Real Estate Information Archive

DeHanas and Nichols Complete Financing and Tax Course            

Don DeHanas and Stephen Nichols with DeHanas Real Estate Services in Waldorf has just completed a highly specialized real estate course, Financial and Tax Advantages for Agents and Their Clients, Las Vegas Nevada, presented by the Council of Residential Specialists.  The two-day course earns tow units of core credit toward the Certified Residential Specialist designation.

Every real estate transaction has tax and financial considerations. REALTORS must be prepared to help their clients understand the financial options that are available as they contemplate the single biggest purchase they likely will make in their lives. The right financial choice can save clients money and give them peace of mind.

During the two-day course, participants learned how to identify tax saving opportunities in real estate, financing alternatives, debt and mortgage management strategies, and tools to help them demonstrate financing options.  The course features applications and systems agents can use to become more effective at counseling clients about their real estate financing decisions.

“There are many new real estate financing options available today, more than you might think” says DeHanas.  “Knowing what options there are and how it can better help my clients will help me earn their trust and lead to more referral business down the road.”

The Council of Residential Specialists is a not-for-profit affiliate of the National Association of Realtors, comprised of more than 40,000 members.  It awards the CRS designation to experienced Realtors who have completed advanced professional training and demonstrated outstanding professional achievement in residential real estate.

DeHanas and Nichols specialize in residential real estate, working with investors, first time home buyers, move-up buyers and new construction.

Treasury yields and mortgage rates are lower once again today as equities suffer.  Despite efforts to contain the financial crisis in Europe, the situation seems to be deteriorating.  The minutes released this week from the last Fed meeting indicated that it will be some time before the Fed starts to sell its MBS portfolio.  Additionally, the minutes indicated the financial developments overseas had a big influence on maintaining the current policy.  Throughout the minutes, it was evident that the Fed will be on hold indefinitely as any increase in interest rates could intensify the European problems and create a spillover effect on the U.S. economy.

Over the weekend, the European Union (EU) and the International Monetary Fund (IMF) announced an aid package for Greece.  The announcement has done little to calm fears that Greece’s fiscal crisis may spread to other European countries.  As a result, Europe and U.S. stock markets have been battered and treasury prices have benefited.  Mortgage rates are down again this morning.  There are several economic reports out this week including the April Unemployment Report coming on Friday, but the focus will continue to be on the Greek situation and the resulting effects on stocks.

Rate Trend: Slightly Lower

Website presents information and answers questions on homeowner eligibility with new Foreclosure avoidance resource.

Waldorf, MD - Local Certified Distressed Property Expert, and community advocate, Don DeHanas, of Dehanas Real Estate Services, has announcd the expansion of an information website for Southern Maryland homeowners in distress.

http://hosted.cdpe.com/DonDeHanasHelpsHomeowners

Click on Government Eligibility Survey.  "These surveys will let homeowners quickly discover new options made available by the Governement," DeHanas said. "When faced with the possibility of Foreclosure, I've seen too many homeowners make mistakes because they hadn't been advised by a qualified professional.  These people didn't know the options available, or even how to find any information on their situation. My website helps to solve this problem."

This site acts as a hub for information on the facts and issues for struggling homeowners, putting all the necessary information in one, easy-to-use location. With the addition of these new eligibility surveys, the site lets homeowners make educated decisions about their future.

"Seven out of ten homes that have gone into Foreclosure did so without even being listed on the market," Alex Charfen, co-founder and CEO of the Distressed Property Institute. "Agents like Don DeHanas with the CDPE designation are helping distressed homeowners understand that there may be options available to avoid Foreclosure."

The CDPE designation provides real estate professionals with specific understanding of the complex issues confronting the real estate industry.  Through comprehensive training and experience, CDPEs are able to provide solutions for homeowners facing financial hardship in today's Market.

Fore more information, contact Don DeHanas at [email protected] or call 301-870-1717 x106

We are now into the second quarter of 2010, and the housing statistics are quite interesting.  As we near the end of the Tax Credit Incentive, inventory remains a primary concern.  Single-family, detached inventory is down 17.7%, and townhome inventory is down more than 30%, as of the end of March 2010.  In addition, the average days on the market has dropped by 30% to 106 days.  Typically, these are indications that our market has flattened, and values are sustained, however, the data shows just the opposite.

As of the end of the first quarter, home values were down in Charles County by 11% year-to-date over last year.  Much of the sales activity is taking place in the $200k-$299k price range, where we are seeing multiple offers on the more aggressively priced properties.

Future activity of Bank-owned properties is expected to increase significantly as evidence of the most recent pre-Foreclosure activity in Charles County.  The amount of homeowners in default remained consistent month over month last year, around 900 each month.  For the first time, we saw the number of homes in some state of foreclosure climb to over 1000 during the month of April according to Realist data. Moving forward into the summer, there are predictions of a second wave of foreclosures as reported by Credit Suisse & Clayton, and the Certified Distressed Properties Institute. This wave is expected to be as large, or larger than the last in spite of a series of lack-luster Government programs designed to help struggling homeowners.

Other factors that will shape the third and fourth quarters include;  the ending of the tax credits for homebuyers, which ends April 30, 2010; The USDA’s popular Rural Development Loan has run out of funds, and local housing initiatives like the Neighborhood Conservation Initiative (NCI) have also run out of funding.  In addition, interest rates, which have remained at all time lows, are expected to creep up through the remainder of 2010.

There is certainly no shortage of opinion and information when it comes to the Foreclosure Crisis as tv, news and on-line media have a wealth of articles favoring most any position one might have on the subject.  All, however, agree that we have a long way to go before we are out-of-the-woods.

It has been a relatively quiet week for mortgages.  Yesterday, Existing Homes Sales came in strong rising by 6.8% in March as homebuyers took advantage of the expiring home buyer tax credit.  Pending Homes Sales will be released later this morning, which is also expected higher.  Durable Goods Orders were released this morning, showing an impressive rise in business orders.  Mortgage prices sold off yesterday afternoon and that trend is continuing this morning with rates rising.  The Federal Open Market Committee (FOMC) meets again next week with an announcement coming on Wednesday. 

As the surge of buyer activity draws closer and closer to the expiration of the Federal tax credit, the source of buyer-friendly programs has begun to disappear.  The popular USDA Rural Developement Loan program, a 100% financing program, announced March 10, 2010 that it expected to be depleted of funds by the end of April, nearly 6 months away from the end of its fiscal year, and the appropriation of more funds.  Locally, the Charles County Neighborhood Conservation Initiative (NCI), also recently announced funds had been depleted for its agressive down-payment assistance program for the purchase of Bank-owned properties.

With the upcoming exipration of the tax credit, and many loan programs that have run out of funding, there lies a great uncertainty of what will take place in the housing market beyond the 2nd quarter. 

On a side note; Year to date in Charles County, prices are down from this time last year more than 11%. 

The Housing outlook for 201o, and quite frankly, for the next three years is looking less and less optimistic.  CNBC is reporting the Spring outlook in housing sales to be "as bleak as ever", stemming from the upcoming wave of forclosures.

Read the CNBC artical:  http://www.cnbc.com/id/35877012/

As late as Friday March 19, the Obama Administration announced yet another plan, in a line up of plans that have done very little to impact the alarming rate of forclosures across the country. Some analysts predict less than one million struggling homeowners will get help from the latest plan designed to provide banks and homeowners to seek mortgage modifications. But even the Obama Administration acknowledges this will not help the masses.

Diana Farrell, a White House economic adviser, said the plan won't prevent most of the 10 million to 12 million foreclosures expected over the next three years. Doing so, she said, "wouldn't be fair, it would be too expensive and we probably wouldn't succeed in any case, because many people got into homes that they simply cannot afford."

How is it possible that 12 million homeowners "got into homes that they simply could not afford"? Come on, I for one don't remotely buy into that logic.  Many of the homeowners I represent who are being forced to sell, are having to do so because of job loss, transfer or a reduction in pay, not because they could not afford their house.  These hardships have put them in a position to lose their homes, not the lack of affordability.

Current data from Credit Suisse suggests a significant wave of foreclosures is expected to hit beginning this summer and peaking during the sumer of 2011.  The same data accurately reflected the large wave of foreclosures we just came out of, this next wave is projected to be bigger. Hold onto your hats, we are in for a very rough ride.

DeHanas Real Estate Services Manager, and Associate Broker, Don DeHanas, recently announced the affiliation of John Miller to the Waldorf based brokerage.  “It couldn’t be a better time to begin a career in Real Estate, as business begins to bounce back. John has joined our group at the right time.” Says DeHanas. “He also joins us with a wealth of customer service knowledge, and will be a great asset to DeHanas Real Estate.”

Miller has lived in various parts of Maryland during his lifetime. He is currently an active resident of Calvert County, where he has lived for over 10 years. John began his career in retail sales where he learned firsthand to, "treat your customers as if they were YOU”, and your customers will happily return and refer others. With this attitude ingrained in his work ethic, John earned numerous awards as a top salesperson and the support and sincere gratitude of many.  Wanting to branch out and become more involved in helping others, he went on to become a Firefighter/Paramedic and also takes great pride in helping his “neighbors” as a volunteer Paramedic for Calvert Advanced Life Support.  In his spare time he also teaches Paramedic classes to prospective medical students at Prince George's Community College. John’s desire to extend his excellent service commitments to those looking to buy or sell in this wonderful area is exceeded by no one. He will provide a level of service to each and every client that will make the process as effortless as possible.

DeHanas Real Estate Services is family owned and operated. DeHanas Real Estate is licensed in Washington DC, Maryland and Virginia, and specializes in residential sales, new construction, Foreclosure, short sales and property management.

In an announcemebt by the Department of Housing and Urban Developement today, HUD has said it has created new minimum standards for buyers purchasing homes using an FHA guaranteed loan. More money will be required by buyers in order to purchase a home. The following press release was published on HUD's website this morning. Many see this as a slap in the face to homebuyers and sellers while the housing market is still in trouble.

New Measures Will Help FHA Better Manage Risk, While Maintaining Support for the Housing Market and Access for Underserved Communities

1. Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lending
   • The first step will be to raise the up-front MIP by 50 bps to 2.25% and request legislative authority to increase the maximum annual MIP that the FHA can charge.
   • If this authority is granted, then the second step will be to shift some of the premium increase from the up-front MIP to the annual MIP.
   • This shift will allow for the capital reserves to increase with less impact to the consumer, because the annual MIP is paid over the life of the loan instead of at the time of closing
   • The initial up-front increase is included in a Mortgagee Letter to be released tomorrow, January 21st, and will go into effect in the spring.
     
     
2. Update the combination of FICO scores and down payments for new borrowers.
   • New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA's 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%.
   • This allows the FHA to better balance its risk and continue to provide access for those borrowers who have historically performed well.
   • This change will be posted in the Federal Register in February and, after a notice and comment period, would go into effect in the early summer.
     
     
3. Reduce allowable seller concessions from 6% to 3%
   • The current level exposes the FHA to excess risk by creating incentives to inflate appraised value. This change will bring FHA into conformity with industry standards on seller concessions.
   • This change will be posted in the Federal Register in February, and after a notice and comment period, would go into effect in the early summer.
     
     
4. Increase enforcement on FHA lenders
   • Publicly report lender performance rankings to complement currently available Neighborhood Watch data - Will be available on the HUD website on February 1.
     • This is an operational change to make information more user-friendly and hold lenders more accountable; it does not require new regulatory action as Neighborhood Watch data is currently publicly available.
   • Enhance monitoring of lender performance and compliance with FHA guidelines and standards.
     • Implement Credit Watch termination through lender underwriting ID in addition to originating ID.
     • This change is included in a Mortgagee Letter to be released tomorrow, January 21st, and is effective immediately.
   • Implement statutory authority through regulation of section 256 of the National Housing Act to enforce indemnification provisions for lenders using delegated insuring process
     • Specifications of this change will be posted in March, and after a notice and comment period, would go into effect in early summer.
   • HUD is pursuing legislative authority to increase enforcement on FHA lenders. Specific authority includes:
     • Amendment of section 256 of the National Housing Act to apply indemnification provisions to all Direct Endorsement lenders. This would require all approved mortgagees to assume liability for all of the loans that they originate and underwrite
     • Legislative authority permitting HUD maximum flexibility to establish separate "areas" for purposes of review and termination under the Credit Watch initiative. This would provide authority to withdraw originating and underwriting approval for a lender nationwide on the basis of the performance of its regional branches