Real Estate Information

As the surge of buyer activity draws closer and closer to the expiration of the Federal tax credit, the source of buyer-friendly programs has begun to disappear.  The popular USDA Rural Developement Loan program, a 100% financing program, announced March 10, 2010 that it expected to be depleted of funds by the end of April, nearly 6 months away from the end of its fiscal year, and the appropriation of more funds.  Locally, the Charles County Neighborhood Conservation Initiative (NCI), also recently announced funds had been depleted for its agressive down-payment assistance program for the purchase of Bank-owned properties.

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%. 

The Housing outlook for 201o, and quite frankly, for the next three years is looking less and less optimistic.  CNBC is reporting the Spring outlook in housing sales to be "as bleak as ever", stemming from the upcoming wave of forclosures.

Read the CNBC artical:  http://www.cnbc.com/id/35877012/

As late as Friday March 19, the Obama Administration announced yet another plan, in a line up of plans that have done very little to impact the alarming rate of forclosures across the country. Some analysts predict less than one million struggling homeowners will get help from the latest plan designed to provide banks and homeowners to seek mortgage modifications. But even the Obama Administration acknowledges this will not help the masses.

Diana Farrell, a White House economic adviser, said the plan won't prevent most of the 10 million to 12 million foreclosures expected over the next three years. Doing so, she said, "wouldn't be fair, it would be too expensive and we probably wouldn't succeed in any case, because many people got into homes that they simply cannot afford."

How is it possible that 12 million homeowners "got into homes that they simply could not afford"? Come on, I for one don't remotely buy into that logic.  Many of the homeowners I represent who are being forced to sell, are having to do so because of job loss, transfer or a reduction in pay, not because they could not afford their house.  These hardships have put them in a position to lose their homes, not the lack of affordability.

Current data from Credit Suisse suggests a significant wave of foreclosures is expected to hit beginning this summer and peaking during the sumer of 2011.  The same data accurately reflected the large wave of foreclosures we just came out of, this next wave is projected to be bigger. Hold onto your hats, we are in for a very rough ride.

DeHanas Real Estate Services Manager, and Associate Broker, Don DeHanas, recently announced the affiliation of John Miller to the Waldorf based brokerage.  “It couldn’t be a better time to begin a career in Real Estate, as business begins to bounce back. John has joined our group at the right time.” Says DeHanas. “He also joins us with a wealth of customer service knowledge, and will be a great asset to DeHanas Real Estate.”

Miller has lived in various parts of Maryland during his lifetime. He is currently an active resident of Calvert County, where he has lived for over 10 years. John began his career in retail sales where he learned firsthand to, "treat your customers as if they were YOU”, and your customers will happily return and refer others. With this attitude ingrained in his work ethic, John earned numerous awards as a top salesperson and the support and sincere gratitude of many.  Wanting to branch out and become more involved in helping others, he went on to become a Firefighter/Paramedic and also takes great pride in helping his “neighbors” as a volunteer Paramedic for Calvert Advanced Life Support.  In his spare time he also teaches Paramedic classes to prospective medical students at Prince George's Community College. John’s desire to extend his excellent service commitments to those looking to buy or sell in this wonderful area is exceeded by no one. He will provide a level of service to each and every client that will make the process as effortless as possible.

DeHanas Real Estate Services is family owned and operated. DeHanas Real Estate is licensed in Washington DC, Maryland and Virginia, and specializes in residential sales, new construction, Foreclosure, short sales and property management.

In an announcemebt by the Department of Housing and Urban Developement today, HUD has said it has created new minimum standards for buyers purchasing homes using an FHA guaranteed loan. More money will be required by buyers in order to purchase a home. The following press release was published on HUD's website this morning. Many see this as a slap in the face to homebuyers and sellers while the housing market is still in trouble.

New Measures Will Help FHA Better Manage Risk, While Maintaining Support for the Housing Market and Access for Underserved Communities

1. Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lending
   • The first step will be to raise the up-front MIP by 50 bps to 2.25% and request legislative authority to increase the maximum annual MIP that the FHA can charge.
   • If this authority is granted, then the second step will be to shift some of the premium increase from the up-front MIP to the annual MIP.
   • This shift will allow for the capital reserves to increase with less impact to the consumer, because the annual MIP is paid over the life of the loan instead of at the time of closing
   • The initial up-front increase is included in a Mortgagee Letter to be released tomorrow, January 21st, and will go into effect in the spring.
     
     
2. Update the combination of FICO scores and down payments for new borrowers.
   • New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA's 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%.
   • This allows the FHA to better balance its risk and continue to provide access for those borrowers who have historically performed well.
   • This change will be posted in the Federal Register in February and, after a notice and comment period, would go into effect in the early summer.
     
     
3. Reduce allowable seller concessions from 6% to 3%
   • The current level exposes the FHA to excess risk by creating incentives to inflate appraised value. This change will bring FHA into conformity with industry standards on seller concessions.
   • This change will be posted in the Federal Register in February, and after a notice and comment period, would go into effect in the early summer.
     
     
4. Increase enforcement on FHA lenders
   • Publicly report lender performance rankings to complement currently available Neighborhood Watch data - Will be available on the HUD website on February 1.
     • This is an operational change to make information more user-friendly and hold lenders more accountable; it does not require new regulatory action as Neighborhood Watch data is currently publicly available.
   • Enhance monitoring of lender performance and compliance with FHA guidelines and standards.
     • Implement Credit Watch termination through lender underwriting ID in addition to originating ID.
     • This change is included in a Mortgagee Letter to be released tomorrow, January 21st, and is effective immediately.
   • Implement statutory authority through regulation of section 256 of the National Housing Act to enforce indemnification provisions for lenders using delegated insuring process
     • Specifications of this change will be posted in March, and after a notice and comment period, would go into effect in early summer.
   • HUD is pursuing legislative authority to increase enforcement on FHA lenders. Specific authority includes:
     • Amendment of section 256 of the National Housing Act to apply indemnification provisions to all Direct Endorsement lenders. This would require all approved mortgagees to assume liability for all of the loans that they originate and underwrite
     • Legislative authority permitting HUD maximum flexibility to establish separate "areas" for purposes of review and termination under the Credit Watch initiative. This would provide authority to withdraw originating and underwriting approval for a lender nationwide on the basis of the performance of its regional branches

Everyone is talking about falling home prices, and a growing percentage of home owners are finding themselves owing more for their homes than they are worth. You’ve heard the terms: “under-water” or “upside down”, or maybe even “up the creek without a paddle” all, of course, denote a tone of helplessness.  Many homeowners who are in this situation can simply choose to stay put and “weather it out”, but what about Military homeowners who get deployed or get orders to transfer via a Permanent Change of Station (PSC) to other parts of the country or the world? How do military homeowners facing this dilemma get out of this housing market mess without damaging their credit or completely losing whatever savings they might have?  There is a way!

If you are a military homeowner, and you have been given orders to move you may be eligible for a program designed specifically for you. The American Recovery and Reinvestment Act includes a provision to help Military homeowners in this situation. By expanding the existing authority under the Department of Defense’s Homeowner Assistance Program (HAP), the federal government will now cover a percentage of a loss if a service member is forced to sell.

The program applies to Members of the Armed Forces who purchased their homes prior to July 1, 2006 and whose reassignment, through a PCS of 50 miles or more was ordered between February 1, 2006 and September 30, 2012.

The sellers responsibility is to have the home aggressively marketed, and be able to demonstrate they sold the home at current fair market value. Realtors who are familiar with this program will document all marketing and advertising, show a log of MLS listings and pricing history, provide detailed showing activity including prospective buyer feedback, and provide comparable sales to support the sales price.

Under this program the government pays all of the normal selling fees, including Realtor fees.

In rare cases the government will purchase the property for 75% of the purchase price, or the mortgage payoff amount. Provisions for this program also include, for most properties, the home must have been marketed for at least 120 days before being considered for government purchase.

For more information, or a HAP application, contact Don DeHanas at DeHanas Real Estate Services at 301-870-1717 x106.  DeHanas Real Estate Services is family owned and operated and serves clients in Maryland, Virginia and Washington DC.

Mortgage rates are having a good week despite some positive economic releases.  The most critical piece of news for the week and month will be tomorrow’s December Employment Report which will include the unemployment rate and the number of jobs added or lost during the month.  Most economists think there will be zero change.  Any major variance from that may have a significant impact on the markets and rates. Mortgages are relatively unchanged so far this morning.

I am one of the many Americans who made a conscious decision to spend considerably less this year for Christmas. However, I was recently doing some Christmas shopping in a discount department store. There were plenty of registers, but not many cashiers, so I stood breifly in a line awaiting my turn to check out. The woman in front of me was in the process of checking out and I noticed she paid for her purchase in cash. It was at this point the cashier asked her if she would like to save some money by applying for a credit card. Her response was such as sign of the times...."No. The banks don't deserve my business".

The very next day, I heard President Obama call the bankers "fat cats" and saying "they just don't get it".  In yesterdays meeting with the President, several banks vowed to lend more money to small businesses, but I did not read anything regarding a pledge to help the ailing housing market. It was suggested by the President that the banks do more in the way of mortgage modifications, but I did not hear a "buy-in" from any of the bank leaders.

The banking industry has done more to hurt our economy and way of life over the last several years, and while I don't think some of the biggest offenders would falter much, the public is becoming increasingly angry with them, and they're bailing out of the banks altogether. I have heard of people canceling their accounts with banks because of what they have been doing, and quite possibly I would do the same if on-line banking wasn't so convenient. How realistic is it to give up banking altogether?

The unfortunate truth is that 'we the people' will have to continue to endure the unwanted discomfort and pain these bankers are putting us through. Or can enough of us take our business from some of the big players in an effort to make a statement and force some change?

I will always remember a quote I heard from International Educator & Motivator, Howard Brinton. And while it may not be his quote, he is the one I give credit to: "Change occurs when it is too painful to remain the same".

Some economists are predicting a "tsunami of foreclosures" to begin hitting this summer.....described as "a wave bigger than the last". Without any intervention by the banks, hundreds of thousands of Americans will loose their homes over the next several years.

I don't know if it would do any good, but if you think it is time for change to occur, please contact your elected officials and voice your concern.

Rachel DeHanas, Broker/Owner of DeHanas Real Estate Services in Waldorf, recently announced the top producing agents for the month of November. Stephen Nichols was the top lister with more than $1.2 million in residential home listings, and Don DeHanas was the top producer with more than $1.6 million in settled transactions.  In addition, Stephen Nichols held the top spot for new pending transactions, having written 9 new contracts during the month of November.

“The final quarter of 2009 is proving to be an extremely good end to what started out to be a difficult year in real estate”, says Rachel DeHanas. “The extension of the tax credit as well as the added incentives for current homeowners who buy is certainly fueling our local home sales”, she added.

Don DeHanas has been accredited with the Certified Distressed Property Expert designation, and specializes in helping home sellers avoid Foreclosure. “There are many families affected by the downturn in the economy, and a great many homeowners owe more on their homes than they are worth. Any number of unforeseen circumstances can cause a homeowner to quickly fall behind”, says DeHanas. “There are several ways to avoid foreclosure and salvage credit, including having your loan modified or short selling the property. It is not really as complicated as it is made out to be if you know what you are doing”, added DeHanas.

Stephen Nichols specializes in all aspects of residential resales as well as new construction. Many of his clients include investors and first time home buyers. He is licensed in Maryland, Washington DC and Virginia, and works as a full-time, full service Realtor.

DeHanas Real Estate Services is family owned and operated. The DeHanas Team has been serving Southern Maryland for nearly 30 years.

Under new management, and with the support of the top-producing agents in North America, StarPower continues its 20-year tradition of elevating the standard of care in the real estate industry.

Waldorf, MD – 12/07/2009 – StarPower, the number-one brand in real estate education, announced a transition of leadership to Alex Charfen, a leading trainer, author, coach, speaker and StarPower Star. The announcement was made at Star Advance, the organization’s annual leadership meeting at The Ritz-Carlton, Lake Las Vegas in Henderson, Nevada.

“StarPower will remain the most relevant, recognized leader in real estate education,” Charfen said. “With the dedicated involvement of our StarPower Stars, the contributions to the advancement of the real estate industry and our success as an organization are assured.”

Founded by industry icon Howard Brinton, StarPower is an organization focused on elevating the standard of care in the real estate industry. Each month a new StarPower Star is selected based upon achievements in sales, leadership, business acumen and a willingness to share the lessons of their success with others. This has helped StarPower Stars typically average more than $35 million in annual sales volume and more than 200 transactions per year. Less than 300 real estate agents have achieved the distinction of StarPower Star, making it the most exclusive designation in the industry.

After news of the transition was presented at Star Advance, StarPower Stars Don DeHanas and business associate, Stephen Nichols of DeHanas Real Estate Services in Waldorf announced support of the new management and strategic direction of the StarPower brand.

“I couldn’t be more excited to be a part of the future of StarPower, and to increase our positive impact upon the real estate community,” DeHanas said.

“In the current economic climate, I have the opportunity to make a real difference in the personal and professional lives of countless real estate professionals,” DeHanas added. “As a StarPower Star and leader in my market, there is a responsibility to share the lessons of my success with others. In this way, StarPower Stars are actively improving the industry we have chosen to be a part of.”

DeHanas has been a Star Power Star for more than 10 years, working with the Star Power organization to educate real estate professionals all across the country. This was Nichols first experience with Star Power. “The entire event was extremely motivating. I feel even more empowered to take my customers and clients to the next level in customer service,” says Nichols. “I am looking forward with a continued relationship with the Star Power organization,” he added.

DeHanas Real Estate Services is family owned and operated, serving home buyers, and sellers in Maryland, Virginia and Washington DC. For more information, call DeHanas Real Estate Services at 301-870-1717 or toll free at 800-842-0190. Or visit the companys website at www.dehanas.com