Southern Maryland Real Estate Blog

HAP Guidelines Released- Military Homeowners finally have relief via DoD

The Homeowners Assistance Program (HAP) has released the DoD guidelines for Wounded Warriors, Warriors in Transition, and PCS moves.  The government has established a $555 million fund to aid military personnel who are unable to sell their home due to economic constraints.

This program, which covers up to 90% of the original purchase price of the home, is designed to help service members pinched by deflating home values. A copy of the DoD guidelines can be found here:

Download DOD_Guidance

I've already listed several homes that fall under this program, and although it is not ideal, any relief for our veterans is sorely needed and appreciated!  In order to apply, please visit the HAP website and download the eligibility and application guidelines to enroll in the program!

Related Posts:

Military Relocation Relief is expanding

~Jonathan Benya- Realtor
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000 - office
301-653-8116 - cell

Charles County Real Estate Blog
SOMD Home Search
Southern Maryland Custom Homes & Land

Join The SOMD RE Blog Community and get free news and updates via email!

Enter your Email


Preview | Powered by FeedBlitz

5 Indictments in the Metro Dream Homes Scam!

Good news for people involved in the Metro Dream Homes Scandal!  The Department of Justice passed 5 indictments against major players in the company; and NBC 4 news in Washington, D.C. even interviewed me for their news video on it!

~Jonathan Benya- Realtor
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000 - office
301-653-8116 - cell

Charles County Real Estate Blog
SOMD Home Search
Southern Maryland Custom Homes & Land

Join The SOMD RE Blog Community and get free news and updates via email!

Enter your Email


Preview | Powered by FeedBlitz

An Elementary Lesson: Avoiding New Construction Fraud

There was an article in yesterday's Washington Post about a possible homebuilding scam in Upper Marlboro, MD. It's pathetic to see yet ANOTHER real estate scam being run in Maryland, but it underscores how important it is to do your homework when buying a home.

1. Take the time to learn a little more about your builder, and not just from the builder themselves.  Get in touch with people who have used them in the past, research consumer complaints, and find out what their reputation is like.  websites like consumerreports.com and ripoffreport.com are great resources.  Also, try asking on local message boards and forums to see if anyone has an opinion on the builder.
2. Make sure they're actually licensed.  Every builder has to have a builders license filed with the state of Maryland.  An ounce of prevention goes a long way!
3. Consult a Realtor.  A Buyers agent is paid to work for YOU, and their experience in dealing with real estate jargon and contracts can prevent you from being stuck in a shoddy situation like this.
4. If it sounds to good to be true...... It probably is.  When people are offered a fantastic "deal" like this, the inclination is to jump on it!  Apparently there was a reason in this case for the great deal.... It wasn't a deal at all!  Don't give in to high pressure sales tactics if you aren't comfortable and satisfied with all of the terms and conditions.  Risking this kind of money on a transaction you don't feel good about can lead to years of heartache.

(Originally posted at: Charles County Real Estate Blog)

~Jonathan Benya- Realtor
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000
301-653-8116
Southern Maryland Real Estate Blog

Join The SOMD RE Blog Community and get free news and updates via email!

Prince George's County real estate market update for August, 2008

The volume of foreclosures in P.G. County is still roiling the local real estate market.  Inventory (Active Listings) continues to rise (over 8,000 homes available, there were less than 1,000 listings at the peak of the market), and home sales continue to slope downwards.

It's interesting to note that there was a spike in average sales price, but this is likely due to larger homes returning to a realm of affordability, and not a general market improvement.  The average volume of sold properties continues to suffer, indicating further market challenges.

It's impossible to say when the market will turn around for P.G. County, but it is without a doubt still a long road ahead.

~Jonathan Benya- Realtor
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000
301-653-8116
Southern Maryland Real Estate Blog

Hope for Homeowners Act of 2008; Who does this help in Maryland?

It's official: The Hope for Homeowners Act of 2008 has been signed by the president and now we shall see who this helps.  For struggling homeowners in Maryland, here's a quick breakdown of the criteria to qualify:

In order to apply for this program, you must:

• Have a loan originated prior to 2008
• Be paying paying more than 31% of your monthly income on your mortgage
• The program qualifies for PRIMARY RESIDENCE ONLY
• Have your income verified

    The program will not take effect until October, 2008, runs through September, 2011, and here's the kicker (There's always a catch, right?):

Lenders can pick and choose which loans to refinance under the program!

    This means that if your lender isn't in the mood to adjust your loan, you're out of luck!  The catch is that the bank WILL be losing money on the deal, as the loan is essentially going to be giving owners 10% equity (Loans can only be up to 90% LTV), so I would imagine that even though 400,000 people are theoretically "eligible", far fewer are going to be given a break as the lenders will be eating crow on the deal.

This isn't a free money deal for the homeowners, however:

If you sell during the next five years, you must agree to share 50 percent of any profits from the resale with the government. What's more, homeowners can only retain equity gains based on a sliding scale.

The homeowner would have zero equity from a sale in the first year, with the amount rising 10 percent in each succeeding year and capping at 50 percent from a sale in year five and thereafter. The equity must be repaid because the maximum amount on the new loans will be capped at 90 percent of the current market value.

    This has a big impact on OUR area because of all the military families in the area that are struggling to make payments.  If you get re-assigned in a year, you lose all of your financial gain in the home!

    The entire 694-page bill can be viewed at: http://www.house.gov/apps/list/press/financialsvcs_dem/hr3221_bill_text.pdf

Want more information on the new bill, and what it means to you?  Call Jonathan Benya at 301-653-8116 and I'll be more than happy to help explain what to do and how to do it so you can take advantage of this opportunity!

~Jonathan Benya
Century 21 New Millennium
9405-A Chesapeake St.
La Plata, MD 20646
301-653-8116
301-609-9000
http://www.teambenya.com

Waldorf vs. Upper Marlboro: Which is Cheaper Living?

    I'm writing this as a response to a debate on a web forum regarding housing costs in Waldorf and Upper Marlboro.

    The question seems to be which location is more affordable, among other things.  My instinct has always been the Waldorf is a little more affordable, but I've always assumed that from my "gut" rather than stats (I think it's called the Steve Colbert approach to "facts").  Obviously that's not enough to satisfy a serious query on the subject, so I pulled the sales figures for Waldorf and Upper Marlboro to compare.  Here's what I have found: (all figures from MRIS.com)

From 6/1/2008-6/30/2008

Waldorf, 20601

    17 Homes Sold

    233 Active Listings

    Sold Ratio: 1:13.7

    Average Sold Price:  $294,494

    Median Sold Price:    $280,000

Waldorf 20602

    22 Homes Sold

    233 Active Listings

    Sold Ratio: 1:10.59

    Average Sold Price:    $253,954

    Median Sold Price:    $244,700

Upper Marlboro, 20772

    30 Homes Sold

    500 Active Listings

    Sold Ratio: 1:16.67

    Average Sold Price:    $314,256

    Median Sold Price:    $312,500

Upper Marlboro, 20774

    35 Homes Sold

    465 Active Listings

    Sold Ratio: 1:13.28

    Average Sold Price:    $282,814

    Median Sold Price:    $278,900

    This shows a couple of interesting details:

1. The average rate of sales is slightly better in Waldorf
2. This is likely due to the lower cost of homes in the 20602 Area Code
3. Although the 20774 Area Code is less expensive than the 20601 Area Code, It does not mean that Upper Marlboro is less Expensive than Waldorf, as noted by prices in the 20602 Area Code.

    Another potential means of comparison is through new construction.  If you were to look at a home built by Ryan Homes in the Brentwood Subdivision of Waldorf, MD.  You would find their base model starting at $320,000 (Was $330,000)  To have that exact model built in The Ridings at Upper Marlboro, it would be priced starting at $340,000.  The difference is less than 6%, but it IS a difference.

    Bear in mind this does not make Upper Marlboro or Waldorf "better" than the other.  Differences in commute times, amenities, and local features vary greatly.  Although there is a cost of living difference, I still think it comes down to a preference of location rather than price.

(Please note that the 20603 Area Code was not included because there was a spike in prices last month for some reason, and I am working to determine why this has occurred before I show abnormally skewed figures)

~Jonathan Benya
Century 21 New Millennium
9405-A Chesapeake St.
La Plata, MD 20646
301-653-8116
301-609-9000
http://www.teambenya.com

Great Foreclosure Deal in Hyattsville, MD! $199,017 for a Single Family Home!

    The bank has decided that this property has GOT TO GO!  Here's you're chance to buy a single family home in Hyattsville, MD for less that $200,000!!!

    If you're looking for a foreclosure deal in Hyattsville, THIS IS IT!!!

5017 54th Pl. Hyattsville, MD

~Jonathan Benya
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-653-8116
Waldorf and Southern Maryland Real Estate
www.teambenya.com

 

Feds Press Charges in Metropolitan Money Store Scheme

    It looks like things are moving forward with the case against Joy Jenise Jackson (formerly known as a stripper named Night Rider), Kurt Fordham, and The Metropolitan Money Store.

    Remember them?  They're the one's accused of "saving" people from foreclosure, while stripping their equity out from under them, and leaving the victims in financial turmoil. 

Former Stripper Joy J. Jackson Ran Foreclosure Rescue Scam
Uploaded by Scambuster2007

    Well, now they've decided to press charges against 8 people, including Joy Jackson and Kurt Fordham, and (provided that the accused can be located), we may finally see some closure to this bizarre tale.  It's bad enough that we've dealt with scummy lenders writing bad loans, scummy get rich quick schemes promising to pay your mortgage, and the real estate bubble bursting, leaving us with a serious foreclosure problems, but seriously, this too?

    It's an embarrassment to legitimate professionals to see garbage like this happening in the region.  I hate the fact that a few bad apples like this can really ruin the reputation of the industry as a whole. 

    It's great that they've pressed charges, but what I want to know is this:  Where in the hell are they, and how do you plan to arrest them?  This was in the news months ago that the feds were trying to build a case, and I'd be shocked to hear that they were still in the country at this point! **

**Correction** Multiple arrests were made thursday morning in North Carolina, including both Ms. Jackson and Mr. Fordham, among others.

Related Links:

Washington Post Article on Indictment

~Jonathan Benya

Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000
301-653-8116
Waldorf and Southern Maryland Real Estate
www.teambenya.com

 

Adventures in New Home Buying

    I got a call this week from a woman who had read my blog post "Are New Construction Prices Negotiable?", and she was curious about how to deal with builders in Prince George's County who seem to be playing some sort of "Shell Game" when it comes to dropping the price, charging more for upgrades, and generally causing confusion in regards to how much the bottom line is really going to be.

    I'm a firm believer that builders do this intentionally.  They're struggling for profits, and in the housing pinch they're forced to drop the prices to get you as a buyer in their door.  Once you're at their model, you're on their turf, and their job is to do everything they can to jack the final price of the home up.

    It's then taken a step further when each model representative makes it a point to brag about how energy efficient they are, or how stainless and granite is standard, blah blah blah.....

    I made a suggestion to this buyer that there may be another option to explore that might make a bit more sense if flexibility is an option.  New construction typically takes 4-6 months to complete, and in communities that have been builder for more than a year, it's highly possible that you may be able to find a short sale in the community that could be purchased for considerably less that you could have the home built for

    It allows you to negotiate the price of the house completely, not be beaten up by the builder over the cost of each individual upgrade.  It also places you in a great bargaining position with both the homeowner and the bank that's holding the note:  You're able to purchase the property for less that it was bought new, and the bank gets to avoid another foreclosure dragging on their profit margins.

    It may not be a perfect solution for everyone, but for true bargain hunters looking for a sensible, affordable alternative, this is a great option.

~Jonathan Benya
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000
301-653-8116 
Southern Maryland Real Estate Blog

Prince George's County, MD, Real Estate Market Report, April 2008

Team Benya's Monthly Market Report-  P.G. County, Maryland

What's Happened:

    The Prince George's County Market is without a doubt slanting more and more heavily towards buyers.  Sellers are finding it increasingly difficult to sell and inventory of available homes is steadily growing.  March 2008 saw roughly 400 homes sold in P.G., and more than 7,000 homes on the market! 

    There was a very slight growth in the number of pending settlements and actual sales, and actual sales prices have continued to decline slightly.  As a matter of references, sales prices have fallen back to the same average ($300,000) we saw exactly 3 years ago, in April of 2005.  That's down 15% from the market's peak in October 2006

    The average Days on Market (DOM) fell in March as well, from 130 days to 120 days (a drop of 8%), but it's still a far cry from the days when real estate was on the market for an average of less than 30 days!

What Does This Mean?

    News like this is sort of "love it or hate it", depending on whether you're trying to buy or sell.  It's really just further solidification of the fact that this is a "Buyers Market".  Foreclosures are having a big impact on the market right now, and they make up a significant portion of sales right now, and unfortunately those properties are what traditional sellers are forced to compete with.

    For sellers, it's a tough road, and in order to get through it and successfully sell your home, you need to do two things:  Price aggressively and market heavily!  There are 7,000 other homes on the market in P.G. alone, and that's your competition.  You need to work very hard to stand out above the crowd and be seen.

    For buyers, sitting on the fence has been slowly forcing down prices, and we're starting to see some good deals emerge, but it does not seem to be a full mainstream sense of value just yet.  The biggest problem that I see is agents are not paying attention to what new construction homes are selling for when they're doing CMA's. 

    As a buyer, if you could buy a 2,800 s.f. resale home for $380,000, or buy a brand new 2,800 s.f. home for $395,000 with $15,000 in closing, which would you do?  The pricing of new developments is very attractive right now, which makes buyers even more scarce for resale home sellers.

    If you would like more information about the Price George's County Market, Foreclosures, Listings, or New Construction Developments, please ask!  I have a wealth of local information and resources and I'm always willing to assist people in navigating this tricky market!

~Jonathan Benya
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000
301-653-8116
Waldorf and Southern Maryland Real Estate
www.teambenya.com