The owner of this home contacted us several months before we actually listed the home for sale.  During our initial conversations, we explained the options available to the homeowner to avoid foreclosure.  We also explained the dangers of working with investors who had contacted him in an effort to purchase his home and “do a short sale” for him. 

Several months after our initial conversation, the homeowner contacted us, after having tried to do something with an investor.  Things weren’t working out well, and now his back was against the wall… foreclosure was looming.  The day after we listed the home for sale as a short sale, the homeowner received a certified letter indicating that a foreclosure sale date at the courthouse had been set.

Even though we were hired at the very last minute, we were able to secure a buyer for the home, stop the foreclosure and successfully negotiate the short sale.  We certainly don’t advocate that homeowners in the Fredericksburg real estate market wait until the last minute, but in this case it turned out well.  See the details below.

CASE STUDY: Nottoway Property – Spotsylvania

Marketed and Sold Property for $400,000. 

Short Sale Details:

• Original Purchase Price $499,976
• Total Mortgage Payoff $738,000
• Discounted payoff after our negotiations $376,000
• Bank lost $$362,000
• Seller paid ONLY $600 at closing and no promissory note was required
• Homeowner would have been liable for more than $400,000 if property had gone to foreclosure and resold.

More successful short sale case studies and testimonials available at Fredericksburg Stop Foreclosure Institute website.

CASE STUDY: Fairview Rd Property Spotsylvania

Marketed and Sold Property for $130,000. 

Short Sale Details:

• Total Mortgage Payoff $280,000
• Discounted payoff after our negotiations $122,000
• Bank lost $158,000
• Seller didn’t pay any money at closing and no promissory note was required
• Homeowner would have been liable for more than $175,000 if property had gone to foreclosure and resold.

More successful short sale case studies and testimonials available at Fredericksburg Stop Foreclosure Institute website

We have developed a name for ourselves as short sale experts within the Fredericksburg real estate market, and have recently developed the Fredericksburg Stop Foreclosure Institute.  As a result our team fields a lot of inquiries about short sales and options to those facing foreclosure.  Answers to many of these questions can be found on the website links mentioned above. 

Looking for a great deal on distressed properties?  Check out Buyers Get An Amazing Deal.

Our website is now live at the Fredericksburg Stop Foreclosure Institute.  If you need answers or information regarding your options when facing foreclosure, help with a Loan Modification, or answers to questions about short sales, then visit the site today.  Help is only a phone call or an email away, and our services are free to you.

Get Answers and Help Today

This weekend will be a busy one in Fredericksburg.  The University of Mary Washington graduates on Saturday and Mother’s Day is on Sunday.  If you haven’t already done so, you need to make reservations for Mother’s Day brunch now!  Here are a few of my favorite places for brunch:

Jake and Mike’s - 806 William Street Fredericksburg, VA 22401  (540)-370-4590

This is, by far, my most favorite place for brunch and lunch.  Their prices are good and the food is delicious!  Their brunch menu offers a combination of breakfast and lunch options.  Portions are big.  This place is pretty small, so you will want to call early to get a seat at a good time.  Brunch is served from 10am-2pm every Sunday.  Jake and Mike’s offers both indoor and outdoor seating.   

Poppy Hill Tuscan Kitchen- 1000 Charles Street Fredericksburg, VA 22401  (540) 373- 2035

Mother’s Day brunch will be served at Poppy Hill from 10am-4pm.  They are featuring a “Pick Your Own Two Course Brunch Menu.”  This menu includes your choice of champagne, mimosa, or bellini.  The menu also includes a selection of breakfast and dinner foods.  Poppy Hill offers indoor and outdoor seating. 

The Otter House - 1005 Princess Anne Street Fredericksburg, VA  22401  (540) 656-2969

The Otter House is one of our newest restaurants downtown, but it is good and I hope it stays.  Brunch begins at 10am and features a selection of breakfast foods and lunch items.  Portions are generous and the waitstaff is charming.  Service is fast and you may have luck getting the brunch time you want since not many people know how good this place is yet.  The Otter House offers both indoor and outdoor dining. 

The Hospitality House - 2801 Plank Road Fredericksburg, VA 22401 (540) 736-1005

You know, the old Holiday Inn Select in Central Park.  The Hospitality House has kept many of the Holiday Inn’s traditions including the Mother’s Day Brunch Buffet.  Yes, it is hotel food.  However, the Hospitality House has stepped up their culinary dedication and the food has improved.  Since Claiborne’s no longer exists, this may be your best bet if you are looking for a buffet this weekend. 

Brock’s Riverside Grill- 503 Sophia Street Fredericksburg, VA 22401   (540) 370-1820

I have mixed feelings about Brock’s.  The food is usually pretty good, but sometimes the service leaves something to be desired.  The setting is quite lovely, with some seating available on balconies overlooking the Rappahannock River.  There is ample seating in this restaurant, so it may be a good choice if you are running out of options and still want to ensure a good meal.   

I hope this list helps!  And Happy Mother’s Day!

Fredericksburg City:

• 67 days on market – this is 15 days more than in March 2009
• Sellers received, on average, 87.02% of their list price when the home sold
• There is 13.07 months of inventory on the market
• 13 homes sold in March 2010 – this is 1 less than in March 2009
• The most popular price range was $200,000-$249,999.   
• The median sold price was $218,750, compared to $185,000 in March 2009
• Financing Terms:  Conventional – 3, FHA – 3, VA – 3, Cash – 3, Assumption 1

Orange County

• 89 days on market – this is 48 days less than in March 2009
• Sellers received, on average, 90.74% of their list price when the home sold
• There is 11.48 months of inventory on the market
• 33 homes sold in March 2010 – this is 8 more than March 2009
• The most popular price ranges were $200,000-$249,999.
• The median sold price was $197,500, compared to $149,000 in March 2009 
• Financing Terms:  Conventional – 10, FHA – 6, VA – 4, Assumption – 2, Cash – 10, Other – 1

Spotsylvania County

• 77 days on market – this is 46 less than March 2009
• Sellers received, on average, 92.79% of their list price when the home sold
• There is 5.94 months inventory on the market
• 153 homes sold in March 2010 – this is 2 more than in March 2009 
• The most popular price range was $200,000-$249,999
• The median sold price was $185,000, compared to $188,000 in March 2009 
• Financing Terms:  Conventional – 29, FHA – 60, VA – 27, Cash – 27, Assumption – 5, Other – 5

Stafford County

• 79 days on market – this is 32 less than March 2009
• Sellers received, on average, 92.09% of their list price when the home sold
• There is 7.36 months inventory on the market
• 116 homes sold in March 2010 - this is 22 less than in March 2009 
• The most popular price range was $200,000-$249,999
• The median sold price was $226,889, compared to $229,900 in March 2009 
• Financing Terms:  Conventional – 22, FHA – 30, VA – 44, Cash – 12, Assumption – 5, Other – 3

Prince William County

• 44 days on market – this is 55 less than March 2009 
• Sellers received, on average, 96.18% of their list price when the home sold
• There is 4.53 months inventory on the market
• 641 homes sold in March 2010 - this is 244 less than in March 2009
• The most popular price range was $300,000-$399,999
• The median sold price was $230,000, compared to $167,900 in March 2009
• Financing Terms:  Conventional – 142, FHA – 275, VA – 94, Assumption – 38, Cash – 89, Other – 3

All data provided by MRIS.

Meet Lina!

Lina is a short-haired Calico female.  She is looking for a family that enjoys cuddling and petting her.  Some may call her needy, she prefers to be called co-dependent.  Lina is vocally grateful for opening your home to her and will be a member of the family in no time.  She enjoys running and being groomed.  She is good with children.  Lina is 6.5 years old and is ready to settle down in a permanent home.  Lina is up-to-date on her shots and is spayed.  If you think Lina would make your household complete, call the SPCA today and schedule an appointment to meet her! 

Meet Smudge

Smudge is a one-year old Lhasa Apso.  She is energetic and loves to get attention.  She enjoys playing with toys and affection from her family. Contrary to her name, Smudge enjoys being groomed and looking her best.  She is good with kids, other dogs, and cats.  She is up-to-date on her shots and is spayed.  If you are looking for a new best friend, Smudge could be the girl for you.  Please contact the SPCA today to book an appointment to meet Smudge. 

There are currently 81 cats and 26 dogs at the Fredericksburg SPCA that need new homes.  Please open your heart to at least one of them spring and provide them with the safety and security of a permanate residence. 

The Fredericksburg SPCA is located at 10819 Courthouse Road Fredericksburg, VA 22407.  They can be contacted at (540) 898-1500. 

Ahhhh… the new million dollar question.  So, we’ve all heard that HAMP (Home Affordable Modification Program) is supposed to save defaulting home owners from the disaster that is short sales and foreclosure.  But, you may have noticed that not many consumers who are in distress are actually being approved to modify their loans.  Well, there are several reasons for this.  Let’s examine a few. 

It’s important to remember that banks are NOT in the business to lose money and give away houses.  Banks are in the business  to MAKE money.  How do banks make money?  Banks make money on the interest they charge on their loan products.  The lose money by paying interest to consumers who have deposited money at that bank.  The interest earned on the loan products exceeds the interest paid out to depositors.  The profit the bank makes is the difference between the two.  This difference can make or break a bank.  The more money the bank has going out to consumers, the more money the bank needs coming in from interest payments.  In this market, banks are not getting the interest payments because consumers are not paying their mortgages.  However, banks are still required to pay depositors.  Banks also make money off the fees charged to consumers to make loans, but the big money is still in collecting interest on the actual loan product.  The bank will collapse if their accounting books get too far off balance.  We have become all too familiar with banks collapsing. 

In steps the loan modification alternative.  It is advantageous for banks to grant loan modifications to certain consumers.  Many large banks agreed to pursue loan modifications as a part of the Bail Out Bill passed in 2008.  If the banks are in the business to make money and defaulting borrowers are preventing that from happening, the bank may agree to allow the defaulting borrower to have a trial loan modification period.  This period is usually about 3 months.  If the borrower can make the modified mortgage payments in-full and on time, the bank may make this a permanent loan modification.  Banks are going to look at various factors in determining who gets the permanent modification.  

The #1 factor is risk to the bank.  If you have a history of not making your mortgage payments, is it a good risk to modify your loan terms and give you another chance?  In many cases, the answer is no.  So, banks have found a way around the HAMP requirement.  Banks are using the trial period as a way to get money from defaulting borrowers that they otherwise would not be getting.  Receiving three months of a reduced mortgage payment is better than receiving nothing at all.  After the trial period is over, banks can determine if foreclosure is a better option than a permanate loan modification.  Since risk is the #1 factor in determining permanate loan modification qualification, banks are offering non-defaulting borrowers the opportunity to modify their existing loan.  How does this benefit the bank?  Well, in a time when refinancing a home is so difficult, loan modifications can achieve a similar goal.  The borrower who now has the lower mortgage payment is also very happy with their lender and are likely to express this to their friends, family, and co-workers.  Banks can use all the postive press they can get!  And, banks are fulfilling their duty to pursue loan modifications as outlined by the Bail Out Bill. 

Who can get a loan modification?  Simple, people who are current on their mortages and are good risks for the bank.  What does loan modification mean for the person who is in default?  It gives you time to pursue a short sale.  The short sale is still your best option to get out of an excessive mortgage payment.  It may not be your ideal option, but it is still the most viable option.

Just what I needed, less hours in my day.  But alas, the time has come for us to spring forward an hour this Sunday,     March 14 at 2am.   (Yes, this means I will be grumpy Monday – Thursday while my body adjusts to the time change).

This is also a good time  to change your smoke detector batteries and replace your heating and air conditioner filters.

Fredericksburg City:

• 161 days on market – this is 5 days less more in February 2009
• Sellers received, on average, 89.36% of their list price when the home sold
• There is 15.4 months of inventory on the market
• 11 homes sold in February 2010 – this is 1 less than in February 2009
• The most popular price range was $150,000-$199,999 and $250,000-$299,999.   
• The median sold price was $213,900, compared to $208,950 in February 2009
• Financing Terms:  Conventional – 3, FHA – 3, VA – 1, Cash – 4

Orange County

• 203 days on market – this is 8 days more than in February 2009
• Sellers received, on average, 78.80% of their list price when the home sold
• There is 24.3 months of inventory on the market
• 15 homes sold in February 2010 – this is 8 less than February 2009
• The most popular price ranges were $120,000-$139,999 and $300,000-$399,999.
• The median sold price was $180,000, compared to $177,500 in February 2009 
• Financing Terms:  Conventional – 2, FHA – 3, VA – 1, Assumption – 1, Cash – 5, Other – 3

Spotsylvania County

• 66 days on market – this is 52 less than February 2009
• Sellers received, on average, 93.07% of their list price when the home sold
• There is 8.2 months inventory on the market
• 103 homes sold in February 2010 – this is 2 less than in February 2009 
• The most popular price range was $160,000-$179,999
• The median sold price was $175,000, compared to $184,500 in February 2009 
• Financing Terms:  Conventional – 26, FHA – 38, VA – 19, Cash – 15, Assumption – 5

Stafford County

• 62 days on market – this is 58 less than February 2009
• Sellers received, on average, 91.19% of their list price when the home sold
• There is 8.1 months inventory on the market
• 95 homes sold in February 2010 - this is 31 less than in February 2009 
• The most popular price range was $300,000-$399,999
• The median sold price was $235,000, compared to $220,000 in February 2009 
• Financing Terms:  Conventional – 23, FHA – 15, VA – 34, Cash – 18, Assumption – 4, Other – 1

Prince William County

• 44 days on market – this is 49 less than February 2009 
• Sellers received, on average, 96.70% of their list price when the home sold
• There is 6.49 months inventory on the market
• 423 homes sold in February 2010 - this is 292 less than in February 2009
• The most popular price range was $300,000-$399,999
• The median sold price was $215,000, compared to $169,500 in February 2009
• Financing Terms:  Conventional – 126, FHA – 150, VA – 63, Assumption – 7, Cash – 76, Other – 1

All data provided by MRIS.