The Winchester, Virginia real estate market is showing signs of good health.  The first quarter of 2013 has had a radical decline in foreclosures and short sales compared to the first quarter 2012.  In the 2012 first quarter, 276 properties closed.  Of those properties, 50 were short sales and 76 were foreclosures.  That means 45.7% of that 2012 first quarter was made up of distressed properties.

The 2013 first quarter is painting a different picture.  Of the 271 properties that closed in the first quarter, only 82 were distressed properties.  That is only 30% of the overall properties were in that distressed category.  Short sales were down 52%, and foreclosures were down 24% in the first quarter.

Another positive note is that of the current available listings of 465 only show 9% distressed properties.  There are 26 short sales and 22 foreclosures.  This could mean two things for the local market.  One, the market is truly rebounding, foreclosures are legitimately dropping and fewer homeowners are having to sell at a short sale.  That might also signal that the job market is becoming stable again.

The second thing that the new market could mean is that people who have sat on the fence expecting the short sale and foreclosure market to continue are likely to miss a great opportunity to get a good deal.  Sellers are starting to take control of the local market again, and buyers are starting to get involved in bidding wars.  Sale prices are closing with smaller percentages +- of list, discounts are fading and the local inventory is shrinking.

The market may be truly recovering, but let's give it another quarter or two to make sure of that optimistic hope.  The current signs all point that way.  This might be the year that sanity returns to the real estate market in Winchester, VA.

The Winchester, Virginia real estate market is showing signs of good health.

The Winchester, VA real estate market continues to show signs of improvement, but it is in inches rather than leaps.  The current market has 513 available properties spread over the Winchester City and Frederick County area. 

Of those 513 listings, 15% are distressed properties.  That's par with the April numbers, but it's a 3.3% drop from the beginning of the year.  The number of available listings have increased since April, and with the decline in distressed properties that's a positive trend.  Frederick County, which has more available properties, holds 16% of all distressed properties, while Winchester City has dropped to 13%.

The more startling numbers come when you look at pending sales.  There are 321 pending sales in both Winchester City and Frederick County, VA.  The pending sales may give a better window into where the market has been.  In Winchester City, 48% of current pending sales are distressed homes.  Frederick County has 46%.  Again, those are high numbers, but it is only 47% combined.  It has been as high as 63% this year.  

That's also an encouraging trend.  The number of available listings are up.  The number of available distressed listings are down, and the number of pending distressed properties have fallen 25% since the beginning of the year.  The shift in the Winchester / Frederick County real estate market is in the right direction.  It's moving slowly, but that tells me that bargain hunters still have opportunities if they move now. 

The Winchester, VA real estate market continues to show signs of improvement.

Winchester / Frederick County Available Listings - May 2012

The available houses in Winchester, VA in April 2012 has risen to 582.  That's a 7% increase in inventory over March listings.  In contrast, the number of REOs and short sales have declined slightly.

Winchester City holds 112 of the available listings, down three from March.  The number of REOs in April stand at 4 and short sales at 11.  The March numbers are basically unchanged.  March had 115 listings with 4 REOs and 11short sales.  Winchester has seen less movement than Frederick County.

Frederick County, VA has 470 active listings.  Of that number, 33 are REOs and 43 are short sales.  The March listings were 448 with 36 REOsand 45 short sales.  Both REOs and short sales are down in the county.  The overall number of listings has increased by 22, but the distressed properties are dropping.

The drop in distressed properties in the Winchester / Frederick County, VA area is a good sign that the local real estate recession may have turned the corner.  The overall market is up, but distressed properties are down 5%.  For homeowners who have been waiting on the sidelines to sell, this is good news.

For home-buyers who have been waiting for the market to hit bottom, this may be it.  If you're thinking about buying a distressed property, now is the time. The inventory is starting to shift toward fair market listings, and when that happens, highly discounted properties will slowly disappear.  

Available Houses in Winchester, VA - April 2012

All Listings in Winchester, VA - April 2012

REOs in Winchester, VA - April 2012

Short Sales in Winchester, VA - April 2012

The Emerald Coast of Florida has a high military population with both active duty and retired air force personnel. Eglin Air Force Base is located in Fort Walton Beach, and Hurlburt Field is in Navarre, Florida. Duke Field and NAS Whiting Field are nearby. We will be seeing an increase in short sales for GI borrowers when they must relocate during their PCS moves (permanent change of station). VA Short Sales are called "Offers in Compromise", "Compromise Claims" or "Compromise Sales". The VA may accept a Compromise Sale if the cost to the VA is determined to be less than that of foreclosure.

The VA website says: "If the borrower is unable to sell the property for an amount that is greater than or equal to what he/she owes on the loan, including closing costs, VA may pay a "compromise claim" for the difference in order to allow the private sale to go through. The borrower can sell the property to a buyer who gets his/her own financing or to a buyer who wants to assume the loan. However, with a compromise assumption, the lender does have to agree to have the amount of its guaranty reduced by the amount of the claim payment. In order to be considered for a compromise sale, several factors must be considered."

VA Compromise Sale Factors:

1. You may only sell the home for fair market value.

2. The closing costs must be "reasonable and customary".

3. You must have a valid financial hardship such as loss of income, relocation, death of breadwinner, etc.

4. There should not be a second mortgage on your property, unless it is "insignificant". If so, you might ask the junior lienholder to release the lien and convert it to a personal note.

5. You should ensure your sales contract is "contingent and/or subject to the approval of a VA compromise sale."

If you have a VA loan, and need to do a "Short Sale" or "Compromise Sale", here is what you must do to begin the process:

1. Contact you lender to see if they are an approved VA Servicer Loss Mitigation lender and/or contact the VA regional office servicing your loan directly.

2. Fill out a financial status report form provided by your lender or the VA.

3. Complete a letter of request.

4. Complete a Compromise Agreement Sale Application. You can get this form from the VA or the approved lender.

Final Important Points:

1. Your lender does not have to agree to a Compromise Sale.

2. For VA loans originated on or before December 31, 1989, you might have to sign a promissory note at closing agreeing to repay VA for the deficiency remaining after the property is sold.

3. An experienced Short Sale Realtor should guide you through the sales process, help you determine fair market value and prepare your package for submission to your lender or the VA.

For more information, contact your VA Regional Loan Center.

It's Wendy!

Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.

Search Destin Florida real estate and vicinity.

Short Sale Pre Foreclosure Help.

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204

Email itswendy@rulnickrealty.com

Wendy Rulnick specializes in real estate sales, short sales, traditional sales on Emerald Coast of Florida: Destin Florida real estate, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Dune Allen, Blue Mountain Beach, Freeport, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. Wendy Rulnick, Broker and Realtor, has been selling real estate for almost 20 years. She has won numerous awards, including the coveted ADDY for advertising design. An expert marketer of real estate listings, she also negotiates successfully to her buyers' and sellers' advantage. She is supported by a team of top buyer specialists. Wendy lists and sells homes, condos and townhomes in Destin Fl and the surrounding areas. She was ranked in the top ½ percent of all Realtors on the Emerald Coast of Florida in 2008 for resale listings sold.

All Rights Reserved. "VA Short Sale Guidelines (VA Compromise Sales)" Contact Wendy Rulnick regarding Destin Florida real estate and vicinity. Copyright © 2008 by Wendy Rulnick.This site, Wendy Rulnick or Rulnick Realty, Inc. is not providing legal or tax advice. The information provided is for educational and informational purposes only. It is recommended that sellers considering a short sale should consult an independent legal and tax advisor for more information.

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