# 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

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

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 of 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                                      

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

Give me a call to set up your appointment, and feel free to look over the property details below!

Link:  Listing on Realtor.com

~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

Nope, for some reason, an error was made in the Miami-Dade Clerk’s Office that left her homeless.  The sale was reversed by a judge within a few days, but not before the police forcibly evicted her family and had all of their belongings thrown out of the house.

I feel truly sympathetic towards Mrs. Ramirez and her family.  I couldn’t imagine something like this happenning to me or my family, and I hope that somebody is stepping up to the plate to re-imburse her for the damage this may have caused.

Link to Article

~Jonathan Benya- Realtor
301-653-8116

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

I get multiple calls each and every day regarding the program, and unfortunately not everybody found out about the program in time. I get at least one call per day from somebody who has just purchased a foreclosure in PG County and didn’t find out about the program until after settlement. Inevitably, the conversation goes something like this:

New Home Owner:    I didn’t find out about the program until after I closed on the house, can I still take advantage of the program?

Me:    That’s not a question I can answer.  All I can say is that I am telling all of my PG County clients about the program.  My best suggestion would be to call your Realtor directly and ask them.

Unfortunately, I don’t know of any way to take advantage of the program if you’ve already purchased, but I know plenty of people who would like to!  This situation (unfortunately) teaches a very important lesson when it comes to real estate.  Not all agents are equal, and choosing the wrong agent is costing people up to $20,000 in PG County!!!

~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