Wicomico County Housing Report December 2011

Inventory down 22%!!!




The market report for December showed some very positive signs and strides for the market. Traditionally, December is a slow month for real estate sales, but this December showed some positive activity. See below for the market report broken down by section:

Active Inventory
Versus last year, the total number of homes available this month is lower by 182 units or 22%. The total number of active inventory this December was 641 compared to 823 in December 2010. This month's total of 641 is lower than the previous month's total supply of available inventory of 719, a decrease of 11%. Seeing as real estate is a Supply and Demand business this is a very positive sign!!


Units Sold
There was an increase in total units sold in December, with 67 sold this month in Wicomico County Real Estate. This month's total units sold was lower than at this time last year, another positive sign, especially to be in the month of December.

Months of Supply
In December, there was 9.6 months of supply available in Wicomico County, compared to 11.8 in December 2010. That is a decrease of 19% versus a year ago.


New Listings & Current Contracts
This month there were 51 homes newly listed for sale in Wicomico County compared to 65 in December 2010, a decrease of 22%. There were 66 current contracts pending sale this December compared to 43 a year ago. The number of current contracts is 53% higher than last December, 53% higher is a BIG deal, that is a HUGE increase in market activity!!

Lets hope this positive market improvement continues through the new year!!

Acceptable Types of Hardship in the eyes of a bank when it comes to a short sale:

There is a lot of confusion and misconception it seems when it comes to someone understanding what a bank qualifies as an acceptable hardship for a short sale. Although there are exceptions to the rule, for the most part, banks take the approach of verifying that you have a hardship that prevents you from paying your mortgage, and that the hardship occurred after you took the loan out. Remember banks verify this through your short sale package, so they will look at all of your finance’s to determine eligibility. Basic principle is that you have more expenses going out then income coming in. As mentioned before, there are exceptions but below are the 16 most common hardships that would qualify a seller for a short sale:

1. Loss of Employment
2. Business Failure
3. Damage to Property
4. Death of Spouse or Wage Earner
5. Death of Non‐wage Earner
6. Severe Illness
7. Inheritance
8. Relocation
9. Divorce
10. Military Service
11. Payment Increase or Mortgage Adjustment
12. Insurance or Tax Increase
13. Legal Separation
14. Too Much Debt
15. Incarceration
16. Combination of Above

Commonly asked Foreclosure Questions part 3

If I have started to miss payments, should I continue to live in my home?

Yes you should continue to live in the home. You are in a far better position to save your home from foreclosure by continuing to live in and maintain it. If you vacate the property, you can run the risk of not qualifying for assistance. Although this is not always the case, it certainly can add more scrutiny on your situation if you vacate the property. If your circumstances require you to move out, you should continue to maintain the property. This means that all utilities should remain on, and during the warmer months the grass should be cut, during the colder months the heat should remain on.

What should I do if I get a foreclosure notice?
If you have received a legal foreclosure notice, please reach out to a professional right away. The longer you wait, the closer you get to foreclosure, and the fewer options you have. If you have received a notice to foreclose this means the bank is filing paper work and starting the process to take legal action to repossess the house. You still have time at this point to prevent foreclosure but do not hesitate!! The closer you get to the foreclosure date the harder it becomes to negotiate with the bank for whatever options you chose


This is just a few of the commonly asked questions I get. As always, if you need any more information feel free to contact me anytime.

Commonly asked Foreclosure questions part 2

What is a Loan modification?A loan modification is where the bank modifies your loan to a lower payment to try to help you continue to stay in the home. Please note to get a loan modification in most circumstances, you have to be employed.\

What exactly is a short sale?A short sale is when a bank is willing to let you sell the property for less money than you owe on the mortgage in exchange for the property not going to foreclosure. The pay off on the mortgage is "short" hence the name "short sale". This means that market value on your home is less than what you owe in today's market, causing a negative equity position.

What should I do if I receive a letter saying my home is going to be sent to foreclose?Do not ignore letters or phone calls from your bank! Ignoring is the worst thing you can do! If you are having problems making your payments, take action immediately, reach out to a professional to help you in your situation. Do not hesitate!! The quicker you can be proactive on this, the better. Waiting and ignoring the situation at hand could push you in a direction where your options will be reduced, and may limit your control of the situation and put the control in the banks hands.

Part three to follow soon, stay tuned!!

New Blog Series: Frequently asked Foreclosure Questions Part one

Since I get so many emails asking generally the same questions I have decided to do a blog series where I will post two questions every few days. See below the first two questions to start the series:

Commonly asked Foreclosure Questions

What takes place if I miss my mortgage payments or I am behind on my mortgage payments?
Foreclosure can occur, but it does not have to. You can take action to stop foreclosure You now have more options than ever to prevent your home from going to foreclosure. The consequences of foreclosure can have lasting effects on your credit, and you may still owe the bank and the IRS money afterwards. In the State of Maryland once you have missed three mortgage payments the bank can file foreclosure on you. This does not mean if they have filed that you do not still have time for other options.

What should I do if I am in danger of or miss my mortgage payments?

By reaching out for help from a professional early, when you start missing payments, there is a greater chance of success in avoiding foreclosure. As soon as you anticipate problems paying your mortgage payment, contact a qualified professional to help you assess the situation. Many banks are willing to work with you if you reach out to them immediately, because they understand that individuals and families can face temporary job loss, serious illness, or other major life events that can impact their ability to pay their mortgage. However, it is in your best interest to have somebody represent you that does not work for the bank. If you are interested in a loan modification you need to reach out to a HUD approved counselor in your area so they can help decide if you will qualify for a loan mod. If a Short Sale is the option you seek, you need a qualified Realtor, who has experience with handling short sales. It takes a realtor with a significant amount of experience to handle these complex transactions, make sure you have one that has that experience.