What’s your relationship with your home; how homes impact our lives

by Dan Krell
DanKrell.com
© 2012
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Have you considered your relationship with your home? Just like the relationships we have with our family, friends, and acquaintances, we also have relationships with inanimate objects such as our cars, computers, and our homes. Granted, the relationships we have with our cars and homes are not the same as our human relationships, and it may sound farfetched; but if you think about it for moment, these relationships can affect our moods and lifestyles just the same.

Your relationship with your home can sometimes make you feel satisfied or frustrated, and maybe both. But chances are that you were not always ambivalent about your home. At one time you might have thought your home was perfect. Or you may have decided that you were ok with the quirks in the home because you once planned to fix them.

But the reality is that over time you change: your lifestyle changes; your use of space changes. Likewise, your home changes too: the systems become less efficient; the rooms may feel too small/large; the kitchen becomes dated, etc.

Just like your human relationships, your home requires maintenance. Regular maintenance of your home’s systems can help assure that you will be comfortable day to day. Ignored systems can fail when you rely on them the most, leaving you miserable and wondering about your home. Commonly ignored systems include (but certainly not limited to) HVAC and the roof. Having a licensed HVAC professional check the home’s furnace and air conditioning as recommended may not only ensure the system works when you need it the most, but may also help lower energy bills. Regular inspection of the home’s roof gutters and downspouts could prevent future water penetration issues.

Of course, as we continually change and develop, we want our relationships to grow as well. So, it is possible that one day you might look around your home and feel that it’s time to spice up the relationship a little – You might be thinking of some renovations, updates, and possibly expanding the home.

Unless you plan to make renovations regularly, don’t make a mistake and focus solely on making your home “trendy.” Before you decide on a major project, experts recommend you consult with a professional interior designer and/or architect to assist in making choices that can prolong the “freshness” of the renovation.

Kitchens and bathrooms are usually where the most money is spent, and that’s because those rooms tend to get the most traffic and use. When designing a kitchen or bathroom, it is easy to go overboard on the renovation, but even a modest refurbishment can increase your enjoyment of the home.

As you renovate the interior, don’t give the exterior the short shrift. Upgrading the home’s windows and siding not only increases the home’s efficiency, but may also increase the home’s curb appeal when it’s time to sell.

Relationships change and sometimes end; even the most meaningful ones. This is no different with your home. One day you may find that although your home may have sheltered you and your family without fail for many years, you may find that your needs may have changed; you may need more or less space, or may need to live in a different city. And just like old friends, you may one day find yourself fondly thinking about your “old” home where you once lived.

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This article is not intended to provide nor should it be relied upon for legal and financial advice. This article was originally published in the Montgomery County Sentinel the week of November 26, 2012. Using this article without permission is a violation of copyright laws. Copyright © 2012 Dan Krell.

October 18, 2012June 29, 2019

New laws affect homebuyers and homeowners

Two new laws that went into effect this month will have an effect on home buyers and home owners. One law affects home buyers purchasing foreclosed property, and the other is with regard to the Maryland homestead property tax credit.

First, H.B. 1373 Real Property – Foreclosed Property Registry, which went into effect October 1st, requires that Maryland homes purchased at a foreclosure sale be registered with the State of Maryland. According to the foreclosure registry website a “foreclosure purchaser” must initially register a home within 30 days of the foreclosure sale, and a final registration within 30 days of the recordation of the deed. A “foreclosure purchaser” is defined by H.B. 1373 as being “…the person identified as the purchaser on the report of sale required by Maryland rule 14–305 for a foreclosure sale of residential property.”

You might wonder why a registration is necessary once a foreclosed home is purchased. The registry was an outgrowth of purchased foreclosed homes that remained vacant. Vacant homes are at risk for a variety of problems; and if left vacant and untended for long periods of time can not only become an eyesore, but can risk the health and safety of the immediate neighborhood. Trespassing and infestation is a major concern; the longer a home sits vacant and untended, the probability increases for vandalism, vermin, squatters, and gang activity.

The law is most likely aimed at lenders that purchase back their own foreclosure or bulk purchasers, because at one time it was possible that some of these homes sat untended for long periods of time. In the past, such homes might have been cited for health and safety code violations with the intent to have someone tend to the home. However, since ownership may not have been clear due to the foreclosure process or absence of a point of contact, some of these attempts went unheeded.

For more information or questions about the registry, contact the Maryland Department of Labor, Licensing, and Regulation (www.dllr.state.md.us).

The other law that went into effect this month is H.B. 1081 The Homestead Property Tax Credit Reform Act of 2012. The purpose of the law is to stop the abuse of applying the credit when not applicable. Home owners who are “caught” claiming multiple properties and/or rented properties may have to pay uncollected tax and possibly a penalty.

But enforcement of this law has been questioned, as was reported by Steve Kilar for the Baltimore Sun in his October 1st article (Homestead Credit Penalty Goes Into Effect This Week). Some are concerned if and how the penalty would be applied to those who are “caught” wrongly receiving the homestead credit. Enforcement may, as was reported, rely on the requirement for the State to prove “willful misrepresentation.”

The effort to weed out those who are undeserving of receiving the homestead credit began several years ago, when in 2007 home owners were required to apply to receive the credit. This application process is culminating to a frenzy of home owners who have not yet reapplied. And according to the Maryland Department of Assessments and Taxation, home owners who have yet to apply/reapply for the homestead credit will have until December 31st to submit the application. If you are unsure if you have applied/reapplied, you can check your status by following the instructions on the SDAT website on the homestead credit).

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This article is not intended to provide nor should it be relied upon for legal and financial advice. Using this article without permission is a violation of copyright laws.

By Dan Krell
Copyright © 2012

September 13, 2012

Homeseller turned landlord

Dan Krell, Realtor®
DanKrell.com
© 2012

Reluctant home sellers turn to renting their homes.

Handing over the keys of your most expensive investment to another person is not how you think you would have moved on with your life. But, because the housing market threw a wrench in many peoples’ plans, many home owners who could not sell their homes decided to rent it instead. Unfortunately, some didn’t know what to expect from their tenants, while others didn’t realize that they had obligations as a landlord. And as you might imagine some rental arrangements did not turn out so well.

Although the home owner turned landlord may feel kinship to the hard core real estate investor, there are some differences. Unlike the genuine real estate investor, most people are not accustomed to leaving their home in another’s care (often the person is a total stranger). Another difference is that the home owner may decide to rent their home to ride out the housing market, while the hard core investor has made a commitment to the real estate investment as a vehicle for accumulating wealth; many investors will hold property for many years looking forward to the future payoff of appreciation when the property is sold.

Of course there is a commonality too; the desire for positive cash flow. The positive cash flow is the perpetual incoming of cash so the mortgages and other real estate related expenses (such as property taxes, HOA/condo dues, maintenance, insurance, etc.) can be paid. Although a positive cash flow is a good thing, some are content just to break even and have no net proceeds from the rental. Expenses can add up quickly and turn the rental into a negative cash flow situation (when the rent does not cover all the home expenses); which can became the source of serious financial issues.

So, you decided to rent your home (or maybe you were talked into it) so you could move on with your life, what now? Finding tenants and maintaining the property can be an issue for the novice and experienced alike. Although seasoned real estate investors have systems in place for various aspects of their business (from finding tenants to collecting rent); you might consider hiring a licensed professional to manage your rental property. For a fee, professional property managers take care of your rental property: which can include finding tenants, collect rents, and maintain the property.

And since rental agreements can be rather legally complex, consulting with an attorney prior to entering into the agreement would be prudent; as well as consulting with an attorney when issues arise between you and your tenant.

Consider getting additional information about rental properties before embarking on your new journey. Some municipalities and local governments offer resources to inform you of your obligations and provide additional resources. For example, the local government of Montgomery County MD offers resources for landlords and tenants. Besides the “Commission on Landlord – Tenant Affairs,” which hears landlord – tenant disputes; other resources are available including a description of “ordinary wear and tear,” and links to the District Court of Maryland listing actions a landlord can take against a tenant (and vise verse).

What seems to be a comprehensive guide is the “Landlord – Tenant Handbook,” which is offered as a manual to renting for both the landlord and tenant. The handbook describes: the obligations of the landlord and tenant; property licensing requirements; rental application and lease; security deposits; property maintenance; complaints; terminating the lease; and “survival tips.” The handbook and other landlord – tenant resources can be found at montgomerycountymd.gov/dhca (click the “Landlord & Tenant” link).

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(if this article appears anywhere other than a feed originating from, or directly on DanKrell.com, the article has been re-posted without permission).

This article is not intended to provide nor should it be relied upon for legal and financial advice. This article was originally published in the Montgomery County Sentinel the week of September 10 , 2012. Using this article without permission is a violation of copyright laws. Copyright © 2012 Dan Krell.

May 2, 2012September 29, 2019

Non-hardship short sales on the rise

by Dan Krell ©2012
DanKrell.com

A March 2012 Housing Wire piece (housingwire.com) indicated that CoreLogic recently reported that there were 11.1 million home owners who owed more on their mortgages than what their home is worth, which roughly translates to 22.8% of all mortgages being underwater. At one time, most home sellers applying for a short sale were experiencing hardships and foreclosure. However, as the housing market continues to recover- an increasing number of short sale listings are from sellers who are current on their mortgage and are not experiencing hardships.

For home owners who are experiencing financial difficulty, there are a number of options available to keep your home; however often a last resort- the short sale is one alternative to losing your home to foreclosure. However, home owners who need to sell their homes (because of a job transfer, divorce, or other reason), but are not otherwise experiencing a financial difficulty nor hardship, are also turning to the short sale process because of depressed home sale prices.

Although short sale horror stories still circulate, much has changed and many lenders have attempted to “streamline” their short sale process. Still, this has not prevented Congress from attempting to force lenders to provide speedy short sale decisions. In 2010, H.R. 6133 H.R.: Prompt Decision for Qualification of Short Sale Act of 2010 was introduced to require a 45 day response from lenders, however it “died” in committee. A recent form of this legislation was introduced in 2011 (H.R. 1498: Prompt Decision for Qualification of Short Sale Act of 2011), but GovTrack (govtrack.us) gives the bill an 8% chance of becoming law. Another bill, S. 2120: Prompt Notification of Short Sales Act, was introduced in February; GovTrack gives that a 2% chance of being enacted.

Beware of the circulated “wisdom” regarding short sales, because it is not always reliable or accurate (e.g., hardships and delinquencies). If your home has negative equity (underwater) and you want to sell, consult with an attorney; there are financial and legal issues that may affect you presently and in the future. The short sale process may seem straightforward, but it can get complicated quickly (especially if there are multiple mortgages involved). Many experienced short sale agents work in tandem with attorneys to make the process much smoother than otherwise would be expected.

If you’re an underwater home seller, but have assets and are not experiencing a hardship, your attorney can advise you on the short sale process. The issue pertaining to a successful short sale is not always about the seller’s financial status; but rather, a short sale is more about the amount the lender will accept as payoff for the existing mortgage. Yes, the lender will collect your financial information to use in their short sale determination; but a skilled negotiator may be able to reduce the overall mortgage payoff (even if you have to bring funds to closing).

Finally, an attorney is the only person who can provide you legal advice. Real estate agents advising you to stop making payments on your mortgage or to “fudge” your short sale application could be putting you in a precarious position: your credit can be affected, or your home can go to foreclosure when payments are stopped; providing false or misleading information to your lender is fraud (lenders and law enforcement are working together to stop short sale fraud).

Additional information about short sales:
Short sale is an option
Don’t be pushed into a short sale
House bill proposes 45 day lender response on short sale
Mortgage fraud on the rise

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This article is not intended to provide nor should it be relied upon for legal and financial advice. This article was originally published in the Montgomery County Sentinel the week of April 30, 2012. Using this article without permission is a violation of copyright laws. Copyright © 2012 Dan Krell.

March 14, 2012November 7, 2019

Severe hoarding affects more than families and communities

Thanks to reality TV to bring about awareness to the nationwide hoarding problem; however, experts agree that chronic hoarding is still under-recognized. The Montgomery County Task Force on Hoarding Behavior Report (Prepared by Department of Health and Human Services February 2011) anticipates that the number of reported hoarding incidents will increase as awareness increases and the population ages. Awareness and recognition is paramount as there is a consensus that hoarding exists in most communities and has the potential to negatively affect the health and safety of those in the community as well as the environment.

Hoarding is often defined as the inability to discard large collections of possessions that appear to have little or no value/use. Additionally, clutter obstructs the use of the home or spaces within; and can pose a significant health or safety risk, as well as risk the maintenance of the home. Hoarders can accumulate things, trash, and even animals. Animal hoarding is a type of hoarding that is difficult to intervene for various reasons that include personal property issues.

In-home risks for hoarders and their families include: tripping, injury (or death) from falling objects, health issues that arise from pests and mold, delayed emergency care. As a result, utilities are often inoperable and the home can become condemned. Although neglect and abuse issues come to mind when you think about hoarders; however, Cristina Sorrentino Schmalisch, PhD, LICSW of the International OCD Foundation (ocfoundation.org) claims that hoarding is also a public health and fire safety issue “that can put the home at risk for condemnation.”

Of course, according to Dr. Schmalisch, the consequences of hoarding are not limited to the hoarder; the effects of hoarding often spill over on surrounding homes and the neighborhood, especially if the hoarder lives in a multi-family building (such as a condo or apartment). Pest infestation, structural problems, flooding, and electrical fires are just a few of the potential problems that have the potential for property damage and possibly lower the property value. In fact, long term effects of hoarding can also shorten the operational life of systems within the home as well as threaten the structure itself.

The national hoarding problem is very much a local problem as well. Because local incidents of hoarding have been increasing, the Montgomery County Task Force on Hoarding Behavior was established in 2009 by the Department of Health and Human Services to address the complex issues associated with the disorder. The mission of the TFHB was to “coordinate all County actions related to severe hoarding cases in Montgomery County and develop comprehensive long term, proactive strategies to prevent and remediate hoarding situations.”

If you’re unsure how to tell if someone has a sever hoarding problem, common signs include (but not limited to): clutter that blocks windows and doors; clutter that makes it difficult or impossible to use the kitchen, bathroom, or bedroom for their intended purposes; repairs are not made to the home to avoid having visitors; clutter/trash related pest infestations; clutter is unsafely stored close to heating and cooking areas.

Hoarding intervention is commonly approached through both mental health services and building code enforcement. Although it is often difficult to force a hoarder to receive mental health services, the home condition can be addressed through code enforcement citations. For more information or seek help contact the Montgomery County Department of Health and Human Services.

Original published at https://dankrell.com/blog/2012/03/14/severe-hoarding-affects-more-than-families-and-communities-homes-and-real-estate-at-risk/

By Dan Krell

by Dan Krell DanKrell.com © 2012 Google+

Two new laws that went into effect this month will have an effect on home buyers and home owners. One law affects home buyers purchasing foreclosed property, and the other is with regard to the Maryland homestead property tax credit.

Dan Krell, Realtor® DanKrell.com © 2012

Reluctant home sellers turn to renting their homes.

by Dan Krell
DanKrell.com
© 2012
Google+

Dan Krell, Realtor®
DanKrell.com
© 2012