Kevin & Debra Hagan Northern Virginia Real Estate

The recent Fannie Mae National Housing Survey for 2010 asked what are the TOP REASONS FOR BUYING A HOME?  Consumers provided the following insight...

80% - You have a good place to raise and educate children.

79% - You have a place where you and your family feel safe.

71% - You have control over your own living space.

We think these have always been the best reasons for buying a home, and they are good reasons in any economy.  It is interesting that the top reasons don't have anything to do with the "investment potential" of your home.

Let us know what you think...

It is difficult to go through a daily dose of bad economic news without seeing or hearing the endless barrage of terms that journalists, reporters, politicians, and pundits alike sprinkle about in an effort to help all of us to truly appreciate the gravity of our plight.  Many of the terms are in actuality very specific when describing the condition of real estate.  What we often find is that many of us are not completely sure what they are talking about.   We will attempt to provide some basic definitions of a few of the terms that may cause some confusion.

FORECLOSURE: A foreclosure is the legal process by which a bank, mortgage company, or other party who has a financial interest in a property can take possession, and sell the property toward repayment of a debt.  Typically, a foreclosure sale of real estate is posted for notice in the local newspapers, and then takes place at the local court house.

REO (Real Estate Owned):  REO is the term used to describe the ownership interest of the property after the bank or mortgage company has taken possession of the property.  Many financial institutions have a REO, ASSET, or INVENTORY department which is then in charge of selling the properties in order to mitigate or reduce the institutions loss.  Many times, these REO properties are listed for sale with local real estate brokers.

SHORT SALE: These are the myriad of properties that fall somewhere between the normal sale of a property from a seller to a buyer, and the FORECLOSURE/REO process.  A "SHORT SALE" occurs when the seller seeks some form of cooperation or forgiveness from the bank or mortgage company when the sales value of the property is going to fall below the value of the amount owed to the lender.  The seller typically does not have the financial resources to make up the difference.  This is often referred to as being UPSIDE DOWN on their mortgage.

If you would like additional information about the OPPORTUNITIES & OBSTACLES of the current real estate market in Northern Virginia, Prince William County, or Fairfax County, please do not hesitate to contact Kevin & Debra Hagan at 703-367-0546.