JUST SOLD: 4810 Sheriff Road, NE, a two story.

Investors, this home sold for 45,000.

Unfortunately, DC in true form has taxed the owners of 4806 and 4808 Sheriff Rd into oblivion. Over the past years the taxes owed on 4806 Sheriff Road have risen to over 30,000. Perhaps in several years after DC has acquired this property one could buy it and continue to develop this neighborhood.

Nearly every condominium advertisement that you may read today will advertise 3.5% down payments and attractive interest rates, for FHA insured loans.  These wage-earner loans form the backbone of this market, and for any new construction project in recent memory, meeting the requirements for FHA were a must.

With news [Washington Post], however, that the FNMA is now requesting $15B in assistance from the U.S. Treasury, this market might be headed for another more serious decline in the event we must return to the days of putting $80K down to buy that $630/square foot condo.

On the side of securitizing loans, the constant theme in the current debate is enforcing the so-called “skin-in-the-game” rule in which the mortgage originator will be forced to retain a certain percentage of the loan’s face value on its books. How they’ll get around this risk increase with increased fees and loan points obviously remains to be seen.

Here in D.C., Fannie Mae picked up 19 properties in November, 2009 (by bidding on their own foreclosure auctions on assigned defaulted loans or picking them up from foreclosing banks that filed claims with FNMA on their insured loans). They are:

0828 51ST ST NE
5521 7TH ST NW
4619 KANE PL NE
5521 7TH ST NW
2141 P ST NW UNIT #305
0111 P ST NW
1328 MARYLAND AV UNIT #1
5821 4TH STREET, NE
4516 DIX STREET, NE
0601 JEFFERSON ST NW
3016 5TH ST SE
1425 4TH STREET, SW, UNIT #A316
1213 FLORIDA AV NE
2817 26TH ST NE
5113 JUST ST NE
1838 M ST NE
0773 KENNEDY ST NE
1618 17TH ST SE
0809 DELAFIELD PL NW

Not surprising.  What is surprising is that they only unloaded 4 properties in November 2009, two appearing on the list above, and the other two acquired in June of 2008 and August of 2007, meaning a net gain of 15 properties for the month of November.