Meyer Leibovitch, REALTOR Boyds, MD Realtor

I just got back from meeting a painter at one of my client's rental properties in Germantown. The property has been for rent for several months. It is in need of a paint job and some other fix ups that the owner is going to have done. The other day on Facebook I got back in touch with an old friend from high school. I found out that he was a painter/handyman. I asked him if he was interested in a painting job for one of my clients. He promptly returned the message and I called him to schedule the appointment. He was in the area and met me there within hours.

That is the power of social networking at it's best. While I didn't financially benefit directly from the referral my friend will, and with this renewed contact I might get a referral some day. Just being able to network with old friends is a huge plus. If he does a good job for my client, I am certain I can refer more business to him. It works both ways too. So, if you are thinking that Facebook and social networking could be a waste of time, keep working at it.

Rekindling old freindships and business contacts is a critical part of a well rounded business plan. Social networking now is business and with if you remain active and visible, you and your friends will benefit from the medium.

Meyer Leibovitch
RE/MAX Realty Group

Maryland Real Estate Gaithersburg Real Estate Germantown Real Estate

I just completed my first tour of Disney with both kids at the same time. I actually need a vacation now more than ever. I did notice a couple of things worth mentioning. (my youngest really had a much better time than this photo suggests) :)

First of all it was a whirlwind tour that started way too early on a Thursday morning. I ended up with the worst headache I have had in a long time because I forgot to eat and hydrate properly. Bad idea.

Anyhow. On to the observations. If you have ever read Inside the Magic Kingdom, the 7 Keys to Disney's Success then you have a lot of insight into why and how Disney World became such a iconic success. Hospitality, value, cleanliness and consistency have been the foundation for Disney's success, not to mention cutting edge technology, amazing entertainment and family values.

Once again, Disney delivered big time. The rides were amazing as ever. Expedition Everest in the Animal Kingdom has to be the most entertaining roller coaster I have been on. Test Track, was another brilliant concept coaster that the whole family could enjoy. All of the shows were entertaining and highly visually engaging. Finding Nemo, Talk to Crush and A Bugs Life were state of the art and presented captivating and interactive entertainment.

So, on most every category I would give Disney A+. But, I have to present both sides of the story just for fairness sake.

The drawbacks are listed below:

1. We faced huge crowds Saturday at Hollywood Studios. So big, we actually had to leave Hollywood Studios without ever seeing a show or riding a ride it was that busy. I really wanted to ride the Rock'n Roller Coaster (?) I heard so much about, but even the speedpass wait was 7 hours. There were several shows closed due to a huge national college girl's dance squad competition that was occurring. It was terrible having to deal with the hordes of gorgeous female college dancers everywhere. I wish I had known in advance so I could have made other arrangements (I would have left the wife and kids at home). JUST KIDDING!! ;)

2. There were a few (out of hundreds of Disney employees that we encountered) that didn't understand the meaning of Disney hospitality and service--but, I bet they don't last long.

3. Surprisingly, there were several bathrooms that where very dirty compared to Disney's high standards. That was isolated and could have been the employees in charge with those particular restrooms.

4. The Cosmic Cafe looked like it had been hit by a mob of starving teenagers by the time we got there last night. There was food and trash everywhere. It was very unlike the rest of the park so I am going to cut them some slack.

5. Some of the snack foods were a little expensive. Think movie theater prices. I recommend bringing a backback with bottled water and snacks to cut down on the costs!

All in all it was a great trip an A-. The minus was for the aforementioned items. And I still recommend Disney for the whole family!

Montgomery County REALTORS have just been handed a new addendum to the Contract of Sale. It's the Utility Cost and Usage History Disclosure Form and sellers now have to disclose, by law, in writing what their utility bills were for each of the last 12 months. That includes kwh's used, gallons of water, and amount of heating oil.

It's a pretty interesting concept that you now have to disclose how much energy you use. And, the amount of energy you use could affect the value of your home, assuming that you leave lights on and keep the heat or A/C going. This addendum serves to inform the buyer of how much they are really going to need to budget for utility bills, also it lets the buyer know if the home is energy efficient. If it's not, that will definitely affect it's value.

A good rule of thumb is that every thousand dollars financed at 6% is roughly $6.00 per month. Let's say that two houses are priced at $300k, but homeowner A discloses that he spent $100.00 a month more on average utility bills than homeowner B. $100 per month translates to an additional $16k mortgage. So, you could say that if you buy home A, you will be paying for a home that costs $16k more. So if the homes are equal in features and condition otherwise, home A is $16k overpriced.

I know there is a more to it, but at it's base the numbers are true. Now buyers are going to make offers on your house depending on how much energy you have used for the past 12 months.Operating expenses are now more important than ever. Want top dollar? Use less energy!

I often get asked by my buyer clients, "What about short sales"?

I just left the manager's office at a nationally recognizable mortgage company. While I was talking to him about a personal refinance another agent knocked on the door.

She was there to check on the status of a short sale offer that her clients had made on another agent's listing. Because his bank held the first trust on the short sale property, she asked him to pull some strings and see if he could expedite the process.

The offer had been accepted six weeks ago and the seller never disclosed that they had been in default for over five months. Just a week before, the buyer's title company discovered there were not one, not two, not three, but four recorded notes on the property that well exceeded the value of the contract price. The property was scheduled to go to foreclosure in two days. Despite the fact that the seller had been in negotiations with the bank to lower her interest rate months ago, she neglected to tell anybody else--agents or buyer.

While I was there, the manager called the loss mitigation department to see if they had recieved the short sale paperwork he had collected and faxed to them last week. There was no record of it and the person on the other end of the phone was unable to help, short of giving out another fax number.

THESE ARE NORMAL EVERYDAY EXPERIENCES WITH SHORT SALES.

This is an example of the sheer nightmare that short sales can present to all involved. Not only did the purchaser plan to move; the selling agent, the loan officer, the processors and the title company all had invested time, money and energy into this deal. Now another unsuspecting victim is pulled into the mess.

This time, the seller is responsible for not being forthcoming about their foreclosure and default. Our local listing contract requires that a seller disclose whether they are in default, foreclosure or bankruptcy. Their failure to disclose has caused grief and stress to so many others. Stress is serious and can kill you.

There are so many things I can say about this--and frankly, so many adjectives that everyone else could use to describe the seller and the situation. The bottom line is it could have been avoided. Once again, another deal is testimony for why so many agents avoid showing short sale properties. Short sale property sales are surrounded with hazards, each that can easily blow a deal. Here are just a few I have seen recently:

• Uncooperative seller
• Listing agent takes under priced listing
  
• Multiple lien holders can't come to agreement
  
• Botched paperwork
• Lost paperwork
• BPO or appraisal problems
• Failure to act by loss mitigation departments
• Seller does not qualify for short sale due to financial solvency
  

I have personally experienced faxing paperwork to loss mitigation departments multiple times only to be told there is no record of ever having received the paperwork. I have spent weeks trying to get uncooperative sellers to complete short sale packages and sign paperwork. The list can go on and on.

This short sale was doomed from the beginning due to the omission of facts by the seller, but in general, there is a desperate need to streamline the short sale process--or figure out a quick algorithm to determine if a property actually qualifies for a short sale.

I am currently working on a short sale purchase that seems to have a few of the same ingredients listed above. If you are a qualified and actively seeking to purchase a home, you really need to know what you are up against if you are inclined to write offers on short sale properties. I have heard a few success stories that were not affected by the usual short sale curses, but that is just a few. My local mortgage broker friend told me the statistic for successful short sale closings is 5% of all offers received by his bank. I believe it.

But, I also believe that there are some sellers, agents, banks, and negotiators that handle short sale listings properly. Those are the 5% :)

A few good questions to ask, that you might not get answers to are:

• Have you already submitted a short sale application to the bank and do you have a contact there? Yes-means the bank should have the file in the system and will save time for all involved.
• How short are you going to be? The larger the shortage, the lower the chance of acceptance.
• Are there other offers? They will usually tell you upfront, but I had one that didn't. We were one of 13. REJECTED.
• How many liens are there? If they don't tell you, you can always look at the public record--that will be a big clue.
• How far behind are you? Sometimes an in-between number is better. I have heard that banks want to make sure they can report several late payments before negotiating short sales. I am not positive about that.
• Do you have mortgage insurance? If they have mortgage insurance, the banks might be less inclined to take big losses because the insurance holder insures the loss.

I think the answers to those questions from a listing agent can give you an idea if they are on top of the situation.

Meyer Leibovitch

Gaithersburg Real Estate Sell Rockville Real Estate Maryland Home Search Maryland Luxury Homes

I will continue to post valuable links and information on Maryland Foreclosure information and short sales. There is help available every step of the way! You are not alone and you can get past this. Don't be afraid to ask. I have personally reviewed each of the following sites. If they are here, they are useful!

Maryland REALTOR just published and excellent article regarding the stages of mortgage default and who to contact if you are looking for help. Fast Facts A Homeowners Guide to Preventing Foreclosure from DHCD is a very informative Powerpoint presentation that explains the entire process and what is happening behind the scenes if you are facing foreclosure or are late on your mortgage. It provides even more links and phone numbers to the resources and people you will need to contact to help you stay in your home or to avoid foreclosure by utilizing the short sale process.

* Try www.hopenow.com for information on how to gain access to professional housing counselors that will be able to provide you with assistance. HOPE NOW is an alliance between HUD approved counseling agents, servicers, investors and other mortgage market participants that provides free foreclosure prevention assistance. They also hold events for people facing financial crisis with education regarding foreclosure and tips on how to avoid it.

* www.mdhousing.org/lifeline is for homeowners who aren't behind on their payments, but are facing rate hikes.

* Maryland Foreclosure Counseling at www.mdhope.org is a list of counselors all over Maryland that will help you address your financial and foreclosure issues if you find that you are falling behind on a regular basis.

* Homesaver Refinance Mortgage programs can help you if you have missed payments but might be able to afford a lesser\, reasonable mortgage payment.

Meyer Leibovitch, ASP

RE/MAX Realty Group

301-674-5227