Cathy Baumbusch (cathybREALtor)

FOR RELEASE: IMMEDIATE For more information, please contact:

DATE: April 2, 2009 Cathy Baumbusch, 703-969-1691

CATHY BAUMBUSCH EARNS PRESTIGIOUS DESIGNATION TO HELP HOMEOWNERS IN DANGER OF FORECLOSURE

Cathy Baumbusch, of RE/MAX Allegiance, has earned the prestigious Certified Distressed Property Expert (CDPE) designation, having completed extensive training in foreclosure avoidance and short sales. This is invaluable expertise to offer at a time when the area is ravaged by "distressed" homes in the foreclosure process.

Short sales allow the cash-strapped seller to repay the mortgage at the price that the home sells for, even though it is lower than what is owed on the property. With plummeting property values, this can save many people from foreclosure and even bankruptcy. More and more lenders are willing to consider short sales because they are much less costly than foreclosures.

In Virginia, the foreclosure rate has steadily increased. As of Sept. 30, a record 21,000 homes in the state were in foreclosure, about 11,000 involving subprime loans¹. It is happening in all price ranges. Local experts say that even high-priced homes are not immune.

"This CDPE designation has been invaluable as I work with sellers and lenders on complicated short sales," said Baumbusch. "It is so rewarding to be able to help sellers save their homes from foreclosure."

Alex Charfen, founder of the Distressed Property Institute in Boca Raton, Fla., said that Realtors® such as Cathy Baumbusch with the CDPE designation have valuable training in short sales that can offer the homeowner much better alternatives to foreclosure, which virtually destroys the credit rating. These experts also may better understand market conditions and can help sellers through the emotional experience, he said.

The Distressed Property Institute opened in January 2008 and provides training on-site and online. The CDPE is the premier designation for Realtors helping homeowners in distress and handling short sales.

"Our goal is to educate as many people as possible so we can help as many homeowners as possible," Charfen said.

For more information about CDPE designation or to find a certified distressed Realtor in your area, please call 1-800-482-0335.

The Making Work Pay tax credit, part of the American Recovery and Reinvestment Act of 2009, will give a 6.2% earned income credit max $800 for a married couple filing jointly and $400 for singles and other taxpayers. If married couples filing jointly have a combined Adjusted Gross Income (AGI) of $150-190K or above, the credit is phased out, as it is for other taxpayers earning modified AGI between $75,000 and $95,000.

New withholding tables have been released by the IRS and for those in the Military, they will be implemented by April 1, 2009. The credit will be spread out over the year. Military members can expect to see a change in federal withholdings. Military members do not need to fill out a new W-4 to receive this tax credit.

If you have more than one job (such as a Reservist with a regular full-time job), you may want to review your W-4 forms to ensure enough withholding is held to cover the tax for the combined income.

The IRS also released new tables for computing the advance payment of earned income credit. These tables change the percentage formula to increase payments for some married military members. The new percentage formula was implemented in March 2009.

For more information see

http://www.irs.gov/newsroom/article/0,,id=204521,00.html

Today's news reported that the Fed will further stimulate the economy by purchasing $750 billion in additional mortgage-related securities and an additional $300 billion in Long-Term Treasury Bonds.

The market has responded with astoundingly low interest rates this weekend.

Some 30-year fixed rate examples include:

Conforming: of 4.25% with 1-point, 4.5% with 0-points

Conforming Jumbo(up to $625,500): 4.375% with 1-point, 4.875 with 0-points

Non-conforming Traditional Jumbo: 5.5% with 1-point, 5.75% with 0-points

FHA (under $362,790): 4.5% with 1-point, 4.75% with 0-points

FHA ($362,791-729,750): 4.5% with 1-point, 4.875% with 0-points

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.