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In this current DC real esate market, one of the best options for many new homebuyers is purchasing a short sale home. But, what does short sale mean? A short sale is when a seller owes more than the market value of the home, and lenders have the opportunity to sell the property before the bank forecloses on the home rather than after. While buying short sales creates the opportunity for real estate investors to pay well-below-average housing prices for properties within ideal locations, there are still a few drawbacks.

If you're interested in buying short sales, here are a few things you need to be aware of:

Why Banks Short Sale Pre-Foreclosure Homes

The last thing a bank wants to do is own a property secured by the bank's loans. When a property owner is in default and owes more than what the home is currently worth, the bank will work with the seller to offer the property for less than they owe on the mortgage loan.

How much money will banks take off? When buying short sales, how much should I expect prices to fluctuate? On average, banks estimate that holding on to the property after foreclosure will cost up to 18 percent of the home value to complete the inspection, appraisals, repair and maintenance. Instead, it is a much easier and financially sound decision for banks to sell the home ôas isö to avoid any third-party inspection process.

Be Prepared and Patient When Buying a Short Sale

Buying short sales might seem like a good deal for the buyer, but that's not always the case. Here are three major conflicts buyers and sellers face when a short sale, pre-foreclosed home is on the market: 

• Time: Don't let the name fool you. Buying short sales takes a very long time. There's a whole gambit of scenarios of why a short sale might be delayed, but many of the hurdles buyers have to overcome have to deal with secondary financing on the homeowner's original mortgage, bank processing delays and private mortgage insurance policy breakdowns. Buying short sales is a very complex process, which can leave the short sell buyer in housing limbo for up to six months.

• Condition: Short sale homes often need additional maintenance and repairs. When the current property owner is unable to pay the mortgage on the home, more often than not the condition of the property diminishes over time. Additionally, short sale homebuyers should take into account that the property will have had more than one previous owner, which adds to the wear and tear.

• Lender Restrictions: Banks can renegotiate a short sale at the last second. If a new law passes, the market begins to change or the bank finds out more information about the property, they reserve the right to change the terms of the contract at any point in the process. Banks will also refuse to pay for extra services like seller closing costs or inspections. If you want something specific inspected on the property, you're probably going to pay for it yourself.

Short sale homes can be a great deal. It's true that buying short sales can be a very tricky process, but for the flexible and patient homebuyer, the short sale home can be the dream house they've been searching for.

Contact us today to learn more about short sales and to start your home search!

Browse DC Short Sales and Foreclosures

We just wanted to provide everyone with an update from last night’s ANC 5A meeting.  Before a standing-room-only crowd, all 12 commissioners were in attendance and voted 6-5 (with 1 abstention) in favor of supporting the 901 Monroe Street project in its current design before the Zoning Commission.  It was a dramatic end to three hours of thoughtful and emotional discussion between residents, commissioners, and the development team.  We would like to extend our thanks to those of you who attended and spoke in support of the project as well as those who wrote letters/emails to your commissioners.   We are very happy with the outcome and look forward to the zoning hearing on January 19^th. 

WE NEED YOUR LETTERS OF SUPPORT!

We are making a big push to get letters of support into the Zoning Commission record by the end of the day on Friday January 6th, as the official record is typically printed for the Zoning Commission members 10 days in advance of the hearing.  Please contact us if you would like to help support the project by taking a few minutes to write a letter, and we can provide you with sample letters of support and assure that your letter gets delivered to the right people in time.

Please let us know if you have any questions.  Thanks again for your support!

This may seem just plain crazy, but what you aren’t told is an all-too-real aspect of buying a new home - unless it happens to you.  Because many jurisdictions, including the District, have in place what are known as “stigmatized property laws,” Realtors® aren't allowed to disclose whether or not a house is haunted. It's treated the same as discussing anything that may negatively impact a prospective buyer's view of a given neighborhood or property.

Some Realtors® are rigid adherents to the law; others believe that, with the permission of the seller, it's advisable to disclose everything about a property. As Washington real estate lawyer notes, “It goes with termites and leaky roofs...the more you disclose, the better. In fact, a ghost might turn out to be a good selling point.”

Regardless of your agent's opinion on the matter, the looming question remains: Are ghosts a serious issue in the Washington area? According to Bobbie Lescar, founder and director of the Virginia Ghosts and Hauntings Research Society, “Hauntings have picked up” recently. The organization receives 70-80 calls and emails each day. Her group will investigate and document empirical evidence, but they do not intervene; her volunteer staff usually conducts one full-scale investigation each month.

Lawana Holland, owner of the Washington, DC Ghost Hunting Page, notes that individuals should first look for natural causes, such as “an electrical problem or power lines,” at the root of what they believe is a haunting. She admits that sometimes, events do appear to be truly unnatural.

The founder of the Maryland Ghost and Spirit Association, Beverly Litsinger, says that “There are a lot of people who believe.” She also notes that, “People often make peace with ghosts...and just like you, they don't like to be ignored.”

What do you think about this?  Do you believe that houses can be haunted? Would you move into a home with that reputation?  Would you mind having a ghost as a roommate? Should you be warned?

Owning a home that's haunted – or even possibly haunted – can be an exciting undertaking. Are you planning to buy or sell a home in the DC area? The Menkiti Group is provides exemplary service, based on our core values of knowledge, team, community, and excellence. Contact the Menkiti Group today to discuss your real estate needs; based in Brookland, we are the premier real estate service company in the DC area.

HUD's 203(k) program provides the perfect solution, allowing you to purchase or refinance a property plus include in the loan the cost of making the repairs and improvements. The FHA insured 203(k) loan is provided through approved mortgage lenders nationwide to homeowners planning to occupy the property.

The down payment requirement for an owner-occupant (or a nonprofit organization or government agency) is approximately 3.5% of the acquisition and repair costs of the property.

Advantages of the 203k

The 203k loan takes much of the stress out of home renovations. One loan covers the entire process - even including an amount set aside in case of cost overruns.

• Perfect for fixer-uppers or foreclosure properties
• The loan closes BEFORE repairs begin
• The loan is based on the home's value AFTER improvements
• One closing with funds disbursed on a draw basis after dosing
• The loan amount can go as high as 110% of the "after-improved value"
• Repairs are completed within a specific time frame
• Built-in contingency reserve to protect from cost overruns for unforeseen repairs
• Borrower can finance up to 6 months of mortgage payments
• Streamline 203k loan offers even faster access to your funds & additional benefits!

A Wide Variety of Uses

• Remodel kitchen and baths
• Add a room, garage or a new level
• Make energy & structural improvements
• Tear down and rebuild (must leave part of foundation intact)
• Replace plumbing, roofing & more
• Add energy-efficient siding, windows & doors
• Eliminate health & safety hazards
• Paint interior & exterior
• Add major landscaping & site improvements
• Improve accessibility for people with disabilities

Contact us today for a list of recommended lenders who are offering the 203(k) Rehabilitation Program.

With the rock bottom interest rates of today’s market and the recently expanded Home Affordable Refinance Program (HARP) that allows homeowners who are underwater to refinance, there is certainly a lot of buzz about refinancing.  Refinancing with today’s rates could save you hundreds of dollars a month, but unless you do the math before trading in your loan, you could end up wasting time and money.

Before refinancing, we recommend you take the following into consideration and run the numbers to make sure the refinance will in fact save you money in the end.

Costs of refinancing: Add up ALL the costs, including points, fees for the application, loan origination, appraisal, attorney, credit report, extra insurance, inspections, private mortgage insurance, recording, survey, title insurance, underwriting etc.

Monthly savings: Figure your monthly savings by subtracting your current monthly payment from your refinanced mortgage's monthly payment.

Net savings (after taxes): Multiply your monthly savings by your combined state and federal tax rate. Subtract your tax cost (because the cheaper loan gives you a smaller tax benefit than the previous loan) from your monthly savings to get your net savings.

Break-even point: Divide your total costs by your net savings to determine how many months it will take to pay off the cost of refinancing.  For example, if you will save $100 a month on the refinanced mortgage and the refinanced mortgage costs you $2,400, it would take you two years, to break even and start enjoying that savings. If you plan to move within two years, it would not be worth refinancing into the new loan.

Hidden costs: Also, if your current loan contract includes a prepayment penalty you've got to factor it in too. Some penalties can be as high as six months interest on 80 percent of your balance, but diminish the longer you hold the loan.

The points vs. interest rate also presents a mathematical quandary, so again you’ll have to do the math.  Generally, lower points (each point is 1 percent of the amount financed) produce a higher interest rate. Higher interest rates mean lower points.  If you know you'll stay in your home for just a few years, a zero-point loan option would likely be a better deal because you may not have the opportunity to recoup those costs. If you are staying longer with more time to recoup costs, consider a cheaper interest rate with points.

To find the best deal, you’ll likely want to shop around with different lenders.  You can start with your current mortgage lender, as some lenders offer current customers special low-rate, low- or no-cost refinance packages as a way of retaining clients.   You can also contact us for additional lenders to contact. 

These loans are available to individuals to both first-time and repeat homebuyers purchasing their primary residence in DC.  The program can be combined with federal and local downpayment and/or closing cost assistance programs, including the Employer Assisted Housing Program (EAHP), and the Home Purchase Assistance Program (HPAP). The loan amounts are based on a combination of factors including income and household size.

Program’s Guidelines Include:

1. Currently (for a limited time), the DCHFA Mortgage program offers two loan options:
   • 3.75% with no points, 30 year fixed-rate
   • 4.25% with no points, 30 year fixed-rate, with $10,000 down payment assistance
2. The $10,000 non-amortizing 2^nd down payment assistance mortgage would be repayable upon sale or refinance
3. FHA loans only
4. Minimum credit score of 620
5. There are no income restrictions on 30% of the program’s pool of funds (these funds are available on a first come, first served basis)
6. Income limits on remaining 70% of the program’s pool of funds range from approximately $106,000 – $127,320 annually for one or two person households; income limits generally increase with household size. You must contact a participating lender to determine if you qualify and/or to start the application process.   

Contact us to learn more about DC Bond today.



Our fall checklist helps you reduce home heating costs, contain the cost of repairs due to water damage, prevent accidents around your home, and have a great yard next spring.

Please feel free to contact us if you need any vendor recommendations as you work through the checklist and get your home ready for the winter!

Download the printable fall checklist.

RiverSmart Homes FAQs:

Am I eligible for the RiverSmart Homes program?
If you own a home with a yard in the District, either as a resident or as a landlord, you are eligible for having a RiverSmart Home. If you rent a home in the District, you must have your landlord’s consent to participate in the program.

Note: Large property complexes such as apartments, condos, and offices are currently not eligible for the RiverSmart Homes program.

Is becoming a RiverSmart Homes going to cost me money?
The RiverSmart Homes program provides you with a cost-savings of up to $1,200, but is not free-of-charge. So that you have some ownership of the landscaping work, the District Department of the Environment (DDOE) is asking for homeowners to pay a small percentage of their installation cost (usually around 10 percent of the potential total cost). Your break-down of co-payments include:

• Shade Trees = $50. The cost of the shade tree installation is estimated to be $300.
• Rain Barrels = $30. The cost of the rain barrel installation is estimated to be $300.
• BayScaping (native plants) = $100. The cost of the BayScaping varies depending on the size of the area landscaped. It can be up to $1,200.
• Rain Gardens = $75. The cost of a rain garden varies depending on the size of the area landscaped. It can be up to $1,200.
• Pervious Pavers = DDOE will pay the difference (up to $1,200) between conventional pavement (concrete) and pervious pavers.

1. Enroll in the RiverSmart Homes program either by calling DDOE at (202) 535-2252 or filling out the online application at http://ddoe.dc.gov/riversmarthomes. A DDOE inspector will then contact you to schedule an audit for your property. It could be up to 3-5 months before you are contacted by DDOE, because of the high volume of interest in this program.
2. Have a Site Audit Conducted DDOE inspectors conduct audits to assess what landscape enhancement(s) – shade trees, rain barrels, BayScaping, rain gardens or pervious pavers – will be appropriate for your property. A DDOE inspector will come to your home at an appointed time, present an informational packet on the RiverSmart Homes program to you, and ask for a brief tour of your yard. The inspector will then walk your property on their own, taking down measurements and notes. You must be present at the property during the audit, which takes approximately one hour to complete. One to two weeks following the audit, you will receive the Inspector’s audit report of your property.
3. Let DDOE Know What Items from the Audit You Want Installed Audit reports identify stormwater run-off points on your property, and recommend which RiverSmart Homes landscaping enhancement(s) you can choose to have installed in effort to reduce the stormwater run-off. After reviewing the audit, contact your inspector to let them know what landscaping you would like to have installed on your property. Again, DDOE will cover up to $1,200 per household for the total cost of an installation(s).
4. Have Landscaping Enhancements Installed DDOE has partnered with local contractors to work directly with you to have your landscape enhancement(s) installed. The contractor will contact you to arrange the installation, and will collect the appropriate co-payment at the time of installation. Please note, you may choose to use a contractor not partnered with DDOE. In this situation, you must tell DDOE in advance so that DDOE can work with the contractor to make sure the installations are done properly. It will be between you and the contractor to work out payment arrangements. Only once the work is properly complete will DDOE provide a rebate to the contractor to offset the cost of installation.
5. Have a Final Site Visit Once the RiverSmart Homes landscaping enhancements are completely installed, a DDOE Inspector will come back to meet with you, assess the installations, and discuss your RiverSmart Homes experience.

With low interest rates and bargain real estate p

Here's how it works:

• You will open a savings account at your bank prior to the wedding
• Friends and family will be given the banking information where the gifts will be deposited
• All of the gift funds can go towards the FHA required 3.5% down payment
• Anyone with an interest in the purchase cannot be party to the gift funds (i.e. realtor)
• There is no requirement that you be married prior to closing on your new home

Another huge advantage is that there are no gift letters or other documentation required other than proof of your savings account named "bridal registry account." It's that simple!

For more information check out this recent article from Time Magazine.