Happy New Year!

Dear All,

I hope all of your holidays have been uplifting and include some warm memories to reflect on over the cold months to come.  Winter has just started but the days are already beginning to get longer and the human mind can turn to thoughts of the Spring and Summer markets. I am busy working to make this year even better than last.  2013 was a wonderful year for me. There were many successes, but always a few losses. I have family and friends who have lost loved ones and some who have met with new health challenges, but I am thankful for the journey and those who share in it with me.  If you or anyone you know is thinking of moving this year, please contact me.  I would love to be part of the equation.

All the best in 2014!

        Linda Kangrga

Text or call: 410-262-2254
LindaKangrga@mdcrs.com

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."