Southern Maryland Real Estate~ Jonathan Benya

There was an article in yesterday's Washington Post about a possible homebuilding scam in Upper Marlboro, MD. It's pathetic to see yet ANOTHER real estate scam being run in Maryland, but it underscores how important it is to do your homework when buying a home.

1. Take the time to learn a little more about your builder, and not just from the builder themselves. Get in touch with people who have used them in the past, research consumer complaints, and find out what their reputation is like. websites like consumerreports.com and ripoffreport.com are great resources. Also, try asking on local message boards and forums to see if anyone has an opinion on the builder.
2. Make sure they're actually licensed. Every builder has to have a builders license filed with the state of Maryland. An ounce of prevention goes a long way!
3. Consult a Realtor. A Buyers agent is paid to work for YOU, and their experience in dealing with real estate jargon and contracts can prevent you from being stuck in a shoddy situation like this.
4. If it sounds to good to be true...... It probably is. When people are offered a fantastic "deal" like this, the inclination is to jump on it! Apparently there was a reason in this case for the great deal.... It wasn't a deal at all! Don't give in to high pressure sales tactics if you aren't comfortable and satisfied with all of the terms and conditions. Risking this kind of money on a transaction you don't feel good about can lead to years of heartache.

(Originally posted at: Charles County Real Estate Blog)

~Jonathan Benya- Realtor
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000
301-653-8116
Southern Maryland Real Estate Blog

Can You Believe It!?!?! The Redskins beat the Cowboys in Dallas!!!!

In celebration of our AWESOME 26-24 win over Dallas, and the HUGE win over the Eagles, I've put together a short video clip of Piper, my German Shepherd and D.C.'s biggest 4-legged football fan! Let's see the Redskins go all the way this year!

I firmly believe that getting a home inspection when buying a home in Charles County or Waldorf is a MUST DO sort of thing. Home inspectors are worth their weight in gold when they catch a huge flaw in a property that nobody else noticed.

Sometimes however, they seem to get a little over-zealous. On a recent home inspection, an inspector informed the buyer that he found "major structural problems" in the foundation of the home and that repairs would cost big bucks. The buyer became nervous and the seller offered to pay a structural engineer to look at the home.

The structural engineer decided that the home was just fine, and there was no risk of the home being "structurally unsound". What the inspector saw was normal settling, and there was no cause for concern.

Of course, this went over like a lead balloon to the buyer. They were certain the engineer was going to find major problems, and the buyer has the right to walk away from the contract for any reason related to the inspection. Who knows if it was a lack of faith in the engineer, or too much faith in the inspector, but the contract was rescinded. This brings up a good lesson:

Inspectors are not necessarily structural engineers. they can point out an area of concern, but unless they are also licensed structural engineers, they may not be the best source to advise a buyer on the structural integrity of a home.

It would seem that it makes a whole lot more sense to recommend a structural engineer be hired to assess the situation rather than panic people. In this case, it cost the seller $800 (for the structral engineer to inspect) and the contract on their home over an issue that turned out to not be a structural concern. The buyer was within their right, and the concern is understandable, but it stinks when you as a seller offer to come out of your pocket to ensure the quality of the home.

~Jonathan Benya- Realtor
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000
301-653-8116
Southern Maryland Real Estate Blog

FHA and Conventional Loan guidelines were revised this morning, this time to prevent the so-called "buy and bail" folks trying to escape their overpriced mortgages.

Haven't heard of a "buy and bail" scenario? It goes something like this:

Until now, people who decided to rent their home instead of sell it were allowed to claim 75% of the rent on their current property as "income", which they could use as income towards the purchase of another home.

There have been people exploiting that to avoid selling their home, and then letting their previous home fall to foreclosure, leaving their lender holding the bag. (This sort of thing is also known as "mortgage fraud" in certain circles...)

The new guidelines are designed to prevent people from doing that. You can still qualify to use that rental income as revenue towards purchasing another home, but only if you have at least 25% equity in your previous home.

For people with rental properties as investments, this shouldn't affect you much. What this does affect is people looking to move their primary residence and don't have enough equity to sell. The concept of renting your home until the market gets better may no longer be a possibility.

If you have any questions about how this decision may affect you, please feel free to give me a call!

~Jonathan Benya- Realtor
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000
301-653-8116
Southern Maryland Real Estate Blog

There's been quite a few stories this evening about the Fannie Mae/Freddie Mac Takeover this evening. The first question on many people's minds is: What Does This Mean To Me?

I'm not going to muse on the repercussions of holding their stock (ask the wall street analysts, but it doesn't look good), but I do want to look at what this means for ordinary folk like you and I that may have a mortgage backed by the lending giants.

You see, the purpose here is to PREVENT Fannie and Freddie from going under. They've lost over 3 billion dollars in the last 3 months, and the Government has stated they would step in to financially back them in order to prevent failure.

If the Government steps in as expected, first and foremost, the government will be financially insuring the losses here (This may add a billion or 3 to the national debt, but hey, how's counting?).

If you've got a note with them now, this is designed to protect you. It will ensure that they remain solvent enough to operate. But what about people looking to possibly get a note through Fannie or Freddie? Well, this might be the biggest (perhaps only) winner out of the whole deal, and here's why:

Government control over these entities is going to ensure, without a doubt, their financial solvency. Government regulation will likely allow mortgage rates to remain lower than they would be if the groups financial stability remained threatened.

This could become a great step in helping the housing market recover, but it's going to come at the expense of ALL taxpayers, and the bill is certain to be in the Billions. If you're getting ready to purchase a home, keep your eye on what happens to the mortgage rates next week, and be ready to lock in if the rate takes a dip!

~Jonathan Benya- Realtor
Century 21 New Millennium
9405-A Chesapeake St
La Plata, MD 20646
301-609-9000
301-653-8116
Southern Maryland Real Estate Blog