Charles County’s Newest Foreclosures, February 2010

February 26, 2010 by Jonbenya · Leave a Comment 

Want to know what the newest foreclosures to hit the market in Charles County? Look no further! Each week I send out foreclosure lists to clients that are looking to take advantage of some really great deals! Here’s the list of foreclosures that have hit the Charles County Market. If you’d like to get the most up-to-the-minute results, shoot me an email and request your own copy of Charles County’s current foreclosure listings! Download List of Latest Charles County, MD Foreclosures Here

Top Tips for First Time Homebuyers

February 25, 2010 by Jonbenya · Leave a Comment 

Are short sales and foreclosures tempting you into home ownership? Did you find the perfect starter home that happens to be listed at an amazingly low price due to foreclosure? It’s certainly a buyers market here in Southern Maryland! If you think that home ownership can be had for less money now than before, you’re right. However, don’t bite off more than you can chew. Sure, you can buy a used Mercedes Benz and stay in your budget, but you better be prepared when maintenance bills come due. Forbes.com has a great list of 10 tips for first time home buyers (see 10 Tips For First-Time Home Buyers). I agree with all of them, so I wanted to pass the information along.

# 1 To Own or Not To Own?

Sure, you can pay the same amount for a mortgage on a foreclosure as you’re paying now for rent, but you’ll be paying more than just the mortgage with home ownership. Don’t forget closing costs just to buy the home, insurance, property taxes, and just general maintenance. When you’re already in a tight financial spot, having to deal with a busted pipe in the basement push you too close to the edge.

# 2 Are You Sure You Can Afford To Own?

I know, you think I’m repeating myself. But this is the most obvious and, sadly, overlooked or under-analyzed question. The first wave of the foreclosure crisis was due to people not being honest with themselves and answering this incorrectly. Not only will you have the costs we already discussed, but you’ll still have your regular monthly expenses like water, heat, electric, etc.

# 3 Get Your Hands On All the Tax Credits You Can!

If you’ve decided to move forward with buying your first home, there are MANY incentives to help you out! The most obvious one is the $8,000 federal tax credit. As of right now, you have to have a ratified contract on a property by May 1st, so don’t waste time! If you’re looking at buying a foreclosure, you’re looking at an average of 3 months from contract to closing. There are also local tax credits for Prince George’s and Charles County.

# 4 Get a Loan From Uncle Sam

Try to get a mortgage guaranteed by the FHA (Federal Housing Administration). You’ll have to put less money down on the house – only 3.5%! Only exception is if you have a credit score of 580 or lower, they’re going to make you put 10% down. Another thing – the FHA is not real keen on guaranteeing a loan on ‘fixer upper’ foreclosures, so don’t expect to buy a $100,000 mold-infested foreclosure and have Uncle Sam be ok with loaning you money.

# 5 Getting Money From Mom and Dad? Watch Out For Taxes On Gifts

Many first-time home buyers get large money gifts from family to help with their down payment or closing costs. BE CAREFUL how you handle this. An outright cash gift can result in BIG taxes for you – not to mention the fact that the bank guaranteeing your loan is going to wonder why all of a sudden there’s a $5,000 deposit into your checking account for no apparent reason. Before taking a cash gift from family or friends, consult with your Realtor or lender to make sure you’re helping – and not hindering – your purchase.

# 6 Not Like I Need To Tell You, But…Consider Foreclosures

The most obvious reason for first-time home buyers coming out of the woodwork during a recession has been because of foreclosures and short sales. You can get some really great deals on wonderful homes if you can be fast enough. First thing is to get a pre-approval letter from a lender. This is also where working with a Realtor who understands the process could be the difference between buying your first home and just buying what you can afford for now. We had a foreclosure listed for a bank not long ago that we just closed on. It was a 5 bedroom home in a nice community. When the bank decided to drop the price to $210,000, we had 3 contracts sent to us that day.

# 7 Ugh, Property Taxes

Yes, yes, broken record. BUT this is important. Sometimes, you can reduce your property taxes just by buying a home in a different county. Taxes seem high in Charles County? Try looking for a home in Prince George’s or St. Mary’s Counties. If you’re set on which county you want to buy in, just know that you may want to look at a smaller home or a smaller price bracket to compensate for the higher taxes.

# 8 Something No One Thinks About – Comparison Shopping for Title Insurance

Huh? What? Yes, exactly. Just like any other type of insurance, shop around to get the best quote for your title insurance. Some states even mandate lower rates for a buyer if the previous owner bought title insurance within the last few years.

# 9 Consider High-Deductible Homeowners Insurance

Especially if you are a do-it-yourselfer buying a foreclosure or an older home that ‘needs a little TLC,’ consider going for a higher deductible to lower your monthly payments. If you’re better with a TV remote than a hammer, this may still be a viable option for you – it might not be cost effective to pay higher premiums.

# 10 Lower Your Insurance Even More by Upgrading

Upgrades like installing a security system, smoke alarms, and carbon monoxide detectors can reduce your monthly insurance costs. It also doesn’t hurt to have your home insured by the same place you have your cars, motorcycles, etc. insured. You can usually get additional discounts by bundling them all with one company.

If you’re considering jumping in and becoming a first-time home buyer, or you’re just looking to sell your home and purchase another, contact me today! I’ve worked with numerous banks listing and representing buyers of foreclosed homes and can help you navigate the waters to your new home!

Jonathan Benya

Realtor

Century 21 New Millennium

9405-A Chesapeake Street

La Plata, Maryland 20646

301-653-8116 Mobile

301-609-9000 Office

Open Seats at Schools Mean More New Homes

February 9, 2010 by Jonbenya · Leave a Comment 

Earlier this month, Charles County commissioners made some changes to now require seats (or spots for students) be open at all schools and at all levels (elementary, middle, and secondary) before more new homes are allowed to be built.

According to the Independent, this ‘one seat, one residence’ rule has allowed between 138 and 144 new homes to be built over the past year and a half (see School allocations granted).  As you can see, the rule is trying to help avoid the ever present problem of school overcrowding without completely stunting residential growth to the county.

However, the allocations are not evenly spread through the county.  In each school zone, school’s maximum capacity, school enrollment numbers, and the estimated number of students per household determine the number of allocations for that area.

If you are looking to buy new construction or have a custom home built on your lot and have questions about school zoning issues, feel free to contact me today!

Jonathan Benya

Realtor

Century 21 New Millennium

9405-A Chesapeake Street 301-609-9000 Office

La Plata, Maryland 20646 301-653-8116 Mobile

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Is Your Rental Being Foreclosed on? Know Your Rights!

February 5, 2010 by Jonbenya · Leave a Comment 

If you are a renter, chances are you are nervous about the stability of your lease in this market.  Previously, if the owner of the property was foreclosed on, the tenant would be out of luck and out on the street.  The law said that leases signed after the mortgage date would be extinguished by  foreclosure.

Luckily, for tenants and prospective renters, there was a new federal statute signed into law this past May.  The new law states:

  • Tenants in foreclosed properties can remain until the end of their lease.
  • Month-to-month tenants are entitled to 90 days notice to terminate.
  • If purchaser of the foreclosed property intends to reside in the property, then the buyer may terminate any existing lease with 90 days notice.

This new law gives renters some peace of mind concerning their current residence.  Instead of having a few days notice, tenants can expect at least 90 days notice if they must relocate.

If you need assistance finding a new home, contact me today!  This is a buyer’s market, and with the tax credits for first time home buyers and foreclosure buyers in Prince George’s and Charles Counties, this may be the right time for you to invest in a home of your own!

Jonathan Benya

Realtor

Century 21 New Millennium

9405-A Chesapeake Street 301-609-9000 Office

La Plata, Maryland 20646 301-653-8116 Mobile

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Potomac Homes Charleston Model

February 4, 2010 by Jonbenya · Leave a Comment 

Beautiful and Affordable!

Come Home to the Charleston!

This European Style Rambler has an open, easily customizable floor plan with 3 bedrooms and 2 bathrooms.  The Master Bath includes a whirlpool tub and large walk-in closet.  You can customize this great home without breaking the bank!

The Latest Bank of America Screw-Up: This Time There Wasn't Even a Mortgage on the Property!

January 26, 2010 by Jonbenya · 1 Comment 

Sadly, I’m starting to sound like a broken record when writing posts about Bank of America.  It appears they have, once again, foreclosed on the wrong house.  

Bank of America Strikes Again

According to a South Coast Today article (see Couple claims Bank of America seized the wrong house), homeowners Charlie and Maria Cardoso filed a lawsuit against Bank of America/Countrywide for foreclosing on their home.  Now, you may think that this was just another mistake due to some sort ofPadlocked doors miscommunication between the homeowners and the bank – but you’d be wrong.  The truly frightening aspect of this particular incident is that the Cardosos NEVER had a Bank of America mortgage for this  property – in fact, they don’t have ANY mortgage on the property and own it free and clear!

After the bank representatives scared off the current tenants renting the property and padlocked the home, the Cardosos finally convinced the local authorities to break the locks so they could enter their own house.  What they found were missing power tools, electricity and water had been shut off, and the pipes in the house had frozen.

HOW CAN THIS HAPPEN?!

I ask myself this question EVERY time I see another story involving the words “Bank of America,” “foreclosure,” and “mistake.”  It baffles any logical person and terrifies any homeowner with one of their mortgages.  I can theorize all day about what may have happened: Had the bank’s legal team made an address typo somewhere?  Had the bank’s enlisted agent for the property verified the address with the bank with tax records and photos?  And on, and on, and on…

Whatever the cause, the problem is that it HAS happened and WILL happen again.  As a Realtor who does work for banks from time to time, I have seen incorrect paperwork sent to me that is only discovered when I go to verify the information.  There have been a few times where, had I assumed the paperwork from the bank was correct, I would have evicted the wrong homeowners. 

If you are facing possible foreclosure, contact me to discuss possible selling options and the current market value of your home!

Jonathan Benya

Realtor

Century 21 New Millennium

9405-A Chesapeake Street      301-609-9000 Office

La Plata, Maryland 20646        301-653-8116 Mobile                                      

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Make Sure You Get the Alarm Code to Your New Home Before Settlement!

January 22, 2010 by Jonbenya · Leave a Comment 

When looking to buy a house, it can be an added bonus that a potential home has a security system already installed.  The most common are the basic alarm systems that sound a noise when doors or windows are opened or compromised.  If you’ve seen the homes with “This Home Protected By [COMPANY]“ signs in the front yard or window, you know what I’m talking about.  Many people go the extra step and also get the monitoring service, which links your system to the security company so they can immediately call police or emergency services for you.

But what if you don’t have the pass code from the sellers? What if you’ve moved into a home with an alarm system you can’t even use?  Such is the dilemma of many new homeowners buying foreclosed or distressed homes, however this happens with your run of the mill resales as well.

If you find yourself in this unhappy situation, here are some options:

  • Have your Realtor try to get the pass code from the sellers or previous owners

Sometimes, a space on a disclosure was simply left blank or it was a detail that hadn’t crossed anyone’s mind until after settlement.  Your Realtor can get in touch with the seller’s or their agent to try and obtain the current pass code.

  • Call the alarm company and request the pass code be reset

While not always successful, it doesn’t hurt to call the alarm system company and request that the pass code be reset.  Be aware that many companies will not do so unless you opt to sign up for their monitoring program.  It can be a very useful program, but it will cost you money.  If you simply want to be able to arm and disarm the alarm, calling the alarm company may not work.

  • Call local alarm installer to see if they’ll help you out

For a fee, you can see if an installer will replace the “brain” board of your system to allow you to set a new code.  It may cost you $100 for the new board and whatever labor fee the installer would charge, but it would be cheaper than replacing the system or signing a monitoring program contract.

  • Reset the system yourself

Sometimes, you’ve just got to take matters into your own hands!  Take note of the exact make and model number of the unit and search online using phrases such as “resetting alarm code [MAKE] [MODEL #]” or “reset default alarm code [MAKE] [MODEL #]” for instructions.  You may get lucky and find a how-to by someone who’s already gone through the process, or you may find a way to get your hands on the instruction manual for your system.  By resetting it to the factory default code, you can either use that to arm/disarm the system, or follow the instructions to set a new code of your choice.

  • Accept defeat

Sometimes, no matter what you do, you just can’t win.  If you’ve not been successful with any other options, then you may need to simply cut power to the alarm system so you don’t accidentally set it off without a way to turn it off.  From here, you can either remove all the wall keypads to just remove any sign of it, or you can bite the bullet and have a newer system installed.

Obviously, the best way to avoid this situation is to make sure you get the pass code at settlement.  Since the home is usually not changing hands until settlement, you won’t be able to get the code until you actually have the keys in hand.

If you’re looking for a new home with amenities that would help protect your family, contact me today!

Jonathan Benya

Realtor

Century 21 New Millennium

9405-A Chesapeake Street 301-609-9000 Office

La Plata, Maryland 20646 301-653-8116 Mobile

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Lower Appraisals Hurting Sellers

January 20, 2010 by Jonbenya · Leave a Comment 

With the influx of foreclosed and distressed properties crowding the market, it’s no wonder that sellers are up in arms about their home’s appraisal coming in thousands of dollars short of the listed price of the home.  In their eyes, and the eyes of many Realtors, it is simply not fair to compare a standard home that’s not a short sale or foreclosure to those that are.  Home-appraisal

Both the National Association of Realtors (NAR) and the National Associtation of Home Builders (NAHB) report substantial numbers of sales being thwarted by lower than expected appraisals. 

Overall, you must remember that an appraisal is basically one person’s interpretation or opinion on what your home is worth.  The appraisals are (sometimes arguably) done by experienced professionals who base their opinions upon the current local market for similar homes.  When that pool of properties (referred to as comps or comparables) includes mostly foreclosed or distressed homes, it can be tricky to assess a home’s true value.  Sure, your home may be worth $400,000 based on what you paid and the upgrades you did, but when the same house with the same upgrades sells for $329,000 down the street as a foreclosure, buyers are less likely to shell out the extra money for yours.

Back to Market Basics

It’s all a long, drawn out way of saying. “it’s elementary, my dear Watson.”  When two retailers have the same item you want, you buy the item at whichever retailer is selling it cheaper.  Appraisers are simply doing their best in a market they’ve never seen before. 

If you are looking to sell and you have questions or concerns about what the true market value of your home is in the current market, contact me today!   

~Jonathan Benya- Realtor
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000 – office
301-653-8116 – cell

Charles County Real Estate Blog
SOMD Home Search
Southern Maryland Custom Homes & Land


Southern Maryland Devloper Going Green

January 15, 2010 by Jonbenya · Leave a Comment 

GreenSouthern Maryland, (and more specifically, Waldorf) developer American Community Properties Trust (ACPT) recently announced plans for a community of green, energy-saving homes right here in St. Charles.  Their vision entails a 12,000 home community, complete with offices, stores, and industrial parks.  ACPT is also banking on plans for a large solar energy facility and natural gas plant coming to fruition in the same area.

The reported energy-saving features of the homes in the planned community include:

  • Low flush, low flow toilets and showers
  • Better-than-normal insulation
  • Recycled carpets
  • Energy Star appliances
  • Energy-saving windows
  • Smart thermostats

What ACPT doesn’t mention is that SMECO already has a smart thermostat program!  It is FREE to enroll in, and the Energy Star certified CoolSentry digital thermostat included in the program is also FREE!  With the ability to program the unit for weekdays and weekends, you’ll save on your heating and cooling bills the instant it is installed!

The catch to the program is that it allows SMECO to decrease your heating or cooling usage during high peak periods to ease strain on the system.  But no worries!  The temperature will only change a degree or two, so your home will stay safe and cozy for your furry and feathered friends!  You’ll also be helping to lessen the strain on the environment, as well as your wallet!  Right now SMECO is also offering annual credits for customers who enroll in this program!

For more information on how you can create a more energy-efficient home, or to custom build an energy-saving home, contact me today!

~Jonathan Benya- Realtor
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000 – office
301-653-8116 – cell

Charles County Real Estate Blog
SOMD Home Search
Southern Maryland Custom Homes & Land


Waldorf Developer Sold to Private Equity Firm

January 14, 2010 by Jonbenya · Leave a Comment 

 News was recently announced that Washington D.C.’s Federal Capital Partners Completed the purchase of American Community Properties Trust (ACPT) for $43.6 Million Dollars.  This is big news for the Waldorf real estate market, as ACPT is a big developer here in Southern Maryland

image from farm3.static.flickr.com

Who is ACPT?

In short ACPT is the developer responsible for developing the Saint Charles Region of Waldorf.  They own a ton of land in the region, and have been involved in the area for decades.  They developed multiple neighborhoods and shopping districts, including the mall, subdivisions such as Carrington, Hampshire, Dorchester, Lancaster, Wakefield, Bannister, Fairway Village, and even the land that the Blue Crabs Stadium now rests on was part of ACPT’s development holdings.

Why Does This Matter?

ACPT has been building in Charles County since 1968, and in that time, they’ve built over 12,000 residences and more than 230,000 square feet of commercial space.  They still own more than 4,000 acres of undeveloped land and have county approval to build an additional 11,000 dwellings and 5 million square feet of commercial space.  Needless to say, ACPT is the biggest developer operating in Charles County, and has been for some time.  The new owners say they do not plan any major changes, but this deal turns ACPT into a private company, one that does not need to answer to shareholders.  It allows them greater freedom to operate with less people to question their decisions.

Is This Good For Charles County?

Only time will tell how this is going to impact local residents.  Without shareholders restricting company actions, ACPT may find itself able to operate more efficently, lower costs, and improve the quality of the county through it’s future growth.

~Jonathan Benya- Realtor
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000 – office
301-653-8116 – cell

Charles County Real Estate Blog
SOMD Home Search
Southern Maryland Custom Homes & Land


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