New ramp from 695 Westbound to 95 South Near White Marsh plus Major Traffic Switch at 895/95 Split Will Mess With Baltimore Traffic

Beginning July 1, 2009, expect major delays on 695 and 95 as confused motorists attempt to navigate the new location for the ramp to 95 South near White Marsh. Motorists will be exiting 695 from the RIGHT instead of the left, as they had been doing, and entering 95 South on the right as well. Here is the link to the press release from the Maryland Transportation Authority.

Add onto that a few short miles down 95 South, where on July 12, 2009, there will be a major switch in traffic pattern at the 895/95 split in Baltimore. Currently, motorists remain to the left to get on to 895, and merge to the right to remain on 95. As of July 12, this will switch COMPLETELY around, making motorists merge to the left to remain on 95 and to the right to get on 895. Here is a graphical description of the change.

This means motorists who just navigated the merge onto 95 from 695 from the right now have to merge across traffic to the left lanes to remain on 95 South.

What does this mean for the people who live nearby? Have their house values dropped due to this? With the noise, dirt, dust, and road closures forcing motorists onto Route 1 or Philadelphia Rd in White Marsh and Rosedale, or Eastern Avenue near Canton in Baltimore how has this effected their values?

So far, running statistics, the market has not dropped in those areas. A few are actually better over last year. Was the year ago value drop due to early construction & in anticipation of what was to come? Possibly.

I am pleased to see that house values in White Marsh, Canton, Rosedale and the other areas surrounding this construction have not been hit hard. I will keep an eye on the statistics to keep updates coming.

Home Valuation Code of Conduct (HVCC) Could Negatively Affect Towson House Values

From our esteemed guest blogger, Tasha Linton, of Atlantic Home Equity Mortgage, more details about the Home Valuation Code of Conduct (HVCC), enacted May 1, 2009, and how it is negatively affecting home sales.

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Here is the actual verbiage in the Home Valuation Code of Conduct. There are many concerns, as local, honest, fair and experience appraisers are being put out of business, and the AMC is collecting 40% as a referral fee — requiring the HOMEBUYER to pay MORE for an appraisal on any given property if they are using Fannie Mae or Freddie Mac for their loan.

The other issue that is coming up is that before the HVCC, an appraisal from one company could transfer to another mortgage company. Meaning, if a buyer wanted to switch lenders, they could fairly easily. NOW, that buyer must pay for a SECOND appraisal on the same property — at the inflated rate!

RESPA (Real Estate Settlement Procedures Act) lawyer, Marx Sterbcow, wrote an article that the Federal Deposit Insurance Corporation’s “Interagency Appraisal Evaluation Guidelines” will most likely top the HVCC, which is what we can all hope and wish for. 

What does this mean for you, the Towson Homebuyer or Towson Homeseller? Appraisal values are coming in low because the AMC appraisers are not local and do not understand local markets. For homebuyers, if you change your mortgage company, you will have to pay for a new appraisal.

So far, a lose-lose situation for everyone in the real estate marketplace.

Towson Condo Owners Need to Be Aware of New Law

Beginning June 1, 2009, Maryland Law HB287, approved by the Governor May 19, went into effect. The bill discusses Real Property Condominiums — Damage and Destruction. Here is a copy of the bill .

What this means for the Towson condo owner is that before this bill, condominium associations, for the most part, were responsible for structural repairs and maintenance to common areas and units, while individual unit owners were only responsible for personal property in their own units. (Some condo association policies were not this way to begin with, so this new bill will not affect you if the general insurance policy in your community did not cover this before).

The new bill states that the associations are required to maintain insurance ONLY on the common areas and not on individual units. In addition, any damage to common areas originating from YOUR unit would have YOU responsible to pay up to$5,000, the maximum deductible allowed on the insurance policy of the association.

Also, to be clear, you as a unit owner, are responsible for damage caused by your unit to other units. For example, if you live on the third floor of your Towson condo building, and you have a leak from your shower that flows down through the second floor unit down to the first, YOU, as owner of the unit where the issue originated, would be responsible to the repairs to the OTHER units as well.

Here is a summary of the bill from State Surge, a great site where you can read & review laws enacted by your local government.

The best course of action for Towson condo owners (and for ALL Maryland condo owners), is to call your insurance agent right away to find out what your personal insurance policy is, and ensure you have complete coverage so that in the event of a problem, your insurance may pay that $5,000 deductible — instead of YOU personally!

Old Towson Jail to become New West Towson Pool — Charter Members May Be Able to Transfer Membership when selling their West Towson Homes

The site of the old jail in West Towson at the corner of Bosley and TowsonTown Blvd is due to have a new life — as a community pool!

Set to be open Memorial Day 2011, this would be a great addition to the Towson community.

Loni Ingraham, of the Towson Times, wrote about it the day Baltimore County voted to lease the land for $1 per year. Here are more details in her article.

The space is also set to have office space in the old Warden’s building and possibly a cafe.

Mary Gail Hare, of the Baltimore Sun, wrote an article on June 14 about how the renovations began last week on the 3 story building, which was declared a historical landmark in 1991. Azola & Associates Inc is doing the work. They are known for their renovations on historic properties, like the one they did at the Stone Mansion in Coldspring Newtown and the Bromo Seltzer Tower in downtown Baltimore.

So what does this mean for Towson Homeowners? If you are a charter member, your membership may be transferrable with the sale of your Towson home. Once the pool is opened, as discovered at the Mays Chapel Swim Club in Timonium, they sell out quickly and there is a wait list years long. Having a charter membership could possibly help your Towson House Value for resale in the future, when memberships will most likely be hard to come by!

Towson First Time Homebuyers — $8000 Tax Credit Cannot Be Used for 3.5% Downpayment

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I am sure everyone heard about another change to the $8000 tax credit policy. On Friday, HUD Secretary Shaun Donovan announced a policy change that would provide buyers with quicker access to the tax credit. The credit will be issued in advance in the form of a short term loan to the buyer. The buyer will have to be pay the loan back when the buyer receives their tax credit. This new policy only applies to FHA loans.

Here’s the kicker: The short term loan CANNOT GO TOWARDS THE 3.5% DOWN PAYMENT!!! The Government still wants the buyer to “have some skin in the game”.

In my opinion, buyers should opt to have the closing costs paid by the seller, just like 90% of the transactions out there, and keep the $8000 for themselves when they file their taxes.Here is the letter from HUD to approved mortgage lenders, of which, we at Atlantic Home Equity, are. 09-ml-1520using20first-time20homebuyer20tax20credits1

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So, what does this mean for the Towson First Time Homebuyer? You still need money for a downpayment, and can possibly ask for seller closing cost help.

The details coming from HUD & FHA have been very confusing, as I have written about before.

If you would like further information, please don’t hesitate to contact either Tasha or myself. We understand the ins & outs of the homebuying process, and can help walk you through the steps!

West Towson House Values Not Hurt by New Elementary School

On June 3, 2009, Judge Michael J. Finifter declared that the West Towson Elementary School can continue construction, ruling against a few Towson homeowners who had filed suit against the Board of Education in April.

The homeowners live adjacent to the Ridge Ruxton School on Charles Street, the site where the new school is to be built. Their claim that the construction would inconvenience them, and their Towson house values would be diminished were found to be unconvincing to the judge.

The Baltimore Sun’s Arin Gencer reported on Judge Finifter’s findings, and has been following the case since its hearing on May 21, keeping the West Towson Community updated on the school.

The Towson West Elementary School will house approximately 451 students coming from the overcrowded Riderwood Elementary School and Rodgers Forge Elementary Schools. It is scheduled to open in August 2010.