Southern Maryland Real Estate Blog

A Father's Christmas Wish Comes True Thanks to The Washington Ballet!

I love seeing genuinely touch moments, and last night I was witness to a heartfelt moment I'd like to share with you all.  I was at the opening night of the Washington National Ballet's production of The Nutcracker, currently playing at the Warner Theatre, and prior to the start of the performance the artistic director, Septime Weber came out and made an announcement that brought a tear to everyone in the audience.

It seems that young Ms. Isabelle Johnston, age 7, was premiering on stage in her first performance with the ballet that night, and her father, Marine Lt. Col. Frank Johnston, was not in attendance on her big night because he is currently in Iraq, serving our country.

Lt. Col. Johnston contacted TWB and asked if there was any way they could tape the performance so that he would be able to watch the performance at some point.  In response, TWB got in touch with NBC-4 and arranged to have the performance taped live, and then the footage is being transferred for world-wide broadcast on the pentagon channel so that our armed forces stationed around the globe can see Washington's patriotic take on the classic production(as well as enjoy Ms. Johnston's stage debut!).

As Mr. Weber made the announcement to the audience, he read a letter written by Lt. Col. Johnston:

"I am eternally grateful for the opportunity to see a new 'first' in the life of my daughter, Isabelle, while deployed overseas," says Lt. Col. Johnston. "Thank you, DC, for bringing a piece of America to me and my fellow service members deployed during the holidays. I will watch this show as a father but also as a representative for all the other fathers and mothers deployed overseas this Christmas season that will miss many other firsts — the first birth of a son or daughter, first steps of a newborn, the first tooth of a growing child. The price of duty and service to our country is indeed great, especially during the holidays. Thank you all, each and every one of you, for the incredible support you are providing to us overseas. It is reassuring to know America has not forgotten those deployed in harm's way."

Congratulations to young Ms. Johnston on her wonderful debut performance, Her family on their dedication and perseverance, and The Washington Ballet for helping a father enjoy a pivotal moment in his daughters life.

As a side note, thank you to Lt. Col. Frank Johnston for defending this great nation that we call home, our nation owes you the deepest gratitude for the sacrifices you make to keep our country safe.

~Jonathan Benya

Century 21 New Millennium Team Benya

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LINK TO PLAYBILL ARTICLE

LINK TO WASHINGTON POST ARTICLE

Foreclosure Buying Tips- What You NEED To Know! Part 3- Post Foreclosure and REO Properties

    This is part 3 of a 3 part series on how foreclosures work and how to find the best home to fit your needs at the best price.

    There's really no great mystery to it, but there is a process and I'm here to do my best explaining how each step works and how you can capitalize on it as a consumer to keep a little more cash in your pocket.

The 3 steps are this:

1. Pre-Foreclosure
2. Foreclosure
3. Post Foreclosure REO(Real Estate Owned)

Post-Foreclosure
   
    What This Means

    The bank owns the property outright.  They are responsible for trying to sell the property, and the longer they own the property there is a possibility of serious devaluation.

    Just consider this:  If a home is REO and on the market right now, what happens if that property has not sold by February? 

    Would there be an increased risk of damage due to freezing pipes, animal infestation, weather damage?  If there's a heavy rain and the power is turned off, how is the sump pump supposed to stop the basement from flooding?

    The Positives

1. They need to sell the property- The bank does not want to hold a liability like this for an extended period of time, they want to get it sold and recoup as much of their loss as possible.
2. They will (Eventually) cut the price as low as necessary to get the property sold-  If you can get in at the right price, you may be able to get a home for less than the owner was able to sell it for, but don't expect that to happen as soon as the home is put on the market.
3. The property is listed with a Realtor and you can schedule to go view it-  At least now you can get a good look at what you're buying.

    The Negatives

1. The Bank wants to recoup as much as possible-     If the owner had enough equity to sell it at discount, why would he have let the foreclosure happen?  It typically only gets to this point because there was not enough equity to avoid it.  The bank also has increasing costs involved that they're going to try and recoup as well.
2. The longer the home is vacant, the more problems it may have.  It usually takes 45-90 days after foreclosure for the property to be available for sale like this.  They are neglected, and the longer they sit the more problems they develop, which means the more money it takes to make it suitable above and beyond the sales price
3. Inspections (If Allowed) are for informational purposes ony- The bank has no interest in making repairs, they'd rather it be reflected in the price.  Make sure you try to have a walk-out clause should you not like the inspection report.
4. You're not the only one looking for a deal-  If the property has been on the market more than a week, it may not be the best deal.  My investors get daily updates on new foreclosures, and we view the best potentials the day they go on the market.  If you're serious about getting a good deal, have your financing in line and be aggressive.
5. Banks aren't known for their speedy response-  Don't be surprised if a bank takes a week or more to respond to your offer, or if they require more than 2 weeks to settle.  Every bank has their own way of doing things, and some are faster than others.

    How to Capitalize

1. Find a Realtor who knows how to identify the best deal daily-  That's what they do, and a good Realtor can quickly and easily assess the potential value.  Negotiation is key, make sure your agent is experienced in making these deals work.  It's all about the art of negotiation.
   
2. Have knowledge of what repairs are going to cost-  There is almost always some sort of repair work, factor the costs into the offer you make.
3. Don't be afraid to low-ball the offer-  You won't be offending the bank, and if they're not interested they'll let you know.
4. Don't be afraid to re-submit an offer-  The longer a property sits, the more willing a bank is to make a deal, try shooting that low-ball offer again 3 weeks later.... it might just work.

    Remember that at this point the bank has more invested than just the loan amount:  There's legal fees, departmental fees, contractor fees (possibly) transfer/title/recordation fees, and they are going to want to recoup that if at all possible. 

    Banks aren't in the business of losing money, and they have shareholders to answer to if they sold property from bad debt for pennies on the dollar when they're losing as much as they are on bad loans.

    If you had been able to buy the property from the homeowner prior to foreclosure, there would have been less overhead involved in the transaction, and you may have saved more money.

Jonathan, Marsha, & Thomas Benya
~Team Benya
Century 21 New Millennium
301-653-8116
Website

Foreclosure Buying Tips- What You NEED To Know! Part 2- Foreclosures and Auctions

    This is part 2 of a 3 part series on how foreclosures work and how to find the best home to fit your needs at the best price.

    There's really no great mystery to it, but there is a process to it and I'm here to do my best explaining how each step works and how you can capitalize on it as a consumer to keep a little more cash in your pocket.

The 3 steps are this:

1. Pre-Foreclosure
2. Foreclosure
3. Post Foreclosure REO(Real Estate Owned)

I will be posting this as a 3-part series, so I will break explain Post-foreclosure and REO Properties in my next post.

Foreclosure
   
    What This Means

    The homeowner is delinquent in paying their mortgage and the bank has foreclosed on the property.  At this point the homeowner no longer owns the property and has been informed that they must immediately vacate if they have not done so already.

    A foreclosure property is often placed on the market for sale by auction on the courthouse steps.   It used to be common to find a great deal by attending the auctions and purchasing the home there.

    What  has happened recently is that because of lawsuits that have established precedence, banks will typically have an agent of theirs at the auction to prevent the property from being sold at a huge loss to the bank.

    Because of the nature of the market right now, it is hard to establish what a home would really sell for so now you will find that most properties do not actually change ownership through courthouse sale because the price someone is willing to pay for a property, sight unseen, is not acceptable to the bank at that time.

    The Positives

1. You may be able to get a great deal on the home- If the bank is willing to sell the home at any price, this is your chance.  Typically, banks have not been very inclined to sell at a price acceptable to consumers, so auctions have lost a lot of popularity.
   

    The Negatives

1. You are not typically able to view and inspect the interior of the home prior to auction-  The house is sold strictly as-is, where-is.  There could be any number of problems, mold, structural damage, water damage, etc.  and there is no way to know without seeing the property in advance.
2. The whole process can seem rushed-  Having to decide on buying a home without having seen the current condition is not wise, and you shouldn't allow anyone to convince you otherwise.
3. Caveat Emptor- The home is being sold strictly "buyer beware".  Appliances may or may not exist/work, and the same goes for plumbing, electrical systems, etc.

    How to Capitalize

1. Focus on homes you can view in advance-  There are rare situations where the house may be held open prior to auction, make sure you take advantage of that fact!
2. Know in advance home much you are willing to spend on the property-  And don't spend more that that amount!  Remember that you're there to save money, and spending more than you wanted isn't wise.  You are calculating the financial risk into any assessment you make, and there's a reason you decided on a figure.  Stick with it!
   

    Remember that at this point the bank has more invested than just the loan amount:  There's legal fees, departmental fees, contractor fees (possibly) transfer/title/recordation fees, and they are going to want to recoup that if at all possible. 

    Banks aren't in the business of losing money, and they have shareholders to answer to if they sold property from bad debt for pennies on the dollar when they're losing as much as they are on bad loans.

    If you had been able to buy the property from the homeowner prior to foreclosure, there would have been less overhead involved in the transaction, and you may have saved more money.

    Part 3 will describe how buying an REO home post foreclosure.  Make sure you check back for that and if you have any questions, please ask!

Jonathan, Marsha, & Thomas Benya
~Team Benya
Century 21 New Millennium
301-653-8116
Website