I have been trying to gather as much information about Fannie Mae's new approach to the pre-foreclosure market. A lot of the 3 and 5 year ARM's that were so popular that many years back are poised to convert and it's going to be the straw that breaks the camel's back for even more homeowners.
Fannie Mae, Freddie Mac and Countrywide launched a beta program in Orlando, Florida and Phoenix, Arizona actually setting short sale prices, pro-actively and allowing eligible sellers the opportunity to avoid foreclosure. I haven't heard how they will set the prices, but an appraisal and a BPO would probably be a good place to start.
If the program extends the time the defaulters are able to stay in their homes until it sells, there could be a huge advantage to everyone. The properties may suffer less damage due to long periods of vacancies and lack of utilities. If homeowners are required to maintain the landscaping and keep the property in some minimally acceptable state of condition that would be nice too, but hard to enforce.
As soon as I hear anything else, I'll let you know. Meanwhile, if you know of anyone facing a foreclosure this is a the time to start looking into the short sale process. It seems like Fannie, Freddie and some of the big lenders are loosening up guidelines and are going to make it easer to sell these homes.
If you have positive cash flow or assets your lender or Fannie and Freddie will most likely try to secure a note or some cash to subsidize the loss on the short sale.
If you haven't heard of them, trust me you soon will! Last night in my neighborhood there were three. Gold Parties! A gold party is the reverse of a Tupperware party. Instead of having your friends come over and buy something from you, you invite them over to sell their old gold. I know. I thought the same thing when I first heard about it. But, they really work and people love them!
Here's the scoop. Every woman has old gold jewelery that they don't
wear sitting in the box collecting dust. They all bring it to your house where you have wine, cheese and pot stickers. The gold guy sets up on the dining room table. People sign in and he starts appraising the gold. He pays for it on the spot!
Some people left with over a thousand dollars and a big smile! The house takes 10% and 5% of any parties that result form their party. If you are looking for a really fun way to get people together and make a little extra cash. I can recommend the company doing it! My wife made $600 cash and the girl who recommended her made another $300!. We had 20 great friends over. I got three re-fi leads for my lender and one $500k listing lead! Can you say win-win?
It might also be great for getting old clients back in the fold. It really is a cool service. Most people won't ever take that stuff to a jeweler to sell, but they'll come to your party :)
Once again, let me know if you want to have one and I'll get the ball rolling. I think it's only on the east coast now, but he said he'll be on the west coast in March!
Whatever sales profession you are in, social networking is critical to your success. This is a great, fun way to host a party. I recommend getting in on the fun while you can. BTW the gold guy told me he started in a real estate office. Why not organize one for your office. If you feel awkward about the profit give it to charity! How about some free press?!
The Maryland real estate market has changed over the years from a seller’s market to a buyer’s market just like the rest of the country. Even though it is likely home values could still depreciate I still think 2009 could be a great year to buy real estate. Here’s why:
Interest Rates are Low
The government is stepping in to make sure that interest rates are low for home purchasers. Recently, I have seen fixed rate loans with a couple points in the high 4% range. Typically 30 year fixed rates without points have well been below 6%. That's about as good as I have ever seen it. In fact, that compares with the historical lows we saw several years back. Look at the table below and see the savings yourself.
Prices are Very Low
In Montgomery County prices were down nearly 18% from the same time last year, across the board. That means a $500,000 home in 2007 is now a $410,000 home or a $18,000 per $100,000 spent savings. Coupled with lower interest rates the long term savings and benefits are huge when comparing buying a home this year over the past several years!
Inventory Is Up
There are thousands of home to choose from. You have plenty of time to make a decision and you can always look at a home several times before wring an offer. In January 2004 there were around 1,800 or so listings on the market not including new homes. In January 2008 there are over 5,000 homes for sale. That is almost 3 times the homes to choose from.
Sellers are Negotiating and Paying Closing Costs
Most sellers will pay a large percentage if not all of your closing costs. Closing costs are typically around 3.5% of the purchase price. As well, the average home is selling at about 91% of its asking price. Sellers are negotiating. A large portion of the inventory is bank foreclosure property. banks are in the banking business not the real estate business. They are liquidating their property and you might be able to get an even better deal.
The Market Truth
Financial benefits of buying a home now as compared to recent years past are quantifiable. I feel that I can honestly say that if you are in it for the long term, this is really a great time to buy.
Warren Buffet says," Be fearful when others are greedy and be greedy when others are fearful".
It is clear others have become fearful and are liquidating their real estate assets. Now could be the time for a savvy investor to make money over the long term.
Montgomery County REO Properties
The following list of REO properties was updated January 1, 2009. Each property on the list is a bank owned foreclosure listed in the MRIS. If you are interested in making offers on any of the properties below or would like to schedule a private showing, please contact Meyer Leibovitch at 301-674-5227.
I can represent you in the purchase of any of these homes. If you are considering purchasing investment property the list below is a great place to start. Banks are liquidating REO's and have priced many of these homes below market or will be willing to negotiate. You will most likely be required to be pre-qualified by each respective bank in order to ensure your ability to receive financing and or pay cash for the property. However you are under no obligation to use them to procure financing and may choose your own lender.
See more terms and conditions below.
| ListPrice | Address | City | Zip5 | BathsFull | BathsHalf | Bedrooms |
| $ 369,000.00 | 3364 GOLD MINE RD | BROOKEVILLE | 20833 | 2 | 1 | 4 |
| $ 310,000.00 | 23313 BREWERS TAVERN WAY | CLARKSBURG | 20871 | 2 | 2 | 3 |
| $ 424,500.00 | 12713 MURPHY GROVE TER | CLARKSBURG | 20871 | 3 | 1 | 4 |
| $ 253,400.00 | 25128 CHIMNEY HOUSE CT | DAMASCUS | 20872 | 2 | 0 | 3 |
| $ 194,900.00 | 7752 EPSILON DR | DERWOOD | 20855 | 1 | 1 | 3 |
| $ 179,900.00 | 8 TRENTO CT | GAITHERSBURG | 20877 | 2 | 1 | 3 |
| $ 205,900.00 | 8347 AMITY CIR | GAITHERSBURG | 20877 | 2 | 1 | 3 |
| $ 111,400.00 | 2 STANDARD CT #1 | GAITHERSBURG | 20877 | 1 | 0 | 2 |
| $ 145,900.00 | 824 WEST SIDE DR | GAITHERSBURG | 20878 | 2 | 1 | 3 |
| $ 739,900.00 | 8513 CHURCHILL DOWNS RD | GAITHERSBURG | 20882 | 4 | 1 | 5 |
| $ 213,000.00 | 23312 WOODFIELD RD | GAITHERSBURG | 20882 | 3 | 0 | 5 |
| $ 245,900.00 | 17630 WASHINGTON GROVE LN | GAITHERSBURG | 20877 | 2 | 0 | 4 |
| $ 115,000.00 | 8 RUSSELL AVE #203 | GAITHERSBURG | 20877 | 1 | 0 | 2 |
| $ 110,000.00 | 132 DUVALL LN #213 | GAITHERSBURG | 20877 | 2 | 0 | 3 |
| $ 320,000.00 | 18219 SWAN STREAM DR | GAITHERSBURG | 20877 | 2 | 1 | 3 |
| $ 320,000.00 | 24008 LOG HOUSE RD | GAITHERSBURG | 20882 | 2 | 1 | 4 |
| $ 145,300.00 | 413 CHRISTOPHER AVE #87 | GAITHERSBURG | 20879 | 2 | 0 | 2 |
| $ 115,000.00 | 8842 WELBECK WAY | GAITHERSBURG | 20886 | 1 | 1 | 2 |
| $ 250,000.00 | 47 GAS LIGHT CT | GAITHERSBURG | 20879 | 2 | 2 | 3 |
| $ 267,900.00 | 18951 QUAIL VALLEY BLVD | GAITHERSBURG | 20879 | 2 | 1 | 4 |
| $ 149,000.00 | 18300 STREAMSIDE DR #103 | GAITHERSBURG | 20879 | 2 | 0 | 2 |
| $ 90,000.00 | 424 GIRARD ST #T-3 | GAITHERSBURG | 20877 | 2 | 0 | 2 |
| $ 227,900.00 | 18613 GROSBEAK TER | GAITHERSBURG | 20879 | 2 | 1 | 3 |
| $ 244,600.00 | 9 BRALAN CT | GAITHERSBURG | 20877 | 3 | 1 | 4 |
| $ 559,900.00 | 13516 STRAW BALE LN | GAITHERSBURG | 20878 | 3 | 1 | 5 |
| $ 194,900.00 | 18635 CROSS COUNTRY LN | GAITHERSBURG | 20879 | 1 | 1 | 3 |
| $ 221,900.00 | 18016 CACTUS CT | GAITHERSBURG | 20877 | 1 | 1 | 4 |
| $ 159,000.00 | 11104 BLACK FOREST WAY | GAITHERSBURG | 20879 | 1 | 1 | 3 |
| $ 365,000.00 | 8816 WESTLAND DR | GAITHERSBURG | 20877 | 2 | 1 | 4 |
| $ 395,000.00 | 110A BUCKSFIELD RD | GAITHERSBURG | 20878 | 2 | 1 | 3 |
| $ 860,000.00 | 108 LAKE ST | GAITHERSBURG | 20878 | 4 | 1 | 4 |
| $ 215,000.00 | 112 MIDDLE POINT CT | GAITHERSBURG | 20877 | 2 | 1 | 3 |
| $ 184,900.00 | 20002 SPUR HILL DR | GAITHERSBURG | 20886 | 2 | 1 | 3 |
| $ 179,900.00 | 7829 MUNCASTER MILL RD | GAITHERSBURG | 20877 | 2 | 0 | 3 |
| $ 247,900.00 | 18618 GROSBEAK TER | GAITHERSBURG | 20879 | 2 | 2 | 3 |
| $ 164,900.00 | 10243 MILLSTREAM DR | GAITHERSBURG | 20886 | 2 | 1 | 3 |
| $ 199,900.00 | 20522 SUMMERSONG LN | GAITHERSBURG | 20878 | 3 | 1 | 3 |
| $ 239,900.00 | 203 DOGWOOD DR | GAITHERSBURG | 20877 | 2 | 0 | 5 |
| $ 359,900.00 | 75 INKBERRY CIR | GAITHERSBURG | 20877 | 3 | 1 | 3 |
| $ 144,875.00 | 8235 AMITY CIR | GAITHERSBURG | 20877 | 2 | 2 | 3 |
| $ 313,900.00 | 2 LINDEN HALL CT | GAITHERSBURG | 20877 | 2 | 1 | 3 |
| $ 147,250.00 | 20041 DUNSTABLE CIR #311 | GERMANTOWN | 20876 | 1 | 1 | 2 |
| $ 215,900.00 | 19148 HIGHSTREAM DR #676 | GERMANTOWN | 20874 | 2 | 1 | 3 |
| $ 224,900.00 | 20528 AMETHYST LN | GERMANTOWN | 20874 | 2 | 1 | 3 |
| $ 134,900.00 | 18752 CURRY POWDER LN | GERMANTOWN | 20874 | 1 | 0 | 2 |
| $ 219,900.00 | 12603 BLACK SADDLE LN | GERMANTOWN | 20874 | 1 | 1 | 3 |
| $ 348,500.00 | 13738 DUNBAR TER | GERMANTOWN | 20874 | 2 | 1 | 4 |
| $ 344,900.00 | 13549 JAMIESON PL | GERMANTOWN | 20874 | 2 | 1 | 4 |
| $ 209,900.00 | 13019 OPEN HEARTH WAY | GERMANTOWN | 20874 | 1 | 1 | 3 |
| $ 194,900.00 | 12004 BIRDSEYE TER | GERMANTOWN | 20874 | 2 | 0 | 2 |
| $ 223,200.00 | 19041 STALEYBRIDGE RD | GERMANTOWN | 20876 | 3 | 0 | 4 |
| $ 309,000.00 | 12103 AMBER RIDGE CIR | GERMANTOWN | 20876 | 3 | 1 | 4 |
| $ 225,000.00 | 13816 CROSSTIE DR #897 | GERMANTOWN | 20874 | 2 | 0 | 3 |
| $ 550,000.00 | 14001 STEED CT | GERMANTOWN | 20874 | 3 | 1 | 5 |
| $ 209,000.00 | 51 DRUMCASTLE CT | GERMANTOWN | 20876 | 3 | 1 | 2 |
| $ 315,875.00 | 5 WARRIOR BROOK CT | GERMANTOWN | 20874 | 3 | 1 | 3 |
| $ 160,000.00 | 20229 SHIPLEY TER #3-B-10 | GERMANTOWN | 20874 | 2 | 0 | 2 |
| $ 200,000.00 | 18701D SPARKLING WATER DR #D | GERMANTOWN | 20874 | 2 | 0 | 2 |
| $ 139,000.00 | 18746 CURRY POWDER LN | GERMANTOWN | 20874 | 1 | 1 | 3 |
| $ 179,000.00 | 18624 TURMERIC CT | GERMANTOWN | 20874 | 1 | 1 | 3 |
| $ 236,900.00 | 19612 WHITE SADDLE DR | GERMANTOWN | 20874 | 2 | 2 | 3 |
| $ 219,900.00 | 18701 SPARKLING WATER DR #B | GERMANTOWN | 20874 | 2 | 0 | 2 |
| $ 299,900.00 | 21220 DORSEY SPRING RD #10 | GERMANTOWN | 20876 | 2 | 2 | 3 |
| $ 363,500.00 | 19108 BARKSDALE CT | GERMANTOWN | 20874 | 2 | 1 | 4 |
| $ 209,900.00 | 13258 WONDERLAND WAY #402 | GERMANTOWN | 20874 | 2 | 1 | 3 |
| $ 327,900.00 | 4110 WEXFORD DR | KENSINGTON | 20895 | 2 | 0 | 4 |
| $ 189,500.00 | 19039 CAPEHART DR | MONTGOMERY VILLAGE | 20886 | 2 | 1 | 3 |
| $ 369,900.00 | 9416 VINEYARD HAVEN DR | MONTGOMERY VILLAGE | 20886 | 3 | 1 | 3 |
| $ 256,500.00 | 9907 LAKE LANDING RD | MONTGOMERY VILLAGE | 20886 | 2 | 1 | 3 |
| $ 125,900.00 | 18726 WALKERS CHOICE RD #4 | MONTGOMERY VILLAGE | 20886 | 2 | 0 | 3 |
| $ 208,905.00 | 18815 WALKERS CHOICE RD | MONTGOMERY VILLAGE | 20886 | 2 | 1 | 4 |
| $ 135,000.00 | 9504 MARSTON LN | MONTGOMERY VILLAGE | 20886 | 1 | 1 | 2 |
| $ 159,900.00 | 18647 NATHANS PL | MONTGOMERY VILLAGE | 20886 | 2 | 1 | 3 |
| $ 94,900.00 | 18607 WALKERS CHOICE RD #5 | MONTGOMERY VILLAGE | 20886 | 1 | 0 | 1 |
| $ 112,500.00 | 10067 RIDGELINE DR | MONTGOMERY VILLAGE | 20886 | 1 | 1 | 2 |
| $ 207,500.00 | 9807 MAPLE LEAF DR | MONTGOMERY VILLAGE | 20886 | 3 | 1 | 4 |
| $ 535,000.00 | 17330 MACDUFF AVE | OLNEY | 20832 | 3 | 1 | 5 |
| $ 285,000.00 | 18005 QUEEN ELIZABETH DR | OLNEY | 20832 | 1 | 1 | 3 |
| $ 209,900.00 | 5800 NICHOLSON LN #1-T05 | ROCKVILLE | 20852 | 1 | 0 | 1 |
| $ 265,900.00 | 1013 PAUL DR | ROCKVILLE | 20851 | 2 | 0 | 4 |
| $ 225,900.00 | 903 WADE AVE | ROCKVILLE | 20851 | 1 | 0 | 3 |
| $ 499,900.00 | 5818 LINDEN SQUARE CT #59 | ROCKVILLE | 20852 | 3 | 0 | 2 |
| $ 147,250.00 | 5721 DENFIELD RD | ROCKVILLE | 20851 | 2 | 0 | 4 |
| $ 399,900.00 | 4718 MERCURY DR | ROCKVILLE | 20853 | 2 | 1 | 4 |
| $ 187,500.00 | 9909 DILSTON RD | SILVER SPRING | 20903 | 1 | 1 | 4 |
| $ 356,250.00 | 2305 NEES LN | SILVER SPRING | 20905 | 3 | 0 | 4 |
| $ 376,800.00 | 116 BONIFANT RD | SILVER SPRING | 20905 | 2 | 1 | 3 |
| $ 159,000.00 | 8405 TAHONA DR | SILVER SPRING | 20903 | 1 | 0 | 4 |
| $ 369,900.00 | 14505 ORANGEWOOD ST | SILVER SPRING | 20905 | 2 | 1 | 4 |
| $ 200,000.00 | 9907 DILSTON RD | SILVER SPRING | 20903 | 3 | 0 | 5 |
| $ 325,000.00 | 1705 LANSDOWNE WAY | SILVER SPRING | 20910 | 2 | 0 | 5 |
| $ 224,900.00 | 4025 CHESTERWOOD DR | SILVER SPRING | 20906 | 2 | 1 | 3 |
| $ 441,600.00 | 12117 SOMERSWORTH DR | SILVER SPRING | 20902 | 3 | 0 | 4 |
| $ 325,000.00 | 13310 FOXHALL DR | SILVER SPRING | 20906 | 2 | 1 | 5 |
| $ 269,900.00 | 1014 CRESTHAVEN DR | SILVER SPRING | 20903 | 2 | 1 | 4 |
| $ 189,900.00 | 3722 CASTLE TER #119-13 | SILVER SPRING | 20904 | 2 | 1 | 3 |
| $ 194,900.00 | 11512 JOSEPH MILL RD | SILVER SPRING | 20906 | 2 | 0 | 2 |
| $ 209,900.00 | 13806 CARTER HOUSE WAY #16-145 | SILVER SPRING | 20904 | 2 | 1 | 2 |
| $ 169,900.00 | 3605 CASTLE TER #115-98 | SILVER SPRING | 20904 | 2 | 1 | 3 |
| $ 374,900.00 | 1707 ARCOLA AVE | SILVER SPRING | 20902 | 2 | 1 | 3 |
| $ 99,900.00 | 3932 BEL PRE RD #2 | SILVER SPRING | 20906 | 1 | 0 | 1 |
| $ 209,900.00 | 13156 MUSICMASTER DR #142 | SILVER SPRING | 20904 | 2 | 0 | 3 |
| $ 389,900.00 | 2524 BLUERIDGE AVE | SILVER SPRING | 20902 | 3 | 1 | 3 |
| $ 269,900.00 | 3703 LEVERTON ST | SILVER SPRING | 20906 | 3 | 0 | 3 |
| $ 169,900.00 | 11906 ANDREW ST | SILVER SPRING | 20902 | 2 | 0 | 3 |
| $ 112,900.00 | 3842 BEL PRE RD #12 | SILVER SPRING | 20906 | 2 | 0 | 2 |
| $ 259,900.00 | 405 KERWIN RD | SILVER SPRING | 20901 | 2 | 0 | 3 |
| $ 79,900.00 | 3854 BEL PRE RD #3854-1 | SILVER SPRING | 20906 | 2 | 0 | 2 |
| $ 285,900.00 | 13102 BRAHMS TER | SILVER SPRING | 20904 | 2 | 1 | 3 |
| $ 239,900.00 | 1109 ROSEMERE AVE | SILVER SPRING | 20904 | 3 | 0 | 4 |
| $ 237,900.00 | 11618 VEIRS MILL RD | SILVER SPRING | 20902 | 2 | 0 | 4 |
| $ 304,900.00 | 9916 COTTRELL TER | SILVER SPRING | 20903 | 2 | 0 | 5 |
| $ 185,000.00 | 706 LUDLOW ST | TAKOMA PARK | 20912 | 2 | 0 | 3 |
MORE TERMS
You will be able to conduct a thorough inspection of the property as a condition of your purchase. Many banks prefer to sell their REO's "as-is" and will not complete any repairs so if the inspection reveals repairs beyond your scope you will be able to declare the contract null and void as long as you are within the contract time frames.
In addition, you will have the right to cancel any contract for a home that is located within a homeowner's association within five calendar days of receiving HOA documents from the sellers without stating a reason, but providing written notice to declare the contract null and void.
You will be required to provide a negotiable earnest money deposit at the time of the presentation of your offer. if your offer is accepted the bank may require the earnest money check be deposited in the listing broker's escrow account, to be applied towards down payment and closing costs. Any deposits are subject to forfiture as per contrat terms.
Once again, please contact:
Meyer Leibovitch, ASP
RE/MAX Realty Group
6 Montgomery Village Avenue, Gaithersburg, MD 20879
C) 301-674-5227
O) 301-258-7757
Click here or on the bookcover
Since 2006 the real estate market completely turned from a seller's market to a buyer's market. I really noticed the Montgomery County, Maryland real estate change in late 2005. Buyers stopped writing offers so quickly and listings were taking much longer to sell. Nobody had any real concern because financing was still readily available and buyers were still looking-just taking their time. Besides, the Maryland suburban real estate market would be buffered from any major hits, especially being so close to Washington DC. It was actually nice not having to compete with multiple offers on every house. Then came the mortgage meltdown. A once red hot market turned into a freezing cold market for sellers. Over the last few years inventory has grown from approximately 1,800 homes on the market to roughly 5,400 at any given time. Homes are sitting on the market on average 108 days, if they sell. I have seen some home prices come down as much as 40% in just two years. Foreclosures are everywhere. Short sales are on the rise and financing is much harder to get at any level.
My e-book, Selling During the Mortgage Meltdown, provides a refresher on why we got here and what you can do to overcome this market as a seller. It is also a must for you if you are upside down on your mortgage because it outlines the short sale process in detail. You can avoid foreclosure and the stigma attached to it. Read my e-book for details on AVOIDING FORECLOSURE.
Meyer Leibovitch, REALTOR
Direct) 301-674-5227
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