Anne Arundel County Real Estate

If you’ve fallen behind in your house payments and you are worried about a possible foreclosure - there may be an answer.

If you can currently make your regular payment, but you can’t catch up with the past-due amount - you might be able to negotiate with your lender to fold any past-due amounts, including interest and escrow, into the unpaid principal balance and then having this new amount will be re-amortized over a new period of time.

This type of an agreement is called a loan modification.

There are many reasons that you may want to look into loan modification - although this is not a process that you will want to consider for just any reason, it is one that offers some benefits if you find yourself in a dicey situation.

For many people, the process of loan modification never comes to mind. But on the other side of things, there are some people who have had to deal with this in order to get their life back on track.

So what are the benefits of loan modification? Here are three that you should keep in mind if you find yourself staring this scenario in the eye.

1. If you have missed mortgage payments in the past, but are now back on track, loan modification can help you to keep things this way. Generally speaking, your lender will allow you to roll your missed payments into a modified loan. For this reason, you will be back on track with the ability to pay the money that you missed out on in the past.
2. Simply put, loan modification can help you to keep your home if you are facing foreclosure. As you can imagine, this is one of the biggest benefits of this process. If you have found yourself with foreclosure closing in, loan modification could help you to escape just in time. This is not always the case, but you should at least look into loan modification if you think that it has the chance to help you out.
3. Although the loan modification process is long and drawn out, if it is something that you need to do, it is not nearly as hard as you may think. You will have a lot of help along the way, and if you are willing to make it work, you will definitely want to consider moving through the many steps with speed and precision.

These are only three of the main benefits of loan modification and as you can imagine, there are many others that you will also come across if you are ever faced with this situation.

But remember, the loan modification process is not all fun and games. It would be much better on you and your home if you never have to consider looking into this process.

Even though there are companies out there that will help you negotiate your loan modification - you may be better off in the long run if you try to do it yourself. And in spite of what you might think - mortgage companies handle loan modification requests every day.

Just contact your mortgage company and explain your situation. You might be surprised at how helpful they can be.

Ok, we’ve had it pretty easy this winter - so far. A few days ago it was in the 70’s and today we have a thin sheet of ice covering everything. Temperatures have fallen and since we haven’t really had to heat our homes too much this winter - I thought I’d remind of us of something:

If you have a wood stove, fireplace, kerosene heater or natural gas furnace - you may be at risk for Carbon Monoxide poisoning. Carbon Monoxide (CO) is colorless and odorless and can accumulate when the fuel you are using is not burning properly. This may be due to improper installation of the heating appliance or because of improper ventilation.  So here are some tips to reduce the chance of Carbon Monoxide poisoning:

• Make sure you buy a CO alarm and place it in any sleeping areas of your home.
• Keep all rooms with kerosene heaters properly ventilated.
• Have a professional inspect, clean and repair the central heating system each year.
• This is an obvious one - but make sure you open the flue before you build a fire in the fireplace.
• Have fireplaces and chimneys inspected by a trained professional every year.
• Install and use any word burning stoves and fireplaces as the manufacturer recommends.
• Keep gas appliances properly ventilated.
• Never use the kitchen range or oven to heat your home.
• Never use a gas or charcoal grill inside the home.
• Don’t leave the car running inside the garage - even if you leave the garage door open.
• If your CO Alarm goes off - turn off all heat sources, open the windows and doors, leave the house immediately and call the fire department.
• CO Alarms are NOT Smoke Detectors and vice versa.

Dealing with pre-foreclosure is not always easy to do.

In fact, dealing with pre-foreclosure is never easy to do no matter who you are. The fact of the matter is that this is something that you never want to talk about if you have a mortgage on your home. If you are talking about pre-foreclosure there is a good chance that you are behind in your payments, and feeling like you are going to have your home repossessed. And as you can imagine, this is a process that is far from fun.

The best way to deal with pre-foreclosure is to avoid it altogether. While this is easier said than done for some people, you should remember that your lender does not want to go through this.

When it comes down to it, foreclosing on a home is a timely and difficult process for a lender. Not to mention the fact that they are probably going to lose money on the deal as well. For this reason, if you touch base with your lender before pre-foreclosure sets in, you may be able to work out a deal that both of you can agree on. Even if you are far behind in your payments, there is a chance that they may set something up to help you get back on track.

If pre-foreclosure has already set in, you need to look into what happens next.

Generally speaking, pre-foreclosure is the step before your home is taken back by your lender. At this point, you still own your home, which means that you can do whatever you want.

For most people, the best option during pre-foreclosure is to look into selling. This way, you can make your back payments to the lender, and hopefully, pay off the remaining balance of your home as well. Just remember, you are only going to be in the pre-foreclosure for so long. You need to do whatever you can to sell during this time, if that is what you decide to do. In many cases, this means that you will have to take a lower price than what your home is actually worth.

Overall, dealing with pre-foreclosure is never fun. This is something that every homeowner would rather not talk about. But if you are faced with this situation, there are ways that you can attempt to make things better.

Are you looking to buy a house and/or get a loan approved in the coming months?

Don’t you hate it when your lender or mortgage broker says they need just one more piece of information?

Here is one of the most complete lists of every document necessary for the approval of a loan. Figure out which one’s you’re responsible for - or give me a call and I’ll let you know which ones you need - and then when the lender calls, you don’t have to scramble to get what he or she needs.

Loan Approval Checklist

• Appraisal
• Credit Report
• W-2’s (2 most recent)
• 1040 Tax Returns for 2 most recent years
• Paystubs for all borrowers for last 30 days
• Profit and Loss statement, YTD and balance sheet from accountant for self-employed borrowers
• Business Tax Returns
• Verification of additional income (child support, Social Security Income (SSI), Pensions, etc.)
• Most recent statements on 401 plan, IRAs, stocks, mutual funds, etc. \
• List of all open accounts with balances (credit, auto payment)
• Bank statements for the last 3 months with ALL of the pages
• Gift letter and copy of gift check (if applicable)
• Name and address of landlord (last 2 years) or mortgage company
• Copy of note
• Copy of deed and trust on property being refinanced
• Copy of leases on rental properties
• Copy of contract on sale of present home
• Ratified sales contract with all addendums
• Copy of earnest money deposit check
• Copies of military orders (if applicable)
• Copy of DD214 (Military Discharge Papers) (if applicable)
• Original Certificate of Eligibility
• Copy of the title to any car, boat or other vehicles less than 3 years and paid in full
• Copy of divorce decree or separation agreement
• Child support documents with 1 year payment history from courthouse (if applicable)
• Paid receipt for any collections, charge-offs, judgments, or liens

Instead of selling and moving from your house – a lot of people are looking to remodel.

If you’re one of these people and you’re going to be hiring a remodeling contractor you probably have money on your mind. After all, you are well aware that you are not going to get your work done for free. But with that being said, you probably want to make sure that you do not overpay as well.

The best way to avoid paying too much is to make sure that you speak with several contractors before making a hiring decision. It is very important that you take the time to interview more than one contractor before you hire. Remember, this is the only way that you are going to be able to figure out the different prices where a contractor is willing to work. It is much better for you to do this than it is to rely on one price quote.

It is very important that you shop around for a contractor that is going to do good work at a fair price point. You could go in one direction or the other, but it is better to find middle ground. For instance, a lower price may sound good, but in the long run it could mean that the work is not up to par. And you obviously do not want to pay more for something that could be done for less.

Generally speaking, your main goal should be to find a happy medium that suits the needs of both you and your contractor. In other words, the price should be mutually agreed upon so that everybody is happy. All in all, this makes for a much better work environment in the long run.

Another thing to keep in mind is that your costs should also be outlined in the contract that you sign. This is the best way to protect you against overpaying as the project moves forward. You need to make sure that the price listed in the contract is the price that you are going to have to pay. Of course, there may be exceptions to this, but these are all things that you will need to talk about with your contractor if the problem comes up.

Overall, you can avoid paying too much by signing a contract after you take the time to speak with more than one contractor.

No matter how much time you put into hiring the right contractor, there is no way of knowing for sure if things are going to work out. When it comes down to it, all you can hope for is that your contractor works out in the end. If you have found yourself in a bad spot, you need to know what it takes to properly deal with a bad contractor. Knowing how to do this will definitely help to make things much easier on you in the long run.

So, from your friendly neighborhood real estate agent - here are a few tips:

First off, you need to determine why your contractor is not working out. In other words, what makes them so bad? If you cannot answer this question, you are going to have a hard time getting to the bottom of the problem. Luckily, for most people, determining the problem with their contractor is not hard to do. In most cases, you will be able to see the issue on the surface. From there, you will be in the best position to make light of the problem, and in turn, hopefully get things fixed.

Once you know what the problem is, the next step is to get in touch with your contractor to iron things out. You may find out that everything can get back on track with one simple change. Believe it or not, your contractor is not going to want to make you mad. Simply put, it is their job to make sure that everything gets done as planned. But as you can imagine, this does not always work out. When speaking with your contractor about a problem, make sure that you are professional at all times. Tell them what you see, and ask them to explain the situation. Again, you may find out that you are jumping the gun, and that your contractor can make you happy in no time at all.

As you can see, dealing with a bad contractor is not always a task that is hard to handle. In most cases, your contractor will be more than willing to work with you to resolve any problem that you have. They want to make sure that you get the perfect end result, and that you also refer them to other people. As long as you are professional and let your feelings be known, you should not have any problems dealing with a bad contractor.

Even though you might have heard nightmares - it is my experience that the vast vast majority of remodeling contractors are fair and honest - especially in and around Anne Arundel County.  Most of the time any break-down in a working relationship is due to the owner and contractor having different expectations from the beginning of the job.  Working on settling these differences before the work begins is the easiest way to avoid conflicts later on.

Living in Anne Arundel County means living near the water.

While demand never seems to disappear for waterfront property, across the country the slowing real estate market has presented some great deals by lakes and oceans.

This isn’t any different here locally. In addition to waterfront property on the Chesapeake Bay, Anne Arundel County has four main rivers (West River, South River, Severn River and Magothy River) and dozens of smaller tributaries - making it a fantastic place to find waterfront property!

The desire to look out your window and see water will always be there and will always be an added incentive for someone to purchase a home.

But there are drawbacks to living the waterfront life.

Among them: premium property prices, high insurance rates (especially if you’re near a flood zone), and costly maintenance because moist air corrodes pipes and eats away at paint. But there are just as many perks.

Tonja Demoff, author of the book Bubble Proof: Real Estate Strategies That Work in Any Market, offers these five reasons for considering waterfront property.

1. Waterfront properties are in high demand and are often a great investment either for resale or rental income.

2. Fewer mosquitoes and insects as the ocean breezes push the critters westward.

3. Wonderful environment for children, away from the pollution of the city and a sedentary lifestyle.

4. Great exercise potential for people of all ages, be it swimming or walking along the shore or coast.

5. Breezes from the water make the hottest summer day feel cooler.

Right now, as I write this there are 114 water-front properties for sale in Anne Arundel County that are listed for less than $700,000.

18 of these houses have been on the market for over a year - so their owners are probably anxious to see an offer or two come their way.

Here is a quick checklist to keep your house dry:

√ Monitor your water pressure and know where the shut-off is for the water coming into your house

√ Inspect hoses leading to indoor faucets, the dishwasher, washing machine, water heater and ice makers.  Repair or replace if necessary.

√ Recaulk around tubs, showers, sinks and counter-tops as necessary.

√ Check the caulk and seals around windows and doors

√ Conduct a roof check once a year (fall is a good time ~ when you are cleaning out gutters or putting up Christmas lights)

√ Don’t leave home while the dishwasher is running.  The dishwasher drains into the sink and if the sink drain is clogged, the dishwasher will overflow the sink.

√ Repair little leaks before they become big leaks.

If you need somewhere to live, you have two options available. You can either rent or you can buy. Of course, there are other setups that you can look into, but all in all, these are your two best options. Although it may sound easy enough to choose, when it comes down to it, deciding to rent or own can be a very difficult decision. After all, there are some benefits and drawbacks of each one. You will want to make sure that you are sure of what you are getting into no matte which option you choose.

First off, take a closer look at what renting has to offer. The main benefit of this is that you will not have to pay any large sums of money out of your pocket up front. In other words, you do not have to pay for a down payment or closing costs. At most, you may have to pay a security deposit in order to protect the landlord. On the other side of things, when you rent a home or apartment you are not building any equity. You are basically paying somebody else for a space based on your lease. When you leave you leave. You do not have to sell anything, and you do not own any stake in the property.

On the other side of things, buying a home means that you are going to more than likely need money for a down payment and closing costs. There are some loan programs that may work with you as far as the down payment is concerned, but generally speaking, you are going to need some money in order to finalize the transaction. But of course, when you own you will be building equity in a piece of real estate. And if you are lucky enough to finally pay your home off, you will be in a position to live mortgage free. This is a day that a lot of people look forward to.

As you can see, there is no way of saying if you should rent or own. You need to decide what benefits you the most, and then make your move. The decision should be yours, and after doing research into both options, you should be able to make up your mind.

Effective October 1, 2007 two laws take effect that affects some contracts/properties in Anne Arundel County.

The required addendum for Anne Arundel County dated 10/1/2007 is to be used with all residential contracts of sale in the county.

Also new, the Anne Arundel County Required Addendum should be filled out at time of listing, and sent with the disclosure/disclaimer to an agent wanting to write a contract.

Here are the changes:

The first is a disclosure of pending enforcement action in a critical area:

NOTICE – CHESAPEAKE BAY CRITICAL AREA. If Anne Arundel County or the State has initiated enforcement action for a violation of a local law described in § 5-106(BB) (1) of the courts and judicial proceedings Article, a contract for sale of the real property where the violation occurred shall disclose:

(I) The nature of the violation;

(II) The status of any ongoing proceedings to enforce the violation; and

(III) Any actions the buyer of the real property may be required to take with respect to the property in order to cure the violation.

The second, is a disclosure of a subject property being located in a historical district in Annapolis:

ANNAPOLIS HISTORIC DISTRICT ONLY-REQUIRED NOTICE-CITY OF ANNAPOLIS-Property is located in the Historic District as defined by Annapolis City Code Section 21.56.030. Buyer should visit the website of the Historic Preservation Commission to learn about the various requirements that apply to properties located in the District.