Are Andresen - Northern Virginia Real Estate

From The Economist Feb 21^st article title "Can't pay or won't pay?":

"Some 5M homes have entered foreclosure in the past three years. Credit Suisse estimates that over 9M more will enter the process in the next four years. (In normal times, new foreclosures run less than 1M a year.) Mr Obama predicts his plan will prevent up to 4M foreclosures. In a separate initiative, up to 5M borrowers will be able to refinance their mortgages at lower rates even if their equity is less than the 20% usually required by Fannie Mae and Freddie Mac, the now nationalized mortgage agencies.

Previous, less ambitious, efforts have flopped. George Bush's first plan aimed to help 240,000 delinquent subprime borrowers refinance their debts into government-backed fixed-rate mortgages. Only 4,000 did so. A Democrat-inspired $300 billion plan to guarantee 400,000 mortgages attracted just 517 applications, as lenders balked at the requirement that they first write down the principal. Private-sector programs have achieved higher numbers, but their success is mixed. Of 73,000 loans modified in the first quarter of last year, 45% were again delinquent eight months later."

As the article puts it later - the question is not only if borrowers can afford the payments on their mortgage - it is if they want to make the payments at all. With millions of homeowners having negative equity, and few or no ramifications for non-payment, homeowners that can afford the payments are defaulting and walking away as well (see my Buy and Bail blog entry.) A lowered credit score does not seem to be deterrent enough these days - and with a spouse there may be ways to work around the damage.

My solution is simple:
Set up a task force to prosecute criminally real estate agents, mortgage brokers, lenders and homeowners that aided in and committed loan fraud (remember those notices on the mortgage papers about it being a federal crime to lie on the application?) For people that can afford the mortgage but choose to walk away, convert the outstanding loan balance to a judgment against the person and their other possessions. For people that were mislead, defrauded or is in a bad situation due to unforeseen circumstances, show compassion by allowing all or part of the remaining debt to be forgiven or deferred after a foreclosure or personal bankruptcy.

A bankruptcy court should be allowed to (and probably already is allowed to) discharge the remaining balance on a loan after a foreclosure if the person subsequently files for bankruptcy. The bankruptcy court can also force the sale of a home I believe. The nonsense that a bankruptcy judge should be able to write down the balance on an existing loan (and then keep the home) goes against all contractual law and what capitalism is about.

Enough nonsense - No to more bailouts and yes to larger sticks to make sure the unethical individuals among us have incentive to behave. The market will take care of the rest.

Woodburn Villageis located about where Gallows Road intersects with I-495, tucked behind Fairfax Hospital. It is convenient to major roads like I-495, I-66, Rt-29 and Rt-50. The nearest metro stop is up Gallows Road to the Dunn Loring/Merrifield metro. Metrobus is available from Gallows Road and Fairfax Hospital.

Woodburn Village was built in the late 1960's and is a garden style community. Throughout the community and nestled between the buildings are landscpaed grounds with grill and picnic areas, paly areas and walking paths. There are about 600 condominium units total. Tennis courts, basketball courts and a swimming pool.

The community has 1, 2, 3 and 4 bedroom units. The buildings are 4 stories with a common laundry room and individual storage units in the basement. The reasonable condominium fees include all utilities.

In 2008, a total of 42 units were sold in the MLS. 4 units sold were one bedroom units, 31 units sold were two bedrooms units, 5 units were three bedroom units and 2 four bedroom units sold. The price range of solds start at $118,000 for a 2 bedroom and tops out at a 4 bedroom unit sold for $265,000.

Like most places in the area, the prices have kept dropping steadily over the last few years. There were quite a few foreclosures in 2008. Due to the lower prices and the convenient location the community still offers a great value.

At Woodburn Village a typical rent for a 1 bedroom unit is in the $1,100-$1,200 range and 2 bedrooms at $1,300-$1,400.

For more detailed information on each sale, please click on Sales Details 2008 for Woodburn Village or send me an email at are@tysonsliving.com .

As you can see from the GRM graph - now is a great time to purchase investment real estate. With falling prices, stable/increasing rents and low interest rates the time is better now than in many years.

Are Andresen, Broker
Soldsense - your sixth sense in real estate

Pimmit Hills is ideally located in Falls Church minutes from where you want to be. Minutes to the north is Tysons Corner with great shopping and entertainment. It is also one of the major employment centers in the area with major presence of financial and defence companies (Capital One, SAIC, MITRE, Fannie Mae etc.)

Pimmit Hills is further surrounded by popular destinations like McLean and Falls Church. Washington DC is less than 10 minutes away and Dulles airport is about 15 away via the Dulles Toll Road (Rt 267.)

Built in the 1950's, the 1,500+ single family homes typically have a quarter acre lot. Home prices range from the low $300's for a rambler with 3 bedrooms and 1 bathroom and upwards to $1M homes.

In 2008, a total of 45 homes were sold in the MLS. They took an average of 112 days to sell. The sold homes range from a 4br/1ba rambler at $281,000 to a 6,300 sq/ft, 5br/4.5ba colonial that sold for $935,000.

Like most places in the area, the prices have dropped steadily over the last few years. The community still offers a great value in an excellent location. If you want an affordable home with a yard and want to live close to Tysons Corner, Pimmit Hills is probably your best bet.

In Pimmit Hills, typical rent for a 3br/1ba rambler is in the $1,500-$1,600 range.

For more detailed information on each sale, please click on Sales Details 2008 for Pimmit Hills or send me an email at are@tysonsliving.com.

As you can see from the GRM graph - now is a great time to purchase investment real estate. With falling prices, stable/increasing rents and low interest rates the time is better now than in many years.

Are Andresen, Broker
Soldsense - your sixth sense in real estate

Fountains at McLean is located in McLean, Virginia. Located in Tysons Corner, it is ideally situated next to one of the major employment centers in the area.

The Fountains at McLean consists of multiple buildings of two styles: mid-rise and garden. The mid-rise style has controlled building access and underground parking available. The garden-style has open hallways and there is surface parking only. There are numerous 1 and 2 bedroom models available.

In 2008, a total of 22 units were sold in the MLS. 15 units sold were one bedroom units and 7 units sold were two bedrooms units. The price range of solds start at $215,000 for a 1 bedroom and ends at a 2 bedroom unit sold for $357,000.

Like most places in the area, the prices have kept dropping steadily over the last few years. The community still offers a great value in an excellent location.

At the Fountains at McLean, a typical rent for a 1 bedroom unit is in the $1,200-$1,400 range and 2 bedrooms at $1,600-$1,700.

For more detailed information on each sale, please click on Sales Details 2008 for Fountains at McLean or send me an email at are@tysonsliving.com .

As you can see from the GRM graph - now is a great time to purchase investment real estate. With falling prices, stable/increasing rents and low interest rates the time is better now than in many years.

Are Andresen, Broker
Soldsense - your sixth sense in real estate

Gates of McLean is located in McLean, Virginia. Located in Tysons Corner, it is ideally situated next to one of the major employment centers in the area. A new metro station is planned within walking distance.

The community is gated and has well kept grounds. There is a clubhouse, exercise room, pool, walking paths, a sports court and picnic areas. The Gates of McLean consists of multiple buildings of two styles: mid-rise and garden. The mid-rise style has controlled building access, heated hallways and underground parking available (does not come with all units.) The garden-style has open hallways and there is surface parking only. There are numerous 1, 2 and 3 bedroom models available. All the units have an open floor plan with open kitchens and they typically come with a full-size washer and dryer.

In 2008, a total of 20 units were sold in the MLS. 6 units sold were one bedroom units and 14 units sold were two bedrooms units (one was a 3 br unit converted to a 2 br.) The price range of solds start at $223,000 for a 1 bedroom and ends at a 2 bedroom unit sold for $365,000.

Like most places in the area, the prices have kept dropping steadily over the last few years. The community still offers a great value for the well maintained grounds and convenient location.

At the Gates of McLean, a typical rent for a 1 bedroom unit is in the $1,300-$1,400 range, 2 bedroom $1,650-$1,750 and 3 bedroom units at $1,900-$2,000.

For more detailed information on each sale, please click on Sales Details 2008 for Gates of McLean or send me an email at are@tysonsliving.com.

As you can see from the GRM graph - now is a great time to purchase investment real estate. With falling prices, stable/increasing rents and low interest rates the time is better now than in many years.

Are Andresen, Broker
Soldsense - your sixth sense in real estate