2009:
Making Home Affordable: the Modification Option
A loan modification is a good idea if you can’t make your current mortgage payments, but could do so if those payments were lowered.
Image: JGI/Tom Grill/Blend Images/Getty Images
Making Home Affordable, the federal program aimed at aiding struggling homeowners, offers two options: refinancing and loan modification. A homeowner who is behind on mortgage payments and at risk of foreclosure could benefit from the modification option, which pays lenders to
re-work loan terms and lower monthly payments.
Don’t expect to breeze through the Making Home Affordable qualifying process. You’ll need a lot of documentation and patience. With so many homeowners looking for help, lenders are scrambling to keep up with demand. To speed up the loan process, have your paperwork in order before applying
for a loan modification.
Qualifying for a loan modification
Making Home Affordable’s modification option is known as the Home Affordable Modification Program, or HAMP. It’s designed for homeowners who are likely to lose their homes because they can’t keep up with mortgage payments. Even if you aren’t behind on payments yet, you can qualify for help if you can demonstrate that you will fall behind soon.
To qualify for HAMP, the home must be your primary residence and you must owe $729,750 or less on a first mortgage that was originated on or before Jan. 1, 2009. Your monthly payment on your first mortgage must be greater than 31% of your monthly gross income. Second mortgages and home equity lines of credit don’t count. You must also demonstrate financial hardship such as a jump in mortgage payments or a drop in income.
A loan modification makes sense if you can’t afford your current mortgage payment but could manage to stay current if that monthly payment is lowered. Second homes, which include vacation homes and rentals, don’t qualify for the
program. Homes of up to four units are eligible, with higher loan limits, as long as you occupy one of the units. HAMP is scheduled to expire at the end of 2012.
How to get started
HAMP begins with a trial phase. Contact your lender to initiate the process, or call 1-888-995-HOPE to get free assistance from a housing counselor approved by the U.S. Department of Housing and Urban Development. The lender will calculate a lower monthly payment, which you must make on time for at least three months. After successfully completing the trial phase, your lender should make the loan modification permanent.
While lenders may accept some undocumented information up front to begin the process, eventually you’ll need to file detailed paperwork to earn a permanent modification. It’s better to get your documentation in order in
advance. HAMP administrators say the leading reason trial modifications
fail to be made permanent is missing paperwork.
Start by gathering information on your income (pay stubs), expenses (mortgage statements, tax and insurance bills, debt balances), and assets (bank
and non-retirement savings statements). You’ll need that information to
fill out the Request for Modification and Affidavit. Also complete IRS form 4506T-EZ, which allows your lender to review your income tax returns. File a Hardship Affidavit as well. If possible, send all of the documents at once by certified mail to your lender to lessen the likelihood of lost paperwork and
delays, says Nicole Hall, editor of LendingTree.com.
Lowering your monthly payments
A lender can modify a mortgage in several ways: lower your interest rate, reduce your principal, or extend the term of the loan. The basic goal is to use one or more of these approaches to get your monthly mortgage payment, including real estate taxes and homeowners insurance premiums, down to a more affordable 31% or less of gross (pre-tax) income. Lenders are allowed to cut your interest rate to as low as 2%, if necessary. The average HAMP modification has reduced monthly payments by $640.
To get a ballpark figure of how much a modification might lower your monthly payment, run the numbers for yourself. If, for example, your current mortgage payment is $2,000 and your monthly gross income is $4,000, then you’re paying 50% of your pre-tax income toward the home loan. A typical modification to bring that figure down to 31% would reduce the payment to $1,240, a savings of $760 a month.
Alternatives to foreclosure
Even if you’re facing foreclosure, HAMP is worth a shot. The foreclosure process is suspended while you’re in the trial phase of the modification. Foreclosure can be avoided altogether if you can demonstrate the ability to keep up with the new, lower payment and graduate to a permanent modification. Keep in mind that the foreclosure process can resume if you miss payments during the trial phase or fail to get approved for a permanent modification.
Some owners won’t be able to stay in their homes, even with a mortgage modification. To avoid foreclosure, look into the federal Home Affordable Foreclosure Alternatives program. HAFA offers lenders financial incentives to opt for a short sale or deed-in-lieu rather than a foreclosure. Although the program doesn’t officially go into effect until April 5, 2010, some lenders may
initiate it early.
In a short sale, a borrower sells a home for less than the outstanding mortgage, and the lender takes the proceeds and considers the debt paid off. In a deed-in-lieu, the homeowner turns over the home to the lender, and the mortgage is closed. Although neither option is ideal, either can make sense if a loan modification isn’t attainable or sufficient.
Donna Fuscaldo has written about mortgage refinancing for Dow Jones, the Wall Street Journal, and Fox Business News for more than a decade. Like many homeowners, her mortgage is precariously close to being underwater.
Major League Sports Venues for Locals in the Northern Virginia Area
Are you thinking of moving to Northern Virginia? You might be wondering what you do after you move into your new home. Arlington, Alexandria and Fairfax County are part of the Washington DC area, and this area provides a whole host of Major League Sports Venues for all types of sports fans in the area. Check out what this great area has to offer below!
The Washington Redskins
Established in 1937, the Washington Redskins are a professional American football team based in Washington D.C. that plays for the National Football League (NFL). The Washington Redskins play at FedEx Field in Landover, Maryland. The team’s headquarters and training facility are at the Redskin Park in Ashburn, a community in Loudoun County, Virginia, near the Dulles International Airport. The Redskins have won five professional American football championships including two NFL Championships and three Super Bowls.
The Washington Wizards
Established in 1961, the Washington Wizards are a professional basketball team based in Washington, D.C. and were previously known as Washington Bullets until 1995. The Washington Wizards play for the National Basketball Association (NBA), and the team plays at the Verizon Center located on 7th Street in downtown Washington D.C.
The Washington Capitals
Established in 1974, the Washington Capitals are a professional ice hockey team based in Washington, D.C. and are members of the Southeast Division of the Eastern Conference of the National Hockey League (NHL). The Washington Capitals play at the Verizon Center in Washington D.C.’s Chinatown neighborhood on 7th Street. Since their founding in 1974, the Caps have won their division title five times and the conference championship once.
D.C. United
Established in 1995, D.C. United is an American professional soccer club located in Washington, D.C. that plays for Major League Soccer (MLS). The team’s home field is at the Robert F. Kennedy Memorial Stadium (RFK), owned by the District of Columbia and located near the Anacostia River.
The Washington Nationals
Based in Washington D.C. since 2005 as a replacement for earlier teams which had moved to Minnesota and Texas, the Washington Nationals are a professional baseball team based in Washington, D.C. and are a member of the Eastern Division of the National League of Major League Baseball (MLB). The team moved into the newly built Nationals Park in 2008, after playing their first three seasons in RFK Stadium, also occupied by D.C. United. The new park is located in Southeast D.C. near the Anacostia River.
No matter where you buy a home in Northern Virginia or D.C., the area has plenty to see and do for any and all sports fans alike!
- The Washington Redskins
- The Washington Wizards
- The Washington Capitals
- The Baltimore Orioles
- DC United
- The Washington Mystics
If you want to learn more about buying real estate in Northern Virginia contact us at 703 765 0300.
Watergate at Landmark Price Report
If you’d like to learn more about Watergate at Landmark click here?
Check what’s available now.
Here’s a price report based on the last two years of sales and rentals. Each report contains the median price along with high and low over the period. All price reports are approximations and should not be used to judge final sales values.
| Unit Type | For Sale | Condo Fees | Rental |
| One Bedroom, approx 990 to 1200 sf | 169,000 (146,500 to 195,000) | 600-700 | 1463 (1345 to 1800) |
| Two Bedroom, approx 1310 to 1620 sf | 226,020 (187,906 to 258,000) | 660-800 | 1700 (1500 to 1850) |
| Three Bedroom, 1620 approx sf | 262,038 (240,000 to 287,000) | ~990 | 2000 (1995 to 2200) |
Watergate at Landmark is located at 203, 205, 307, 309 Yoakum Pkwy near the intersection of King St and 395 in Alexandria, VA. With easy access to I-495/I-95, and 395. Watergate at Landmark was built in 1976, and is a 15 minute commute to D.C.
Amenities include:
- Open spaces
- Outdoor pool
- Indoor pool
- Sauna
- Gym
- Tennis Courts
- Putting greens
- Balconies
- Garage Parking Available
- In Unit Washer/Dryer
- All utilities included in condo fee
- Electric Heat Pump
- Central A/C
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About the Author — Ben Fornshell is a licensed real estate agent with Condo Alexandria. To learn more about available rentals and purchases in the area check out our free search.
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Year in Review Market Analysis for Northern Virginia Real Estate
Here are a few interesting year end facts about Northern Virginia real estate
- November’s average sales price is UP 1.3% from 2008 to $428,481
- In January 2009, the average sales price was down 22.51% to $376,669
MRIS data indicates that the Total Sold Dollar Volume is up 44.3% over November 2008. Similarly the Total Units Sold is up 43.45% over November 2008. According the Northern Virginia Association of Realtors and MLS data from the MRIS, “The market is shifting and slowly recovering; we’re coming back.
The average sales prices for Northern Virginia real estate is up from 2008.
The number of listings sold in Northern Virginia is up to levels not seen since 2006!
The Preston Condos of Potomac Yards
The Preston Condos of Potomac Yards are located near the George Washington Parkway in Alexandria, Virginia. The Preston offers something for everyone and cuts down on what could be an otherwise lengthy commute because of the ease of access to the Parkway. Located across the street from the Preston Condos is the Potomac Yard Shopping Center, where you’ll find great shopping, entertainment and dining for the whole family. In addition, the Preston is located near the Four-Mile Run Bike Trail and the historic Mount Vernon Trail, and the Preston is within ten minutes of Regan National Airport. The Preston is situated within a few minutes of the Potomac River, and residents can participate in the fishing and sailing recreational ventures that this natural landscape provides. Residents can also enjoy a convenient shuttle bus that connects to Braddock Road and the Crystal City Metro stations along Jefferson Davis Highway.
The Preston features steel and concrete construction and offers a sleek architectural style with a crisp, urban design. Aside from the outstanding views, other amenities include high ceilings, individual storage units, an exercise room, a private rooftop deck, and underground private parking. The Preston houses 53 contemporary one and two bedroom homes with a balcony or terrace depending on the unit. The Preston is located at 181 East Reed Avenue in Alexandria, Virginia.
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1600 Prince St Condos
Lobby of 1600 Prince
If you’d like to learn more about 1600 Prince St Condos click here?
Here’s a price report based on the last two years of sales and rentals. Each report contains the median price along with high and low over the period. All price reports are approximations and should not be used to judge final sales values.
| Unit Type | For Sale | Condo Fees | Rental |
| Studio, approx 740 sf | NA | NA | 1495 |
| One Bedroom, approx 710 to 900 sf | 344,000 (317,000 to 349,000) | 154 | 1500 (1400 to 1550) |
| Two Bedroom, approx 1350 to 1430 sf | 433,000 (308,000 to 472,000) | 308 | NA |
| Three Bedroom, approx 1635 sf | 527,000 | 337 | NA |
1600 Prince St Condos is located near the King Street Metro, King Street, and Duke Street in Alexandria, VA. With easy access to I-495/I-95, and 395. Park Fairfax was built in the 1982, and is a 15 minute commute to D.C.
Amenities include:
- Wood Floors
- In Unit Washer/Dryer
- Electric Heat Pump
- Central A/C
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About the Author — Ben Fornshell is a licensed real estate agent with Condo Alexandria. To learn more about available rentals and purchases in the area check out our free search.
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Rosslyn condos at a glance
Rosslyn is just across the Potomac from Washington DC, couched between Georgetown and Arlington National Cemetery, with easy access to the Memorial Bridge, Key Bridge and Roosevelt Bridge. Here are few highlights from the condominiums you’ll find here:
- Atrium — A contemporary design with striking floor-to-ceiling glass.
Will Nesbitt
- Astoria — All-brick condos that consistently rank as one of the area’s most desirable addresses
- Belvedere — A landmark structure just off Rt. 50. The Belvedere overlooks the monuments and the Iwo Jima Memorial
- Bromptons — 10 foot ceilings and nearly brand new structure
- Turnberry Tower — Twenty-five stories tall and loaded with luxury
- Waterview — The name says it all? No, but it gives you a good starting point.
- Wooster & Mercer Lofts — Luxury in loft-style condos
Did we get any snow?
Did we get any snow during the “Blizzard of ’09″? I’ll say …
Julie and I went outside during the storm, just to walk around a bit.
Foxy didn’t seem to be having as much fun as we were having. Maybe that was because her feet couldn’t touch the ground.
She stuck pretty close as we walked around the house. I told Julie, “Remember this fall when I saw the fuzzy caterpillar?”
She did remember that fuzzy caterpillar. My grandfather was a wealth of folk wisdom and he once told me that when the fuzzy caterpillars have 2 blacks and an orange that means we’ll have a cold winter. (Of course, two oranges and a brown mean we’ll have a mild winter.) Well, so far, the caterpillar called it right this year. He had two thick black bands and we’ve had a pretty cold winter.
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About the Author — Will Nesbitt is the principal broker of Condo Alexandria and Will Nesbitt Realty. Will specializes in condos, townhouses and single family residences in Alexandria, Arlington, Fairfax County, Crystal City, and Kingstowne. Will resides in Belle Haven Estates just outside Alexandria VA in Fairfax County. |
River Towers Pricing
If you’d like to learn more about River Towers click here?
Check what’s available now.
Here’s a price report based on the last two years of sales and rentals.
| Unit Type | For Sale | Rental |
| Studio, about 430-490 sf | 120,000 (95,000 to 140,000) | 875 (775 to 975) |
| One bedroom, about 714 sf | 177,300 (150,000 to 200,000) | 1200 (950 to 1300) |
| Two Bedroom, about 980 sf | 228,500 (210,000 to 265,000) | 1500 (1450 to 1600) |
| Three Bedroom, about 1360 sf | 293,500 (280,000 to 320,000) | 1650 (1649 to 1750) |
River Towers is located near the intersection of Belle View Blvd and the
George Washington Parkway. With easy access to Richmond Highway
(Route One), the Belway I-495/I-95, and just minutes away from Old Town
Alexandria and the Huntingon Metro on the Yellow Line. River Towers was built in 1963 and is a 15 minute commute to D.C.
Amenities include:
Nine-story high-rise framed by evergreens
- Open spaces
- Outdoor pool
- Gym
- Ample Public Parking
- Garage Parking
- Wood Floors
- Tennis Courts
- Children’s Playgrounds
- Tennis Courts
- Community Unit Washer/Dryer
- Heating, Cooling, Electric included in Condo Fees
- Short Walk to shopping at Belle View
- Bike and Walk paths on the GW Parkway walking distance away.
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About the Author — Ben Fornshell is a licensed real estate agent with Condo Alexandria. To learn more about available rentals and purchases in the area check out our free search.
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Selling Your Condo: Helpful Tips
When you begin thinking about selling your condo, it is a good idea to begin by enlisting the help of a licensed Realtor. Unless you are otherwise experienced in the business of buying and selling condominiums, hiring the help of a qualified professional will enable you to reach a large market of potential buyers, and a good agent will work overtime to help you sell your home. In addition, hiring a Realtor will help ensure that all of the paperwork pertinent to the transaction is executed properly. Once you decide to sell your condo, begin by following the helpful tips listed below to prepare you for the process of selling your condo and enable your Realtor to do their job most effectively.
- Begin by making a list that summarizes all of the information regarding your specific condo unit as well as the building and area it is located in. This list should emphasize all of the features that your condo has to offer. What makes your condo unique compared to others in the nearby area? What elements of the condo have you found to be most convenient and important to you? What are the amenities that your condominium building offers to residents who live there? For example, location is a major selling factor. If the unit is located near mass transit or other commuter-friendly areas, you should use that as a selling feature. This list should include everything that the specific condo unit and the condominium building feature. Finally, be sure to include any other information that you believe is relevant or applicable to the property. Once your list is completed, give it to your Realtor. This list will aid both you and your Realtor in advertising, marketing, and ultimately selling the property.
- Next, head out and go to see the competition firsthand or, at the very least, do some internet research to locate other condos for sale in your neighborhood. It is important to know the general price point that other people are asking. In today’s market, it is critical that you price your condo competitively if you want it to sell. Becoming knowledgeable about the market you are selling in is crucial. Ask your Realtor what they know about the area surrounding you condo and be sure to keep the lines of communication open if you discover any new or interesting information.
- Let your neighbors know you want to sell your condo. Many times, your neighbors may have friends, family or co-workers who could be potential buyers. You can then post flyers or create postcards to place in the lobby of your building to let neighbors and others in your community know that your condo is for sale. Never underestimate that word of mouth is often an incredibly effective marketing tool particularly because people often like to live in a building where they know someone.
Finally, remember that selling your condo is more than selling a piece of real estate. Selling your condo is about selling a place to live that supports a particular lifestyle. Therefore, you want to target those that would be most interested in owning property. Through the process of maintaining effective lists that highlight the features of the property, understanding the nearby and local market, and informing neighbors of your desire to sell, you and our Realtor can both knowledgeably and efficiently sell your condo even in a buyer friendly market.
