Market Update Video - Nice Stats!

http://www.youtube.com/watch?feature=player_embedded&v=_eYISnJ2   oxs Click on link to enjoy the show!

What is the Homestead Credit?

The homestead credit limits the amount of assessment increase on which a homeowner will pay property taxes in that tax year on the one property actually used as the owner’s principal residence. Legislation enacted by the 2007 session of the General Assembly requires homeowners to submit a one-time application in order to continue their eligibility for the homestead tax credit. Make sure the county is giving you proper credit…it could save you hundreds of dollars!

DECEMBER 31, 2013 is the deadline for filing your Application for Homestead Tax Credit. It does not matter whether you have owned your house one year or twenty years or if you are already receiving the credit. An application must be filed by the end of the calendar year. If your application is already on file and approved, you DO NOT need to reapply.

Every year since it's inception, the deadline has been extended. This is never guaranteed. When you sell a personal residence, the savings may come due. The point of the legislation was to limit the hardship of increased property taxes on homeowners when property values rise dramatically.  

How do I know if I need to apply?

It only takes a minute to check to see if you have filed and if you are approved. Follow these steps:

1)      Click on this link: http://sdatcert3.resiusa.org/rp_rewrite/

2)      Select your County

3)      Enter your street number and street name - do not include Street, Court, Drive, etc.

4)      Look at the bottom of the page and see if your Homestead application was filed. If it was filed, the entry will show the date your application was approved.

5)      IF IT SAYS “NO APPLICATION” click on this link for the application: http://www.dat.state.md.us/sdatweb/homestead_application.pdf

Also, even after you have filed and been approved, you may not receive a credit on your tax bill. The credits only appear when the assessed value of the property has increased over the allowable limits each year. With declining assessment values, you may not actually receive a dollar credit each year.

Want to learn more?

To learn more about the Homestead tax credit, click this link http://www.dat.state.md.us/sdatweb/homestead.html or reply to this email with your questions!

Please be sure to share this information with your friends and family members that own a primary residence in Maryland!!

(Most of this article provided by: 

Laura Fournier | Mortgage Specialist |Equity Resources, Inc. |NMLS #198293

15752-B Crabbs Branch Way| Rockville, MD  20855| (Phone 301-674-7716 |ÊFax 240-912-9060 | *Email LFournier@callequity.net )

CoreLogic National Foreclosure Report

CoreLogic® Reports 51,000 Completed Foreclosures in September

Fewer Than 2.1 Million Residential Mortgages, or 5.2 Percent, Are Seriously Delinquent The Serious Delinquency Rate Is at the Lowest Level Since December 2008 The Foreclosure Inventory Is Down 24 Percent Year to Date

FORECLOSURE INVENTORY SERIOUSLY DELINQUENT MORTGAGES 33% 26.2% YEAR ENDING SEPTEMBER 2013 YEAR ENDING SEPTEMBER 2013

October Update

Well, the market slowed during the shutdown. I have compared notes with other real estate agents and lenders.  Basically people stopped looking at homes for the duration of the government shutdown. Not one showing was scheduled on my current listing although people attended the open houses I held during that time. For those already under contract, nerves were frayed worrying about possible delays.  One settlement was affected in an unusual way.  The Buyers were cash buyers and they were buying a vacant condo.  They selected the Columbus Day federal holiday for the settlement date because having been furloughed this year, they wanted to avoid missing additional work. The title company was open, the seller and her agent were agreeable so we had settlement on the federal holiday.

Interest rates have dipped below 4% again this week after rising close to 5% or more depending on the type of loan and buyers' credit scores.  Lenders tell me that young buyers are conditioned to expect these rates now. While they are this low it is obviously cheaper to own than to rent.

Have a great Fall!

Best wishes,
Linda

FHA INFO #13-6 Government Shutdown Q & A's

FHA INFO #13-63

Distribution Date: October 4, 2013

As a result of the government shutdown, FHA Single Family has received several questions regarding our operating plans which we have clarified in the following Q&As.  These Q&As have been added to the Frequently Asked Questions database accessible through the FHA Resource Center.

We greatly regret the inconvenience that this shutdown has caused, but hope the following is helpful during this time.

Q:  Can I get an FHA case number?

A:  Yes. Lenders will be able to obtain an FHA case number from the FHA Connection.

Q:  Will FHA endorse single family loans during a shutdown?

A:  FHA will be able to endorse single family loans, with the exception of Home Equity Conversion Mortgages (HECM) and Title I loans, during the shutdown. A limited number of FHA staff will be available to endorse new loans. Due to limited staff, the time to endorse the cases may be extended.

Q:  Will FHA still be able to endorse my loan if I am not able to obtain tax returns verified by the IRS during the shutdown?

A:  FHA is aware that some lenders obtain tax transcripts directly from the IRS for use in underwriting their FHA-insured loans.  These lenders may be unable to actually obtain any returns directly from the IRS for the duration of the Government shutdown. 

Lenders may continue originating loans using FHA’s existing underwriting requirements, which have not changed as a result of the shutdown.  Lenders are required to obtain tax returns from certain borrowers in order to originate FHA-insured loans and lenders must also continue to obtain the borrower’s signed authorization (i.e., Forms IRS 4506, IRS 8821, or whatever form or electronic retrieval service is appropriate) for any loan for which the borrower's tax returns are required. 

Q:  Why didn’t the borrower’s name and Social Security Number pass validation with the Social Security Administration?

A:  When the lender requests the FHA case number, the borrower’s name, date of birth and Social Security Number (SSN) and property address are entered into FHA Connection (FHAC).  If the overnight matching process with Social Security Administrations (SSA) fails, a Case Warning for SSN Validation will be placed on the case number.  The failure could occur because the data doesn’t match or because the system went offline due to the government shutdown.  SSA has limited tolerance for minor mistakes in names, birth dates and social security numbers, so lenders are reminded of the importance for accuracy in these three data elements when requesting a case number. 

Q:  Can the Social Security Number validation be run again?

A:  Lenders do have the opportunity to make the necessary corrections and a second attempt to validate with SSA will occur.  Any changes made to the borrower's name, birth date and SSN at any time prior to insurance endorsement will trigger a validation request with SSA.  If the revised data passes validation, the Case Warning for SSN Validation will be removed. 

If the failure was caused by the government shutdown, the Case Warning for SSN Validation will not be able to be removed until the government reopens.  FHA will ensure that the validation process takes place and lenders will be advised of the results in FHAC as soon as possible upon the reopening of the government.

Q:  Can I continue to process the loan without the Social Security Number validation?

A:  Lenders may continue processing loans without receiving validation of the borrower’s name and SSN, but FHA will not endorse loans without this validation.  For the Lender Insurance program, lenders will not be able to insure the loans for which this validation has not been received.  

Q:  What happens if I cannot validate the borrower’s SSN?

A: The lender may submit a request for insurance endorsement if confident that the Case Warning was received in error as a result of a system shutdown.  The lender must provide conclusive documentation to verify the SSN such as a valid SSN card issued by the SSA, or an original document issued by a federal or state government agency, which contains the name of the individual and the SSN of the individual, along with other identifying information of the individual in the case binder to support the validity of the borrower’s name and SSN to the applicable Homeownership Center (HOC). 

Lenders may not endorse any loans with Case Warnings for SSN Validation and FHA will require the lender to submit the case binder for endorsement along with conclusive documentation to verify the SSN such as a valid SSN card issued by the SSA, or an original document issued by a federal or state government agency, which contains the name of the individual and the SSN of the individual, along with other identifying information of the individual in the case binder to support the validity of the borrower’s name and SSN to the applicable Homeownership Center (HOC). 

If upon review, FHA believes the documentation provided complies with HUD’s regulations and the loan meets all other FHA requirements, the HOC will endorse the mortgage for insurance.

FHA Homeownership List Serv Archive Page

FHA Recently began posting prior messages from this Homeownership List Serv on a Departmental web site. Currently the archives include messages from calendar year 2013 and a portion of calendar year 2012. To view messages sent by fhainfo@hud.gov and previously by jerrold.mayer@hud.gov, please visit the following site: http://bit.ly/FHAInfo

Transactions Year-Over-Year Change

According to the RE/MAX National Housing Report, "The July RE/MAX Housing Report showed a 1.5% increase in Closed Transactions over June, and a 17% increase over home sales in July 2012. July marks the 25th month in a row reporting higher sales than the same month in the previous year.  The 2013 selling season continues to experience a broad-based housing recovery in all regions of the country."

Market still active through September.

The market hit the normal dulldrums in August while many people, agents included, ran off to get the last few days of vacation with family and friends. It was slow to get started again in early September in part due to the annual Maryland Association of REALTORS(R) (MAR) conference in Ocean City.  Great education and networking, but long distance contract management is for the birds.  Thank goodness for assistants!

With my Day at the Park behind me I am fresh for the two settlements this week and another two properties to sell.  One is under contract.

It is still a great time to move with interest rates at historic lows, still, and home values and their relative closing costs also near the bottom of the recent market.

Have a great last few days of summer!

Best wishes,
Linda

Useful links:

Useful links:

To learn more about me, my background, my experience, go to:  http://www.linkedin.com/in/kangrga .

To look for listings and search for homes, go to :  http://www.lkangrga.remaxagent.com/ .

To sign up for the CRS Luxury Home Tour in Ocean City on September 8, go to:  www.mddccrs.com .

Have a happy and safe Labor Day weekend.

Best wishes,
Linda

FHA Releases Single Family Loan Performance Trends Report for June 2013

According to their June 2013 report, FHA says:

"There are fewer loans with high risk characteristics in FHA's portfolio and the impact can be seen in the seriously delinquent rate of recent originations

·         Loans under 620 have a seriously delinquent rate of 24.4%

·         Loans of 620 and above have a seriously delinquent rate of 5.77%

·         Loans under 620 are 12% of FHA's portfolio and comprise 38% of the seriously delinquent loans

·         Loans of 660 and above are 61% of FHA's portfolio and comprise 28% of the seriously delinquent loans

·         Loans of 660 and above have a seriously delinquent rate of 3.72%

·         FHA's worst performing books are getting smaller as a percentage of FHA's portfolio

·         FHA's 2005 - 2007 books are only 7% of their portfolio and 2008 is 5.9% of its portfolio.  

·         Downpayment assistance loans are only 4.3% and have seriously delinquent rate of 23.28%

·         New 90+ day delinquencies are lower now than any period since 2008

·         Condominiums have a lower seriously delinquent rate (7.29%) than the FHA average (8.38%).  Single family detached homes have a S/D rate of 8.06%."

I am feeling much better about this.  The market has been telling us this all year, but it is nice to have statistics to back it up!

Enjoy the remainder of your Summer!

Enjoy the last few days of your summer

The Market slowed a bit during the summer but continues to be the best real estate market in at least 7 years.  Rates are still low and Sellers get it that homes need to be recently updated and well maintained or sell for less. Buyers understand that they have to have some money saved and excellent credit to take advantage of the best values in a long while.  All around a great time to move, including lower closing costs relative to when sales prices were higher as commissions and transfer taxes are based on percentages of the sales price.  Have a great summer and I am here if you want to discuss your next move.

So we Moved!

"Dear Goodness Gracious", as my mother used to say!  Moving is so much harder than it looks and is so much more time consuming.  I would imagine that is partly due to the fact that one cannot see the many complexities involved in planning and executing a move all in one look or glance in time.

My office moved back to its old digs at the Columbia Lakefront near Lake Kittimaqundi in April.  What were they thinking?  It gets us back on the ground floor which is good in the real estate business and I am settling in.  I personally did not have a lot to move as my primary office is and always has been at home.  Last Thanksgiving I moved my office into a separate room for the first time ever in my home.  What a difference!  Still a lot of work. New connections, equipment, new hiding places for things I need and cannot find. So organized.  Just got that sorted out and our office moved, including replacing our printers and updating our computers which of course meant delays and confusion, but miraculously I had the best Spring in my 30 year career and I want to thank all those who have worked with me this year to buy or sell real estate.  You are all awesome and I am loving my job!

As systems improve and processes are mechanized and computerized, our office is getting into the 21st century by shifting to DOTLOOP which will allow my office to find new ways to go paperless. It presents challenges as those of us who have seen contracts mushroom from 3 pages to over 50 have to leave the carbon paper of the 80's behind and learn to fill out and sign the on-line forms of today.  When ever it takes me twice as long to prepare an offer than it did in the past, I remember that I am not having to get in my car and drive to 5 different real estate offices to get 5 different sets of keys to 5 different properties to show buyers who would show up after I had collected all the keys, then I had to keep them separate and not loose them before returning them all to the correct offices after the prospective buyers had left my office. That is what helps me look forward to the new challenges in the world of real estate.  As my mother used to say, "Never a dull moment!"  Enjoy the rest of your Summer!

P.S. I have not had time or the ingenuity to replace the old office address on this blog with the new one.....maybe over the winter I will get to that! Phone numbers are the same though!

Moving is Not Child's Play

"Adults are used to changes in their lives, starting over in new places, making job moves, but children are not. Children thrive in routine and security. Making a move can upset the family dynamics, at least temporarily"......plus: 1. Hold a family meeting – Sometimes we get caught up in “adult talk” and do not realize that little ears are picking up everything we are saying and not saying. Once you know the move is imminent, sit down with the children to have an open family discussion. Present the move to them as a positive thing and that you are looking forward to the adventure as a family. 2. Explain the absence of one parent – If one of the parents has to move before the family, discuss this transition with the children as well. The absence of one parent can really upset younger children because they may not fully comprehend where that person has gone. Try to set up family calls through Skype regularly so the children can visually see and talk to the absent parent. Meanwhile, ensure they understand that it is a temporary situation. 3. Make the unknown known – Children can be very scared of the unknown or what they do not understand. If it is possible, take the children to the new area and show them around. Oftentimes, you can schedule a tour of the school and meet the teachers. Ask the teacher to introduce them to a future classmate. With any luck, they will be fast friends later. If you have already selected a home to purchase, show pictures to the children and let them pick out the paint colors and the décor of their room. This will engage them more in the move and give them something to look forward to. 4. Maintain organization and consistency – There are so many things to do before a move that it is easy to forget "family pizza night", bedtime stories and play dates. However, children will be more stressed by the situation if the family routine is not maintained. Make every attempt to eat dinner as a family and participate in the neighborhood events until you move. This will help with the family dynamics and also give the children the additional feeling of security that they need. Moving can be stressful for the whole family, but with a good plan, it can also be an adventure that everyone can look forward to. Edited from information provided by MOVEADVOCATE.com.

What a difference ....

Market news in June:

Clear Capital reports that national home prices rose 8.2% in the year ended in May. CoreLogic reports that home prices, including distressed sales, rose 12.1% from April 2012 to April 2013.

Non-farm payrolls rise to 175K in May, above the 159K expected. Revisions for March and April were -12K. ADP reports that private employers added 135K new jobs in May, below the 157K expected. The Labor Force Participation Rate rises a tenth to 63.4. Fitch reports that the May jobs report supports continued monetary easing. Challenger, Gray & Christmas reports that planned layoffs at companies across the nation fell by 4.5% in May for the third month in a row.

Freddie Mac reports that the 30-yr fixed is at 3.91% when paying a 0.7 point. If no point is paid, the rate is 4.09%. The refi index plunged by 15% with home loan rates jumping.

I am thrilled to see a healthier residential home market!

Happy Fourth of July everyone!

Happy Fourth of July All!

It has been such a busy real estate market that I have had no time to add anything here. The best real estate market in about 7 or 8 years! I want to thank the many buyers and sellers who are currently working with me for participating in the best year I have ever experienced in 29 years in real estate!  And to those who referred many of these friends and family to me this year and over the past few years, I also want to extend many thanks and my most humble appreciation for your trust in me. For those still looking and thinking about moving you have probably heard that rates have started to rise.  This is true but I would like to mention that everything is relative.  Your buying power is greater at lower interest rates and for those who have bought with interest rates below 4%, isn't it great!  For those who are facing possibly higher rates please bear in mind as I have told so many young people recently, my first purchase was a VA mortgage at 8% and we were thrilled!  It happened as a sudden drop below 8.5% the week we bought in a market where most everyone else had double digit interest rates.  It is still a fabulous way to have a stake in your home and your life.  For those who prefer to rent or must rent for other reasons, start putting a little away every month in the fund to start saving for your down-payment.  Owning is so much better than renting if you want more say in how and where you live. It isn't for everybody, but if you or anyone you know would like to discuss the merits of owning over renting, let's get coffee!  Have a safe and Happy Fourth everyone!

Office Moved Back to the Lake Kittimaqundi side of the Columbia Mall!

My new address is :  5575 Sterrett Place, Suite 100, Columbia,MD 21044 which means I am on the ground floor once again and that I am the closest I have been to the Lakefront Office where I first began my real estate career back in 1984.  Melbourne, Feagin and Hammersmith, Better Homes and Gardens was located where the Tomato Palace now stands adjacent to Clyde's.  My phone numbers have not changed! Congratulations to all the high school and college graduates!
Best wishes,
Linda

Phone Charger Wise

Street Smarts Essential Chargers, Unexpected Hazards

Charging your cell phone too long can be a hazard. Technically speaking, it's not possible to overcharge a battery to the point of explosion, since the adapter limits power going into the cell phone's battery. However, leaving a phone plugged in longer than the time it takes to get a full charge can cause it to overheat, presenting a fire hazard to anything it may be in contact with–not to mention shortening battery life. Phone chargers also warm up and may overheat without adequate ventilation. Keeping a "rats nest" tangle of cords, plugs and multiple connected devices only exacerbates the hazard–even if the charger is disconnected from the phone but still plugged into the wall socket. Chargers still pull a current whether they are connected to a cell phone or not. Here are some tips to reduce the chances of causing a fire with your cell phone: Make sure you charge the phone on a solid surface away from fabric or other flammable material. Don't leave your cell phone connected to any charger for longer than it takes to get a full charge and never more than 24 hours. Make sure your chargers have adequate ventilation and, if possible, unplug them or turn off the switch when not in use. Don't carry your cell phone inside pockets, especially highly flammable clothing. Use a purse or backpack. Avoid after-market chargers and batteries. They have a much higher incidence of failure and fire than the manufacturer's version.

Housing Statistics: March 2013

Housing Statistics: March 2013

	Units			Average Price			Median Price			Pending Units		Active Inventory		Months of Inventory*
	2013	2012	% Chg	2013	2012	% Chg	2013	2012	% Chg	2013	2012	2013	2012	2013	2012
Allegany	31	29	6.9%	$106,956	$83,367	28.3%	$108,000	$60,000	80.0%	51	48	489	474	15.8	16.3
Anne Arundel	425	430	-1.2%	$344,278	$329,120	4.6%	$290,000	$283,850	2.2%	797	706	2,136	2,650	5.0	6.2
Baltimore City	444	417	6.5%	$156,412	$136,604	14.5%	$115,000	$91,000	26.4%	723	668	2,769	3,288	6.2	7.9
Baltimore County	561	562	-0.2%	$230,997	$219,799	5.1%	$195,000	$180,000	8.3%	929	883	2,189	2,999	3.9	5.3
Calvert	82	57	43.9%	$310,607	$293,608	5.8%	$284,188	$279,900	1.5%	103	123	578	624	7.0	10.9
Caroline	23	13	76.9%	$148,231	$110,954	33.6%	$163,000	$113,000	44.2%	34	22	250	283	10.9	21.8
Carroll	115	103	11.7%	$283,718	$274,399	3.4%	$260,000	$255,000	2.0%	169	180	699	880	6.1	8.5
Cecil	64	58	10.3%	$215,773	$191,729	12.5%	$197,750	$169,950	16.4%	83	94	711	721	11.1	12.4
Charles	155	120	29.2%	$239,119	$239,144	0.0%	$226,900	$235,000	-3.4%	233	218	618	736	4.0	6.1
Dorchester	29	24	20.8%	$180,342	$107,317	68.0%	$137,000	$101,500	35.0%	28	35	332	411	11.4	17.1
Frederick	221	206	7.3%	$277,818	$260,743	6.5%	$242,500	$227,500	6.6%	324	336	691	849	3.1	4.1
Garrett	23	20	15.0%	$236,804	$293,150	-19.2%	$200,000	$273,000	-26.7%	25	23	442	542	19.2	27.1
Harford	189	165	14.5%	$258,532	$245,610	5.3%	$241,000	$220,000	9.5%	281	238	1,130	1,257	6.0	7.6
Howard	223	217	2.8%	$390,952	$391,068	0.0%	$352,000	$349,900	0.6%	371	423	706	1,115	3.2	5.1
Kent	15	11	36.4%	$324,100	$302,090	7.3%	$220,000	$273,000	-19.4%	17	21	360	356	24.0	32.4
Montgomery	826	730	13.2%	$484,775	$436,849	11.0%	$375,000	$345,000	8.7%	1,211	1,255	1,632	2,630	2.0	3.6
Prince George's	665	653	1.8%	$192,375	$173,584	10.8%	$176,500	$158,000	11.7%	1,113	1,279	1,506	2,647	2.3	4.1
Queen Anne's	43	41	4.9%	$375,337	$275,357	36.3%	$265,000	$259,000	2.3%	84	73	519	539	12.1	13.1
Somerset	15	12	25.0%	$79,980	$103,250	-22.5%	$56,900	$77,500	-26.6%	15	11	228	249	15.2	20.8
St. Mary's	82	68	20.6%	$260,233	$266,199	-2.2%	$254,400	$236,700	7.5%	87	115	597	597	7.3	8.8
Talbot	33	29	13.8%	$537,758	$518,948	3.6%	$295,000	$410,000	-28.0%	54	36	488	552	14.8	19.0
Washington	104	97	7.2%	$147,631	$145,771	1.3%	$139,950	$125,000	12.0%	153	138	603	642	5.8	6.6
Wicomico	67	67	0.0%	$145,403	$137,687	5.6%	$136,400	$142,000	-3.9%	87	67	570	744	8.5	11.1
Worcester	138	141	-2.1%	$244,002	$285,538	-14.5%	$210,000	$242,500	-13.4%	162	152	1,691	2,039	12.3	14.5
MARYLAND	4,573	4,270	7.1%	$288,121	$267,706	7.6%	$241,413	$226,002	6.8%	7,134	7,144	21,934	27,824	4.8	6.5

 

Reported by MRIS and Coastal Association of Realtors.  NOTE: UNITS ARE THE “UNITS” SOLD, PENDING ARE UNDER CONTRACT

 

*Months of inventory based on current active inventory and monthly sales for the corresponding month;  Data are revised on a regular basis.  Readers of these reports should note that older reports have not been adjusted to reflect these revised data.  This report, however, contains the latest reliable data to date.