National Capital Title & Escrow, llc.

MAIN STREET ASSET RECOVERY, LLC

A fully integrated, interdisciplinary company specializing in assisting banks, mortgage companies and other financial institutions in restructuring their mortgages, mortgage portfolios and REO to establish performing assets and improve balance sheets.

Main Street has established an organization with experienced professionals in the various real estate disciplines that are essential and required in order to properly evaluate and restructure real estate assets with an objective of creating performing assets, minimizing balance sheet write downs, and creating opportunities for future appreciation in value.  The range of disciplines brought together by Main Street include property valuation, property structural evaluation, property tax assessment evaluations and challenges, legal analysis and structuring, accounting feasibility services, etc.

Main Street has established a fee structure designed to facilitate the accomplishment of objectives for lenders and homeowners.  Call Craig Sacks at (301)948-2300 for further information or to arrange for an engagement consultation.

Since this is such a common question, I decided to post the answer to this question. Let’s assume a couple variables; the buyer is not a first time homebuyer in the specified state (the state of Maryland waives first time MD homebuyer’s State Transfer Tax, resulting in a savings of .25% of the consideration), The buyer is going to occupy the property as an owner occupant, purchase price $500,000.00, loan amount $400,000.00.

Montgomery County, MD: $5,382.50 (Government Fees) $1,650.00 (Title Insurance)

Fairfax County, VA: $3,079.00 (Gov Fees) $1,800.00 (Title Insurance)

Washington, DC: $7,422.00 (Gov Fees) $2,275.00 (Title Insurance)

Property Taxes are separate from Government Fees above and are collected Semi-Annually in the 3 states. The property taxes for a $500,000.00 purchase are estimated below;

Montgomery County, MD: $5,506.72 annually (homestead tax credit available after 12 months)

Fairfax County, VA:  $4,450 annually

Washington, DC: $3,706.00 annually (w/homestead credit for owner occupied property)

Renae Merle’s article does a good job highlighting ways to save $ on both purchase and refinance loans and settlements. One of the best suggestions is to question what specific fees are for and furthermore to ask the fee to be discounted or even waived. Renae also points out a reissue credit may be available, which can save the borrower up to 40% off the new title insurance premium. If you are a buyer, you or your real estate agent should request a copy of the Owner’s Title Insurance Policy and provide it to the title insurance company or attorney facilitating the settlement. If you are refinancing, you should provide the settlement company or attorney a copy of your Owner’s Title Insurance Policy and request a discount to the new title insurance policy required by the lender. Owner’s Title Insurance is normally only issued when the property is purchased. If the property was purchased more than 10 (ten) years ago a reissue credit is not available.

I compared the section of the article which itemizes average U.S. closing costs against HUD-1 Settlement Statements and find that the Origination Fees in the article are higher than most of the settlements our company facilitates. It is often explained by lenders and loan officers that Origination Fees like Points (S) and Origination or Lender Fee are paid to bring down the interest rate paid on the loan. So, these fees are in addition to the other fees listed in this article, which are in-line with what we normally see. The section outlining Title and Closing Fees should have been limited to fees charged by the settlement/title company including; Attorney, Closing or Settlement Fee, Survey, Title Insurance, Title Work, Title Binder, Title Commitment. The following fees should have been included in the Origination Fees or Lender Fees follow; Appraisal, Credit Report, Flood Certification, Pest Inspection. As stated in the article, Government Fees are controlled by the State and Local Goverment and should not vary by lender or settlement company. The article referenced can be located at:

http://www.washingtonpost.com/wp-dyn/content/article/2008/07/11/AR2008071101582.html    

State:       $.25 per $100

County:   $.0833 per $100

Grantor:  $.10 per $100

more information is provided by fairfax County at

http://www.fairfaxcounty.gov/courts/circuit/pdf/CCR-A-50.PDF

New legislation was approved by the Montgomery County Council which requires that a home energy audit be conducted as a part of a home inspection completed in connection with the sale of a single-family residential home; and requires a seller to provide information relating to certain utility bills and opportunities for home energy efficiency improvements to a buyer before signing a contract for the sale of single-family homes. Effective January 1, 2009.

As of July 1, 2008, the amount required to be withheld for non-resident individuals is 7.5%. this is an increase of 1.25%. The legislation does not affect the withholding amount required for a non-resident entity, which remains at 8.25%.

Questions and requests for clarification can be addressed (301) 948-2300.

National Capital Title & Escrow, llc is happy to help in your real estate transaction by providing a free sales contract for residential or cooperative purchase transaction in DC, MD & VA. Please submit your request via e-mail to info@natcaptitle.com and include: your Name, Address of the subject property, email address and contact phone #.

If you have any questions, please email info@natcaptitle.com or call (301) 948-2300.

Lender’s attitudes toward Short Sales are changing due to the dramatic increase in foreclosure filings and the increased strain on their Real Estate Out Sale Department (REO). A Short Sale is not universally defined, however, it is usually one where a homeowner is in financial distress, unable to meet their mortgage obligation and the homeowner’s total debt secured by the property is greater than the current value of the property.

National Capital Title & Escrow, llc is happy to provide more information Short Sale strategies, please contact us at (301) 948-2300.

National Capital Title & Escrow, llc is happy to help in your real estate transaction by providing a free sales contract for residential or cooperative purchase transaction in DC, MD & VA. Please submit your request via e-mail to info@natcaptitle.com and include: your Name, Address of the subject property, email address and contact phone #.

If you have any questions, please email info@natcaptitle.com or call (301) 948-2300.

Lender’s attitudes toward Short Sales are changing due to the dramatic increase in foreclosure filings and the increased strain on their Real Estate Out Sale Department (REO). A Short Sale is not universally defined, however, it is usually one where a homeowner is in financial distress, unable to meet their mortgage obligation and the homeowner’s total debt secured by the property is greater than the current value of the property.

National Capital Title & Escrow, llc is happy to provide more information Short Sale strategies, please contact us at (301) 948-2300.