# 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

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

Home buyer searching for a great deal a new custom home on over an acre of land!

Low Prices and interest rates make this a perfect time to build your dream home!
For many people, the idea of having their own custom home built sounds like a dream.
Fact is, having a home custom built has never been more affordable!  There’s 3 reasons why RIGHT NOW is the time to look at making your dream come true:

1. Prices are low
2. Interest Rates are low
3. Tax Credits can put money in your pocket!

Land Prices have become affordable again,  and having a custom home built for as little as $300,000 is actually possible!  What does that price get you in today’s market?  Well, for starters, you can find   ready to build homesites ranging from 1-3 acres depending on your needs, and have your own custom built rambler built with 1,650+ square feet, 3 bedrooms, 2.5 baths, and a gourmet kitchen!

The Best Part about building a custom home is that you aren’t limited to the 3-4 home plans that most builders offer.  Custom home builders can create anything you want, and work with you to give your home that extra personal touch!

If you’re interested in the idea of building that “20 year home” you’ve always dreamed about, now may be the time to do it!  For more information about custom home construction, feel free to give me a ring, or visit the website  www.somdland.com to find out more!

(Model Shown is the Stafford Model by Potomac Homes)

~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

This next story should come as no surprise then, as a New Jersey Woman named Nina Morra managed to get locked out of her home that had just been accepted into a new loan repayment program.  The story goes something like this:

• Homeowner has a stroke, goes delinquent on payments
• Bank starts foreclosure filings against homeowner
• Bank agrees to a modified repayment program (supposedly) saving the owner from foreclosure
• Owner goes to visit family for Thanksgiving
• Bank sends inspector out to change the locks on the house, despite modification
• Owner comes home to find the no longer have access to their own house

After several days and frustrated calls, the bank acknowledges that they made an error, allowing owner to return to their own home

The Lender?  Bank of America.  This is just another story from the Wall Street institutions that have brought us such great stories such as:

Bank turns Malibu Foreclosure in Party Pad

The Pushy Real Estate Agent

Any wonder why people hate banks these days?

Blog Post Links:

Foreclosure Mistake

~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

It’s also been expanded!  People who currently own a home are eligible to get up to $6,500 to “move up”!  Here’s a short video from Tom Kunz, President and CEO of Century 21, explaining the extension:

[youtube=http://www.youtube.com/watch?v=it-i_pbt1os]

In order to qualify for the $6,500, here’s a quick explanation of the guidelines for current homeowners (info on first timers can be found here):

• The credit is available for homes that go under contract by April 30, 2010 and close by June 30th, 2010.
• Current homeowners can claim a $6,500 credit as long as the property they are vacating has been their primary residence for at least five consecutive years out of the last eight years.
• Income limits: $125,000 a year for individuals, $225,000 a year for married couples. (these are higher limits than before)
• Homes that cost more than $800,000 aren’t eligible for the credit.
• $6500 tax credit is not retroactive.  (from the language of the bill: “shall apply to residences purchased after the date of the enactment of this Act.”

If you have any questions, please don’t hesitate to call or email me!

~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

Why Should It Be Disclosed?

A mold problem in a home falls into the category of “Material Defect”.  In the state of Maryland, any Material Defects that are known by the seller or listing agent must be disclosed, regardless of the Annotated Code of Maryland, Real Property Article, Section 10-702. The catch is that the seller must have knowledge of the defect.

Banks Don’t Disclose

Banks typically avoid making any sort of disclosure, and rather sign a disclaimer stating they have know knowledge of the property and it’s potential defects.  Since the bank has probably never actually visited the property, how can they know there is a mold issue?

Banks Should Disclose

It stands to reason, however, that someone involved in selling the property (such as the Realtor who lists the property) has seen and is aware of a possible mold problem.  If there is a latent defect such as this, and it is known, then it is the responsibility of the listing agent and the owner (The Bank) to disclose such problems.  What should happen, and what does happen, however, can be two entirely different things.

Are they Trying to Hide It?

With the massive mold growths I’ve seen in so many foreclosures, it’s impossible to hide the fact in many cases.  the concern that I, as a Realtor, have is that there is a potential health risk involved in showing these properties.  It’s a weekly occurence now:  I go out, show a dozen or so moldy foreclosures, and go home with a splitting headache and nausea.  At it’s core, this is a health risk, for both me and my clients.

The concern many banks have is that mold stigmatizes a property (DUH!) and reduces it’s value.  Their risk of exposure to a lawsuit is minimal (You gotta prove they knew the home had mold), and so the less they say, the better, at least in their mind.  In the mean time, myself and my clients get to deal with the headaches, nausea, dizziness, and shortness of breath that goes along with heavy mold exposure.  Lucky Us.

~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

[youtube=http://www.youtube.com/watch?v=b9pDkekZ6E4]

This Beautiful home with loads of upgrades is located right in
Waldorf! Large kitchen, and gorgeous family room! It’s Located in White Oak Village subdivision and move in ready! The
Open floor plan makes this home feel large and inviting. Beautiful
private deck with Large fenced back yard. and playset for the kids!
Don’t miss your chance to see this fantastic property!

~Jonathan Benya- Realtor
301-653-8116

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

(P.S., you can click on the images to zoom in on them!)

If you have any questions or would like more information about one of these fabulous properties, please feel free to give me a call!  One of our luxury home experts can help you identify and broker an outstanding deal one your new home!

~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