Cathy Baumbusch

There is a new tool that will allow homeowners to find out whether or not they are eligible to participate in the "Making Home Affordable" programs for loan modification and refinancing.

This program is part of the $75 Billion "lifeline" that President Obama has pledged to struggling homewoners.

Homeowners can either qualify for refinancing or loan modification.

Refinancing is for those who are current on their mortgages, but who are struggling to make their monthly payments.

Loan modification is for those who are falling behind on their payments either because of loss of income or a higher interest rate.

www.MakingHomeAffordable.gov will provide the necessary information to determine whether you qualify.

These programs are only available to those loans that are owned by Fannie Mae and Freddie Mac.

Natrually, the question becomes- how do you know who owns your loan?

Well, you could call your servicer and they will tell you, or to find out if Fannie Mae owns your loan, you can go to http://loanlookup.fanniemae.com/loanlookup/, and enter your address. You must confirm you are the owner of the property or have their consent.

Today's military members are faced with particularly troubling crises when it comes time to make a move. With orders in hand, military members have had little choice but to sell at a loss. Report dates are written in stone for the most part, and the service member can't delay reporting to achieve a home sale.

Many families rent their previous home at a loss, or the military member reports to the next duty station as a "geographical bachelor", leaving their family behind.Short sales and foreclosures are not an option either. Officers and most enlisted military members must hold a security clearance. Keeping that clearance requires periodic credit checks and if a foreclosure appears, the member runs the risk of losing their clearance and possibly their career. So, much more is at stake for the military members and their families.

Fortunately, the latest stimulus package included language to assist these families. The provisions are imed at helping service members who sell their home at a loss, faced foreclosure or were forced to move as a result of BRAC or a reassignment . Wounded veterans who need to relocate to be near a health facility and surviving spouses of those killed in combat will also be helped by the measures.

The $555 million program expands the Defense Department's Homeowners Assistance Program, which helps military and federal personnel whose homes have lost value because of a base closure. What is covered:

• 95 percent of a loss if a service member is forced to sell. or
• The government pays off the balance of a service member's mortgage (and acquires title)or
• The government pays the owner up to 90 percent of the home's previous value. No dollar ceiling has been set.
• Applies to primary residence purchase PRIOR TO July 1, 2006

The Army Corps of Engineer's website is: http://hap.usace.army.mil/. There you can find information on who qualifies, application procedures, etc.

For more information, or if you need to sell your home in DC or VA, contact Cathy Baumbusch, 703-969-1691, or visit www.GoArmyRealEstate.com.

What is Buyer Agency?

Virginia's agency statute defines agency as "any relationship in which a real estate licensee acts for or represents a person by such person's express authority (in writing) in a real estate transaction. This definition has been recently revised to include representation of a client as a standard agent or limited service agent (fee for service). Subagency is the default agency relationship if the Buyer does not give the Buyer Broker express authority to act on their behalf."

In a nutshell, Buyer Agency exists when a Buyer gives a Broker express written authority to act on their behalf. Without this authority, the agent is automatically a "subagent" of the Seller.

In the past, all real estate agents worked on the Seller's behalf no matter what. The Listing Agent represented the Seller, and any cooperating agents bringing Buyers to the property acted as subagents of the Seller, and in the Seller's interest-- there was no representation for buyers.

Today, as in the past, Listing Agents continue to obtain Sellers' express written authority to act on their behalf through Listing Agreements.

So, it makes sense that Buyer's Agents should obtain Buyers' express written authority to act on their behalf through Buyer Agreements.

It is important to me that my clients receive full representation. My agency relationship with you will be established in writing. For my part, it requires that I give you Information, Reasonable Care, Obedience, Negotiation, Confidentiality, Loyalty, Accounting (of all funds), Disclosure, and Diligence. That's why I call it my IRONCLADD^TM Guarantee.

I only ask for Loyalty of the Buyer in return.

The Buyer Agreement describes the agency relationship, fees, and compensation. A copy of the Buyer/Broker Agreement can be viewed here.

Washington, DC, United States, 2/18/2009 - Cathy Baumbusch, a real estate agent based in Washington DC launched a new website, featuring state-of-the-art technology and enhanced search features.

Ms. Baumbusch announced today that she has launched the newest version of her website, www.GoArmyRealEstate.com to cater to the military customer. The home page shows a a series of Army stock images and is featured with navigation drop down pages. With state-of-the-art technology Ms. Baumbusch hopes to exceed customer demands by allowing registered users even more transparent data from MLS listings and expanded options to view properties online.

The new site not only allows users to search the MLS, in accordance with new rules and regulations, but also aims to enhance the experience of potential buyers through expanded, user-friendly search capabilities. The website has been updated with a "Search Wizard" function offering a unique "step-by-step" method of running a property search. Another feature soon to be implemented is an interactive map search. These new features will make the search and compare process even more time and cost effective for both Ms. Baumbusch and users of the website.

The new website is designed to be simple, stylish and easy to navigate. "As a service provider to military clients around the world, we are always looking for ways to enhance our website. The need to stay on top and provide the most thorough set of data in an easy-to-use interface and do it with speed is our #1 goal," noted Ms. Baumbusch, owner of GoArmyRealEstate.com. "Soldiers want to see everything, they want to be able get information quickly. Our updated site will allow them to do just that, as well as showcase the GoArmyRealEstate brand."

For the last 18 months, Ms. Baumbusch has been trying and testing different web providers to find the best product to interact with military buyers of real estate. Registered site users are able to browse the entire MLS for Washington DC area properties. Here they will find every MLS listing, including new and existing properties, foreclosure listings, FSBO (for sale by owner) properties and even upcoming auctions.

GoArmyRealEstate.com aims to open its market around the country later this year, in an effort to expand its reach.

About GoArmyRealEstate.com

Cathy Baumbusch is a licensed Realtor® based in Washington, D.C. Currently operating in Northern Virginia and the District of Columbia, Cathy Baumbusch offers both full-service and fee-for-service business models.

For more information, please contact Cathy Baumbusch at (703) 969-1691.

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"Copyright National Association of REALTORS®, Reprinted from REALTOR.org with permission."

American Recovery and Reinvestment Act of 2009

H.R. 1, the "American Recovery and Reinvestment Act of 2009," passed the House on February 13, 2009, by a vote of 246 - 184. Later that day, the Senate also passed the bill by a vote of 60 - 38. The President signed the bill on February 17, 2009. The bill is a $780 billion package, with roughly 35% of the package devoted to tax cuts (mostly for 2009) and the rest to spending intended to occur in 2009 and 2010.
View how the U.S. House of Representatives voted>
View how the U.S. Senate voted>

The mix of provisions of interest to REALTORS® changed frequently throughout the legislative process, with changes continuing to be made just hours before the measure was released prior to the vote. In the end, the elements of NAR's housing agenda were included. Congress and the President have announced that a finance and housing package (including tax provisions) will be the next "big" initiative, so Congress has by no means finished its work as it affects the housing industry and REALTORS®.

The bill includes the following provisions:

Homebuyer Tax Credit Homebuyer Tax Credit - The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.
Chart Highlighting the Major Modifications to the First-Time Homebuyer Tax Credit> (PDF: 309K)
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FHA, Freddie Mac, and Fannie Mae loan limits -The bill reinstates last year's 2008 loan limits for FHA, Freddie Mac, and Fannie Mae loans. These limits were equal to the greater of 125% of the 2008 local area median home price or $271,050 for FHA and $417,000 for Fannie and Freddie, with an overall maximum cap of $729,750. For the few areas where the 2009 limits were higher, the higher limits will apply. In addition, the bill includes language providing the HUD Secretary with the discretion, if warranted, to increase the loan limit for any "sub-area", i.e.an area smaller than a county. The Secretary's discretion is again limited by the $729,750 cap. These 2009 limits will expire December 31, 2009.

The inclusion of these loan limit provisions in the final bill is a victory for homeowners, buyers and Realtors. While these new limits were included in version of the original stimulus bill approved by the House, the bill first approved by the Senate did not. NAR's Call for Action to both the House and the Senate prior to the final vote advocated strongly for the provisions which were then included in the final bill approved by both Chambers.

Estimated 2009 FHA, Fannie Mae and Freddie Mac Loan Limits> (PDF: 1.3M)
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Neighborhood Stabilization - Division A, Title XII of the bill provides $2,000,000,000 in additional funding for the Neighborhood Stabilization Program (NSP). The NSP was created by the Housing and Economic Recovery Act of 2089 (Public Law 110-289) to provide grants through the Community Development Block Grant program (CDBG) to states and localities to address the problems that can be created when whole neighborhoods are decimated by foreclosures. The funds can be used to purchase, manage, repair and resell foreclosed and abandoned properties. In addition, the funds can also be used by states and localities to establish financing methods for the purchase and redevelopment of foreclosed properties. After purchase the homes must be used to assist individuals and families with incomes at or below 120% of area median income. Twenty-five percent of funds must be used for households with incomes at or below 50% of area median income. By leveraging their expertise in partnership with others from both the public and private sector, Realtors® in many communities have been making important contributions to their local communities' neighborhood stabilization programs.
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Commercial Real Estate - Commercial real estate is impacted primarily through those provisions of the bill focused on green building and energy efficiency as well as business tax incentives. H.R. 1 provides significant funds for state energy programs, which could be used to support commerical property owners' investment in energy efficiency upgrades while commercial property owners seeking to invest in alternative energy systems for onsite power generation would benefit from the Department of Energy Renewable Energy Loan Guarantees Program. Of particular benefit to small businesses would be certain provisions of the bill that provide tax relief in the area of bonus depreciation and capital expenditures, as well as the 5-Year carryback of net operating losses for small businesses.
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Rural Housing Service - The bill provides an additional $500 million to existing USDA Rural Housing programs. The RHS provides both a guaranteed loan program and a direct housing loan program for those meeting the program's eligibility criteria. The direct loan program will receive $270 million while $230 million will be allocated for unsubsidized guaranteed loans. It has been reported that this level of funding would provide for an additional 192,000 homeowners.
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Low Income Tax Credits - Allow states to trade in a portion of their 2009 low-income housing tax credits for Treasury grants to finance the construction or acquisition and rehabilitation of low-income housing, including those with or without tax credit allocations.
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Tax Exempt Housing Bonds - Tax-exempt interest earned on specified state and local bonds issued during 2009 and 2010 will not be subject to the Alternative Minimum Tax (AMT). In addition, financial institutions will have greater capacity to purchase tax-exempt state and local bonds.
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Energy Efficient Housing Bonds - To promote green jobs and energy independence, ARRA invests significantly in efforts to make homes and buildings more energy efficient. The bill provides state and local governments with $6 billion in energy efficiency and conservation grants for energy audits, retrofits and financial incentives. Through 2010, homeowners will be able to claim a 30% tax credit (up from 10%) for purchases of new furnaces, windows and insulation. Another $5 billion will be available to modernize the nation's electricity grid and install smart meters on homes that help to save consumers money. There is also $5 billion for weatherization assistance for low income households and $2 billion for federally assisted housing (section 8) efficiency efforts.
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Transportation Investments - The bill provides $46.7 billion to states and localities for capital investment for surface transportation projects including highways, bridges, transit, and rail projects. NAR policy supports increased spending on the types of transportation infrastructure addressed in the bill with the exception of Amtrak and high-speed inter-city rail where NAR has no policy. These investments will tend to moderate traffic congestion and support a variety of transportation alternatives which will improve the quality of life of American communities and bolster the value of real estate.
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Broadband Deployment - The bill creates $7.2 billion in grants to promote broadband deployment in unserved and underserved areas and for mapping the availability of broadband service in the U.S. Any entity is eligible to apply for a grant including municipalities, public/private partnerships and private companies as long as they comply with the grant conditions. The grants are subject to "network neutrality" requirements to ensure that broadband networks be free of restrictions on content, sites, or platforms, on the kinds of equipment that may be attached, and on the modes of communication allowed.

The bill also charges the FCC is with developing a national broadband plan that shall seek to ensure that all Americans have access to broadband capability and shall establish benchmarks for meeting that goal.

These provisions are important victories for REALTORS because increased broadband access promotes economic growth and expands opportunities for home sales. A 2006 Commerce Department report determined that property values are 6% higher in communities where broadband is available.
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"Copyright National Association of REALTORS®, Reprinted from REALTOR.org with permission."