport means moving to a golf community. In and around Williamsburg, Virginia a concentration of great courses and elegant golf communities make it the perfect place for the golfer to live, work, or retire.
Check with individual communities, but most have additional amenities such as swimming pools, tennis courts, and restaurants. Home buyers at most golf communities may choose to live in Planned Unit Development homes with maintenance included for a monthly fee in addition to a homeowners association fee.
The Golf Club at Brickshire
In addition to being a Curtis Strange signature course, the Golf Club at Brickshire also offers the golfer opportunities to play emulation holes from August National, Saint Andrews, Pinehurst #2, and Riviera Country Club. Brickshire is a relatively new 18 hole course that is only three years old at the date of this writing and has been described as "player friendly" by avid golfers. Golf Digest recently gave the Brickshire course a 4 1/2 star rating.
Home buyers may choose from newly built and custom built attached and detached homes.
The Tradition Golf Club at Stonehouse This stunning 18 hole golf course in New Kent County Virginia has been described as a challenging course that is larger than life. Featuring oversized greens and tremendous vistas, it is characterized by deep bunkers and long carries. In 2002, Stonehouse was awarded 4 1/2 stars by Golf Digest.
Kingsmill Resort and Spa
Kingsmill is the oldest gated golf community in Williamsburg and is home to three 18 hole golf courses, a marina and a conference center. The River course was once the site of the PGA Tour and is now the location of the LPGA tour's Michelob ULTRA open. In 2004 the original architect, Pete Dye, returned to oversee The River's renovation, which included resurfacing of greens and the addition of new fairway bunkering. Some golfers prefer the Plantation course, an Arnold Palmer design with generous fairway landing areas and water near eight holes. The Woods Course, designed by Tom Clark, has unique features such as a double green with a bunker in the middle shared by the par-3 twefth hole and par-4 fifteenth hole.
Kingsmill is one of the most prestigious communities in Williamsburg. All homes are custom built.
Ford's Colony
Ford's Colony, like Kingsmill, has three 18 hole courses. All were designed by Dan Maples. Choose from the Marsh Hawk Course, Blackheath Course, or the Blue Heron Course. Visit http://wwww.fordscolony.com to take a virtual tour of each course.
Home buyers interested in living at Ford's Colony will find lots available for home building sites, newly custom built homes, and resells of custom built homes.
Greensprings Plantation
At Greensprings Plantation, golfers come from near and far to play 18 holes on the Williamsburg National Golf Course designed by Jim Lipe of Jack Nicklaus Design Associates.
Lots are available for home building sites, newly custom built homes and resells of custom built homes.
Governor's Land
Governor's Land is known for its high dollar elaborate homes and quiet seclusion on the James River. Two Rivers golf course was designed by the three-time golf architect of the year Tom Fazio. Admission to this course is only granted to members of the Two Rivers Country Club. This 18 hole course runs along the James River, which provides a scenic backdrop for a game. The design takes advantage of the natural contours of the river, marshlands, ravines, and woodlands.
Residents of Governor's Land enjoy full use of a marina, and life in the most exclusive, high end community in Williamsburg.
Home buyers may purchase lots to build new homes, newly custom built homes, or resells of custom built homes.
For the golfing enthusiast, an opportunity to live so close to the game is paramount. In Williamsburg Virginia, the golf capital of the East Coast, golf communities abound. Call me at 757-288-4685 or e-mail at voncannonrealestate@cox.net. I am a REALTOR who is in the know about these communities. I'll be happy to help you locate the home that fits your needs and lands you as close to the game of golf as you dream of being. Visit VonCannonRealEstate.com to view listings for Golf Communities in Williamsburg, VA.
Friday, February 25, 2011
Marinas and Boat Launches in James City County and Williamsburg, VA
Williamsburg and James City County are premier locations for boating and fishing enthusiasts to live and visit in Virginia. The James River is just a short distance from the Chesapeake Bay and the Intracoastal Waterway. Marinas near the James River are a wonderful, restful berth for boaters and offer the amenities, and sometimes- dining. Inlets and coves used since colonial times and perhaps longer allow the boater a pleasant respite from the busy James River channel, which carries boats from the Hampton Roads Bridge Tunnel to the piers of Richmond, Virginia. There are several well-maintained public boat launches in the area that lead into the James or Chickahominy Rivers, or allow access to lakes or reservoirs.
Jamestown Yacht Basin (757)-229-8309
If it is convenience to the James River you are searching for, the Jamestown Yacht Basin is located on Powhatan Creek, nearby Historic Jamestown, just a five-minute boat ride from the James River. Speed boats and jet skis are permitted to launch from this marina. Boats coming via the Colonial Parkway, on trailers, have a 12 foot height restriction, due to tunnels. The Yacht Basin has 125 wetslips, but they are usually booked, so call ahead. The fully functional marina has a boat launch and stocks boat supplies, ice, gas, and marine fuel. Fish caught in the immediate area include catfish, croaker, striped bass, and large mouth bass. Jamestown Yacht Basin is the only covered marina in James City County.
Kingsmill Marina (757)-253-3919
http://www/kingsmill.com/recreation/marina.asp
If docking and dining is on the plan for the evening, Kingsmill Marina is a pleasant place to unwind. It's also an opportunity to experience all there is to do at Kingsmill Resort & Spa, including golfing, tennis, other recreation and traditional spa treatments such as massage and facials. Kingsmill has a full-service marina with 15 transient boat slips equipped with water and power connections. Concrete floating docks make embarking and disembarking easier, and the convenience of full-service dockside fueling may be welcome for some boaters. Have a bite to eat at The Deck at the Marina - with light fare and live entertainment complemented by a panoramic view of the James River. The marina store stocks boating and fishing supplies and other provisions. To access Kingsmill Resort & Spa's Marina, which is just 35 miles upriver from the Hampton Roads Bridge Tunnel, look for channel marker #40 on the James River.
Two Rivers Country Club Marina (757)-258-4863
Two Rivers Country Club is located in a protected, private harbor nearby the intersection of the James and Chickahominy Rivers One hundred boat slips can be housed at this Yacht Club with exclusive membership. There are 78 slips at the 25-50' depth range. There are 8 transient slips at the Yacht Club. A maximum of 50' boats are permitted. Water, electric, and boat dock boxes are included with all slips. Amenities include a boat launching ramp, fuel service, a terrace with a covered awning and tables, an office, shop, laundry, bathroom, showers, and ice.
Waller Mill Park, Williamsburg (757) 220-6178
http://www.ci.williamsburg.va.us/dept/rec/parks.htm#waller
This fishing lake is maintained by the City of Williamsburg Parks and Recreation and only rowboats, canoes, pedal boats and kayaks are allowed. No gasoline boats are permitted in Waller Mill Park, but electric motors are permitted, and they are available for rental for $15-20 per day. This is a great fishing lake -- well stocked with striped bass, large mouth bass, blue gill, yellow and white perch, catfish, and red-earred bream. Fishing is only permitted from boats. Waller Mill Park is Williamsburg's 2700-acre park situated around its reservoir and has been open to the public for 24 years. The 343-acre lake has a tunnel connecting the upper and lower sections of the lake. To get to Waller creek, take Airport Road (Rt. 645), which connects I-64 and Rt. 60 West.
Chickahominy Riverfront Park (828)-258-5020
http://www.jccegov.com/recreation/chickahominy_park.html
At the mouth of the Chickahominy River, approximately 1/2 mile from the James River is Chickahominy Riverfront Park which offers a four wide boat ramp. Speed boats and jet skis are permitted to launch here, and boats are also available for rental. For directions, log on to http://www.jccegov.com/recreation/directions.html#Anchor-Chickahomin-40400.
Diascund Creek Resevoir
This public boat launch, Diascund Landing is overseen by the Virginia Department of Game and Inland Fisheries and is right in James City county. From Williamsburg, Go West on Rt. 60 at past Norge for 8 miles until the intersection of Route 603 north. Boat access is 1/2 mile on the right.
Marine Weather Reports
For any jaunts on the Rivers near Williamsburg and in James City County, always remember conditions can change. It's a great idea to check the weather report before heading out for a boat cruise with family and friends.
Here is a the National Weather Service Forecast, with a base in Wakefield, Virginia, just across the James River from Williamsburg. Consult the NOAA site for direct weather information: http://www.srh.noaa.gov/data/forecasts/VAZ090.php?warncounty=VAC095&city=Williamsburg.
Have a pleasant cruise on these Virginia rivers. If you are looking for a permanent home for your boat with a dock, contact me at 757-288-4685. I'd love to show you some waterfront property in this area. Don't forget to visit www.voncannonrealestate.com for other articles on the Tidewater/Hampton Roads area or for more information.
Jamestown Yacht Basin (757)-229-8309
If it is convenience to the James River you are searching for, the Jamestown Yacht Basin is located on Powhatan Creek, nearby Historic Jamestown, just a five-minute boat ride from the James River. Speed boats and jet skis are permitted to launch from this marina. Boats coming via the Colonial Parkway, on trailers, have a 12 foot height restriction, due to tunnels. The Yacht Basin has 125 wetslips, but they are usually booked, so call ahead. The fully functional marina has a boat launch and stocks boat supplies, ice, gas, and marine fuel. Fish caught in the immediate area include catfish, croaker, striped bass, and large mouth bass. Jamestown Yacht Basin is the only covered marina in James City County.
Kingsmill Marina (757)-253-3919
http://www/kingsmill.com/recreation/marina.asp
If docking and dining is on the plan for the evening, Kingsmill Marina is a pleasant place to unwind. It's also an opportunity to experience all there is to do at Kingsmill Resort & Spa, including golfing, tennis, other recreation and traditional spa treatments such as massage and facials. Kingsmill has a full-service marina with 15 transient boat slips equipped with water and power connections. Concrete floating docks make embarking and disembarking easier, and the convenience of full-service dockside fueling may be welcome for some boaters. Have a bite to eat at The Deck at the Marina - with light fare and live entertainment complemented by a panoramic view of the James River. The marina store stocks boating and fishing supplies and other provisions. To access Kingsmill Resort & Spa's Marina, which is just 35 miles upriver from the Hampton Roads Bridge Tunnel, look for channel marker #40 on the James River.
Two Rivers Country Club Marina (757)-258-4863
Two Rivers Country Club is located in a protected, private harbor nearby the intersection of the James and Chickahominy Rivers One hundred boat slips can be housed at this Yacht Club with exclusive membership. There are 78 slips at the 25-50' depth range. There are 8 transient slips at the Yacht Club. A maximum of 50' boats are permitted. Water, electric, and boat dock boxes are included with all slips. Amenities include a boat launching ramp, fuel service, a terrace with a covered awning and tables, an office, shop, laundry, bathroom, showers, and ice.
Waller Mill Park, Williamsburg (757) 220-6178
http://www.ci.williamsburg.va.us/dept/rec/parks.htm#waller
This fishing lake is maintained by the City of Williamsburg Parks and Recreation and only rowboats, canoes, pedal boats and kayaks are allowed. No gasoline boats are permitted in Waller Mill Park, but electric motors are permitted, and they are available for rental for $15-20 per day. This is a great fishing lake -- well stocked with striped bass, large mouth bass, blue gill, yellow and white perch, catfish, and red-earred bream. Fishing is only permitted from boats. Waller Mill Park is Williamsburg's 2700-acre park situated around its reservoir and has been open to the public for 24 years. The 343-acre lake has a tunnel connecting the upper and lower sections of the lake. To get to Waller creek, take Airport Road (Rt. 645), which connects I-64 and Rt. 60 West.
Chickahominy Riverfront Park (828)-258-5020
http://www.jccegov.com/recreation/chickahominy_park.html
At the mouth of the Chickahominy River, approximately 1/2 mile from the James River is Chickahominy Riverfront Park which offers a four wide boat ramp. Speed boats and jet skis are permitted to launch here, and boats are also available for rental. For directions, log on to http://www.jccegov.com/recreation/directions.html#Anchor-Chickahomin-40400.
Diascund Creek Resevoir
This public boat launch, Diascund Landing is overseen by the Virginia Department of Game and Inland Fisheries and is right in James City county. From Williamsburg, Go West on Rt. 60 at past Norge for 8 miles until the intersection of Route 603 north. Boat access is 1/2 mile on the right.
Marine Weather Reports
For any jaunts on the Rivers near Williamsburg and in James City County, always remember conditions can change. It's a great idea to check the weather report before heading out for a boat cruise with family and friends.
Here is a the National Weather Service Forecast, with a base in Wakefield, Virginia, just across the James River from Williamsburg. Consult the NOAA site for direct weather information: http://www.srh.noaa.gov/data/forecasts/VAZ090.php?warncounty=VAC095&city=Williamsburg.
Have a pleasant cruise on these Virginia rivers. If you are looking for a permanent home for your boat with a dock, contact me at 757-288-4685. I'd love to show you some waterfront property in this area. Don't forget to visit www.voncannonrealestate.com for other articles on the Tidewater/Hampton Roads area or for more information.
Saturday, February 5, 2011
Another Bank with Issues: Introducing USAA’s Mortgage Program
Elaine VonCannon, ABR, SRES, REALTOR, Notary Public, Team Manager
The topic of the last article I wrote and syndicated was inconsistencies with home loan financing. It featured Bank of America and Homesteps and Homepath, the FHA home loan programs. Now the spotlight has shifted to USAA mortgages.
As a real estate agent in the Williamsburg, Virginia market for nearly a decade, I have ample experience with mortgage companies and banks. This is not the first time my clients had issues with USAA.
Recently, I had a homebuyer who was purchasing a short sale. USAA promised a low interest rate, which motivated the buyer to use their home loan services. Two weeks prior to closing USAA became very demanding, and my client had to jump thru hoops to get the loan done. This was a professional couple with a very high credit score. They could have taken their home purchase to any mortgage company or bank. Why do the banks continue to scrutinize even the best borrowers?
Now, it is time for the icing on the cake. My current client is using USAA after a bad start with -- OH YES -- the infamous Bank of America (who I might add holds the paper on several of his loans). Bank of America informed him eight days from closing they could not do the loan. The homebuyer had to search for another lender a week before closing. In the beginning, I recommended he use another lender, not USAA. I cited examples of local mortgage lenders who had clients come back to them in tears after treatment at the hands of USAA employees.
Did you know one small mark on someone’s credit can become a large issue these days when applying for a mortgage? This is ridiculous! The USAA loan officer working on this particular loan was Laura Perez. She blames underwriting for not making the loan -- though I am inclined to think it is her. USAA is hung up over a $187.00 bill that my client disputed and is awaiting an answer on.
Laura Perez or the underwriter at USAA does not like the way the bill says paid in full. My client sent Perez two statements on this small bill that had been paid. “The document I sent yesterday is the new "Paid in Full" document, which doesn't say, "releases me of all debt, etc." noted my client.
In essence, this home purchase is stuck in limbo now, over a $187 bill. Until the credit issue drops from this client’s record, USAA will not finalize a loan. According to Laura Perez, “That's not in my control. And, it can take 45 days before I can even continue.” Perez also requested documentation that my client has provided.
Here is the startling information. This bill and credit dispute began four years ago. This client purchased two investment properties in Williamsburg and the credit dispute was not an issue for these closings. Why is it an issue now, with USAA?
This homebuyer is a solid investor, and a good client. I manage two homes for my client here in Williamsburg. He also owns another home out-of-state that he had to rent due to the market and relocation by his employer.
As a last resort, I have emailed Laura Perez and requested to speak to her supervisor. It is no surprise that I have not heard back, and that no information is forthcoming. This home loan is now hung up. It is truly just another example of banking bureaucracy.
If we examine the examples carefully, it is obvious that the inability of the banks and mortgage companies to push loans for qualified buyers through in a timely manner has helped to slow down the real estate market considerably. Until the lenders either staff up with qualified employees or apply consistent formulas and rules to loan applications, this financial quagmire we are currently in may take some time to dissipate.
Visit http://www.voncannonrealestate.com for more information.
The topic of the last article I wrote and syndicated was inconsistencies with home loan financing. It featured Bank of America and Homesteps and Homepath, the FHA home loan programs. Now the spotlight has shifted to USAA mortgages.
As a real estate agent in the Williamsburg, Virginia market for nearly a decade, I have ample experience with mortgage companies and banks. This is not the first time my clients had issues with USAA.
Recently, I had a homebuyer who was purchasing a short sale. USAA promised a low interest rate, which motivated the buyer to use their home loan services. Two weeks prior to closing USAA became very demanding, and my client had to jump thru hoops to get the loan done. This was a professional couple with a very high credit score. They could have taken their home purchase to any mortgage company or bank. Why do the banks continue to scrutinize even the best borrowers?
Now, it is time for the icing on the cake. My current client is using USAA after a bad start with -- OH YES -- the infamous Bank of America (who I might add holds the paper on several of his loans). Bank of America informed him eight days from closing they could not do the loan. The homebuyer had to search for another lender a week before closing. In the beginning, I recommended he use another lender, not USAA. I cited examples of local mortgage lenders who had clients come back to them in tears after treatment at the hands of USAA employees.
Did you know one small mark on someone’s credit can become a large issue these days when applying for a mortgage? This is ridiculous! The USAA loan officer working on this particular loan was Laura Perez. She blames underwriting for not making the loan -- though I am inclined to think it is her. USAA is hung up over a $187.00 bill that my client disputed and is awaiting an answer on.
Laura Perez or the underwriter at USAA does not like the way the bill says paid in full. My client sent Perez two statements on this small bill that had been paid. “The document I sent yesterday is the new "Paid in Full" document, which doesn't say, "releases me of all debt, etc." noted my client.
In essence, this home purchase is stuck in limbo now, over a $187 bill. Until the credit issue drops from this client’s record, USAA will not finalize a loan. According to Laura Perez, “That's not in my control. And, it can take 45 days before I can even continue.” Perez also requested documentation that my client has provided.
Here is the startling information. This bill and credit dispute began four years ago. This client purchased two investment properties in Williamsburg and the credit dispute was not an issue for these closings. Why is it an issue now, with USAA?
This homebuyer is a solid investor, and a good client. I manage two homes for my client here in Williamsburg. He also owns another home out-of-state that he had to rent due to the market and relocation by his employer.
As a last resort, I have emailed Laura Perez and requested to speak to her supervisor. It is no surprise that I have not heard back, and that no information is forthcoming. This home loan is now hung up. It is truly just another example of banking bureaucracy.
If we examine the examples carefully, it is obvious that the inability of the banks and mortgage companies to push loans for qualified buyers through in a timely manner has helped to slow down the real estate market considerably. Until the lenders either staff up with qualified employees or apply consistent formulas and rules to loan applications, this financial quagmire we are currently in may take some time to dissipate.
Visit http://www.voncannonrealestate.com for more information.
Wednesday, February 2, 2011
Banking Backlogs and Inconsistencies Plague the Mortgage System
Elaine VonCannon, ABR, SRES, REALTOR, Notary Public, Team Manager
As a REALTOR in Williamsburg, VA, I have seen many of inconsistencies with mortgage companies during a down market. Frankly, this frustrates buyers and sellers, me, my staff and colleagues.
I have mortgage company incompetencies, slowdowns and backlogs to share. I have collected some stories from other agents in my RE/Max Capital office in Williamsburg, too. These snafus in the mortgage approval system impact buyers and sellers in a negative way.
Short Sales Frustrations
It is common for a seller to short sale a property, and to have the lender(s) make the seller wait six months for approval - and then deny it! More often than not this crucial decision leaves the seller in financial ruins. The sale of the home is never closed, and the property now exists as bank 'inventory' and may not even hit the real estate market for a year or two. Wasting time on short sales leaves homebuyers and home sellers hung-up in financial limbo, and real estate agents without a closed deal. This cannot be good for the economy.
FHA Owned Properties: HomeSteps and HomePath
The FHA is a government agency, backed by tax dollars. If a buyer happens to put an offer on an FHA owned property, they have to use the recommended program. The federal government, in its infinite wisdom, has instituted the HomeSteps program through Freddie Mac and HomePath through Fannie Mae as public loan programs for the home buyer to help assist in the process of closing deals on FHA owned properties. Private lenders work through the program while adhering to government guidelines.
Though the HomePath and HomeStep Programs are enticing for what they offer, the process is slow and unwieldy. Some real estate agents have found the formula applied to each loan approval is not always the same. One agent in my office had a buyer turned down because HomePath indicated they did not have enough income. When the agent confronted the loan officer, she wanted to know why the 10-month income verification was not applied, instead of 12-month verification. She said her clients would qualify with a 10-month formula, and the loan officer agreed it was allowed. Her complaint is that formulas are not being applied consistently. Even those with good credit and stable work histories are finding it hard to close on HomePath loans.
HomePath Lending Program
Fannie Mae's HomePath program offers a traditional mortgage with 3% down, and no appraisal or premium mortgage insurance (PMI) is required. In addition, Fannie Mae offers another 3% down loan that includes home purchase and light to moderate renovations on primary or second homes or investment properties. A separate loan funds manufactured homes with the same 3% down payment.
HomeSteps Lending Program
The Freddie Mac Loan Program, HomeSteps, is stricter. The HomeSetps website recommends a 5% down payment with the possibility of qualifying for special programs offering down payment assistance. An appraisal is required on HomeSteps property purchases. Only certain homes will qualify for this program. A public review on the HomeSteps loan program is just as discouraging as HomePath. According to one buyer who complained publicly on CityData.com, the lender was Wells Fargo and the buyers made an initial offer on a Homesteps property, then made a lower offer once it was determined the house had 'illegal problems.' She inquires, "Is it normal to wait three weeks for a reply?"
Often buyers become frustrated with these slow moving property deals and move on. More often then not, the sale never closes.
Bank of America Backlog on Foreclosure Contract & Loan Approval
The Bank of America foreclosure department also drags its feet on closing real estate sales. I had a buyer ready to close on a Bank of America owned foreclosure and it took them two months to produce a contract. My buyer had an 800 credit score, but it took so long to approve his application, he became frustrated and pulled money out of another investment to pay cash for the property. I was lucky he had assets and was not totally reliant upon bank financing.
Bank of America Loan to Income Ratio Askew?
Another client I had was prepared to close on a property with Bank of America financing and he had a 780 credit score. The loan officer waited until one week before closing to inform him he did not qualify because his debt to income ratio was too high. When we considered lending alternatives, five other banks approved his loan, and even the USAA approved it. Why was Bank of America's loan to income ratio different than the rest?
The backlog in application requests, slow customer service, and inconsistencies with loan approvals are all reasons for concern about the mortgage lending industry today. Everyone involved in closing real estate deals becomes frustrated: real estate agents, buyers, sellers, lawyers and contractors. Even the federal government has become suspicious of Bank of America's (and other mortgage lenders) incomplete foreclosure paperwork and processes.
Though the federal government has been investigating some issues, lender inconsistencies and slow or no customer service are rampant in this real estate market. Buyers need to build extra time into their home sales process and agents need to exercise patience and attention to details for property deals to close.
For more information about purchasing bank owned properties, residential or commercial properties, or listing properties for sale, visit http://www.voncannonrealestate.com.
As a REALTOR in Williamsburg, VA, I have seen many of inconsistencies with mortgage companies during a down market. Frankly, this frustrates buyers and sellers, me, my staff and colleagues.
I have mortgage company incompetencies, slowdowns and backlogs to share. I have collected some stories from other agents in my RE/Max Capital office in Williamsburg, too. These snafus in the mortgage approval system impact buyers and sellers in a negative way.
Short Sales Frustrations
It is common for a seller to short sale a property, and to have the lender(s) make the seller wait six months for approval - and then deny it! More often than not this crucial decision leaves the seller in financial ruins. The sale of the home is never closed, and the property now exists as bank 'inventory' and may not even hit the real estate market for a year or two. Wasting time on short sales leaves homebuyers and home sellers hung-up in financial limbo, and real estate agents without a closed deal. This cannot be good for the economy.
FHA Owned Properties: HomeSteps and HomePath
The FHA is a government agency, backed by tax dollars. If a buyer happens to put an offer on an FHA owned property, they have to use the recommended program. The federal government, in its infinite wisdom, has instituted the HomeSteps program through Freddie Mac and HomePath through Fannie Mae as public loan programs for the home buyer to help assist in the process of closing deals on FHA owned properties. Private lenders work through the program while adhering to government guidelines.
Though the HomePath and HomeStep Programs are enticing for what they offer, the process is slow and unwieldy. Some real estate agents have found the formula applied to each loan approval is not always the same. One agent in my office had a buyer turned down because HomePath indicated they did not have enough income. When the agent confronted the loan officer, she wanted to know why the 10-month income verification was not applied, instead of 12-month verification. She said her clients would qualify with a 10-month formula, and the loan officer agreed it was allowed. Her complaint is that formulas are not being applied consistently. Even those with good credit and stable work histories are finding it hard to close on HomePath loans.
HomePath Lending Program
Fannie Mae's HomePath program offers a traditional mortgage with 3% down, and no appraisal or premium mortgage insurance (PMI) is required. In addition, Fannie Mae offers another 3% down loan that includes home purchase and light to moderate renovations on primary or second homes or investment properties. A separate loan funds manufactured homes with the same 3% down payment.
HomeSteps Lending Program
The Freddie Mac Loan Program, HomeSteps, is stricter. The HomeSetps website recommends a 5% down payment with the possibility of qualifying for special programs offering down payment assistance. An appraisal is required on HomeSteps property purchases. Only certain homes will qualify for this program. A public review on the HomeSteps loan program is just as discouraging as HomePath. According to one buyer who complained publicly on CityData.com, the lender was Wells Fargo and the buyers made an initial offer on a Homesteps property, then made a lower offer once it was determined the house had 'illegal problems.' She inquires, "Is it normal to wait three weeks for a reply?"
Often buyers become frustrated with these slow moving property deals and move on. More often then not, the sale never closes.
Bank of America Backlog on Foreclosure Contract & Loan Approval
The Bank of America foreclosure department also drags its feet on closing real estate sales. I had a buyer ready to close on a Bank of America owned foreclosure and it took them two months to produce a contract. My buyer had an 800 credit score, but it took so long to approve his application, he became frustrated and pulled money out of another investment to pay cash for the property. I was lucky he had assets and was not totally reliant upon bank financing.
Bank of America Loan to Income Ratio Askew?
Another client I had was prepared to close on a property with Bank of America financing and he had a 780 credit score. The loan officer waited until one week before closing to inform him he did not qualify because his debt to income ratio was too high. When we considered lending alternatives, five other banks approved his loan, and even the USAA approved it. Why was Bank of America's loan to income ratio different than the rest?
The backlog in application requests, slow customer service, and inconsistencies with loan approvals are all reasons for concern about the mortgage lending industry today. Everyone involved in closing real estate deals becomes frustrated: real estate agents, buyers, sellers, lawyers and contractors. Even the federal government has become suspicious of Bank of America's (and other mortgage lenders) incomplete foreclosure paperwork and processes.
Though the federal government has been investigating some issues, lender inconsistencies and slow or no customer service are rampant in this real estate market. Buyers need to build extra time into their home sales process and agents need to exercise patience and attention to details for property deals to close.
For more information about purchasing bank owned properties, residential or commercial properties, or listing properties for sale, visit http://www.voncannonrealestate.com.
Monday, January 17, 2011
Debunking the Myth of More Net Gain with For Sale by Owner
Elaine VonCannon, ABR, SRES, REALTOR, Notary Public, Team Manager
Are you thinking of selling your home on your own, without the aid and professional advice of a qualified REALTOR? You may want to re-examine your decision to do so, because chances are good that you will not increase your net gain by selling your own home.
Do you believe your savings on commission will be your reward after you attend a seminar or two on selling your own home? A home sale is a complex series of transactions with multiple parties. Not only is it time consuming, consultation and coordination with professionals at every level is necessary. Attendance at a seminar or two does not make you an expert on home selling.
The average person will buy two to three homes in one lifetime, unless they are a property investor. A top producing REALTOR will average 5-10 transactions per month. A REALTOR with knowledge and experience in the profession will be able to enhance your bottom line on a home sale. Here are some common questions I am frequently asked by For Sale by Owner sellers.
Q: I recently attended a seminar on selling my own home. Won't this enable me to do it on my own?
A: The seminar was probably sponsored by a lawyer, closing attorney, titling company, or lender. The facts you can obtain in three hours or less are not enough to teach you how to get more money for your largest investment: your home.
Q: How do REALTORS sell homes quickly?
A: A staggering 80% of home sales are done through a Multiple Listing Service. REALTORS have access to this. With a listing on MLS sellers have the entire membership of the MLS working for them. Sellers may have as much as several thousand members depending on the area or residence. An MLS listing is the most effective way to bring in qualified potential buyers.
Q: What information is most critical when selling a home?
A: A seller needs to know what the state requires as well as what the lender requires when it comes to home sales transactions. He or she also needs to know the timeframe for all transactions. If time frame is not adhered to the contract can become null and void.
Q: I live in a residential community and am selling my home. How do I deal with the Home Owner's Association effectively?
A: Do you know the timeframe for the Home Owners Association (HOA) packet in your area? If the HOA package is not received in the required timeframe of your state then the buyer may cancel the contract with no penalties to the buyer. These matters are of the utmost importance when dealing with an HOA.
Q: Why does a home seller even need a real estate agent?
A: If there is no middle party to negotiate between the buyer and seller, you can become deadlocked on terms, have your property tied up, or end up in litigation. If your property is tied up for months you might have missed the right buyer who is willing and able to pay the price you want. Also a REALTOR will not have the emotional ties to the transaction that a seller has. The REALTOR is also separate from the buyer's objectives.
Q: Doesn't hiring an attorney take care of contracts?
A: If you think an attorney drawing up a contract makes you free and clear of worries and responsibilities - you're wrong. The attorney does not have the time to stay on top of this to make sure everything required is done on the home before closing. If you do want the attorney to handle the details, you'll pay a lawyer's fee, which is usually $100 per hour and up.
Q: How does a REALTOR arrive at a market price on a home?
A: A REALTOR will price your home much like an appraiser would. A REALTOR compares your home to what has sold in the area in the past three months. They know the inflation record in your area. A REALTOR's research also consists of checking court records to see what has sold in this area. This covers home sales not listed on MLS, but by law has to be recorded at the court house for a specific area.
Q: How can a REALTOR possibly improve my bottom line on home sales, when I'm saving on commission?
A: On every listing I have sold, I have procured for my sellers $10,000-$50,000 above what they thought their property would sell for - after they had paid all the fees including commission. A majority of For Sale by Owner's homes have sold for less than what a REALTOR would have obtained.
I would like to reiterate the importance of the seller selecting a REALTOR who knows the ins and outs of contractual agreements and has some experience behind him or her. Hiring an experienced REALTOR to help sell your home will the wisest investment you've ever made.
Visit VonCannonRealEstate.com to view the listing engine on the website.
Are you thinking of selling your home on your own, without the aid and professional advice of a qualified REALTOR? You may want to re-examine your decision to do so, because chances are good that you will not increase your net gain by selling your own home.
Do you believe your savings on commission will be your reward after you attend a seminar or two on selling your own home? A home sale is a complex series of transactions with multiple parties. Not only is it time consuming, consultation and coordination with professionals at every level is necessary. Attendance at a seminar or two does not make you an expert on home selling.
The average person will buy two to three homes in one lifetime, unless they are a property investor. A top producing REALTOR will average 5-10 transactions per month. A REALTOR with knowledge and experience in the profession will be able to enhance your bottom line on a home sale. Here are some common questions I am frequently asked by For Sale by Owner sellers.
Q: I recently attended a seminar on selling my own home. Won't this enable me to do it on my own?
A: The seminar was probably sponsored by a lawyer, closing attorney, titling company, or lender. The facts you can obtain in three hours or less are not enough to teach you how to get more money for your largest investment: your home.
Q: How do REALTORS sell homes quickly?
A: A staggering 80% of home sales are done through a Multiple Listing Service. REALTORS have access to this. With a listing on MLS sellers have the entire membership of the MLS working for them. Sellers may have as much as several thousand members depending on the area or residence. An MLS listing is the most effective way to bring in qualified potential buyers.
Q: What information is most critical when selling a home?
A: A seller needs to know what the state requires as well as what the lender requires when it comes to home sales transactions. He or she also needs to know the timeframe for all transactions. If time frame is not adhered to the contract can become null and void.
Q: I live in a residential community and am selling my home. How do I deal with the Home Owner's Association effectively?
A: Do you know the timeframe for the Home Owners Association (HOA) packet in your area? If the HOA package is not received in the required timeframe of your state then the buyer may cancel the contract with no penalties to the buyer. These matters are of the utmost importance when dealing with an HOA.
Q: Why does a home seller even need a real estate agent?
A: If there is no middle party to negotiate between the buyer and seller, you can become deadlocked on terms, have your property tied up, or end up in litigation. If your property is tied up for months you might have missed the right buyer who is willing and able to pay the price you want. Also a REALTOR will not have the emotional ties to the transaction that a seller has. The REALTOR is also separate from the buyer's objectives.
Q: Doesn't hiring an attorney take care of contracts?
A: If you think an attorney drawing up a contract makes you free and clear of worries and responsibilities - you're wrong. The attorney does not have the time to stay on top of this to make sure everything required is done on the home before closing. If you do want the attorney to handle the details, you'll pay a lawyer's fee, which is usually $100 per hour and up.
Q: How does a REALTOR arrive at a market price on a home?
A: A REALTOR will price your home much like an appraiser would. A REALTOR compares your home to what has sold in the area in the past three months. They know the inflation record in your area. A REALTOR's research also consists of checking court records to see what has sold in this area. This covers home sales not listed on MLS, but by law has to be recorded at the court house for a specific area.
Q: How can a REALTOR possibly improve my bottom line on home sales, when I'm saving on commission?
A: On every listing I have sold, I have procured for my sellers $10,000-$50,000 above what they thought their property would sell for - after they had paid all the fees including commission. A majority of For Sale by Owner's homes have sold for less than what a REALTOR would have obtained.
I would like to reiterate the importance of the seller selecting a REALTOR who knows the ins and outs of contractual agreements and has some experience behind him or her. Hiring an experienced REALTOR to help sell your home will the wisest investment you've ever made.
Visit VonCannonRealEstate.com to view the listing engine on the website.
Friday, January 7, 2011
A Primer on Bank Owned Properties for Sale in VA
Elaine VonCannon, ABR, SRES, REALTOR, Notary Public, Team Manager
For perhaps the first time in history, bank owned properties are numerous in just about any real estate market. First time homebuyers, investors, and the average homebuyer in the U.S. markets are eager to purchase bank owned property.
On the surface, bank owned properties seem like a great deal. Often, they do offer significant savings. Yet the purchase of a bank owned property, whether it is a short sale or a foreclosure, also comes with specific parameters and cautions for the buyer and the seller. Buyers must remember that a bank owned property purchase is vastly different from the routine property acquisition.
Bank Short Sales Statistics in Southeastern Virginia
Halfway through 2010, there are over 50 bank owned property listings in Williamsburg, James City County, Yorktown, Northern York County and sections of New Kent County and Charles City. In Hampton and Newport News Virginia, there are approximately 175 bank owned homes for sale. In the Northern Neck Counties on the Chesapeake Bay, there are 28 short sales and foreclosures for sale. These numbers indicate the recession is not over. Homebuyers can expect bank short sales and foreclosures to be listed for some time to come.
Short Sale Process
For property owners who are underwater, or owe more on the home then it is currently worth (and/or cannot afford their present mortgage due to reduction in income, unemployment, or change in life circumstances) a bank short sale may be a viable option.
Bank short sales are a tedious process. Those banks who accepted TARP money, such as Bank of America or Wells Fargo (the former Wachovia) are more inclined to short sale a property. These banks actually have the leverage to take the loss on the loan.
Some banks are not so amicable about a short sale. Instead these banks allow properties to go into foreclosure. Statistically, an average of 75% of short sales are withdrawn or often end in foreclosure. Banks can hold the inventory this way, and wait for property values to increase.
Buyers and sellers need to know that a short sale may take anywhere from four weeks to eight months or more to complete. If a buyer and seller are participating in a short sale, they must be patient.
Bank Short Sale Issues
There are some tricky issues with short sales of properties. To complete a short sale, a good attorney is necessary. The attorney will negotiate with the bank to obtain the best possible conditions for sale of the property. When there is a second mortgage on a property, there is little chance the company will receive any proceeds from the short sale. Since the second mortgage stands to loose the most from a short sale, the company may hold up the process.
Making a short sale on a property does not ensure the property owner will leave free and clear from financial responsibilities. Mortgage companies may still elect to hold the former homeowner responsible for financial losses even after a short sale is completed. A knowledgeable REALTOR will retain a qualified real estate attorney to ensure that the final contract includes verbiage requesting the remainder of debt owned by the first or second lien holder is forgiven. Inserting this clause may or may not work, but it should be written into the contract.
Foreclosures
The best way to find a foreclosed property (or a short sale) is to retain a qualified REALTOR in the desired area. This REALTOR will conduct a special search on the MLS for bank owned properties.
Foreclosed properties may be recently vacated, and some may have been left empty for a year or more. Some property owners elect to speak with their lender about their inability to maintain the loan, then voluntarily vacate the property instead of waiting for foreclosure. The homeowner will send the deed and keys to the lender and leave the premises. If a homeowner leaves in this manner, some banks may even forgive the unpaid balance.
Mortgage companies and banks like to privately "extend and pretend." This means the lender acts as if the loan is performing so they don't have to declare it as a non-performing loan. If the loan were classified as non-performing, the bank would have to pay more reserve money to ensure the investment. Bank owned properties stand vacant longer in this market for this precise reason.
Once the lender takes possession of the property, it has the option to auction the foreclosure at the courthouse. Often these home auctions will only net 50% of the home's value. If a lender cannot obtain enough money for the foreclosed property through public auction, it may hold it and leave it vacant or put it on the real estate market.
Condition of Bank Short Sales and Foreclosed Properties
Short sales and foreclosures are sold 'as is,' without negotiating repairs. The property can be inspected, but even if something is found wrong, the property owners are not required to do anything. The buyer, on the other hand, may need to meet certain conditions for the lender. Some may require moisture and termite inspections, or well and septic inspections, and theses costs are the buyer's responsibility. Do they want to bear it? The seller will more than likely not want to pay for inspections or upgrades to present systems.
Some short sales and foreclosures are in pristine condition, whereas others are 'buyer beware' since they have repair issues. It just depends on the situation. An inspection is well worth the money, and certainly a good decision for a short sale or foreclosed property. Buyers and REALTORS should be on guard for extensive damage, wear and tear and possible structural problems. Avoid purchasing homes where large capital investments are needed to make the home livable: faulty sewers or wells, asbestos, bad roofs, lead or leaky waterlines and malfunctioning electrical are some of these. Even a small or negligible repair issue may grow greater the longer the house is uninhabited and the problem is ignored. Vacant homes are more likely to be filled with rodents and pests and even snakes and small animals. Look for signs of these when viewing the property.
Even if you are not the type of person who wants to take the risks of purchasing bank owned properties, do not let it defer you from purchasing a home altogether. All investments are a risk. It is often better to know what these risks are up front. If, after reviewing the conditions of buying bank owned properties, you decide it's not for you, then consider purchasing a home through a traditional real estate transaction instead. There are still plenty of great bargains on home purchases.
Visit http://www.voncannonrealestate.com to view bank owned properties for sale in VA.
For perhaps the first time in history, bank owned properties are numerous in just about any real estate market. First time homebuyers, investors, and the average homebuyer in the U.S. markets are eager to purchase bank owned property.
On the surface, bank owned properties seem like a great deal. Often, they do offer significant savings. Yet the purchase of a bank owned property, whether it is a short sale or a foreclosure, also comes with specific parameters and cautions for the buyer and the seller. Buyers must remember that a bank owned property purchase is vastly different from the routine property acquisition.
Bank Short Sales Statistics in Southeastern Virginia
Halfway through 2010, there are over 50 bank owned property listings in Williamsburg, James City County, Yorktown, Northern York County and sections of New Kent County and Charles City. In Hampton and Newport News Virginia, there are approximately 175 bank owned homes for sale. In the Northern Neck Counties on the Chesapeake Bay, there are 28 short sales and foreclosures for sale. These numbers indicate the recession is not over. Homebuyers can expect bank short sales and foreclosures to be listed for some time to come.
Short Sale Process
For property owners who are underwater, or owe more on the home then it is currently worth (and/or cannot afford their present mortgage due to reduction in income, unemployment, or change in life circumstances) a bank short sale may be a viable option.
Bank short sales are a tedious process. Those banks who accepted TARP money, such as Bank of America or Wells Fargo (the former Wachovia) are more inclined to short sale a property. These banks actually have the leverage to take the loss on the loan.
Some banks are not so amicable about a short sale. Instead these banks allow properties to go into foreclosure. Statistically, an average of 75% of short sales are withdrawn or often end in foreclosure. Banks can hold the inventory this way, and wait for property values to increase.
Buyers and sellers need to know that a short sale may take anywhere from four weeks to eight months or more to complete. If a buyer and seller are participating in a short sale, they must be patient.
Bank Short Sale Issues
There are some tricky issues with short sales of properties. To complete a short sale, a good attorney is necessary. The attorney will negotiate with the bank to obtain the best possible conditions for sale of the property. When there is a second mortgage on a property, there is little chance the company will receive any proceeds from the short sale. Since the second mortgage stands to loose the most from a short sale, the company may hold up the process.
Making a short sale on a property does not ensure the property owner will leave free and clear from financial responsibilities. Mortgage companies may still elect to hold the former homeowner responsible for financial losses even after a short sale is completed. A knowledgeable REALTOR will retain a qualified real estate attorney to ensure that the final contract includes verbiage requesting the remainder of debt owned by the first or second lien holder is forgiven. Inserting this clause may or may not work, but it should be written into the contract.
Foreclosures
The best way to find a foreclosed property (or a short sale) is to retain a qualified REALTOR in the desired area. This REALTOR will conduct a special search on the MLS for bank owned properties.
Foreclosed properties may be recently vacated, and some may have been left empty for a year or more. Some property owners elect to speak with their lender about their inability to maintain the loan, then voluntarily vacate the property instead of waiting for foreclosure. The homeowner will send the deed and keys to the lender and leave the premises. If a homeowner leaves in this manner, some banks may even forgive the unpaid balance.
Mortgage companies and banks like to privately "extend and pretend." This means the lender acts as if the loan is performing so they don't have to declare it as a non-performing loan. If the loan were classified as non-performing, the bank would have to pay more reserve money to ensure the investment. Bank owned properties stand vacant longer in this market for this precise reason.
Once the lender takes possession of the property, it has the option to auction the foreclosure at the courthouse. Often these home auctions will only net 50% of the home's value. If a lender cannot obtain enough money for the foreclosed property through public auction, it may hold it and leave it vacant or put it on the real estate market.
Condition of Bank Short Sales and Foreclosed Properties
Short sales and foreclosures are sold 'as is,' without negotiating repairs. The property can be inspected, but even if something is found wrong, the property owners are not required to do anything. The buyer, on the other hand, may need to meet certain conditions for the lender. Some may require moisture and termite inspections, or well and septic inspections, and theses costs are the buyer's responsibility. Do they want to bear it? The seller will more than likely not want to pay for inspections or upgrades to present systems.
Some short sales and foreclosures are in pristine condition, whereas others are 'buyer beware' since they have repair issues. It just depends on the situation. An inspection is well worth the money, and certainly a good decision for a short sale or foreclosed property. Buyers and REALTORS should be on guard for extensive damage, wear and tear and possible structural problems. Avoid purchasing homes where large capital investments are needed to make the home livable: faulty sewers or wells, asbestos, bad roofs, lead or leaky waterlines and malfunctioning electrical are some of these. Even a small or negligible repair issue may grow greater the longer the house is uninhabited and the problem is ignored. Vacant homes are more likely to be filled with rodents and pests and even snakes and small animals. Look for signs of these when viewing the property.
Even if you are not the type of person who wants to take the risks of purchasing bank owned properties, do not let it defer you from purchasing a home altogether. All investments are a risk. It is often better to know what these risks are up front. If, after reviewing the conditions of buying bank owned properties, you decide it's not for you, then consider purchasing a home through a traditional real estate transaction instead. There are still plenty of great bargains on home purchases.
Visit http://www.voncannonrealestate.com to view bank owned properties for sale in VA.
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