Ally Financial Foreclosure Issues

After a number of lawsuits have been filed, Ally Financial (formerly GMAC), one of the US’s largest banks, is halting foreclosures in 23 states.

Maryland is NOT one of the states.

JP Morgan Chase has also been wracked with issues,with an employee coming forward, stating that she signed off on thousands of foreclosures without verifying the accuracy of the information in the file.

Another employee of a document services company admitted to signing foreclosure affidavits, claiming to be executives and other people when signing. Her signature also has supposedly been forged. These are on thousands of foreclosure documents. There has been a lawsuit filed against the company owned by Lender Processing Services, which is supposed to help speed up the foreclosure process for banks.

The Washington Post reported on this mess in an article last week. This week, title companies are battening down the hatches, attempting to prepare for future transactions, ensuring that substitute trustees and appointees match completely.

Right now, none of the current cases are in Maryland. Hopefully it will remain that way.

Ten Reasons to Buy a Home

The Wall Street Journal, tired of the doom & gloom, wrote an article on the ten reasons you SHOULD buy a home in this economy.

Their ten reasons are good ones and have a lot of detail as to why they are true. Here are Brett Arends’ WSJ headlines, and my takes on each.

1) You can get a good deal. Right now, prices are low and inventory is high. What a great time for a buyer! Have a house but want a bigger one? Good for you as well! What hit you may take on the first house should help you save on the next one.

2) Mortgages are cheap. When, in the history of the Baltimore real estate market, have we ever seen BOTH prices low AND interest rates this low? (The correct answer is never. These are the lowest interest rates on record.)

3) You’ll save on taxes. How? Mortgage interest and real estate taxes are usually tax deductible. There may be other tax breaks too, so check with your accountant.

4) It’ll be yours. No more eggshell white walls (unless you want them). You can have the kitchen the way you want. You can change appliances. It’s YOURS to do with what you want.

5) You’ll get a better home. I ran rentals for the 21093, 21204, 21030, 21152, 21209, 21212 zip codes in a specific geographic area. There were a total of 44 houses for rent. Only 2 were appealing to my client. Meanwhile, there were that many appealing for SALE in the same area, even more than that for sale that did not fit their needs. So many houses have already been rented!

6) It offers some inflation protection. Statistics show that long term housing beats inflation by a few points each year. (This is the weakest reason!)

7) It’s risk capital. If the economy recovers, housing will recover as well. Equity in your home is a good part of your investment portfolio.

8 ) It’s forced savings. Let’s say your rent is $2,500/month, and your mortgage payment would be $3,000. Though that is an extra $500/month you would have — would you save it? Most likely no. As the WSJ says, that extra $500 is paying towards more equity in your house.

9) There is  a lot to choose from. There are many Baltimore homes for sale right now. You can be more picky & get what you really want!

10) Sooner or later, the market will clear. Supply & demand will meet at some point.

So, the moral of the story is, call me, because now is the time to buy a home in Baltimore!

Will FHA Be Flexible with Seller Closing Cost Assistance?

Will FHA be flexible with seller closing cost assistance?

That is possible, according to a report from National Mortgage News late last week.

FHA guidelines have changed, and more changes are on their way. Beginning Monday, October 4, the new FHA changes take effect, including lower upfront mortgage insurance premium and higher monthly insurance premiums.

In July, HUD asked for consumer comments on their proposed changes, including the lowering of allowed seller closing cost help from 6% down to 3%. The major problem with reducing seller closing cost help is that in Maryland, closing costs are very high. Many times buyers need 4-5% above the required 3.5% down to help them close on the house, since most FHA homebuyers do not have much money to put down, many times their reason for using an FHA insured loan. By reducing the closing cost assistance down to 3%, many buyers would be disqualified from being able to purchase homes, and this could hurt the Baltimore housing market tremendously.

Though I understand the need to lower seller concessions, hopefully the amount will not be reduced as drastically as originally planned.

Maryland FHA homebuyers should take advantage of the low prices, high inventory, and high seller contribution allowance before any more planned changes go into effect. Contact me and I can help you navigate your way through the FHA mortgage process before there are more modifications!

Baltimore Party in the Park 2010

Baltimore Party in the Park 2010 is this Sunday, October 2 from 10:30 am – 5 pm at the Padonia Park Club on Jenifer Road in Cockeysville.

The Baltimore Party in the Park is an event in support of the Nikki Perlow foundation, which was formed to honor Nikki’s memory and “provide financial, logistical and emotional support to young adults like Nikki – who struggle with the disease of addiction”. Nikki passed away from an accidental overdose in 2007.

Last year was the first Baltimore Party in the Park, and was a great success. This year, like last, the hugely popular kids’ group Milkshake will perform from 12-1:30 pm, along with southern rock group The Bridge from 2:30-4:30 pm for adults.

The “Kidz Stage” has shows all day long, and there is also a large “Kidz Zone” with an obstacle course, coloring books & jewelry making, as well as face painting, pumpkin decorating, petting zoo, and the Oriole Bird!

Yummy food will be available as well, as it will be catered by the popular Clementine Restaurant on Harford Road.

Tickets for the Party in the Park are $10 for adults and $5 for children, and can be bought in advance or at the event on Saturday.

Padonia Park is located at 12006 Jenifer Road, Cockeysville, MD 21030. The event will be at the West picnic area — but I think the cars, music, people, and smells of food will draw you there!

Some come on up just west of Timonium off West Padonia Road (past the Mays Chapel Graul’s) and enjoy a great day while supporting a worthy cause.

12 Elmont Avenue – Pinehurst Colonial
Overlea, Maryland 21206 – Offered at $170,000.
*UPDATE: SOLD!*

• Download the Brochure (PDF)
• Schedule an Appointment
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Explore this Overlea home for sale at $170,000…

This is a neat house, ready for its’ next owners. Take advantage of the buyers’ market today and check this one out. You will be glad you did!

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Maryland New Power of Attorney Law October 1, 2010

Beginning October 1, 2010, a new Power of Attorney law will go into effect to protect those who live in the State of Maryland.

T Jeremy Loomis, of Wells Fargo, shared this information with me, and that the State of Maryland stated the purpose of this new law is an effort to “protect principals from misuse from various parties.  New specific statutory language will need to be included in all Maryland POAs.”

Jeremy also shared with me a sample new power of attorney that a title company partner sent to him.

My title company partner, David Kramer, who is an attorney and runs Castle Title, today said that one of the major differences is that the new power of attorneys (POA) needs two witnesses, one of whom can be the notary signing the document.

The good news is that he states that POA’s in effect prior to October 1, 2010 are grandfathered in with this law, so changes do not need to be made on those to be compliant. You will want to check with your attorney, or contact David to be certain as to whether yours would be grandfathered.

If you are buying or selling a home in Maryland, and must use a power of attorney for any reason, make sure you are aware of the new laws and verbiage that needs to be a part of settlement.

Contact me for more information about how to sell a home in Maryland with a power of attorney.

Ruxton-Riderwood-Lake Roland Improvement Association 2010 Annual Meeting

The Ruxton-Riderwood-Lake Roland Improvement Association has its’ annual meeting and election of the Board of Directors on Thursday, September 23, 2010 at 7 pm at the new West Towson Elementary School.

Tours of the new West Towson Elementary School will be given to members prior to the meeting at 6:30 pm.

Also, principal Susan Hershfeld will share news of what students will be experiencing this year at the new school.

The annual meeting should have discussion on the 2020 Ruxton Area Community Plan that was presented at Blakehurst on the 13th, and will have the election of the new Board of Directors for the upcoming year.

So come learn about the RRLRIA and what it can and has done for our Towson neighborhoods!

Baltimore Ground Rent Registration

A bill signed into law by Governor Martin O’Malley on May 8, 2007, stated that all Ground Rents in the state of Maryland needed to be registered by September 30, 2010 or the ground rents would be at risk to be nullified.

On June 18, I wrote about a class action lawsuit that was certified, allowing Maryland ground rent owners to sue the State over being unable to seize properties as they had in the past, potentially costing them millions of dollars. Should these owners win the suit, it could cost the state hundreds of millions of dollars.

The Maryland ground rent registry issue is a separate one, but one title insurance company, Fidelity National Title Group, which underwrites title policies for Mid Atlantic Settlement Services, among many other title companies, is stating up front that until the suit has been resolved, policies will remain unchanged. According to their notice to title companies, they will continue to insure leasehold properties as such, whether they have been registered or not.

Derek Massey, President of Mid-Atlantic Settlement Services, states that it will be business as usual, following these guidelines as sent out by Fidelity.

Please contact me for more information on Baltimore ground rent homes and how ground rent can affect you as a homeowner.

Clancy at Oriole Park in Baltimore

For years I remember hearing the Famous-in-Baltimore yell, “If you want it fancy, get it from Clancy!”

You always knew to look for Clancy, the Budweiser vendor opening a can of beer in a fun way, pouring it over his back into the plastic cup for the enjoyment of its’ buyer.

In the past ten years, those cans have gone away, replaced by plastic bottles with screw off caps, so it no longer can be gotten “fancy”. But Clancy is still there, working hard, making his way up & down a lot of stairs many times.

His more recent pitch is “Who’s Ready?” and many times has a number of hands quickly waving in the air — it could be the Bud, but I think it is more the seller — why get it from anyone else?

I have to imagine he is the top seller of beer, and gets the “best” sections, because he knows the crowd, remembers people & orders, and works so hard.

He literally lugs cases of beer while sprinting up & down the flights of stairs to deliver refreshments to the masses.

His work ethic is incredible, as he appears to always be there. He hustles both literally and figuratively, and is a true unrecognized star in the Orioles organization.

So next time you are at Camden Yards in Baltimore, make sure to seek out Clancy and watch him work his magic!

McCormick Jobs May Be Good for Hunt Valley House Values

McCormick & Co., Inc. has 21 job openings on available through their website, and approximately another 50, spread between Hunt Valley and their Belcamp branch, according to their head of employment center.

About 30 of the jobs are in technician and production, reports a Baltimore Business Journal article, but there are a number of human resources, marketing & sales, administration, and research and development. Many of the “scientist” jobs have very specific qualifications, so many times these candidates are hired from out of state. This is what could help Hunt Valley house values, as a number of people could move into the area to fill these positions.

Living in Hunt Valley is a popular because of the Hunt Valley Towne Centre with movies, restaurants, shopping, and more, plus quick access to I-83 and the Light Rail.

Hunt Valley Station is near McCormick, so it convenient for employees to get to work. Hunt Valley Station, also known as Hunters Run, has both townhouses and single family homes.

Contact me for more information on how to live in Hunt Valley.

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