Congresswoman, Shelly Moore Capito quickly returned for an open discussion forum with local real estate agents and lenders this week after the recent Congressional Field Hearing in Martinsburg on July 31. The meeting was held at the Eastern Panhandle Board of REALTORS® office and was well attended by members concerned about the local housing market.
The discussion began causally as Representative Moore asked the room to bring up their concerns. The hot topic quickly moved toward class III taxes and the unfair assessments of properties that have been vacant for over a year effectively doubling the total taxes due. I addressed my concern about the number of vacant foreclosures entering the market place adding more fuel to the fire in the unfair practice of double taxation making it more difficult for home purchasers to qualify for a loan. Peter Corum, Wells Fargo, stated that several businesses in Shepherdstown are struggling with their increased accessed taxes in this declining market and may find it necessary to close their doors.
Margie Bartles, managing broker of Long & Foster Foxcroft, expressed the continued need of down payment assistance for FHA loans used in conjunction with the Nehemiah® and AmeriDream® programs and indicated that 2 out of 10 home buyers currently use these programs. There is concern that DPA will be eliminated when it is needed more than ever to assist first time home buyers.
Additional issues addressed:
- There is concern about who will be accountable for collection of the tax credit included in the recent Housing Relief Bill.
- The complexity utilizing the short sale option is resulting in consumers giving up and walking away creating more foreclosures entering the marketplace.
- The unregulated practice of some builders continuing to offer questionable incentives to buyers who use their preferred lender that they own without requiring an appraisal for the protection of the buyer.
Interesting statistics brought to the forefront:
- The overall pattern behavior of FHA borrowers with higher credit scores is averaging in at higher delinquency.
- Last month, in Berkeley County alone, 19% of the homes sold and the 5% remaining active are foreclosures.
Overall, those in attendance appreciated Representative Capito returning to the Eastern Panhandle and the opportunity to voice concerns about the local housing market. That said, we are looking to our elected representative for a voice that will have a direct effect on our business and a positive impact on the local economy.
Disclaimer: The information provided herein is supplied by several sources and is subject to change without notice. WVHomesBlog does not guarantee or is any way responsible for its accuracy, and provides said information without warranties of any kind, either expressed or implied. Entries on WVHomesBlog represent the opinions and ideas of the author(s).
Copyright© 2008 Debbie Small
