Got Your Swimsuit Ready? The Second WAVE of FORECLOSURES are coming in 2010!

We have all read the headlines in the newspapers, "We are in recovery!".

With home prices beginning to stabalize and Loan Modifications are being processed, we thought the worst was over.

But is it over?

The latest market study from Jacksonville, Florida's "Lender Processing Services" shows that mortgage delinquencies and foreclosures remain alarmingly elevated. They state that, "The number of loans deteriorating further into delinquent status is now more than twice the number of foreclosure starts, indicating another major wave of troubled loans in an already clogged loan pipeline". They go on to say, "Nearly one-third of foreclosures remain in pre-sale status after 12 months - twice as many as the year prior".

The ugly word that started this mess was Subprime Loans...then Subprime Adjustable-rate Mortgages (ARM's). Most of these mortgages were reset in 2007 and 2008...the tide receded and we thought.."recovery is here...finally". .....or is it?

No one is mentioning the SECOND wave of ARM resets and eventually....foreclosures.

This new WAVE of foreclosures will be difficult for the industry to handle. (Unless of course you are a potential buyer of one of these Bank Owned Homes). This new wave is primarily made up of "Option ARM's". Remember this name. These basically gave the borrowers the option of what they want to pay during repayment.

Many chose the option to make a smaller payment which is below the amount needed to cover the interest on the loan. This in-turn causes the mortgage balance to increase. They can continue to make the minimum payment until the mortgage balance increases to 125% of the original amount. What?...that's right...many loans are already their....125%! This is when the wave will start...we already seeing it happen now....just not in the drive-by media!

According to Whitney Tilson and Glenn Tongue of T2 Partners, about 80% of the Option ARMS's are negatively amortizing. These loans were set to reset in 5 years or 2011 but that reset is occuring now for many homeowner's....why? Because for many of the Option ARM's...they are so negatively amortized that they are hitting the automatic reset cap much earlier than expected....the wave is coming!

Can you imagine in this economy receiving a new mortgage payment 2 or even 3 times the amount you were paying before? As REALTORS we keep saying now is the time to buy!...I receive calls all the time from potential buyers looking for Bank Owned Homes in Maryland and Baltimore. If you are looking for purchase a Bank Owned Property or Home in Maryland and are looking for an experienced real estate agent, Robert McArtor with Long and Foster Real Estate, Inc. is your answer.

Why Choose Maryland HOMES Team? - I have negotiated deals for my buyers that they are very please with. I even purchased a Bank Owned Property for $100,000 under the Principle Mortgage Amount AND negotiated the bank to pay ALL my closing costs. I know how to do it...I know the timing...contact me today!

Ten Facts about the $8,000 First-Time Homebuyer Tax Credit

Ten Facts about the First-Time Homebuyer Credit

Many taxpayers who purchase a home in Maryland this year will qualify for an $8,000 federal tax credit. The refundable first-time homebuyer credit is a major tax provision in the American Recovery and Reinvestment Act of 2009. But time is running out to qualify for this credit.

Here are ten things the IRS wants you to know about the first-time homebuyer credit:

1. To be considered a first-time homebuyer, you – and your spouse if you are married – must not have jointly or separately owned another principal residence during the three years prior to the date of purchase.

2. You cannot claim the credit before there is a completed sale and purchase of the residence. The sale and purchase are generally completed at the time of closing on the purchase.

3. To qualify for the credit, the completed purchase must occur before December 1, 2009.

4. The home must be located in the United States.

5. The credit is either 10 percent of the purchase price of the home or $8,000, whichever is less.

6. The amount of the credit begins to phase out for taxpayers whose modified adjusted gross income is more than $75,000 or $150,000 for joint filers.

7. The credit is fully refundable. A homebuyer with no taxable income, who qualifies for the credit, may file for the sole purpose of claiming the credit and receive a refund. The credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.

8. The credit is claimed on IRS Form 5405, First-Time Homebuyers Credit.

9. Taxpayers can claim the credit for a qualified 2009 purchase on either their 2008 or 2009 tax return. For those who have filed a 2008 return, a Form 1040X, Amended U.S. Individual Income Tax Return can be filed in order to get a refund in 2009.

10. The credit for qualified 2009 purchases does not have to be repaid, as long as the home remains your main home for 36 months after the purchase date.

Qualified taxpayers who have been considering a main home purchase may find extra incentive from this tax credit to buy now so they can complete the purchase before the December 1 deadline.

 

 

For more information on this and other key tax provisions of the Recovery Act visit the official IRS Website at IRS.gov/Recovery.

Links:
First-Time Homebuyer Credit
YouTube Video - First-Time Homebuyer: English Spanish ASL
Audio File for Podcast - First-Time Homebuyer Credit 2009: English Spanish
The American Recovery and Reinvestment Act of 2009: Information Center
Form 5405, First-Time Homebuyer Credit (PDF)
Form 1040X, Amended U.S. Individual Income Tax Return (PDF)

AVOIDING FORECLOSURE in MARYLAND, 10 Steps to Take

If you are unable to make your mortgage payment in Maryland:

1. Don't ignore the problem. The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house.

2. Contact your lender as soon as you realize that you have a problem. Lenders do not want your house. They have options to help borrowers through difficult financial times.

3. Open and respond to all mail from your lender. The first notices you receive will offer good information about foreclosure prevention options that can help you weather financial problems. Later mail may include important notice of pending legal action. Your failure to open the mail will not be an excuse in foreclosure court.

4. Know your mortgage rights. Find your loan documents and read them so you know what your lender may do if you can't make your payments. Learn about the foreclosure laws and timeframes in your state (as every state is different) by contacting the State Government Housing Office.

5. Understand foreclosure prevention options. Valuable information about foreclosure prevention options can be found on the internet portal.hud.gov/portal/page?_pageid=33,717348&_dad=portal&_schema=PORTAL

6. Contact a HUD-approved housing counselor. The U.S. Department of Housing and Urban Development (HUD) funds free or very low cost housing counseling nationwide. Housing counselors can help you understand the law and your options, organize your finances and represent you in negotiations with your lender if you need this assistance. Find a HUD-approved housing counselor near you or call (800) 569-4287 or TTY (800) 877-8339.

7. Prioritize your spending. After healthcare, keeping your house should be your first priority. Review your finances and see where you can cut spending in order to make your mortgage payment. Look for optional expenses-cable TV, memberships, entertainment-that you can eliminate. Delay payments on credit cards and other "unsecured" debt until you have paid your mortgage.

8. Use your assets. Do you have assets-a second car, jewelry, a whole life insurance policy-that you can sell for cash to help reinstate your loan? Can anyone in your household get an extra job to bring in additional income? Even if these efforts don't significantly increase your available cash or your income, they demonstrate to your lender that you are willing to make sacrifices to keep your home.

9. Avoid foreclosure prevention companies. You don't need to pay fees for foreclosure prevention help-use that money to pay the mortgage instead. Many for-profit companies will contact you promising to negotiate with your lender. While these may be legitimate businesses, they will charge you a hefty fee (often two or three month's mortgage payment) for information and services your lender or a HUD approved housing counselor will provide free if you contact them.

10. Don't lose your house to foreclosure recovery scams! If any firm claims they can stop your foreclosure immediately if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home! Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney, a trusted real estate professional, or a HUD approved housing counselor. If you are thinking of selling your home as-is, call Robert McArtor to obtain FREE Comparables in your area so you know the prices. Some will try to put your house under contract just to try and sell it themselves and keep all the equity! If the property does not sell, you become further behind, losing time and they just walk away.

I have been asked over the past years, "Robert, we are a few months away from being foreclosed on, do you know what we should do?" Without knowing their situation, it is hard to answer without crossing the line of giving legal advice. For your further research into the subject, I would recommend the following links as a guidance through this difficult process.

Don't lose your home! Here are some guidance on default and foreclosure prevention. If your adjustable rate or interest only mortgage is about to reset, these programs may help you refinance into an affordable fixed rate mortgage. If you are looking for a trusted REALTOR or Auctioneer for a FREE consultation. Please do not hesitate to contact me. I may be able to point you in the right direction for your specific problem. Robert B. McArtor, is a REALTOR and Licensed Real Estate Auctioneer with Long and Foster Real Estate, Inc. and Advantage Real Estate Auction Sales, LLC. for more information, call 443-392-4833

>>>FHA Secure

>>>Maryland's HOPE Initiative

Housing Counseling Agencies - Counseling on buying, renting, defaults, foreclosures, credit issues and reverse mortgages.

Legal Assistance in Maryland - Find free legal services in your community.

Sellers Need Patience and Exposure or their Homes in Maryland

Real Estate Foreclosures and Selling Your Home in the NEW YEAR!

What will 2008 hold for the Foreclosure Market.

As the new year approaches, I am constantly thinking of what 2008 holds for many homeowners trying to sell their property. I am constantly taking phone calls from nervous sellers that think the Auction Method may be the ONLY viable way to sell their home. The reality is, after looking closely at the numbers, very few would even qualify for a successful "Traditional" Auction Sale. The auction method can meet several needs for the seller however is not meant for every property.

So...what is the alternative? If your property is listed with an aggressive Real Estate Agent...it's "Patience and Exposure". I tell sellers to be patient in this market. Your "Days on Market" have increased. Be aggressive with your price to reflect your market and condition. Price it according to condtion! I can't stress that enough. The next is "Exposure". Where is your property being advertised? Do you have a Visual Tour with statistics? (not just a glorified slide show). Can you find it easily on the internet knowing 4 out of 5 buyers start their home search on the internet? Many will eventually find a home starting with the internet. There is a lot of inventory for buyers to choose from. Get your property out there for the world to see! On a side note, buyers are looking for the best deals and certainly don't want to make a huge purchase in a downward market. Make your property attractive with incentives, i.e. closing cost assistance, etc.

Since October 2006, housing prices have taken an average 6% reduction. This is difficult for many sellers to swallow. In the world of Real Estate this is coined as tragic for home owners. In any other market however (Retail, Stock Market), it simply becomes a "Buying Opportunity". In my market covering Maryland, Baltimore, Harford and Cecil County, I believe Buyers will be and ARE coming out of the woodwork! I have instructed my team to be patient with the "tire kickers". They WILL be buyers soon.

What does 2008 hold for the Real Estate Market?

The short answer is it may be a difficult year for sellers who have not planned early enough to market their homes. Too many homeowners have taken on mortgages that are not realistic for them to re-pay. The last minute decisions to sell a home hoping for the magical contract to come in before being foreclosured on is not realistic. In most cases this will not happen. I am noticing Deed of Trusts that are less than 2 years old heading for foreclosure. Most are not "Sub-Prime" loans or so-called "shady" adjustable rate mortgages.

Out of the 7 auctions I conducted today, December 28, 2007, only 1 was an adjustable rate mortgage. Not all Foreclosed Property owners were "victims" of the sub-prime market! Most simply victimized themselves by chasing the Dream of owning a home they could not afford. The great thing I love about being a human on this earth is....we are allowed to make mistakes. Some costs are greater than others.

In early January 2008, there are 190+ Foreclosure Auctions I am scheduled to conduct over a 3 day period. This will cover only 4 counties in Maryland. Lenders will be over-run with properties which means a buying opportunity for investors and others. The difficult times for a few are still ahead. If you find yourself falling behind on payments, PLAN AHEAD! Talk to your Lender. If things cannot be worked out and you have enough time. Talk to your REALTOR® or local Real Estate Auctioneer. If you live in Maryland. There is only one phone call you need to make. We are here to help.

Have a Great New Year!

Robert B. McArtor, REALTOR and Noted Real Estate Auctioneer

Long and Foster Real Estate, Inc.

1-877-421-SOLD

http://www.MarylandsHomeTeam.com/

http://www.harfordadvantage.com/

REAL ESTATE AUCTIONS, FIRE SALES for DISTRESSED PROPERTIES?

Auctions Are Often Thought of as "Fire Sales" For Properties in Distress. Is this True?

Until recently, real estate auctions in Maryland, unlike art and antique auctions, have experienced unfounded negative images in the marketplace. The majority of real estate auctions today don't result from foreclosure of distress situations, but rather are the result of a seller choosing a cost-effective, accelerate method to sell a property. Builders or financial institutions, for example, prefer auction rather than laboring for months or years to sell units of a development one by one. For years, Auctioneers in Maryland like Alex Cooper, Advantage Real Estate Auction Sales, LLC., A.J. Billig, Express Auctions have worked with Sellers of Real Property through-out Maryland. Auction allows the seller to eliminate virtually all long-term carrying costs, passing the savings directly to the purchaser in the form of a reduced price. Auction is truly a win-win situation: sellers obtain immediate cash and buyers purchase properties at fair market value, the price determined by open, competitive bidding. Maryland residents enjoy the advantages of the Auction Method.

What Factors Impact the Success of an Auction?

1. The seller must have realistic expectations, including a fair sales price, terms and timing.
2. The desirability of the property. This includes location, conditions, plus the value of surrounding properties.
3. Since a variety of auction methods are available, carefully choose the auction type that best suits the property and the seller's needs. Maryland has seen a great success in the Auction Method of Marketing Properties.
   
4. A well planned, aggressive marketing/advertising campaign targeted to prospective purchasers is critical to an auction's success. My company has been very aggressive with this...even going as far as offering a "$1,000 SOLD" guarantee!
   
5. Using a recognized real estate auction company such as Advantage Real Estate Auction Sales, LLC. or a REALTOR® auctioneer to ensure the auction is conducted in a professional manner and followed-up through closing. We serve Harford, Baltimore, Cecil and Surrounding Areas.
   
6. Making sure that due diligence information is provided to prospective buyers AHEAD OF TIME.
7. Preparing the property for sale so it is presented to prospects in its best condition. (i.e.., title insurance, clean-up, financing, etc...)

Most properties are salable by auction. All types of real estate, including residential property (e.g., town homes, condominiums, cooperative apartments and single-family homes), commercial and industrial property, vacant land and even boat slips are sold at auction. Not all property, however, is suited for auction. If a property will only appeal to a narrow market, auction may not be the most effective marketing method.
If you have any questions, please feel free to contact Robert B. McArtor at 410-879-0622

TOP BALTIMORE MARYLAND AUCTIONEERS and AUCTIONS, ROBERT MCARTOR, REALTOR

TOP BALTIMORE MARYLAND AUCTIONEERS and AUCTIONS, ROBERT B. McARTOR, REALTOR
We are Real Estate Auctioneers in Baltimore. Conducting Sales in Maryland, Harford County, Baltimore County, Baltimore City Auctioneers and Auctions through-out the United States. The right price for your property is the one set by a competitive market. There is no faster, more direct way to ascertain your property's value than with Robert B. McArtor, recognized REALTOR® with Long and Foster Real Estate, Inc. and Auctioneer. Our aggressive, customized marketing programs are specifically designed to attract the largest possible pool of qualified buyers. Through the competitive bidding process, buyers and sellers quickly learn what the market will pay for a property. "Let us place your property in an "Accelerated Auction Marketing Program" and we"ll mark your properpty SOLD! Other Auction Companies to Choose from are Alex Cooper Auctioneers, A.J. Billig, Auction Brokers, Richard Opfer, Express, Dance, Campbell and others.

Auctions Are Often Thought of as "Fire Sales" For Properties in Distress. Is this True?Until recently, real estate auctions, unlike art and antique auctions, have experienced unfounded negative images in the marketplace. The majority of auctions today don't result from foreclosure of distress situations, but rather are the result of a seller choosing a cost-effective, accelerate method to sell a property. Builders or financial institutions, for example, prefer auction rather than laboring for months or years to sell units of a development one by one. Auctions in Baltimore City allows the seller to eliminate virtually all long-term carrying costs, passing the savings directly to the purchaser in the form of a reduced price. Auction is truly a win-win situation: sellers obtain immediate cash and buyers purchase properties at fair market value, the price determined by open, competitive bidding. Maryland residents enjoy the advantages of the Auction Method in Baltimore City.What Factors Impact the Success of an Auction in Baltimore?

The seller must have realistic expectations, including a fair sales price, terms and timing.
The desirability of the property. This includes location, conditions, plus the value of surrounding properties.
Since a variety of auction methods are available, carefully choose the auction type that best suits the property and the seller's needs. Maryland has seen a great success in the Auction Method of Marketing Properties.
A well planned, aggressive marketing/advertising campaign targeted to prospective purchasers is critical to an auction's success.
Using a recognized real estate auction company or a REALTOR® auctioneer to ensure the auction is conducted in a professional manner and followed-up through closing. We serve Harford,Baltimore, Cecil and Surrounding Areas.
Making sure that due diligence information is provided to prospective buyers AHEAD OF TIME.
Preparing the property for sale so it is presented to prospects in its best condition. (i.e.., title insurance, clean-up, financing, etc...)
Most properties are salable by auction. All types of real estate, including residential property (e.g., town homes, condominiums, cooperative apartments and single-family homes), commercial and industrial property, vacant land and even boat slips are sold at auction. Not all property, however, is suited for auction. If a property will only appeal to a narrow market, auction may not be the most effective marketing method.

Real Estate Auctions for REO Managers

Baltimore, MD. - Advantage Real Estate Auction Sales, LLC. a local real estate auction firm based in Maryland is pleased to announce its involvement with local Loss Mitigation, and REO asset managers to assist them with liquidating under-productive inventory.
Our full service marketing team understands the needs of REO managers. Their portfolios are filled with assets that are not offering a return for their investors and shareholders alike. They find that holding costs are high and expenses can be unbearable to incur.If you are an REO manager and would like to see Advantage Real Estate Auctions work for you in liquidating your unsold properties. Our staff is here to assist you. With over $7 Million in Auction Sales in 2007, we are the Advantage Auction Company of Choice in Maryland. "We are able to bring multiple buyers together and bid in a competitive environment to insure our clients a speedy, economical solution to their inventory without the towering costs and charges from national auction companies that may not have knowledge of the local market" Says Robert B. McArtor, Founder of Advantage Real Estate Auction Sales, LLC. Robert B. McArtor, Managing Member and Founder of Advantage Real Estate Auction Sales, LLC. has extensive experience working with banks and institutions in converting nonperforming assets into cash. He is a licensed Auctioneer in Maryland and Real Estate Agent with Long and Foster Real Estate, Inc. Robert McArtor currently has affiliates in all 50 States.For more information, contact Robert B. McArtor at 410-879-0622, or by visiting the Advantage Team on the web at http://www.harfordadvantage.com/