Steve Dean

Despite all the negative press these days about obtaining financing, The Portals III just obtained $212 million worth of financing.

 

 

 

A "Short Sale" takes place when a seller's proceeds from the sale of their home is not expected to cover the mortgage and other liens against the property. When this happens, the holder(s) of the mortgage(s) and/or lien(s) have to approve the sale. This is typically noted as "Subject to Third Party Approval."

The third parties could include mortgage holders, home equity loan holders, the U.S. Government (in the case of Federal tax liens)< the District of Columbia (in the case of tax liens or nuisance liens), WASA (in the case of water liens), contractors (in the case of mechanic's liens) and anyone else with a lien or judgment against the property.

The Seller of the property accepts the contract subject to third party approval. Third party approval works much like any other contingency which is to say the contract can be canceled if the third-party approval is not received.

While that sounds simple, third party approvals may take an extremely long time. DC law will require that the earnest deposit for the contract be deposited within one week of contract acceptance. Therefore, the purchaser's money is unavailable while the purchaser waits for third party approval.

So where is the pitfall? "While an infinite wait for an answer from the bank, is occurring..the house goes to foreclosure," according to Chuck Klein, the managing broker for RE/MAX Allegiance.

Many homes in the District are foreclosed upon while the third party is reviewing the contract.

Many people might assume that the Purchaser receives their earnest deposit back immediately upon the foreclosure, but that is not the case. To release the earnest deposit, the escrow agent must follow escrow law which means all parties to the contract must sign the release. If a Seller has just lost a house due to foreclosure, that person can be difficult to find and may not be cooperative if located.

The Purchaser, if the Purchaser wants the earnest deposit, may have to hire an attorney to file for a Court Inter pleader to bring a judgement. The cost for this is born by the Purchaser, and naturally there is time lost while this process is happening.

If you're considering purchasing a short sale, be sure to ask your agent how to protect yourself against this scenario. Also be sure that you've read and understand the Greater Capital Association of REALTOR's Form 1362 "Short Sale Addendum to Sales Contract" before enter into the sales contract.

 

 

 

Despite the tough credit market, The Washington Business Journal reports that Forest City has secured $250 million for the first phase of the construction of Waterfront Station. Given that the mall is demolished and the subterranean levels are already constructed, many in Southwest DC are glad to hear that that financing is secured to rebuild Phase I of the project.

 

 

 

Construction of the new Waterfront Station in Southwest DC is progressing. The pile-driving has stopped, and the new buildings are now beginning to show above grade.

The photo below shows the new building that is being built on the west side of the new 4th Street SW that will run through the middle of the old Waterside Mall location.

 

 

 

 

 

 

 

 

 

 

 

 

 

The photo below shows the building being built on the east side of the new 4th Street SW. The path of the new 4th Street SW is also apparent in this photo.

 

 

 

 

 

 

 

 

 

 

 

 

 

More information about the new Waterfront Station is available on the developer's website: http://www.waterfrontdc.com/project/

 

 

 

 

The renovation of Town Center Apartments into 1001 Waterfront is well-underway. The windows are being removed in preparation for the installation of new windows.

We can only hope the windows installed look as good at the ones installed over at The View at Waterfront.

1001 Waterfront is now leasing. For more information, visit their website: 1001Waterfront.com.