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Some Crofton Residents Wait Too Long to Refinance
June 27th, 2009 Categories: Real Estate Information
Sorry, Crofton residents and home buyers. You missed the boat.
While you were waiting for interest rates to bottom out, gambling that they would go even lower than rates were a few weeks ago to re-finance or buy a home, they started back up. In the flyer dated 6/26/09 that I received today from one local lender, the current rates are:
- 5.25% for Conventional 30–year Fixed Rate financing
- 5.375% for VA and FHA financing
- 6% for Jumbo financing
According to MarketWatch, the average rate on a national level is slightly higher: 5.47% for Conventional 30–year Fixed Rate financing. 5/1–year arms are priced at 4.87% – not much of a break, considering the risk of a higher rate at the time of each future adjustment (but this is a good loan for someone who doesn’t expect to stay in a property more than 5 years).
You can follow the interest rate trends right here at Focus On Crofton any time by clicking on Mortgage Interest Rates in the left navigation bar. That takes you straight to MarketWatch 101 where you will see the interest rate for this week, last week, and last month as well as an arrow up or down to indicate the current trend.
But, just because you missed the bottom, rates are still lower than they’ve been in recent years. You can get a loan in the 5’s now, so don’t wait ‘til rates are back up to 6% or more.
I have terrible memories of selling real estate (or not) when interest rates were
16% and 17% in the Carter years… could it happen again?
Thinking of buying a home?
Nobody can predict when home prices will hit bottom. In fact, we won’t know what the bottom is until it disappears and prices show signs of increasing. Even if prices drop a little more, any savings in your payment has probably been swallowed up by the higher interest rate. So don’t get caught twice with your pants down. You missed the best interest rate… don’t risk an increase in housing prices too!
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How Will You Know if The Home You Lease Faces Foreclosure?
June 23rd, 2009 Categories: Real Estate Information
FORECLOSURE TURNS LIVES UPSIDE DOWN FOR TENANTS
Hopefully we won’t be reading or writing any more posts like the one I wrote in March 2008 titled Tenants Faced with Foreclosure - Lives Turned Upside Down - at least not for properties in Crofton, Maryland. This is an update inspired by that post.
New legislation went into effect last month in Maryland requiring a series of notices to all occupants of residential properties at various stages of the foreclosure process.
Don’t get me wrong… it will still be very disturbing to families when they find out the home they lease is being foreclosed upon - but at least they can be certain of having some advance notice to explore their options.
Disclaimer: Before I continue, let me remind you that I am a REALTOR, not an attorney, and this should NOT be considered legal advice. It is an update to the unfortunate situation described in my earlier post, now that the Maryland Legislature has passed emergency legislation to help protect tenants in the event of foreclosure to the property they occupy.
Now tenants don’t have to worry about anyone showing up at their door to say they just purchased the property at a foreclosure auction and the tenants are O-U-T. As of May 19, 2009, any person authorized to make a sale in any foreclosure action in Maryland must provide written notices to “ALL OCCUPANTS” at three steps during the foreclosure process:
- Notice must contain specific wording and information prescribed by law (outlined below)
- Notice must be in a separate document
- Notice must be in 12-point type
- Notice must be sent by first-class mail
- Notice regarding content must be on outside of the envelope, on the address side, in 12-point type, in specific wording prescribed by law.
This is the result of emergency legislation known as §7-105.9 of the Real Property Article, Annotated Code of Maryland. The entire bill can be found online at http://mlis.state.md.us/.
HERE’S WHAT TO EXPECT IF THE HOME YOU LEASE AND OCCUPY IS FORECLOSED UPON:
First notice, titled “IMPORTANT NOTICE”, at the time foreclosure action is filed, shall include the following information:
1. Foreclosure action has been filed against the property (Including name and address of Circuit Court);
2. Foreclosure sale of the property may occur after 45 days from the date of the notice;
3. Occupants may want to consult an attorney;
4. Occupants may be evicted;
5. Name and contact information of the person authorized to sell the property;
6. Phone number (877-775-0357) for assistance;
7. Website (www.mdhope.org) for information.
Notice on envelope shall read “IMPORTANT NOTICE TO ALL OCCUPANTS: FORECLOSURE INFORMATION ENCLOSED. OPEN IMMEDIATELY”.
Second Notice, titled “NOTICE OF IMPENDING FORECLOSURE SALE”, not earlier than 30 days nor later than 10 days before the foreclosure sale:
1. Foreclosure action has been filed against the property (Including name and address of Circuit Court);
2. Details of foreclosure sale, including date, time and place;
3. Occupants may be evicted;
4. Name and contact information of the person authorized to sell the property;
5. Phone number (877-775-0357) for assistance;
6. Website (www.mdhope.org) for information.
Notice on envelope shall read “IMPORTANT NOTICE TO ALL OCCUPANTS: FORECLOSURE INFORMATION ENCLOSED. OPEN IMMEDIATELY”.
Third Notice, titled “IMPORTANT EVICTION NOTICE”, after judgment awarding possession and before any attempt to execute the Writ of Possession:
1. Judgment awarding possession has been issued (Including name and address of Circuit Court);
2. Date of eviction;
3. Name, address, and telephone number of purchaser or purchaser’s agent;
4. You may contact this person or review file in office of the Clerk of the Circuit Court;
5. You may consult an attorney to determine your rights;
6. Phone number (877-775-0357) for assistance;
7. Website (www.mdhope.org) for information.
Notice on envelope shall read “IMPORTANT NOTICE TO ALL OCCUPANTS: EVICTION INFORMATION ENCLOSED. OPEN IMMEDIATELY”.
NO NOTICE IS REQUIRED in the event foreclosure sale is postponed. Additionally, neither the landlord nor the property manager are required to notify you if/when the mortgage or deed of trust is in default (unless your lease specifies otherwise), so the first notice you receive may be the one described in this post. Frustrating as that may be for you, it is better for you now than it was for tenants faced with foreclosure in the past. If in doubt, read Faced with Foreclosure - Lives Turned Upside Down.
What are you going to do? The tenants in my original post didn’t want to disrupt their children any more than necessary, so they looked for another rental in the same school district. Of course, renting again is an option but maybe - just maybe - buying might be a good option for you, perhaps even a purchase at foreclosure of the home you now lease and occupy.
If that idea appeals to you, the first step would be to contact a mortgage lender to find out if you qualify for a loan adequate to purchase the property. If so, contact the person named in the notice you receive or attend the foreclosure auction to make a bid (armed with financing in hand). If you need any real estate advice, feel free to contact me, or contact a real estate attorney for legal advice.
The Protecting Tenants at Foreclosure Act of 2009 is a new Federal law, intended to protect and notify tenants faced with foreclosure, also went into effect in May. However, no government agency is currently charged with implenting or enforcing this law.
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Crofton Condo Buyers Beware
June 22nd, 2009 Categories: Real Estate Information
The rules changed on June 1 for condominium unit owners and associations in the Greater Crofton area and throughout Maryland.
Until then, condo associations were responsible for upkeep and structural repairs to both the common elements and units, while unit owners were responsible only for personal property within their units.
A copy of the master insurance policy was provided to unit owners at the time of purchase, along with other condo documents, so unit owners would know the extent of the association’s insurance coverage and they could purchase supplemental insurance accordingly. That’s no longer the case.
The new law (HB 287) has two requirements you should know about:
1. Condo associations must maintain property insurance on the common elements and units, but NOT any upgrades or replacements made by unit owners.
2. Unit owners are now responsible for any damage that originates in their own unit, up to the $5,000 deductible of the association’s master policy.
How does this affect you, a Maryland condo owner? Let me give you some examples:
- If a broken pipe in your unit causes water damage in your unit, another unit, or the common elements of the condo, you will be held responsible.
- Should a fire begin in your unit and spread to other parts of the building, you will be liable up to the $5,000 deductible of the association’s master insurance policy.
Maryland condo buyers will be notified of this obligation at the time of initial or resale purchase AND condo associations will provide written reminders to unit owners annually. (Agents, take note of this and be sure to use the new condo forms provided by MAR or your local association whenever you sell a condo.) A Maryland condo buyer who does not receive this notice may terminate his/her purchase contract.
How will Maryland condo owners cope with this new responsibility?
I’m not an insurance expert, so let me defer to local real estate attorney Benny L. Kass. He indicates that the answer lies in a condo owner’s own insurance policy. He suggests you obtain an HO-6 policy from your favorite insurance company because it will cover any personal losses and supplement the condo association’s master policy.
If you’re new to the Greater Crofton area, check with one of these local insurance agents for more information:
IMAGE: Istockphoto.com
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Originally posted at: Fort Meade - USNA - Andrews AFB: Maryland Condominium Buyers Beware of This Change
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Advice to Crofton Residents for Avoiding Foreclosure
June 8th, 2009 Categories: Real Estate Information
Of course, making your payments is the Number One best way to avoid foreclosure, but I have some simple advice in this short video.
This obviously only scratches the surface if you’re in hard-core default, but there is assistance available for anyone who cannot work out something with their own lender(s).
I would just caution you to PLEASE avoid 3rd parties who promise to help you obtain relief. While there are genuine helping hands out there, enough scammers are taking advantage of troubled borrowers that it’s not worth the risk for you. Besides, the odds are good that no one, and I do mean no one else, can negotiate better than you can for yourself. You alone have the passion that could engage the recipient of your call or written correspondence. The only exception to this advice is assistance from government agencies who you know are not scammers.
Here is a Link to the latest news about federal help, Hope for Homeowners. Maryland also offers support for home owners who may be in mortgage default, Home Owners Preserving Equity (HOPE).
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Ideas for Spending Your First-Time Buyer Tax Credit
May 27th, 2009 Categories: Real Estate Information
If you’re renting in the Crofton area now and “on the fence” about buying, remember that the first-time homebuyer tax credit of $8,000 is only temporary. If you don’t buy a home before December 1, 2009, it will be gone unless Congress extends it. But I wouldn’t count on that.
Let me ask you a tough question. If you had an extra $8,000, how would you spend it?
Well, you could be totally practical and use it to replenish the savings account or investments you cashed in for your down payment, invest it (with the help of your financial planner), or pay down your debts.
Then again…
To keep Focus On Crofton interesting for you, I plan to post a video once each week. Hopefully you’ll find some helpful information in them… at the very least, you can laugh at me making a spectacle of myself and watch me improve over time, with practice.
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Looking for your first home? If you’d like to live in the Greater Crofton area including Bowie, Davidsonville, Gambrills, Odenton and other nearby communities, just CLICK HERE to search online for homes.
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