As we look froward to 2011 there are current policies in place that will dictate the direction the housing market will turn.  Will it remain the same?  Will it get worse? Will things improve? With policies changing on almost a daily basis, it will be hard to tell, but here are a few details we do know:

The President recently signed into law a measure that allows HUD to increase the amount of Mortgage Insurance Premium (MIP and also known as Private Mortgage Insurance PMI) to as much as 1.5%.  What does this mean to the current homeowner.  Right now it means little.  What it means for homebuyers after October 4, 2010 is a higher mortgage payment.  I consulted with Jeff Halbert, Senior Loan officer for First Home Mortgage.  According to Jeff, the impact for a home buyer purchasing a $300,000 home after October 4th could be an additional $200 a month.  In addition, home buyers would now qualify for less once the additional MIP is figured into the equasion.  Potentially, this "cost" could be passed allong to the sellers in the form of lower sale prices....to the tune of 5% lower as a result.  The projected impact of this policy change will hit in the Spring of 2011.

Another factor is the current Credit & Swisse statistic on upcoming ARM adjustments.  Do you remember back in the summer of 2006 when Adjustable Rate Mortages were being handed out like candy at Halloween?  Those will finally be maturing this year.  We are expected to see a peak in home defaults as a result.  The month of July is expected to see the final and largest wave in what has been a series of waves that have rocked the housing industry.  This wave will also be comprised of Americans who have had good to excellent credit, and coupled with a bad economy, are unable to hold onto their homes.

But there may be some help coming.  While details are just now emerging, there is a program being rolled out this month that may help struggling home owners. What I know of this plan is that banks will be able to lower struggling homeowners mortgages to the current value and write off the remaining loss to the Federal Government.  Details should be out later this month. As a real estate agent, being on the "front line", I am anxious to see an end to this crisis, and hope the timing of this program is more than just politics.

What we do know is that none of the past programs aided ALL homebuyers, nor did they address the majority of hardship scenarios.  Many homes that were lost were military and government employess who were reassigned to work in a different area.  These were people that had exceptional credit.  What about the average Americans that lost their jobs or took a pay cut? How do banks adjust mortgages to homeowners who now have little or no income.  there are alot of questions yet to be answered.

For a list of participating lenders, please call our office at 301-870-1717.

With its beginnings dating back to 1928, La Plata High School has been around long enough to see the vast social changes the county has gone through in the last hundred years, including desegregation in 1963-4. LPHS’s current building was constructed in 1978, and is located on Radio Station Road. With its theme of Pride and Excellence in Education, LPHS’s mission statement proclaims the schools intent to develop the intellectual, personal, social and emotional aspects of students. This it achieves through a variety of academic and extra-curricular organizations, such as Club Japan, Dance Team, Drama Club and Math Team. The school is organized by department, which is fully staffed by teachers with one acting as a chairperson for each department.

Henry E. Lackey High School, located in Indian Head and built in 1969. Its mission statement is to promote academic excellence in a safe environment. This is evident in its myriad of departments to choose from, including Engineering, World Language and Business Education. HELHS also operates under the Project Lead the Way Program, or PLTW. This educational curriculum fosters learning development and skills in the areas of engineering and biomedical science, and also imparts team building skills, thinking and problem solving. The school also participates in the Air Force Junior ROTC Program.

Maurice J. McDonough High School was built in 1976, and follows the Latin motto, "Docere Cognoscere et Excellere," which means "To Teach, To Learn, To Excel." In order to do this, the school embraces individuality and the various cultural and socio-economic backgrounds represented by its students and its 130 staff members. The school’s educational philosophy focuses on learners as individuals, and concentrates on helping students realize personal responsibility, respect, confidence and pride. Like other Charles County high schools, MJMHS offers traditional courses and JROTC as well as special education programs and world languages.

North Point High School focuses on science, technology and industry. It is Charles County’s newest high school, and strives to foster a sense of community among its students and faculty, while providing a constructive and successful high school experience for students.  The school offers unique extra-curricular activities, such as Law Enforcement Explorer Post 1658, Future Educators Association and Environment Club. Over the summer, several students from NPHS recently took place in the 46th Annual SkillsUSA National Leadership and Skills Conference in Kansas City, Missouri, with several earning first and second place medals.  In addition to national opportunities like the NLSC, NPHS also offers weighted courses and those with college credits, as do other Charles County schools.

Thomas Stone High School opened its doors to students in 1969, making it one of the older high schools in Charles County. With its mission to inspire responsible citizenship, leadership and lifelong learning, TSHS received a Maryland Center for Character Education Award last September, and will be recognized as a Maryland Emerging School of Character this fall. Staff works with the process of Capturing Kid’s Hearts in order to create a culture of mutual respect, caring and dignity among all, and inspire students to be self-disciplined and responsible. These goals are supported by the many extra-curricular activities available to students, such as Mock Trial, Future Business Leaders of America and Destination Imagination. TSHS also offers academics similar to other Charles County schools, including World Language, and programs such as ROTC. Notably, TSHS also offers Family and Consumer Science, which teaches students relevant skills for leading independent lives, such as those needed for finance, child care and merchandising.

Westlake High School was founded in 1992, and offers a wide choice of academic pursuits, including numerous AP courses and Technology Education and Engineering courses. The school also has a Multiple Media Program that uses Avid and Final Cut editing software, and was the recipient of the 2002 and 2004 International Film Festival’s Film Class Award. WHS also offers Teacher Academy of Maryland courses for interested students, as well as NJROTC. Like other county schools, it has a career center, and also has a resourceful counseling center whose mission is to assist students and parents with academic and career planning. 

• AOL Real Estate            CLRSearch                          Cyberhomes
• DataSphere                   Enormo                             eRealInvestor
• FreedomSoft                 FrontDoor                          Google Maps
• HomeAwayRealEstate      HomeFinder                       HomeOnTheTube
• Homes.com                   HomesBook                        HomesDatabase
• HomeTourConnect          HomeWinks                        HotPads
• LakeHomesUSA              MyREALTY.com                   Oodle
• Overstock                     PropBot                            Property Pursuit
• Property Shark               RealtyStore                       RealtyTrac
• Relify.com                      Relocation.com                 Sokous
• Trulia                            TweetLister                      USHUD.com
• Vast                             Yahoo! Real Estate            Zillow.com
• ZingHome                       Organic                           Realtor.com
• DeHanas.com                  WashingtonPost.com         Craigslist
•  

Many of my clients who compare existing home sale with new home consrtuction are finding that it costs less to buy new than it does to buy existing.  Recently, some builders have become very agressive in the offers they provide to home buyers in order to attract the business and keep their companies profitable.  They are not only doing this by offering low prices, but also financing that is more attractive than most banks are offering.

The larger builders like Lennar Homes have their own financing companies and their own money to loan.  Recently Lenna Homes in the Waldorf, MD community of Glen Eagles, a subdivision of Fairway Village has been offering interest rates of 4%, all closing costs paid and free finished rec rooms as part of their incentive package.  With prices starting from the high $200s for a single family home it makes more sense to buy than it does to rent.  in fact, rental prices for comparable homes are higher than the average martgage payment, which also makes for a great investment property.

Another noteworthy builder-offer in the area is Berkshire Homes, now building in the Villages of Steeple Chase in La Plata.  Berkshire is offering No money down, all closing paid and monthly mortgage rates starting at $1371 per month for a 2 bedroom, 2-level town home.  You definetly cannot get into a rental home at this price.  Along with a community center, swimming pool, fitness center and nature trails, buying a new home in Steeple Chase is a no brainer for the homebuyer or renter who has little or no money to buy/rent.

It should also be noted these builders are Realtor-friendly, and allow Realtor representation at no cost the the homebuyer.  Fore more information on area builders, or to schedule an appointment with a builder, please call our office at 301-870-1717 x106.

Realtors who receive the CRS Designation have completed advanced courses and have demonstrated professional expertise in the field of residential real estate. Fewer than 38,000 Realtors nationwide have earned this credential, which places DeHanas amongst an elite group of real estate professionals.

Home buyers and sellers can be assured that CRS Designees subscribe to the strict Realtor Code of Ethics, have access to the latest technology and are specialists in helping clients maximize profits and minimize costs when buying and selling a home.

DeHanas is a member of the National Association of Realtors, the Maryland Association of Realtors, and the Southern Maryland Association of Realtors. In addition, he is also a recognized as a real estate Star in the Star Power System, an educational and motivational organization of real estate professionals and best business practices.  DeHanas has earned his designation as a Certified Distressed Property Expert (CDPE), and is a Graduate of the Realtor Institute (GRI).

DeHanas Real Estate Services is family owned and operated and located in Waldorf, serving residential home buyers and sellers, landlords, renters and investors.

New statistics from mortgage data collector, Realtytrac, have come out with news about the future rate of foreclosures that has not surprised some forecasters.

Nearly 528,000 homes were taken over by lenders in the first six months of the year, a rate that is on track to pale in comparison, the more than 900,000 homes repossessed in 2009, according to data released Thursday by RealtyTrac Inc., a foreclosure listing service.

"That would be unprecedented," said Rick Sharga, a senior vice president at RealtyTrac.

By comparison, lenders have historically taken over about 100,000 homes a year, Sharga said.

The surge in home repossessions remains a crippling drag on the housing market.

The pace at which new homes falling behind in payments and entering the foreclosure process has slowed as banks continue to let delinquent borrowers stay longer in their homes rather than adding to the glut of foreclosed properties on the market. At the same time, lenders have stepped up repossessions in an effort to clear out the backlog of distressed inventory on their books.

The number of households facing foreclosure in the first half of the year climbed 8 percent versus the same period last year, but dropped 5 percent from the last six months of 2009, according to RealtyTrac, which tracks notices for defaults, scheduled home auctions and home repossessions.

In all, about 1.7 million homeowners received a foreclosure-related warning between January and June. That translates to one in 78 U.S. homes.

Foreclosure notices posted monthly declines in April, May and June, but Sharga said one shouldn't read too much into that.

"The banks are really sort of controlling or managing the dial on how fast these things get processed so they can ultimately manage the inventory of distressed assets on the market," he said.

On average, it takes about 15 months for a home loan to go from being 30 days late to the property being foreclosed and sold, according to Lender Processing Services Inc., which tracks mortgages.

Assuming the U.S. economy doesn't worsen, aggravating the foreclosure crisis, Sharga projects it will take lenders through 2013 to resolve the backlog of distressed properties that have on their books right now.

And a new wave of foreclosures could be coming in the second half of the year, especially if the unemployment rate remains high, mortgage-assistance programs fail, and the economy doesn't improve fast enough to lift home sales.

The prospect of lenders taking over more than a million homes this year is likely to push housing values down, experts say.

Foreclosed homes are typically sold at steep discounts, lowering the value of surrounding properties. 

The Federal Governments most recent Foreclosure Alternative initiative directs homeowners to act responsibly by attepmting to short sale their home with a local Realtor.  Fore more information on the short sale process, call DeHanas Real Estate Services at 301-870-1717 x106.

• Where is the nearest fire department? Houses located near a fire station usually cost less to insure.

• Are the plumbing and electrical systems in good condition? Poorly maintained, unsafe and/or outdated systems are more costly to insure than well-maintained ones.

Thinking of buying or selling a home, or know someone who is, please let us know by calling 301-870-1717

Guest speakers at the Star Power conference include Alex Charfen, CEO of Star Power Systems and The Distressed Property Institute, Dave Ramsey, best selling author and Financial Expert, Howard Brinton, National Speaker and Founder of Star Power Systems, Dave Linegar, Chairman and co-founder of RE/MAX, and Alex Perillio, President and CEO of Realogy.

It is an opportunity for real estate professionals to walk among the legends and learn from the best in the business.  The conference is scheduled for July 25-28. For reservations and additional information, go to www.starpowerconference.com.

Calvert County ranked number 4 in the State at one in every 311. 

The highest foreclosure rate in the state was Prince George's County, where one in every 234 homes is threatened or was seized by a bank. Prince George's also leads the state in total foreclosures.

Maryland as a whole had a 3 percent increase in rates over March, and a whopping 51 percent increase over April 2009, the report said. The increase bucks the national trend, where the rate dropped 9 percent in the month and 2 percent in the year.

Subprime mortgages marketed to the influx of new residents are partly responsible for the high foreclosure rate, Charles County Commissioner Reuben B. Collins II (D) said. 

My experience is somewhat different.  Early on in this crisis, many of my clients held subprime mortgages, but not now. Amoungst my many clients facing foreclosure are a number of military and Federal Governement employees and their families being transfered to other parts of the world.  In many cases these homeonwers have impeccable credit, and are forced to take the credit hit or lose their jobs, or even worse, be separated from their families.

I also have a number of homeowners facing foreclosure due to temporary job loss, health issues or other financial hardships that have been magnified by the current economic crisis. 

It is easy to blame those home buyers who "self-inflicted" their fate of foreclosure, but now we are talking about credit-worthy buyers who are the actual victims.

Additionally, an amendment to extend the National Flood Insurance Program (NFIP) is also included in this same piece of legislation.  As a result, the NFIP will be in limbo until the Senate can trim back the bill enough to get the votes it needs for passage.

La Plata High School topped the County's list, ranking at 487, while McDonough at 961, Westlake at 1,043 and North Point at 1,443, in Newsweeks list of the 1,622 of Americas top schools.

The Newsweek list is based on the Challenge Index developed by the Washington Post. It ranks the number of AP tests taken in relation to the number of graduating seniors. Schools rank in the top 6 percent if they achieve a ratio of at least 1.0, meaning they had as many tests taken in 2009 as they had graduates.

More than half of Maryland’s 185 public high schools – 53 percent – were on Newsweek’s list.

“We continue to work to ensure that our students are challenging themselves by taking the highest level of courses they can. We encourage students to take Advanced Placement classes and we continue to offer rigorous coursework for all students,” Superintendent James E. Richmond said.

Richmond pointed to a new initiative, the Stars (Scholars Targeting Academic Rigor with Success) program that is encouraging rising ninth-grade students to enroll in challenging courses. The program is designed to push students with potential, especially those from traditionally underserved populations, to take the most rigorous courses possible, including honors and AP classes.

Don DeHanas and Stephen Nichols with DeHanas Real Estate Services in Waldorf has just completed a highly specialized real estate course, Financial and Tax Advantages for Agents and Their Clients, Las Vegas Nevada, presented by the Council of Residential Specialists.  The two-day course earns tow units of core credit toward the Certified Residential Specialist designation.

Every real estate transaction has tax and financial considerations. REALTORS must be prepared to help their clients understand the financial options that are available as they contemplate the single biggest purchase they likely will make in their lives. The right financial choice can save clients money and give them peace of mind.

During the two-day course, participants learned how to identify tax saving opportunities in real estate, financing alternatives, debt and mortgage management strategies, and tools to help them demonstrate financing options.  The course features applications and systems agents can use to become more effective at counseling clients about their real estate financing decisions.

“There are many new real estate financing options available today, more than you might think” says DeHanas.  “Knowing what options there are and how it can better help my clients will help me earn their trust and lead to more referral business down the road.”

The Council of Residential Specialists is a not-for-profit affiliate of the National Association of Realtors, comprised of more than 40,000 members.  It awards the CRS designation to experienced Realtors who have completed advanced professional training and demonstrated outstanding professional achievement in residential real estate.

DeHanas and Nichols specialize in residential real estate, working with investors, first time home buyers, move-up buyers and new construction.

Rate Trend: Slightly Lower

Waldorf, MD - Local Certified Distressed Property Expert, and community advocate, Don DeHanas, of Dehanas Real Estate Services, has announcd the expansion of an information website for Southern Maryland homeowners in distress.

http://hosted.cdpe.com/DonDeHanasHelpsHomeowners

Click on Government Eligibility Survey.  "These surveys will let homeowners quickly discover new options made available by the Governement," DeHanas said. "When faced with the possibility of foreclosure, I've seen too many homeowners make mistakes because they hadn't been advised by a qualified professional.  These people didn't know the options available, or even how to find any information on their situation. My website helps to solve this problem."

This site acts as a hub for information on the facts and issues for struggling homeowners, putting all the necessary information in one, easy-to-use location. With the addition of these new eligibility surveys, the site lets homeowners make educated decisions about their future.

"Seven out of ten homes that have gone into foreclosure did so without even being listed on the market," Alex Charfen, co-founder and CEO of the Distressed Property Institute. "Agents like Don DeHanas with the CDPE designation are helping distressed homeowners understand that there may be options available to avoid foreclosure."

The CDPE designation provides real estate professionals with specific understanding of the complex issues confronting the real estate industry.  Through comprehensive training and experience, CDPEs are able to provide solutions for homeowners facing financial hardship in today's Market.

Fore more information, contact Don DeHanas at don@dehanas.com or call 301-870-1717 x106

As of the end of the first quarter, home values were down in Charles County by 11% year-to-date over last year.  Much of the sales activity is taking place in the $200k-$299k price range, where we are seeing multiple offers on the more aggressively priced properties.

Future activity of bank-owned properties is expected to increase significantly as evidence of the most recent pre-foreclosure activity in Charles County.  The amount of homeowners in default remained consistent month over month last year, around 900 each month.  For the first time, we saw the number of homes in some state of foreclosure climb to over 1000 during the month of April according to Realist data. Moving forward into the summer, there are predictions of a second wave of foreclosures as reported by Credit Suisse & Clayton, and the Certified Distressed Properties Institute. This wave is expected to be as large, or larger than the last in spite of a series of lack-luster Government programs designed to help struggling homeowners.

Other factors that will shape the third and fourth quarters include;  the ending of the tax credits for homebuyers, which ends April 30, 2010; The USDA’s popular Rural Development Loan has run out of funds, and local housing initiatives like the Neighborhood Conservation Initiative (NCI) have also run out of funding.  In addition, interest rates, which have remained at all time lows, are expected to creep up through the remainder of 2010.

There is certainly no shortage of opinion and information when it comes to the Foreclosure Crisis as tv, news and on-line media have a wealth of articles favoring most any position one might have on the subject.  All, however, agree that we have a long way to go before we are out-of-the-woods.

With the upcoming exipration of the tax credit, and many loan programs that have run out of funding, there lies a great uncertainty of what will take place in the housing market beyond the 2nd quarter. 

On a side note; Year to date in Charles County, prices are down from this time last year more than 11%. 

“I joined DeHanas Real Estate because of their strong customer service reputation in the local real estate market. Their office environment is not only professional, but a warm, friendly and cooperative atmosphere”, Says Benya.

Jonathan grew up in Southern Maryland and graduated from Westlake High School. In addition to working as a full time agent, Jonathan also lends his real estate expertise to agentgenius.com, where he is a national real estate opinion columnist.  Jonathan has extensive experience working as both a buyers agent as well as a listing agent, and knows the market inside and out!  You can find his views on real estate in Southern Maryland at his local blog, http://www.somdexpert.com.

DeHanas Real Estate Service is family owned and operated, and has been one of the premier real estate service providers in Southern Maryland for more than a decade. DeHanas Real Estate provides services for residential home buyers and sellers, new construction buyers, first time homebuyers and property management services. DeHanas Real Estate serves Maryland, Washington DC and Virginia.