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Friday, October 21, 2011
Wednesday, October 12, 2011
What housing market surveys are telling us
by Dan Krell © 2011
DanKrell.com
You’ve probably heard, now and then, reports of housing surveys giving a status report of the housing and the real estate market. Of course the scientific method is forgotten for a chance at a headline; technical details and summaries are usually condensed to a one sentenced sound-bite. If you’ve ever taken the time to look into the survey results to see the samples and questions, you can see that any one poll is only a snapshot of respondents’ attitudes at the time of the survey.
The results of recent housing surveys conducted by Fannie Mae (fanniemae.com) are telling of the current economic environment. Reported quarterly and monthly, the National Housing Survey (NHS) “offers a window into the opinions of Americans across the country…” about owning and renting a home as well as personal finances and confidence in the economy.
The most recent quarterly NHS results were released August 15th, and quoted Doug Duncan, vice president and chief economist of Fannie Mae, as saying, “… consumer spending, which accounts for about 70 percent of the economy, ground to a halt in the second quarter. Consumers are more hesitant to take on additional financial commitments, and a setback to confidence means a setback to the recovery of the housing market." Additionally, the quarterly survey indicated increasing consumer pessimism as employment concerns tops the list, economy on wrong track…yada, yada, yada.
Ok, not news to you. But how about trends indicating a further decline of the housing market?
The most recent monthly NHS (released October 10th) reported a “marked deterioration” of consumer home price expectancies. Mr. Duncan was quoted here saying that, “…The lack of a sense of urgency to buy homes, given expectations for further declines in home prices and continued low mortgage rates, coupled with general pessimism regarding their own personal finances and the economy, bodes poorly for the recovery of the housing market.”
The Home Values Survey (HVS) is another telling survey, which is conducted by Homegain (homegain.com); and examines Realtor® and consumer sentiment about the housing market and economy. The most recent Regional HVS was reported September 11th for Q3 indicated: that although a majority of real estate agents surveyed reported their client’s homes depreciated in value, home sellers continued to over-value their homes; home buyers overwhelmingly reported that homes were overpriced; 39% of home buyers surveyed in the Northeast reported that they thought homes were overpriced 10%- to 20%; and an overwhelming majority of real estate agents surveyed in the Northeast (62%) reported they believed that home values would decrease in the next six months.
The outlook is not all doom and gloom. Some surveys report a positive spin as well.
Although a Rasmussen Reports (rasmussenreports.com ) survey reported on September 21st indicated that 48% of adults nationwide felt that buying a home is the best investment for one’s family, a commentary posted on rasmussenreports.com (The Housing Bust Has a Good Side by Froma Harrop; September 22nd) promotes the idea that the housing downturn has brought home owners back to fiscal reality.
Additionally, Gallop (gallop.com) reported in April that of the American adults surveyed, there were just as many who felt that the average home price would decrease (30%) than increase (28%) in the coming year. And, of course- an overwhelming majority of those surveyed (69%) felt it was a good time to buy a home.
More news and articles on "the Blog"
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 October 10, 2011. Using this article without permission is a violation of copyright laws. Copyright © 2011 Dan Krell.
DanKrell.com
You’ve probably heard, now and then, reports of housing surveys giving a status report of the housing and the real estate market. Of course the scientific method is forgotten for a chance at a headline; technical details and summaries are usually condensed to a one sentenced sound-bite. If you’ve ever taken the time to look into the survey results to see the samples and questions, you can see that any one poll is only a snapshot of respondents’ attitudes at the time of the survey.
The results of recent housing surveys conducted by Fannie Mae (fanniemae.com) are telling of the current economic environment. Reported quarterly and monthly, the National Housing Survey (NHS) “offers a window into the opinions of Americans across the country…” about owning and renting a home as well as personal finances and confidence in the economy.
The most recent quarterly NHS results were released August 15th, and quoted Doug Duncan, vice president and chief economist of Fannie Mae, as saying, “… consumer spending, which accounts for about 70 percent of the economy, ground to a halt in the second quarter. Consumers are more hesitant to take on additional financial commitments, and a setback to confidence means a setback to the recovery of the housing market." Additionally, the quarterly survey indicated increasing consumer pessimism as employment concerns tops the list, economy on wrong track…yada, yada, yada.
Ok, not news to you. But how about trends indicating a further decline of the housing market?
The most recent monthly NHS (released October 10th) reported a “marked deterioration” of consumer home price expectancies. Mr. Duncan was quoted here saying that, “…The lack of a sense of urgency to buy homes, given expectations for further declines in home prices and continued low mortgage rates, coupled with general pessimism regarding their own personal finances and the economy, bodes poorly for the recovery of the housing market.”The Home Values Survey (HVS) is another telling survey, which is conducted by Homegain (homegain.com); and examines Realtor® and consumer sentiment about the housing market and economy. The most recent Regional HVS was reported September 11th for Q3 indicated: that although a majority of real estate agents surveyed reported their client’s homes depreciated in value, home sellers continued to over-value their homes; home buyers overwhelmingly reported that homes were overpriced; 39% of home buyers surveyed in the Northeast reported that they thought homes were overpriced 10%- to 20%; and an overwhelming majority of real estate agents surveyed in the Northeast (62%) reported they believed that home values would decrease in the next six months.
The outlook is not all doom and gloom. Some surveys report a positive spin as well.
Although a Rasmussen Reports (rasmussenreports.com ) survey reported on September 21st indicated that 48% of adults nationwide felt that buying a home is the best investment for one’s family, a commentary posted on rasmussenreports.com (The Housing Bust Has a Good Side by Froma Harrop; September 22nd) promotes the idea that the housing downturn has brought home owners back to fiscal reality.
Additionally, Gallop (gallop.com) reported in April that of the American adults surveyed, there were just as many who felt that the average home price would decrease (30%) than increase (28%) in the coming year. And, of course- an overwhelming majority of those surveyed (69%) felt it was a good time to buy a home.
More news and articles on "the Blog"
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 October 10, 2011. Using this article without permission is a violation of copyright laws. Copyright © 2011 Dan Krell.
Thursday, October 06, 2011
Celebrity homes
by Dan Krell © 2011
DanKrell.com
Nothing grabs the public’s attention more than juicy celebrity gossip. So, it shouldn’t have surprised me when I received what seemed to be endless calls from Hollywood gossip reporters asking about Kate Gosselin’s move to Rockville, MD. At first, I thought the calls were from pranksters because I had no idea who Kate Gosselin was (I’m not a TV junkie, so I was unaware of her celebrity status); but when I was enlightened to her realty-TV fame, I was taken aback by the amount of attention and energy that was garnered just by a rumor. But that was in 2009.
Sure, I know you’re wondering “why would a celebrity be moving to Bethesda?” Well, the MD-DC-VA area attracts many celebrities. Of course there are the home grown celebs who have moved away, but the area attracts celebs of all kinds from around the world. Some celebs who live or have lived in the area are known for their on screen achievements, some are known for their writing ability, some are known for their contributions to their respective fields, some are royalty, and some are known just for their wealth.
Without question, the MD-DC-VA area attracts the political elite from around the world, not just because DC is the seat of government, but it is also perceived as a seat of world power. And don’t forget the many sports stars who choose to live locally as well; even though they don’t have to make their permanent homes locally, many do.
Even Donald Trump knows the attraction value of the area. A purchase of a Sterling, VA golf course on the Potomac River in 2009 was not the only recent local real estate purchase; his purchase of a Virginia vineyard made headlines earlier this year.
It’s only natural to be interested in how the rich and famous live, it taps into our human ambition and need for achievement; at some unconscious level, peeking into celeb lifestyles may also provide motivation or a vision of aspiration. But looking into the “window” of their home, so to speak, is a bit different than celebrity spotting around town with the paparazzi.The interest in celeb homes and lifestyles has sparked such TV shows as MTV Cribs (mtv.com) and even Joan River’s show How’d You Get So Rich?(tvland.com). Looking inside a celeb’s home can give you a view of the elegant, trendy, or even cutting edge design. But most of all it allows a peek into a lifestyle that may seem familiar; many celeb homes are focused on family, on comfort, and around food (the kitchen).
Be warned- no matter how curious you are, don’t try to peek through the windows of a celebrity’s home (or anyone’s home for that matter) as you may wind up being detained by the police (or worse). If you’re interested in celebrities and their lifestyles, there is no loss for information in today’s saturated Media. Local TV shows and internet websites can not only give you the scoop on local celebs’ homes, some provide interior pictures and tours. Websites such as DC Curbed (dc.curbed.com) and The Real Estalker (realestalker.blogspot.com) have the latest info on celebs homes.
Today, the calls asking about celebrities moving into or out of town continue. But here’s a tip- don’t ask the real estate agent: a good agent knows the value of discretion for the sake of their famous client.
More news and articles on "the Blog"
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 October 3, 2011. Using this article without permission is a violation of copyright laws. Copyright © 2011 Dan Krell.
Friday, September 30, 2011
The best laid plans of mice and men…
by Dan Krell © 2011
DanKrell.com
PlanMaryland (Plan.Maryland.gov) appears to be the next stage of smart growth planning in Maryland. When the first draft was announced earlier this year, you can imagine that some were thrilled and some, well, not so much.
Articles and blogs abound heaping praise, while some are expressing criticism and concerns about the role of government. Aaron Davis’ August 19th Washington Post Article (O’Malley, Md. counties begin battle over development plan) frames the debate and expresses the concerns of some that include “central planning” and mandates. While advocates of such a plan say “it’s about time,” critics are saying that the plan is moving “too quickly.”
Ultimately, the plan’s intention appears to be “… a collaborative process between the State and local governments to address critical issues of environmental and fiscal sustainability” while focusing on three main goals: 1) “Concentrate development and redevelopment in communities where there is existing and planned infrastructure”; 2) “Preserve and protect environmentally sensitive and rural lands and resources from the impacts of development”; and 3) “Ensure that a desirable quality of life in Maryland’s communities is sustainable.”
Regardless of what either side says about the plan’s intensions, or anticipates with its implementation; here’s what is stated in the most recent draft of PlanMaryland (which is available at Plan.Maryland.gov):
PlanMaryland intends to: improve the way in which state agencies and local governments work together to accomplish common goals and objectives for growth, development and preservation; help accommodate a projected 1 million additional residents, 500,000 new households and 600,000 new jobs by the year 2035 without sacrificing agricultural and natural resources; stimulate economic development and revitalization in towns, cities and other existing communities that have facilities to support growth; save 300,000+ acres of farmland and forest over the next 25 years; save Maryland an estimated $1.5 billion a year in infrastructure costs during the next 20 years through a smart-growth approach to land use; address the rapid pace of land consumption, which since 1970 has escalated at double the rate of housing growth and triple the rate of population increase.
PlanMaryland is not: a substitute for local comprehensive plans nor will it take away local planning and zoning authority; a top-down approach to force compliance with a statewide land-use plan; a silver bullet that will solve all problems (but is a strategic plan to address issues such as community disinvestment, sprawl development and inefficient use of existing resources); a “one size fits all” approach (PlanMaryland recognizes that different areas of the state have different characteristics, problems, issues and opportunities); a mandate to spend more (if PlanMaryland helps local governments implement their existing comprehensive plans, it will save money by avoiding expenditures for unnecessary infrastructure and other costs).
Robert Burns once said (in a Scottish poem) “The best laid plans of mice and men…go oft awry.” Before implementing a new “vision,” one might ask, “How has smart growth policies impacted growth and development during the last twenty years?” On the exterior, PlanMaryland appears well intentioned to protect environmentally sensitive areas and “ensure” quality of life. However, there’s more at stake than just a “centralized” vision of quality of life through smart growth.
The current revision of PlanMaryland is open for public comments until November 9th. So, if you have an opinion, here’s your chance voice it on the PlanMaryland website.
More news and articles on "the Blog"
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 26, 2011. Using this article without permission is a violation of copyright laws. Copyright © 2011 Dan Krell.
DanKrell.com
PlanMaryland (Plan.Maryland.gov) appears to be the next stage of smart growth planning in Maryland. When the first draft was announced earlier this year, you can imagine that some were thrilled and some, well, not so much.
Articles and blogs abound heaping praise, while some are expressing criticism and concerns about the role of government. Aaron Davis’ August 19th Washington Post Article (O’Malley, Md. counties begin battle over development plan) frames the debate and expresses the concerns of some that include “central planning” and mandates. While advocates of such a plan say “it’s about time,” critics are saying that the plan is moving “too quickly.”
Ultimately, the plan’s intention appears to be “… a collaborative process between the State and local governments to address critical issues of environmental and fiscal sustainability” while focusing on three main goals: 1) “Concentrate development and redevelopment in communities where there is existing and planned infrastructure”; 2) “Preserve and protect environmentally sensitive and rural lands and resources from the impacts of development”; and 3) “Ensure that a desirable quality of life in Maryland’s communities is sustainable.”
Regardless of what either side says about the plan’s intensions, or anticipates with its implementation; here’s what is stated in the most recent draft of PlanMaryland (which is available at Plan.Maryland.gov):
PlanMaryland intends to: improve the way in which state agencies and local governments work together to accomplish common goals and objectives for growth, development and preservation; help accommodate a projected 1 million additional residents, 500,000 new households and 600,000 new jobs by the year 2035 without sacrificing agricultural and natural resources; stimulate economic development and revitalization in towns, cities and other existing communities that have facilities to support growth; save 300,000+ acres of farmland and forest over the next 25 years; save Maryland an estimated $1.5 billion a year in infrastructure costs during the next 20 years through a smart-growth approach to land use; address the rapid pace of land consumption, which since 1970 has escalated at double the rate of housing growth and triple the rate of population increase.
PlanMaryland is not: a substitute for local comprehensive plans nor will it take away local planning and zoning authority; a top-down approach to force compliance with a statewide land-use plan; a silver bullet that will solve all problems (but is a strategic plan to address issues such as community disinvestment, sprawl development and inefficient use of existing resources); a “one size fits all” approach (PlanMaryland recognizes that different areas of the state have different characteristics, problems, issues and opportunities); a mandate to spend more (if PlanMaryland helps local governments implement their existing comprehensive plans, it will save money by avoiding expenditures for unnecessary infrastructure and other costs).Robert Burns once said (in a Scottish poem) “The best laid plans of mice and men…go oft awry.” Before implementing a new “vision,” one might ask, “How has smart growth policies impacted growth and development during the last twenty years?” On the exterior, PlanMaryland appears well intentioned to protect environmentally sensitive areas and “ensure” quality of life. However, there’s more at stake than just a “centralized” vision of quality of life through smart growth.
The current revision of PlanMaryland is open for public comments until November 9th. So, if you have an opinion, here’s your chance voice it on the PlanMaryland website.
More news and articles on "the Blog"
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 26, 2011. Using this article without permission is a violation of copyright laws. Copyright © 2011 Dan Krell.
Thursday, September 22, 2011
You can be Green with little effort and cost
By Dan Krell © 2011
DanKrell.com
Being green has become mired in controversy and scandal. As “green jobs” are being touted to save our economy; the recent controversy surrounding the solar company, Solyndra, is making some people wonder if a green agenda is more than just making your home more energy efficient. Some might even argue “green” is becoming political and getting lost in the eco-debate.
However, after sifting through the rhetoric, being green is about conserving resources and saving you money; and it doesn’t have to cost you a small fortune either (like retro-fitting your home with “green technology” that might take years to break even on your investment). Being green is easy. The Federal Trade Commission (FTC.gov) provides a guide on conserving energy and saving money in your home entitled, "Saving Starts @ Home: The Inside Story on Conserving Energy". The publication breaks down green activities to specific areas of the home.
The guide offers many money saving tips, including these for your appliances: if possible- move your refrigerator away from the stove, dishwasher and vents; check that refrigerator seals are tight; run the dishwasher when it is full (don’t overload); use pots that fit the burners of your stove and use lids on pots to allow for a lower cooking temperature; lower hot water heater thermostats to 120 degrees rather than the pre-set 140 degrees; clean lint from clothes dryer each load to make your dryer run more efficiently.
Lighting is another area where you can conserve energy. The guide points out that there is a wide variety of lighting which should be compared for your specific needs. Comparing lighting should be easy as bulb packaging is required to have information such as light output (how much light the bulb produces, measured in lumens.); energy usage (the total electrical power a bulb uses measured in watts.); voltage, if the bulb is not 120 volts; average life in hours (how long the bulb will last); and the number of bulbs in the package (if more than one).
Certainly, buying a new high efficiency HVAC system might show your ecological awareness; however the guide suggests that you can increase your existing HVAC system’s efficiency through regular maintenance by a licensed professional. Increased HVAC efficiency can be achieved by having a licensed professional seal leaky ducts and ensuring that airflow is distributed appropriately. Also, remember to replace filters as recommended. Additional ways to make your furnace more efficient include: checking caulking and weather-stripping in your home and repair if necessary; installing a programmable thermostat to control air temperature while you’re away from home; consider installing ceiling fans and/or a whole house fan to assist with air circulation; sealing holes around plumbing and heating pipes; and consider installing window coverings.
The guide cautions you about advertisements of energy saving products and services. Some ads are for gimmicks that don’t deliver what’s promised. Take your time to carefully assess claims; and don’t be pressured into making a decision from contractors or door to door salespeople. The guide states, “If you sign a contract in your home or somewhere other than a company’s permanent place of business, the FTC’s ‘Cooling-Off Rule’ gives you three business days to cancel.”
Ultimately, creating green habits can be easy and should not cost you much; green habits not only save resources, but can save you money too.
More news and articles on "the Blog"
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 19, 2011. Using this article without permission is a violation of copyright laws. Copyright © 2011 Dan Krell.
DanKrell.com
Being green has become mired in controversy and scandal. As “green jobs” are being touted to save our economy; the recent controversy surrounding the solar company, Solyndra, is making some people wonder if a green agenda is more than just making your home more energy efficient. Some might even argue “green” is becoming political and getting lost in the eco-debate.
However, after sifting through the rhetoric, being green is about conserving resources and saving you money; and it doesn’t have to cost you a small fortune either (like retro-fitting your home with “green technology” that might take years to break even on your investment). Being green is easy. The Federal Trade Commission (FTC.gov) provides a guide on conserving energy and saving money in your home entitled, "Saving Starts @ Home: The Inside Story on Conserving Energy". The publication breaks down green activities to specific areas of the home.
The guide offers many money saving tips, including these for your appliances: if possible- move your refrigerator away from the stove, dishwasher and vents; check that refrigerator seals are tight; run the dishwasher when it is full (don’t overload); use pots that fit the burners of your stove and use lids on pots to allow for a lower cooking temperature; lower hot water heater thermostats to 120 degrees rather than the pre-set 140 degrees; clean lint from clothes dryer each load to make your dryer run more efficiently.
Lighting is another area where you can conserve energy. The guide points out that there is a wide variety of lighting which should be compared for your specific needs. Comparing lighting should be easy as bulb packaging is required to have information such as light output (how much light the bulb produces, measured in lumens.); energy usage (the total electrical power a bulb uses measured in watts.); voltage, if the bulb is not 120 volts; average life in hours (how long the bulb will last); and the number of bulbs in the package (if more than one).
Certainly, buying a new high efficiency HVAC system might show your ecological awareness; however the guide suggests that you can increase your existing HVAC system’s efficiency through regular maintenance by a licensed professional. Increased HVAC efficiency can be achieved by having a licensed professional seal leaky ducts and ensuring that airflow is distributed appropriately. Also, remember to replace filters as recommended. Additional ways to make your furnace more efficient include: checking caulking and weather-stripping in your home and repair if necessary; installing a programmable thermostat to control air temperature while you’re away from home; consider installing ceiling fans and/or a whole house fan to assist with air circulation; sealing holes around plumbing and heating pipes; and consider installing window coverings.The guide cautions you about advertisements of energy saving products and services. Some ads are for gimmicks that don’t deliver what’s promised. Take your time to carefully assess claims; and don’t be pressured into making a decision from contractors or door to door salespeople. The guide states, “If you sign a contract in your home or somewhere other than a company’s permanent place of business, the FTC’s ‘Cooling-Off Rule’ gives you three business days to cancel.”
Ultimately, creating green habits can be easy and should not cost you much; green habits not only save resources, but can save you money too.
More news and articles on "the Blog"
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 19, 2011. Using this article without permission is a violation of copyright laws. Copyright © 2011 Dan Krell.
Thursday, September 15, 2011
A novel idea: Consumer friendly mortgage disclosure
by Dan Krell © 2011
DanKrell.com
Even before its official first day of operation (July 21st), the Consumer Financial Protection Bureau (CFPB: consumerfinance.gov) has been hard at work. The newly formed bureau (created by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010) has been working toward their stated mission “…to make markets for consumer financial products and services work for Americans…”
What better way for the CFPB to begin its operations than to make an easy to understand mortgage disclosure? Back in May, the CFPB announced its creation of the “Know Before Your Owe” project, which has sought to consolidate mortgage disclosures as well as decrease the confusion of mortgage shopping. The “Know Before Your Owe” project will merge two lender disclosures: one required by the Real Estate Settlement Procedures Act (RESPA) and the second required by the Truth in Lending Act (TILA).
Devised as a protection for consumers from abusive and predatory lending practices, RESPA was enacted in 1974 as a “…consumer protection statute designed to help homebuyers be better shoppers in the home buying process…” As of July 21st, the CFPB has taken over administration and enforcement of RESPA, which was previously administered by the Department of Housing and Urban Development (HUD).
First enacted in 1968, TILA provides a framework for which lenders must inform consumers about the cost of their loan. TILA requires such disclosures as the Annual Percentage Rate (APR), finance charge, amount financed, and the total amount paid as scheduled. TILA is enforced by various government agencies, which now includes the CFPB.
RESPA and TILA require several disclosures to be provided to you within three days upon making your mortgage application, as well as not having changed prior to your closing of the transaction. Changes to these regulations and disclosures have often been made to keep up with the industry as well as to enhance consumer disclosure and education; the most recent round was after the financial crisis in 2008. Designed to be more efficient and accurate in providing information to consumers, the most recent changes to the Good Faith Estimate (GFE), along with the Truth in Lending Disclosure Statement, continue to be confusing for many people.
Many consumers were easily confused by past versions of the GFE and the Truth in Lending Disclosure Statement because it was difficult to compare mortgage costs between lenders; costs were not always labeled consistently. The new form seeks to standardize fee and cost disclosure such that making a comparison will be more like comparing two apples rather than an apple to an orange.
The combination of these two disclosures is not only an effort of the CFPB to increase transparency in the lending process, but it is also mandated by the “Dodd-Frank Act.” The “Know Before Your Owe” project began testing two versions of a new disclosure that would consolidate the combined five pages of overlapping information into one easy to follow form of two pages. The prototypes provide easy to follow information regarding the loan; and also include clear sections highlighting cautions, comparisons, lender fees and a loan summary.
Since testing began in May, the CPFB has been requesting feedback from consumers and professionals about the new disclosure. Although the finalized form is not expected to be in use until next year, you can view the prototypes as well as provide feedback on the CPFB website until September 19th.
More news and articles on "the Blog"
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 12, 2011. Using this article without permission is a violation of copyright laws. Copyright © 2011 Dan Krell.
DanKrell.com
Even before its official first day of operation (July 21st), the Consumer Financial Protection Bureau (CFPB: consumerfinance.gov) has been hard at work. The newly formed bureau (created by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010) has been working toward their stated mission “…to make markets for consumer financial products and services work for Americans…”
What better way for the CFPB to begin its operations than to make an easy to understand mortgage disclosure? Back in May, the CFPB announced its creation of the “Know Before Your Owe” project, which has sought to consolidate mortgage disclosures as well as decrease the confusion of mortgage shopping. The “Know Before Your Owe” project will merge two lender disclosures: one required by the Real Estate Settlement Procedures Act (RESPA) and the second required by the Truth in Lending Act (TILA).
Devised as a protection for consumers from abusive and predatory lending practices, RESPA was enacted in 1974 as a “…consumer protection statute designed to help homebuyers be better shoppers in the home buying process…” As of July 21st, the CFPB has taken over administration and enforcement of RESPA, which was previously administered by the Department of Housing and Urban Development (HUD).
First enacted in 1968, TILA provides a framework for which lenders must inform consumers about the cost of their loan. TILA requires such disclosures as the Annual Percentage Rate (APR), finance charge, amount financed, and the total amount paid as scheduled. TILA is enforced by various government agencies, which now includes the CFPB.
RESPA and TILA require several disclosures to be provided to you within three days upon making your mortgage application, as well as not having changed prior to your closing of the transaction. Changes to these regulations and disclosures have often been made to keep up with the industry as well as to enhance consumer disclosure and education; the most recent round was after the financial crisis in 2008. Designed to be more efficient and accurate in providing information to consumers, the most recent changes to the Good Faith Estimate (GFE), along with the Truth in Lending Disclosure Statement, continue to be confusing for many people.
Many consumers were easily confused by past versions of the GFE and the Truth in Lending Disclosure Statement because it was difficult to compare mortgage costs between lenders; costs were not always labeled consistently. The new form seeks to standardize fee and cost disclosure such that making a comparison will be more like comparing two apples rather than an apple to an orange.The combination of these two disclosures is not only an effort of the CFPB to increase transparency in the lending process, but it is also mandated by the “Dodd-Frank Act.” The “Know Before Your Owe” project began testing two versions of a new disclosure that would consolidate the combined five pages of overlapping information into one easy to follow form of two pages. The prototypes provide easy to follow information regarding the loan; and also include clear sections highlighting cautions, comparisons, lender fees and a loan summary.
Since testing began in May, the CPFB has been requesting feedback from consumers and professionals about the new disclosure. Although the finalized form is not expected to be in use until next year, you can view the prototypes as well as provide feedback on the CPFB website until September 19th.
More news and articles on "the Blog"
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 12, 2011. Using this article without permission is a violation of copyright laws. Copyright © 2011 Dan Krell.
Wednesday, September 07, 2011
Hurricanes, earthquakes, and your home
by Dan Krell © 2011
DanKrell.com
When I wrote about disaster preparedness earlier this year, who knew we would experience an earthquake and a hurricane within a few months? Now that Hurricane Irene and the “surprise” earthquake are still fresh in our memories, disaster preparedness is a top conversation. However, protecting your home, possessions, and family from disasters and severe weather goes beyond just having a preparedness kit along with several days’ worth of food and water.
Consider that basic home owners’ insurance typically doesn’t cover damage from flood or earthquake; and unfortunately, many home owners don’t know the extent (or limitations) of their own home owners’ insurance coverage. Unless you live in a flood zone, where you’re lender would require you to carry the extra coverage, chances are that you don’t have flood insurance. Additionally, who thinks about earthquake insurance in the east coast? Actually, according to the Property Casualty Insurers Association of America (www.pciaa.net) about only 12% of Californians have earthquake insurance – so it is likely that you might not either.
Although regular home maintenance could possibly avoid a catastrophe caused by severe weather and water penetration; any disaster (whether it’s a natural occurrence, manmade, deity made, alien made, or whatever your beliefs are) has the potential for major devastation regardless of how much you prepare.
Have you looked up toward your roof lately? If your roof fails, high winds and heavy rain could not only lift and peel away shingles, but could allow water penetration into your home (which could affect other systems). Regular checks of the roof system, including shingles and flashing could prevent surprises when you’re relying on your home’s roof the most.
Additionally, don’t wait for wind or birds to clear the debris that has landed on your roof. Debris, such as tree branches, leaves, Frisbees, etc. have the potential to not only damage shingles and sheathing, but can also clog the gutters and downspouts. Instead of carrying water away from your home, clogged gutters and downspouts could force rains to cascade to the ground and pool around your home’s foundation. Additionally, a gutter that has pulled away from the roof can also allow rain to cascade off the roof and pool around the home’s foundation. To ensure proper function, gutters and downspouts should be checked and cleaned regularly.
If you have a basement, check if you have a sump pump. The sump pump is used to pump water away from your home’s foundation to prevent water penetration into your basement. Although sump pumps have an average life span of ten years, pumps can wear out much sooner. Regular testing makes sense to know if the pump is operational. Since power loss is often associated with severe weather events, you might consider a battery backup for your sump pump to ensure it can operate when you need it the most.
An additional source of water penetration could result from failing windows and siding. If the home’s windows are not sealed properly, strong winds and rain could force their way into the home. Additionally, siding that is not properly attached to your home can not only allow water to penetrate, but could separate from the home leaving wall systems unprotected.
Protect your home, possessions, and your family by conducting regular home maintenance, as well as regularly consulting with your insurance agent to ensure you’re properly covered.
More news and articles on "the Blog"
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 5, 2011. Using this article without permission is a violation of copyright laws. Copyright © 2011 Dan Krell.
DanKrell.com
When I wrote about disaster preparedness earlier this year, who knew we would experience an earthquake and a hurricane within a few months? Now that Hurricane Irene and the “surprise” earthquake are still fresh in our memories, disaster preparedness is a top conversation. However, protecting your home, possessions, and family from disasters and severe weather goes beyond just having a preparedness kit along with several days’ worth of food and water.
Consider that basic home owners’ insurance typically doesn’t cover damage from flood or earthquake; and unfortunately, many home owners don’t know the extent (or limitations) of their own home owners’ insurance coverage. Unless you live in a flood zone, where you’re lender would require you to carry the extra coverage, chances are that you don’t have flood insurance. Additionally, who thinks about earthquake insurance in the east coast? Actually, according to the Property Casualty Insurers Association of America (www.pciaa.net) about only 12% of Californians have earthquake insurance – so it is likely that you might not either.
Although regular home maintenance could possibly avoid a catastrophe caused by severe weather and water penetration; any disaster (whether it’s a natural occurrence, manmade, deity made, alien made, or whatever your beliefs are) has the potential for major devastation regardless of how much you prepare.
Have you looked up toward your roof lately? If your roof fails, high winds and heavy rain could not only lift and peel away shingles, but could allow water penetration into your home (which could affect other systems). Regular checks of the roof system, including shingles and flashing could prevent surprises when you’re relying on your home’s roof the most.
Additionally, don’t wait for wind or birds to clear the debris that has landed on your roof. Debris, such as tree branches, leaves, Frisbees, etc. have the potential to not only damage shingles and sheathing, but can also clog the gutters and downspouts. Instead of carrying water away from your home, clogged gutters and downspouts could force rains to cascade to the ground and pool around your home’s foundation. Additionally, a gutter that has pulled away from the roof can also allow rain to cascade off the roof and pool around the home’s foundation. To ensure proper function, gutters and downspouts should be checked and cleaned regularly.
If you have a basement, check if you have a sump pump. The sump pump is used to pump water away from your home’s foundation to prevent water penetration into your basement. Although sump pumps have an average life span of ten years, pumps can wear out much sooner. Regular testing makes sense to know if the pump is operational. Since power loss is often associated with severe weather events, you might consider a battery backup for your sump pump to ensure it can operate when you need it the most.An additional source of water penetration could result from failing windows and siding. If the home’s windows are not sealed properly, strong winds and rain could force their way into the home. Additionally, siding that is not properly attached to your home can not only allow water to penetrate, but could separate from the home leaving wall systems unprotected.
Protect your home, possessions, and your family by conducting regular home maintenance, as well as regularly consulting with your insurance agent to ensure you’re properly covered.
More news and articles on "the Blog"
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 5, 2011. Using this article without permission is a violation of copyright laws. Copyright © 2011 Dan Krell.
Thursday, September 01, 2011
Coping with a low appraisal
by Dan Krell © 2011
DanKrell.com
I know it’s trite to say that selling your home in today’s economic environment is challenging. You know that home buyers are very picky and money is tight. However, are you (or your real estate agent) prepared for a low appraisal?
According to the Appraisal Institute (appraisalinstitute.org), an appraisal is “a professional appraiser's opinion of value.” The appraiser’s role is to “provide objective, impartial, and unbiased opinions about the value of real property”… “Appraisers assemble a series of facts, statistics, and other information regarding specific properties, analyze this data, and develop opinions of value.”
Although there is a standardized procedure in conducting and preparing an appraisal, lenders add their own criteria to meet their underwriting requirements. There is no doubt that many lenders have made their criteria more restrictive since the housing market downturn.
Contrary to the current attitudes, low appraisals have always been around. It was not until the market downturn when many home sellers were confronted with concrete evidence of their home’s depreciation. However, the issues with today’s low appraisals are slightly different those of years past. In addition to stricter lender requirements and increased appraisal scrutiny, some have argued that changes to the appraisal industry (including management and ordering) may have also contributed to low appraisals.
Although not as pervasive as they were several years ago, low appraisals are still common. If your home does appraise lower than the contract price, you can appeal the value with the lender – but it will be difficult. In the past, appraisal appeals were less demanding (typical comparables were homes that sold within 6 months and 1 to 5 miles from your home) providing you a higher chance of success. However, today’s lender requirements are more restrictive. Although lenders vary on their requirements, many lenders now only accept appeals that include three original comparables that sold within the last 3 months and are within ½ mile (or less) of your home.
Don’t wait for a low appraisal to throw a wrench in your sale; take a proactive approach. Long gone are the days of setting a price by tacking on thousands to your neighbor’s recent sale price! Pricing your home correctly doesn’t only help attract home buyers, but it can also help avoid a low appraisal. Furthermore, choosing appropriate comparables for your pricing strategy is highly important, which include: comparables that are most similar to your home (same style and within 15% to 20% of living area and lot size); the most recent sales (within 3 months, but nor more than 6 months); and in close proximity to your home (unless you are in a rural are the comparable should be within ½ mile, but no more than 1 mile).
Additionally, the appraiser should be provided with your pricing rationale (i.e., the comparables that indicate that your sale price is in line with the market as well as a list of improvements that add value to your home). The intent is not to pester the appraiser while they are trying to do their job. However, some appraisers are appreciative that you have made the effort to provide the information (especially those who are unfamiliar with the local market).
Regardless of the outcome of your home’s appraisal, take heart that you can be proactive to possibly avoid appraisal issues. And if need be, don’t be afraid to appeal a low appraisal.
More news and articles on "the Blog"
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 August 29, 2011. Using this article without permission is a violation of copyright laws. Copyright © 2011 Dan Krell.
DanKrell.com
I know it’s trite to say that selling your home in today’s economic environment is challenging. You know that home buyers are very picky and money is tight. However, are you (or your real estate agent) prepared for a low appraisal?
According to the Appraisal Institute (appraisalinstitute.org), an appraisal is “a professional appraiser's opinion of value.” The appraiser’s role is to “provide objective, impartial, and unbiased opinions about the value of real property”… “Appraisers assemble a series of facts, statistics, and other information regarding specific properties, analyze this data, and develop opinions of value.”
Although there is a standardized procedure in conducting and preparing an appraisal, lenders add their own criteria to meet their underwriting requirements. There is no doubt that many lenders have made their criteria more restrictive since the housing market downturn.
Contrary to the current attitudes, low appraisals have always been around. It was not until the market downturn when many home sellers were confronted with concrete evidence of their home’s depreciation. However, the issues with today’s low appraisals are slightly different those of years past. In addition to stricter lender requirements and increased appraisal scrutiny, some have argued that changes to the appraisal industry (including management and ordering) may have also contributed to low appraisals.
Although not as pervasive as they were several years ago, low appraisals are still common. If your home does appraise lower than the contract price, you can appeal the value with the lender – but it will be difficult. In the past, appraisal appeals were less demanding (typical comparables were homes that sold within 6 months and 1 to 5 miles from your home) providing you a higher chance of success. However, today’s lender requirements are more restrictive. Although lenders vary on their requirements, many lenders now only accept appeals that include three original comparables that sold within the last 3 months and are within ½ mile (or less) of your home.
Don’t wait for a low appraisal to throw a wrench in your sale; take a proactive approach. Long gone are the days of setting a price by tacking on thousands to your neighbor’s recent sale price! Pricing your home correctly doesn’t only help attract home buyers, but it can also help avoid a low appraisal. Furthermore, choosing appropriate comparables for your pricing strategy is highly important, which include: comparables that are most similar to your home (same style and within 15% to 20% of living area and lot size); the most recent sales (within 3 months, but nor more than 6 months); and in close proximity to your home (unless you are in a rural are the comparable should be within ½ mile, but no more than 1 mile).Additionally, the appraiser should be provided with your pricing rationale (i.e., the comparables that indicate that your sale price is in line with the market as well as a list of improvements that add value to your home). The intent is not to pester the appraiser while they are trying to do their job. However, some appraisers are appreciative that you have made the effort to provide the information (especially those who are unfamiliar with the local market).
Regardless of the outcome of your home’s appraisal, take heart that you can be proactive to possibly avoid appraisal issues. And if need be, don’t be afraid to appeal a low appraisal.
More news and articles on "the Blog"
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 August 29, 2011. Using this article without permission is a violation of copyright laws. Copyright © 2011 Dan Krell.
Wednesday, August 24, 2011
The $1 foreclosure solution
by Dan Krell
DanKrell.com
The buzz last week came from a Federal Housing Finance Agency’s (FHFA) request for information (RFI). The RFI is “seeking input on new options” on the disposition of foreclosed properties that are held by Fannie Mae, Freddie Mac and the Federal Housing Administration (FHA). FHFA (fhfa.gov) is the “the regulator and conservator of Fannie Mae and Freddie Mac and the regulator of the 12 Federal Home Loan Banks.”
The August 10th release stated that the FHFA, in consultation with HUD, is seeking to stabilize the housing market by exploring “alternatives for maximizing value to taxpayers and increasing private investment in the housing market, including approaches that support rental and affordable housing needs.” FHFA Acting Director Edward DeMarco stated that although individual homes will continue to be sold, there is an interest in “pooling” (i.e., bulk sales) assets if it can “reduce Enterprise credit losses and help stabilize neighborhoods and home values…”
Among the objectives outlined in the RFI, included are: a reduction of REO portfolios; a focus on property repair and rehabilitation; and a focus on neighborhood and price stabilization. However, it appears as if the outcome may already be weighted towards a rental solution (“FHFA, Treasury and HUD anticipate respondents may best address these objectives through REO to rental structures”), even though an objective of the RFI is to use “analytic approaches to determine the appropriate disposition strategy for individual properties, whether sale, rental, or, in certain instances, demolition.”
If one intention of the FHFA and HUD is to implement a rental program, then it seems only appropriate to examine how the “lease for deed” program, that Fannie Mae embarked upon in 2009, has performed and impacted neighborhood home values and stabilization.
However, another possible solution with a focus on home ownership and community involvement comes from the recently deceased Governor William Donald Schaefer. Although many may remember the former Governor of Maryland, but many probably do not remember William Donald Schaefer as Mayor of Baltimore. As Mayor of Baltimore, Schaefer oversaw some of the most intensive urban renewal and revitalization projects of the 1970’s, some of which were mimicked around the country. One of the most memorable, at least to longtime Baltimore residents, is the $1 home.
As the deterioration of downtown Baltimore escalated, the City was faced with a growing number of vacant homes that among other things significantly depreciated property values. Along with commercial redevelopment, such as the Inner Harbor projects, a plan for residential renewal was undertaken that at the outset appeared risky and incomprehensible.
The program involved the City purchasing blocks of homes and then selling them to owner- occupants for $1. The idea was to basically provide affordable housing to home owners who would agree to not only rehabilitate the property (rehab loans were provided by the City), but to also live in the home for a number of years – thus turning rows of vacant homes into desirable neighborhoods that shouted pride of ownership as well as increasing property values and stabilizing the community (dollarhomes.wordpress.com).
Although the FHFA may be focused on “transferring” their REO portfolios by selling as many homes as they can non-resident investors, hoping for renovations and affordable housing from an absentee owner; however, a more viable solution may be found in owner-occupants, who are invested in maintaining their homes and participating in their communities.
More news and articles on "the Blog"
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 August 22, 2011. Using this article without permission is a violation of copyright laws. Copyright © 2011 Dan Krell.
DanKrell.com
The buzz last week came from a Federal Housing Finance Agency’s (FHFA) request for information (RFI). The RFI is “seeking input on new options” on the disposition of foreclosed properties that are held by Fannie Mae, Freddie Mac and the Federal Housing Administration (FHA). FHFA (fhfa.gov) is the “the regulator and conservator of Fannie Mae and Freddie Mac and the regulator of the 12 Federal Home Loan Banks.”
The August 10th release stated that the FHFA, in consultation with HUD, is seeking to stabilize the housing market by exploring “alternatives for maximizing value to taxpayers and increasing private investment in the housing market, including approaches that support rental and affordable housing needs.” FHFA Acting Director Edward DeMarco stated that although individual homes will continue to be sold, there is an interest in “pooling” (i.e., bulk sales) assets if it can “reduce Enterprise credit losses and help stabilize neighborhoods and home values…”
Among the objectives outlined in the RFI, included are: a reduction of REO portfolios; a focus on property repair and rehabilitation; and a focus on neighborhood and price stabilization. However, it appears as if the outcome may already be weighted towards a rental solution (“FHFA, Treasury and HUD anticipate respondents may best address these objectives through REO to rental structures”), even though an objective of the RFI is to use “analytic approaches to determine the appropriate disposition strategy for individual properties, whether sale, rental, or, in certain instances, demolition.”
If one intention of the FHFA and HUD is to implement a rental program, then it seems only appropriate to examine how the “lease for deed” program, that Fannie Mae embarked upon in 2009, has performed and impacted neighborhood home values and stabilization.
However, another possible solution with a focus on home ownership and community involvement comes from the recently deceased Governor William Donald Schaefer. Although many may remember the former Governor of Maryland, but many probably do not remember William Donald Schaefer as Mayor of Baltimore. As Mayor of Baltimore, Schaefer oversaw some of the most intensive urban renewal and revitalization projects of the 1970’s, some of which were mimicked around the country. One of the most memorable, at least to longtime Baltimore residents, is the $1 home.As the deterioration of downtown Baltimore escalated, the City was faced with a growing number of vacant homes that among other things significantly depreciated property values. Along with commercial redevelopment, such as the Inner Harbor projects, a plan for residential renewal was undertaken that at the outset appeared risky and incomprehensible.
The program involved the City purchasing blocks of homes and then selling them to owner- occupants for $1. The idea was to basically provide affordable housing to home owners who would agree to not only rehabilitate the property (rehab loans were provided by the City), but to also live in the home for a number of years – thus turning rows of vacant homes into desirable neighborhoods that shouted pride of ownership as well as increasing property values and stabilizing the community (dollarhomes.wordpress.com).
Although the FHFA may be focused on “transferring” their REO portfolios by selling as many homes as they can non-resident investors, hoping for renovations and affordable housing from an absentee owner; however, a more viable solution may be found in owner-occupants, who are invested in maintaining their homes and participating in their communities.
More news and articles on "the Blog"
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 August 22, 2011. Using this article without permission is a violation of copyright laws. Copyright © 2011 Dan Krell.
Wednesday, August 17, 2011
Title Insurance: A misunderstood safeguard
by Dan Krell © 2011
DanKrell.com
The necessity of title insurance has been debated over the years by many home owners. However, recent foreclosure disputes, between lenders and former home owners, have brought focus on a valuable and often misunderstood protection. Besides the many stories that have been told about how an owner’s title insurance policy has saved or could have saved a home, many home buyers are unaware of how title insurance was conceived.
According to the American Land Title Association (ALTA.org), title insurance came about as a result of a landmark court case in Pennsylvania in 1868, which found that home seller was not be responsible for a erroneous title opinion. Subsequently, the first title insurance company was formed in 1876 in Philadelphia. The company promoted itself by claiming that they would insure “the purchasers of real estate and mortgages against losses from defective title, liens and encumbrances”…”Through these facilities, transfer of real estate and real estate securities can be made more speedily and with greater security than heretofore.”
Like today, title examinations were conducted to ensure that the title was marketable (or defect free). However, prior to the offering of title insurance, property owners were often held responsible for liens and encumbrances left on the title by the previous owner, or when mistakes occurred. Title disputes were often settled in court.
Initially, title insurance was often a local process. However, the title insurance industry surged along with an expanded housing market after World War II ended. Additionally, the use of lender’s title insurance grew along with the secondary mortgage market; because as the number of nationwide mortgage holders increased, lenders found that title insurance was necessary to protect their interests.
Contrasting to the recordation system has been used in most of the United States (in some cases before the formation of the country); many other countries use a land registration. Land registration typically allows a government to determine ownership when property ownership is challenged; property owners usually have no recourse.
Title insurance is a result of our recordation system that continues to this day, where property ownership can usually be determined by conveyance. Although the recordation system relies on transfer instruments that indicate a grantor, grantee, and property description; the system is not perfect. Besides recordation mistakes and claims from unrecorded conveyances; fraud can also occur by recording falsified transfer documents with a complicit or unsuspecting clerk.
There are two types of title insurance that are offered: lender’s and owner’s. A lender’s policy is usually required by a mortgage lender and protects the interests of the lender by validating the lender’s validity and enforceability of the mortgage. The lender’s policy is typically issued for the mortgage amount and coverage decreases as the principal is paid down.
An owner’s title insurance policy protects the owner’s interest in the property. The policy is typically issued for the purchase price and is usually valid through ownership to cover claims against the title. Policy coverage varies- so check with your title agent for pricing and coverage levels.
When purchasing a title insurance policy, consult with your title attorney about the policy coverage and limitations. Additionally, A Consumer Guide to Title Insurance is available from the agency that regulates title insurance producers - the Maryland Insurance Administration (www.mdinsurance.state.md.us/sa/documents/CG-TitleInsurance01-10.pdf).
More news and articles on "the Blog"
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 August 15, 2011. Using this article without permission is a violation of copyright laws. Copyright © 2011 Dan Krell.
DanKrell.com
The necessity of title insurance has been debated over the years by many home owners. However, recent foreclosure disputes, between lenders and former home owners, have brought focus on a valuable and often misunderstood protection. Besides the many stories that have been told about how an owner’s title insurance policy has saved or could have saved a home, many home buyers are unaware of how title insurance was conceived.
According to the American Land Title Association (ALTA.org), title insurance came about as a result of a landmark court case in Pennsylvania in 1868, which found that home seller was not be responsible for a erroneous title opinion. Subsequently, the first title insurance company was formed in 1876 in Philadelphia. The company promoted itself by claiming that they would insure “the purchasers of real estate and mortgages against losses from defective title, liens and encumbrances”…”Through these facilities, transfer of real estate and real estate securities can be made more speedily and with greater security than heretofore.”
Like today, title examinations were conducted to ensure that the title was marketable (or defect free). However, prior to the offering of title insurance, property owners were often held responsible for liens and encumbrances left on the title by the previous owner, or when mistakes occurred. Title disputes were often settled in court.
Initially, title insurance was often a local process. However, the title insurance industry surged along with an expanded housing market after World War II ended. Additionally, the use of lender’s title insurance grew along with the secondary mortgage market; because as the number of nationwide mortgage holders increased, lenders found that title insurance was necessary to protect their interests.
Contrasting to the recordation system has been used in most of the United States (in some cases before the formation of the country); many other countries use a land registration. Land registration typically allows a government to determine ownership when property ownership is challenged; property owners usually have no recourse.
Title insurance is a result of our recordation system that continues to this day, where property ownership can usually be determined by conveyance. Although the recordation system relies on transfer instruments that indicate a grantor, grantee, and property description; the system is not perfect. Besides recordation mistakes and claims from unrecorded conveyances; fraud can also occur by recording falsified transfer documents with a complicit or unsuspecting clerk.
There are two types of title insurance that are offered: lender’s and owner’s. A lender’s policy is usually required by a mortgage lender and protects the interests of the lender by validating the lender’s validity and enforceability of the mortgage. The lender’s policy is typically issued for the mortgage amount and coverage decreases as the principal is paid down.An owner’s title insurance policy protects the owner’s interest in the property. The policy is typically issued for the purchase price and is usually valid through ownership to cover claims against the title. Policy coverage varies- so check with your title agent for pricing and coverage levels.
When purchasing a title insurance policy, consult with your title attorney about the policy coverage and limitations. Additionally, A Consumer Guide to Title Insurance is available from the agency that regulates title insurance producers - the Maryland Insurance Administration (www.mdinsurance.state.md.us/sa/documents/CG-TitleInsurance01-10.pdf).
More news and articles on "the Blog"
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 August 15, 2011. Using this article without permission is a violation of copyright laws. Copyright © 2011 Dan Krell.
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