Are You a House Flipper? Take This FREE Class in Millersville, Maryland

There's a lot more to "flipping" houses than most people realize. Unless you're an all-cash buyer, one of the biggest hurdles to overcome is securing funding for your renovation project. If you'd like to learn more about the basics of financing for real estate investors, CHARTER TITLE and KELLER WILLIAMS FLAGSHIP OF MARYLAND are holding a FREE CLASS on the subject tomorrow, Feb. 3. The class will cover:

- finance options for investors;

- ideal property types;

- equity based loans;

- seller financing and seller second loans; and

- commercial financing options.

The class will be held in the Keller Williams Flagship office training room, 1111 Benfield Blvd., Suite 250, Millersville, Maryland, 21108. Class time is 10 am until 11:30 am, and light breakfast refreshments will be served.

For more information on the class, or on investment property purchases in general. contact Jerry Kline, Realtor, Keller Williams Flagship of Maryland, at (443) 924-7418.

Hope to see you there!

When HOAs Foreclose, Mortgage Banks Are Left Empty-Handed

An eye-opening trend, really. Homeowner associations, similar to lenders, can foreclose on homes to recoup delinquent payments. Nevada, as well as 20 other states, has laws giving HOA liens priority over first mortgages. HOA Foreclosures Leave Banks Empty-Handed.

Private Mortgage Insurance: The One Expense Buyers Underestimate

"Private mortgage insurance has had a definitive impact on many home buyers – including making them rethink or delay the purchase of a home in light of not being able to meet monthly mortgage payments," says Michael Copley, executive vice president of retail lending at TD Bank. A recent study found that 65 percent of home owners with private mortgage insurance say that the additional cost of PMI prompted them to pay a higher monthly mortgage payment than they had originally expected.

Click the link below for the full story.

The One Expense Buyers Underestimate

Class-Action Lawsuit Against Creig Northrop Real Estate Team Underscores Consumer Protections for Home Buyers, Home Sellers

A large class-action lawsuit recently certified against Maryland’s Creig Northrop Real Estate Team serves as an excellent reminder of the consumer protections afforded to home buyers and home sellers under the federal Real Estate Settlement Procedures Act (RESPA).

RESPA, enacted by Congress in 1974, is designed to protect consumers from unscrupulous practices in the real estate industry. Its chief purpose is to help consumers become better shoppers for real estate settlement services and to eliminate kickbacks and referral fees that unnecessarily increase the costs of closing a transaction.

Among other things, the act prohibits kickbacks between lenders and third-party settlement agents in the settlement process.

The lawsuit, filed in 2013, alleges that The Creig Northrop Team P.C. and others received more than $500,000 in illegal kickbacks from Lakeview Title Co. Inc. over a period of years. The class certified by the court in January includes all purchasers who engaged the services of The Creig Northrop Team and a defendant title insurance company from Jan. 1, 2008, until the present.

The number of home buyers and home sellers included in the class of plaintiffs is potentially huge. The Creig Northrop Team P.C. is affiliated with Long & Foster Real Estate Inc., and was ranked second in the country last year and first in 2012 in the amount of real estate transaction volume handled.

Under RESPA, service providers in a real estate transaction must provide a variety of disclosures to their clients. (See http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/rmra/res/respamor#HD) Certain disclosures must be made at the time of loan application, before settlement occurs, at settlement and after settlement.

Also important for home buyers and home sellers is the Affiliated Business Arrangement Disclosure. This disclosure is required whenever a settlement service provider involved in a RESPA-covered transaction refers the client to a provider with whom the referring party has an ownership or other beneficial interest.

The referring party must give this disclosure to the client at or prior to the time of referral. The disclosure must describe the business arrangement that exists between the two providers and give the borrower an estimate of the second provider's charges.

Except in cases where a lender refers a borrower to an attorney, credit reporting agency or real estate appraiser to represent the lender's interest in the transaction, the referring party may not require the consumer to use the particular provider being referred.

For more information on the case (Patrick Baehr et al. v. The Creig Northrop Team P.C. et al.)), see http://www.inman.com/2014/02/25/top-producing-long-foster-team-facing-class-action-respa-suit-over-alleged-kickbacks-to-title-insurance-agency/

Jerry Kline is a Realtor with the Odenton, Md., office of Keller Williams Flagship Realty (1216 Annapolis Rd., Odenton.) For more information on the local real estate market, contact him at (443) 924-7418.

New Disabled Veterans Mortgage Program Offers Big Help to Maryland Vets

Applicants Need to Hurry, Though – Program Ends May 30th

Do you know a disabled military veteran looking to buy a home in this area? The state of Maryland last week announced the creation of a new – and temporary – initiative designed to help such buyers purchase a home using bargain interest rates. Even better, the new mortgage assistance program can be used in conjunction with other state programs that offer down payment and closing cost assistance to veterans. Interest rates for the Maryland Homefront Disabled Veterans Mortgage Program are as low as 3 percent. Up to $5,000 in down payment and closing cost assistance also is available to qualified applicants. Interested homebuyers have to hurry, though. According to information distributed by the Maryland Department of Housing and Community Development, the program is set to expire in two months – May 30, 2014. Program Eligibility The program is open to honorably discharged disabled veterans. By program definition, a disabled veteran is a veteran with a 30 percent or greater disability. Eligible veterans also must qualify for a Maryland Mortgage Program loan, based on such criteria as credit score, income limitations, etc. Before buying their home, eligible veterans must take approved homebuyer education courses and use an approved mortgage lender. Loans under the program typically are limited to first-time homebuyers. However, this requirement can be waived under certain circumstances. Qualification for a Veterans Administration loan is not required. Under the program, the property purchased must be located in the state of Maryland. Jerry Kline is a Realtor with the Odenton, Md., office of Keller Williams Flagship Realty (1216 Annapolis Rd., Odenton.) For more information on the local real estate market, contact him at (443) 924-7418.

Four Million Homes Return to Positive Equity

If negative equity in your home has kept you from selling it, now is the time to reassess whether selling your home makes sense. In 2013, 4 million homes returned to positive equity, bringing the total to 42.7 million, CoreLogic reports. “The plight of the underwater borrower has improved dramatically since negative equity peaked in December 2009 when more than 12 million mortgaged home owners were underwater,” says one expert.

4 Million Homes Return to Positive Equity

Student Debt Holds Some Buyers Back, But Doesn't Need To

According to the article, "underwriters generally treat student debt in a more positive light than credit card or auto loan debt." Study: Student Debt Holds Buyers Back, But Doesn't Need To

It's Getting Easier to Qualify for an FHA Mortgage Loan

Wondering whether you qualify to purchase a new home? A government agency reports that the average credit score on FHA-backed loans fell to 680 in 2013, and the average debt-to-income ratio of borrowers rose to 40.3 percent — both indicators that credit requirements may be easing. In comparison, the agency reported in January 2013 that the average credit score was 701 and the debt-to-income ratio was 38 percent.

If you'd like more information on whether you qualify for an FHA or other type of mortgage to buy a home, contact me today ((443) 924-7418). I'll be happy to put you in touch with an excellent group of mortgage professionals.

It's Taking Less to Get an FHA Loan

For Those Who Held On, Equity Has Returned

A new report shows that a borrower who bought a median-priced home in 2004 and held it for nine years – the average tenure in a home – would now have $28,114 in equity (including combined price appreciation and paying down mortgage principle). Home owners who purchased in 2006  and 2007 – during the peak of the market – are “nearly in positive equity” territory. For Those Who Held On, Equity Has Returned

November Housing Stats for Gambrills: Listings Up Sharply Year Over Year

Growing Confidence in the Local Real Estate Market Leads More Homeowners to Put Their Homes Up for Sale

Median prices for homes sold in Gambrills in November were down slightly from November 2012, but the number of homes for sale in zip code 21054 jumped 63 percent year over year.

According to new housing data provided by the Metropolitan Regional Information System (MRIS), 62 homes were actively listed for sale in Gambrills when November ended. At the end of November 2012, 38 homes were listed for sale.

The spike in the number of homes for sale last month is a sign of growing confidence in the local housing market. Median home prices have risen throughout the region over the last year, allowing more homeowners who were underwater with their mortgages to overcome those deficits and break even or make money on their home sales.

The MRIS numbers also show that 13 homes sold in Gambrills last month, three more than in November 2012. At the moment, Gambrills has almost five months of housing inventory on hand.

Nov. 2013

Nov. 2012

Percent Change

Median Sold Price

$373,500

$382,500

-2.35%

No. Units Sold

13

10

30.00%

Avg. Days on Market

67

94

-28.72%

Attached Homes Sold

7

4

75.00%

Detached Homes Sold

6

6

0.00%

No. Active Listings

62

38

63.16%

Another positive sign for homeowners in Gambrills is a large drop in the “average days on market.” This number reflects how quick home are selling. The average days on market for homes sold in November 2012 was 94 days. Last month, that number dropped to 67 days.

Seven attached homes – such as townhomes, condos and duplexes -- sold last month in Gambrills, compared to four such homes in November 2012. Six detached homes sold in Gambrills in November 2012 and November 2013.

Jerry Kline is a Realtor with the Odenton, Md., office of Keller Williams Flagship Realty (1216 Annapolis Rd., Odenton.) For more information on the local real estate market, contact him at (443) 924-7418.