Unexpected Snow Storm Wreaks Havoc in Towson

A large amount of snow blanketed the Baltimore area yesterday, causing major problems on roads north and south of the Beltway.

Forecasters were predicting a dusting to three inches of snow. As most of us realized yesterday, it was more like 6-10 inches.

The major problem was that State Highway Administration crews apparently were not prepared. At noon, as I was on 695 traveling east toward White Marsh, it became very clear that road crews had not been out — there was no salt, sand or plowing. Snow began around 10, and it was sticking very well to the cold roadways.

I would have thought that 95 North of the Beltway would have been better, but I was wrong.

Numerous cars spun out, down embankments, in the medians. I saw about 4 accidents and probably 13 cars spun out in my short trip to Abingdon. I have a heavy SUV and it handles very well in the snow, but even I found my wheels losing their grip as I traveled slowly north.

As I was meeting with sellers and listing a great property in the St Clair neighborhood of Abingdon (it will be online in a few days — stay tuned!), the snow continued to fall quickly. At 3 pm I went to leave.

And Route 24 was a parking lot.

It took about 35 minutes to go just over a mile on that main artery toward 95 South. Police were out directing traffic, which is the only reason things were moving at all.

Once I got on 95 South, roads were a little better than earlier. It appeared at least the left lane had been sanded, but in between lanes there was a decent amount of snow built up and the right lanes completely covered. To be safe, you needed to drive in the grooves in the snow that other cars had created. Again, though, the number of ambulances and fire engines I saw was astounding. All I could think was that maybe if these roads were treated, the EMTs, firefighters, and police officers wouldn’t have to be working so hard!

695 West was decent, but Eastbound still was not. An hour & 1/2 later I was getting to Towson and York Road was untouched by plows. Bosley was a mess with cars attempting to go uphill without traction. I am still amazed that one car did not slide back down and hit me. I saw it happening and was able to navigate my way around him (thank goodness for growing up in New England — we learned how to turn into the skid!).

By the time I got home, my nerves were shot, and I was shaking from being so tense for that two hour period of driving. I was glad to get and remain home.

I wish that forecasters had been closer or that the State Highway Administration had taken precautions and sanded “just in case” so there wouldn’t have been so many accidents.

I hope you were able to remain home, and that you remembered to check out my past post on how to Enjoy the Winter White for fun things to do. It appears roads have been cleared this morning, at least here in Towson, so we may venture out. If you do so, please be careful!

Homebuyers Claiming Tax Credit Cannot E-File

Homebuyers who are claiming either the $6,500 move up credit or the $8,000 First Time Homebuyer Tax Credit cannot file electronically, according to the IRS.

One of my past clients let me know of this after she read an article on MSN. (Thank you for the information and link!)

The reason for this restriction is that unfortunately there were many suspicious claims last year, and the government is trying to curtail tax fraud. There is also an additional form and a decent amount of supporting paperwork that needs to be sent in to prove eligibility for the credit.

The additional paperwork First Time Homebuyers claiming the credit need:

For purchasers of conventional homes, a copy of Form HUD-1, Settlement Statement, or other settlement statement, showing all parties’ names and signatures, property address, sales price and date of purchase.

For purchasers of mobile homes who are unable to get a settlement statement, a copy of the executed retail sales contract showing all parties’ names and signatures, property address, purchase price and date of purchase.

For a newly constructed home where a settlement statement is not available, a copy of the certificate of occupancy showing the owner’s name, property address and date of the certificate.

For those long time homeowners who moved and qualify for the $6,500 credit, this is the additional paperwork they will need to submit:

Form 1098, Mortgage Interest Statement, or substitute mortgage interest statements,

Property tax records or

Homeowner’s insurance records.

Here is Form 5405 from the IRS.gov site. For instructions on how to fill it out, click here. For long term owners looking to claim the $6,500, here is Form 1098.

The good news is that homebuyers who are going to claim the credit can still use the electronic tax preparation programs they would to e-file, but instead of clicking a button to submit, they will need to print it, attach the supporting documents, and mail!

(All in all, the few extra steps and the longer time it will take are worth the up to $6,500 or $8,000 credit that the filer will receive!)

More FHA Changes to Happen Mid Summer

On January 20, I wrote about the new likely major FHA loan changes that were being announced.

One of those changes is going into effect on April 5, 2010, as I wrote on January 21, with the upfront mortgage insurance premium being raised from 1.75% to 2.25%.

A press release was placed on the hud.gov site on January 20 about the new changes, but was not widely distributed.

It does reiterate that the downpayment will still remain at 3.5%, which is a big relief for homebuyers wishing to use FHA insured loans to buy their homes. It had been proposed that the downpayment be raised to 5% of the sales price of a home.

The major component that FHA homebuyers need to be aware of is that sellers will only be allowed to give 3% in closing cost help to a buyer, rather than the 6% they are currently allowed to give.

From the hud.gov website:

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.

This may take a buyer from being able to buy a home to not being able to afford the closing costs associated with purchasing one.

In 2009, I saw many contracts with 4% in seller concessions, because closing costs in Maryland are fairly high. The minimum in closing costs for buyers is the 3.5% downpayment, plus an additional 4-5% in transfer taxes and costs. What many buyers have been doing is making an offer and asking for help from the seller to cover the majority of that 4-5%. This will no longer be the case, making many buyers possibly short 1-2% to close.

What this means for buyers who wish to use FHA insured financing is that they need to move quickly to avoid the higher upfront PMI and be able to take advantage of the possibility of between 4-6% in closing cost help from sellers who are willing to do so.

Contact me today to get your financing in place with a qualified FHA approved lender so you can take advantage of the FHA regulations as they currently stand!

White Marsh Real Estate Values May Get Boost From GM Electric Motors Plant

General Motors announced today that its White Marsh plant is going to be its hub for building electric cars, creating 200 new jobs in Baltimore County. Andrea K. Walker of the Baltimore Sun reported this news shortly after GM announced it this afternoon.

This could be wonderful for the White Marsh and Perry Hall housing market because these jobs created may bring people from outside of the area, and they will need places to live! Other areas that could benefit could be Harford County up towards Bel Air like Abingdon, Fallston & Joppa, because they tend to be a quick commute to the area where the factory will be.

The expanded plant is due to open in 2013, with the new jobs beginning right around that time. Job training should begin before then with people moving into the area at that point.

This is GM’s first foray into electric motor cars, and is creating good buzz for the company, which bodes very well for the White Marsh area of Baltimore County!

Stoneleigh Real Estate – Avondale Road

Stoneleigh has always been a very popular area when it comes to buyers looking for older homes in an established neighborhood.

Currently, there are five homes for sale with an average list price of $573,780. Two of these homes are on Avondale Road, a very small street connecting Stoneleigh Road and Kingston Road.

6901 Avondale Road is on the market for $539,000. It has a redone kitchen with stainless appliances, and is deceivingly larger than it appears from the front. Room sizes are very generous, and the home is very charming!

6905 Avondale Road is on the market for $564,900. It has a large family room off the back and also has a redone kitchen with stainless appliances.

Avondale Road is such a pretty street located in the 21212 Stoneleigh neighborhood.

Stoneleigh has much to offer, with an elementary school in the community, a swim club that Stoneleigh homeowners can join as a benefit to living in the neighborhood, and old, established homes.

The Stoneleigh Community Association is very active in keeping the integrity of the homes and the neighborhood, so no exterior changes can be made without prior approval of the Board. The Association also oversees the pool, the Citizens on Patrol, the tree replantings, recycling efforts, and the social events of the community.

If you would like more information on these two homes on Avondale or any other home in Stoneleigh, please contact me today!

Barack Obama to Visit Baltimore for First Time as President

This Friday will mark President Obama’s first visit to Baltimore since becoming the 44th President of the United States of America.

He will be in town to join the House Republican retreat at the Renaissance Baltimore Harborplace Hotel in Downtown Baltimore.

Paul West of The Baltimore Sun reports that the House Republicans chose Baltimore to host their retreat to raise awareness for our city and others like it. Baltimore is a working class community that currently has a 10.8% unemployment rate.

Make sure to plan for extra time if you are going to be around Pratt Street and the Inner Harbor in Downtown Baltimore this Friday, as there will be extra security, cars, and, I would imagine, traffic blockades.

Welcome back to Baltimore, President Obama, and welcome House Republicans! We hope you enjoy our city, and are able to raise awareness and work to fix the unemployment issues while at your retreat. Thank you for visiting!

Chili Winter Days at Boordy Vineyards — this Weekend and Next!

Weekends have gotten a bit more interesting in Baltimore County at Boordy Vineyards.

Each weekend in January, Boordy hosts the “Chili Winter Days” from 1-5 pm, where you can drink Wassail while you tour the winery, and eat chili paired with their red wines if you are of age. Dean & Brown Catering is supplying the three chili choices, and the cost is $12 for adults, $10 for teens, and $5 for children aged 2-12.

Live music is on tap each weekend as well.

February brings “Fond of Your Fondue” weekends complete with marshmallow roasting on an open fire!

So if you are looking for something neat & different to do, then Boordy is the place to be on weekends in Winter.

Boordy Vineyards is located in beautiful Hydes, MD, (also known to many as Kingsville) right on the border of Baltimore County and Harford County. For a map and directions to Boordy, click here, and enjoy a taste of what Baltimore County has to offer!

HUD Temporarily Waives FHA 90 Day Policy to Move Foreclosed Homes

In an attempt to move foreclosed properties more quickly, HUD has temporarily waived the 90-day ownership guideline, making these foreclosed properties available to FHA homebuyers.

RISMedia reports that:

In today’s market, FHA research finds that acquiring, rehabilitating and reselling these properties to prospective homeowners often takes less than 90 days. Prohibiting the use of FHA mortgage insurance for a subsequent resale within 90 days of acquisition adversely impacts the willingness of sellers to allow contracts from potential FHA buyers because they must consider holding costs and the risk of vandalism associated with allowing a property to sit vacant over a 90-day period of time.

This comes just before FHA’s announcement of their likely fee hike coming down the pike, helping to soften the blow of the new regulations & fees.

Buyers who have been considering foreclosed properties but could not use FHA insured financing can now, which is great news. Hopefully many of these qualifying buyers will get in to these homes with this change before the first FHA fees go up on April 5, 2010.

First New FHA Mortgage Insurance Premium Change to Happen April 5, 2010

Yesterday, I wrote about the major FHA fee changes that could be coming up.

Today, the mortgagee letter went out to FHA approved banks, stating that the upfront mortgage insurance premiums collected will be 2.25% instead of the 1.75% they are now. I would like thank Michael Johnston from Carrollton Mortgage Services, Inc. for sharing the mortgagee letter with me.

The closing costs assistance I discussed yesterday is not addressed in this letter, so I do not know when that may come into play.

This change in the MIP goes into effect for any FHA loans for which the case number is assigned on or after April 5, 2010.

So if you are a qualifying buyer for an FHA loan and want a lower up front mortgage insurance premium of 1.75%, you need to get under contract very soon!

 

To reach Michael Johnston, Assistant Vice President, Carrollton Mortgage Services, Inc.,  E-mail: mjohnston@carrolltonbank.com , Office: 410-561-8477 X 106, Cell: 410-627-1921

Baltimore Restaurant Week January 22-February 7, 2010

An exciting time in winter happens in Baltimore when Restaurant Week comes to town and full three course dinners at select restaurants are only $35.10!

You will want to make reservations, because these restaurants will book up quickly — this is an amazing deal for these three course meals!

There are so many places participating in many neighborhoods including Fells Point, Federal Hill, the Inner Harbor, and many others all around Baltimore.

Visit baltimorerestaurantweek.com to see which restaurants are participating, and make your reservations through opentable.com to take advantage of these great deals!

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