Renovation Financing for REO Homes

Renovation Financing for REO Homes

As REO agents, we see hundreds of homes that need repairs or improvements. When homes go through the foreclosure process, most of the owners do not have the funds to cover normal maintenance needs or carpet and appliance replacements.

These properties can present wonderful purchase opportunities. Rather than purchase a home that has been fixed up by the seller with different tastes in paint color, carpet and appliance selection, why not purchase a REO home that needs some work and fix it up just the way you want it for your own comfort and pleasure.

Financing lender owned home with deferred maintenance is easier when the lender has loan products that will cover needed renovation financing.

The following details the requirements and use of the FHA Streamlined 203 (k) product that can meet the needs of many purchasers. We have found that most of the time REO property repairs that are needed amount to a cost less than $35,000 if the buyer is diligent with planning. Not all lenders offer this type of financing, so if you need this type of assistance ask your REALTOR for a lender referral.

FHA Streamlined 203(k)
Limited Repair Program
FHA's Streamlined 203(k) program permits homebuyers to finance up to an additional $35,000 into their mortgage to improve or upgrade their home before move-in. With this new product, homebuyers can quickly and easily tap into cash to pay for property repairs or improvements, such as those identified by a home inspector or FHA appraiser.
MORTGAGEE LETTER 2005-50
December 29, 2005
SUBJECT: Enhancements to “Streamlined (k)” Limited Repair Program
Mortgagee Letter 2005-19 (ML 05-19) announced the Streamlined (k) Limited Repair Program to augment FHA’s existing Section 203(k) rehabilitation program for less extensive repairs and improvement. This Mortgagee Letter replaces in its entirety ML 05-19 and is designed to make the program more reflective of the desire of many homebuyers and existing homeowners to improve their homes including making them more energy efficient.
This Mortgagee Letter contains important changes to the Streamlined (k) program described in Mortgagee Letter 2005-19, including:
· Additional eligible work items, including lead-based paint stabilization.
· Increased maximum mortgage amount for repair or rehabilitation costs from $15,000 to $35,000.
· Elimination of minimum repair cost threshold.
Like the regular Section 203(k) rehabilitation loan program, Streamlined (k) is available for use in conjunction with other Departmental programs and activities. This Mortgagee Letter introduces some procedural requirements applicable only to Streamlined (k) – including:
· The availability of Streamlined (k) to pay for lead-based paint stabilization costs above and beyond that paid for by HUD when it sells real estate owned (REO).
· The option (rather than a requirement) for the mortgagee to establish a contingency reserve of rehabilitation loan proceeds.
In addition, like the regular Section 203(k) program, Streamlined (k) is available:
· To augment an FHA Energy Efficient Mortgage (EEM),
· To insure the mortgage on a single-family housing unit sold from the HUD’s REO inventory
· To insure a mortgage that covers both repairs costs and the refinance of an existing mortgage.
What improvements are eligible under the new Streamlined (k) program?
The Streamlined (k) program is intended to facilitate uncomplicated rehabilitation and/or improvements to a home for which plans, consultants, engineers and/or architects are not required. The Streamlined (k) program includes the discretionary improvements and/or repairs shown below:
· Repair/Replacement of roofs, gutters and downspouts
· Repair/Replacement/upgrade of existing HVAC systems
· Repair/Replacement/upgrade of plumbing and electrical systems
· Repair/Replacement of flooring
· Minor remodeling, such as kitchens, which does not involve structural repairs
· Painting, both exterior and interior
· Weatherization, including storm windows and doors, insulation, weather stripping, etc.
· Purchase and installation of appliances, including free-standing ranges, refrigerators, washers/dryers, dishwashers and microwave ovens
· Accessibility improvements for persons with disabilities
· Lead-based paint stabilization or abatement of lead-based paint hazards
· Repair/replace/add exterior decks, patios, porches
· Basement finishing and remodeling, which does not involve structural repairs
· Basement waterproofing
· Window and door replacements and exterior wall re-siding
· Septic system and/or well repair or replacement
What are the minimum and maximum amounts for repair costs under this program?
Given the need for homeowners to make minor repairs without exhausting personal savings, and in consideration of the increasing cost of materials, the minimum repair cost of $5,000 is eliminated and the ceiling is now raised to $35,000. This revised maximum repair/rehabilitation amount recognizes the cost of making older homes more energy efficient. Note that as described below, when the repairs exceed $15,000, the mortgagee must perform or obtain an inspection to determine that all listed repairs were completed.
Can this program be used for repairs and improvements on purchases of HUD Homes?
Like the regular Section 203(k) program, Streamlined (k) may be used for single-family housing sold by HUD. REO properties that have been designated by FHA’s Management and Marketing contractor (M&M) as “insurable” with repair escrow ($5,000 or less in required repairs) or “uninsurable” (with more than $5,000 but no more than $35,000 in required repairs) are eligible for the Streamlined (k) program provided that the repairs qualify as eligible work items outlined in this Mortgagee Letter.
What if the REO property requires lead-based paint stabilization?
The Streamlined (k) program may be used for the financing of REO purchases where a pre-1978 property has been determined to contain lead-based paint and the M&M Contractor has completed a stabilization plan and cost estimate to stabilize (mitigate) the deteriorated paint. The purchaser must sign a 203(k) rehabilitation financing lead agreement requiring that a clearance examination and report be included in the work write-up and conducted before release of the final construction disbursement and before occupancy. The credit from HUD, received at sales closing by the purchaser, associated with the lead-based paint stabilization plan is not included in the $35,000 Streamlined (k) limit. The Streamlined (k) program may be used for all eligible repair items as shown above, including the cost of lead-based paint stabilization not paid for by HUD when it sells a property requiring lead-based paint stabilization. A state- or Environmental Protection Agency (EPA) certified lead-based paint inspector, certified risk assessor or sampling technician, must perform the clearance examination.
When the Department sells a single-family REO property, the M&M Contractor determines whether repairs are necessary to stabilize any lead-based paint. HUD’s regulations for pre-1978 housing require the stabilization of paint except for paint determined not to be lead-based paint. HUD may reduce the sales price by the amount of a credit equal to the Department’s contribution toward the cost of lead-based paint stabilization. Any lead-based paint stabilization costs in excess of this credit become the responsibility of the purchaser.
Can the Streamlined (k) program be used for refinancing the mortgage?
The Streamlined (k) program is also available for mortgage refinance transactions including those where the property is owned free-and clear. Only credit-qualifying “no cash out” refinance transactions with an appraisal are eligible for the Streamlined (k) program. The form HUD-92700 provides instructions for calculating the maximum mortgage permitted for Streamlined (k) loans for purchase and refinance transactions.
If the borrower has owned the property for less than a year, the acquisition cost must be used to determine the maximum mortgage amount. The requirement to use the lowest sales price within the last year does not apply to the Streamlined (k) program.
What are the appraisal requirements under the Streamlined (k) program?
The Streamlined (k) program may be used for discretionary repairs and/or improvements that may not have been identified in the course of a pre-purchase inspection or appraisal. The mortgagee must provide the appraiser with information regarding the proposed rehabilitation or improvements and all cost estimates so that an after-improved value can be estimated. A description of the proposed repairs and/or improvement must be included in the appraisal report as well as the contractor’s cost estimate. The appraiser is to indicate in the reconciliation section of the appraisal report an after-improved value subject to completion of the proposed repairs and/or improvements.
What are the mortgagee’s requirements for examining the contractor bids? For paying the contractor prior to beginning construction? For inspections of the work?
· Contractor bids: While mortgagees are not contractors, participation in this program requires that they examine the contractor’s bid(s) and determine that they fall within the usual and customary range for similar work. Mortgagees must also ensure that the selected contractor(s) meet all jurisdictional licensing and bonding requirements.
· Payments in advance of construction: The mortgagee—at its discretion—may provide the contractor with up to 50 percent of the estimated cost of any work item prior to beginning construction. Such payments should only be made where the mortgagee is satisfied with the reputation of the contractor(s) and the contractor is not willing or able to defer receipt of payment until completion of the work or the payment represents the cost of materials incurred prior to construction.
· Payments for Inspections:
o For repair costs not exceeding $15,000, the mortgagee is not required to perform, or have others perform, inspections of the completed work. However, the mortgagee may choose to obtain or perform inspections if it believes such actions are necessary for program compliance and/or risk mitigation. Mortgagees may also ensure that the repairs and/or improvements have been completed by obtaining contractor’s receipts or by a signed Mortgagor’s Letter of Completion. If the mortgagee determines that an inspection(s) by a third party is necessary to ensure proper completion of the proposed repair or improvement item, the mortgagee may charge the borrower for the costs of no more than two inspections per each contractor.
o For repairs in excess of $15,000, the mortgagee must perform or obtain an inspection of the completed work by a third party.
What are the mortgagor’s requirements for selecting the contractor? And what are the mortgagee’s requirements for review of the contractor and the rehabilitation proposal?
The mortgagor must use one or more contractors to complete the repairs. “Self-help” arrangements, in which the mortgagor performs the work, are not to be approved unless the mortgagor can sufficiently demonstrate that he or she has the necessary expertise and experience to perform the work competently (e.g., mortgagor is an electrician and will perform electrical repairs/upgrades to the property).
The mortgagor will select the contractor(s) who will provide estimates for work to be done. The mortgagee reviews the mortgagor’s proposed work plan and cost estimates to ensure the planned work meets all program and repair recommendations as noted on the appraisal report. The mortgagor must provide the mortgagee with a written cost estimate(s) and references from a duly licensed and bonded contractor(s) for each specialized repair or improvement. If “self-help” arrangements are utilized, the mortgagor must provide written estimates from the suppliers of the materials. Those repairs and improvements must meet any local codes and ordinances and the mortgagor and/or contractor must obtain all required permits prior to the commencement of work.
The cost estimate(s) must clearly state the nature and type of repair and the cost for completion of the work item and must be made even if the mortgagor is performing some or all of the work under a self-help arrangement. The mortgagee must review the contractor’s credentials, work experience and client references and may require the mortgagor to provide additional cost estimates if necessary. After review, the selected contractor(s) must agree in writing to complete the work for the amount of the cost estimate and within the allotted time frame. A copy of the contractor’s cost estimate(s) and the Homeowner/Contractor Agreement(s) must be placed in the insuring binder. The contractor must finish the work in accordance with the written estimate and Homeowner/Contractor Agreement and any approved change order. As in the regular 203(k) program, the Rehabilitation Construction Period begins when the mortgage loan is closed.
What are the mortgagee’s requirements for paying contractors?
No more than two payments may be made to each contractor, or to the mortgagor if the mortgagor is performing the work under a self-help arrangement. The first payment is intended to defray material costs and shall not be more than 50% of the estimated costs of all repairs/improvements. When permits are required, those fees may be reimbursed to the contractor at closing. The final payment to the contractor will be made following completion of all work and release of any and all liens arising out of the contract or submission of receipts or other evidence of payment covering all subcontractors or suppliers who could file a legal claim. When necessary, the mortgagee may arrange a payment schedule, not to exceed two (2) releases, per specialized contractor (an initial release plus a final release.) Mortgagees are to issue payments solely to the contractor, except if the mortgagor is performing the work under a self-help arrangement, in which case the mortgagor may be reimbursed for materials purchased in accordance with the previously obtained estimates; the mortgagor may not be compensated for his or her labor.
To eliminate the need and cost for an inspection of the completed repair(s) or improvement(s) when not exceeding $15,000, the mortgagee may accept receipts or proof of completion of the work to the homeowner’s satisfaction from the contractor. Before a final release is made, the mortgagor must sign a statement acknowledging that the work has been completed in a professional and satisfactory manner.
May the mortgagee establish a Contingency Reserve?
The Streamlined (k) program does not mandate a contingency reserve be established. However, at the mortgagee’s discretion a contingency reserve account may be set up for administering the loan. Funds held back in contingency reserve must be used solely to pay for the proposed repairs or improvements and any unforeseen items related to these repair items. Any unspent funds remaining after the final work item payment(s) is made, must be applied to the mortgage principal.
Is there a maximum mortgage amount worksheet that must be used?
Form HUD-92700, 203(k) Maximum Mortgage Worksheet must be used to calculate the mortgage amount. Also, the appraiser must provide an after-improved value since 110% of that amount is used in calculating the maximum mortgage. Architectural and consultant fees, line items 6 and 7 of Section B of the worksheet are not applicable to the Streamlined (k) program. For Item 3 of Section D, please refer to handbook HUD-4155.1 REV-5, paragraph 1-7 which provides the various maximum loan-to-value ratios.
Expenses that may be included in the total amount of the improvements, not to exceed the $35,000 limit, are inspection fees, building and other permits, the supplemental origination fee, title update costs and the amount of any contingency reserve required by the mortgagee.
Can we combine the Streamlined (k) with an Energy Efficient Mortgage (EEM)?
The EEM program, as described in ML 05-21, may be used in conjunction with the Streamlined (k) program. The amounts permissible under the EEM program—as well as the qualifying requirements—are in addition to those available under the Streamlined (k) program and, thus, combined may exceed the $35,000 Streamlined (k) repair cost limit. Both the cost of EEM improvements as well as weatherization items (not to exceed $2,000) may be added to the total FHA loan amount.
What are the “closeout requirements” under the Streamlined (k) program?
The mortgagee electronically certifies the closeout via the FHA Connection and is not required to forward the closeout documents to FHA. As with all FHA case binders, the originator must retain the file, either in hard copy or electronic format, for two years following endorsement of the mortgage. Proper close-out means that the mortgagee has certified that it has reviewed and verified for accuracy of the following without limitations: mortgagor’s acknowledgement of satisfactory completion, evidence of release of lien(s), mortgagee’s inspection report(s), change orders, mortgagee accounting of the escrow funds, and record of disbursements.
Are there specific data entry requirements under the Streamlined (k) program?
The mortgagee must enter “203KS” in the 203(k) Consultant ID field in the
Case Number Assignment Screen (and the Insurance Application Screen) to identify the Streamlined (k) product and enter the amount of the repairs in the Repair Escrow Amount field in the Insurance Application Screen. In the event that the mortgagee had originally begun processing the case as a purchase mortgage without repairs, the mortgagee should update the existing case data in the Case Number Assignment screen, changing the ADP Code to a valid 203(k) ADP Code and the Construction Code to Substantial Rehabilitation.
If the Streamlined (k) mortgage is for a refinance transaction, please enter “substantial rehabilitation” in the drop down screen labeled “Construction Code” and “Not Streamlined” (the refinance type) in the drop down screen labeled “All Refinances” in the Case Number Assignment Screen in FHA Connection.
What items remain ineligible for the Streamlined (k) program?
Properties that require the following work items are not eligible for financing under the Streamlined (k):
· Major rehabilitation or major remodeling, such as the relocation of a load-bearing wall;
· New construction (including room additions);
· Repair of structural damage;
· Repairs requiring detailed drawings or architectural exhibits;
· Landscaping or similar site amenity improvements;
· Any repair or improvement requiring a work schedule longer than six (6) months; or
· Rehabilitation activities that require more than two (2) payments per specialized contractor.
Mortgagors may not use the Streamlined (k) program to finance any required repairs arising from the appraisal that do not appear on the list of Streamlined (k) Eligible Work Items or that would:
· Necessitate a “consultant” to develop a “Specification of Repairs/Work Write-Up”;
· Require plans or architectural exhibits;
· Require a plan reviewer;
· Require more than six months to complete;
· Result in work not starting within 30 days after loan closing; or
· Cause the mortgagor to be displaced from the property for more than 30 days during the time the rehabilitation work is being conducted. (FHA anticipates that, in a typical case, the mortgagor would be able to occupy the property after mortgage loan closing).

New Maryland Foreclosure Process

The continued surge of foreclosures in Maryland has brought about new legislation. This will delay residential foreclosures and is an attempt to reduce the mortgage fraud in the market.

New Maryland Foreclosure Process
Governor O'Malley Signs Emergency Legislation to Protect Homeownership

Foreclosure Law Summary

SB 216/HB 365 – Foreclosure Process

Requires a mortgage or other security instrument on residential property to contain the license number of a mortgage originator or mortgage lender.
This provision would allow regulators to track which mortgage providers have the highest foreclosure and default rates.

Prohibits filing an action to foreclose on residential property until the later of:
90 days after default
45 days after the “Notice of Intent to Foreclose” (Notice) is sent

Prohibits the foreclosure sale from taking place sooner than 45 days after the service of process containing the Notice. This means that a foreclosure sale could not occur sooner than 135 days after default.

Requires the Notice to be sent to the mortgagor and record owner at least 45 days before filing an action to foreclose.

Requires the Notice to include information regarding the security instrument, including the debt due, the rights of the individual facing foreclosure (including the right to seek housing counseling or consult with a real estate licensee). The Notice encourages the person in default to act quickly.

Gives the person in default the ability to cure the default by paying all past due amounts and reinstate the loan up to 1 business day before the foreclosure sale.

This act is an emergency measure which takes effect April 3, 2008.

SB 217/HB 360 – Mortgage Fraud Protection

Allows the seizure of any property used in connection with mortgage fraud or gained through mortgage fraud.

Establishes certain defenses against forfeiture for innocent owners, tenants, and property used as a principal residence.

Defines mortgage fraud as any person intending to defraud by:
knowingly making misstatements, misrepresentations, or omissions during the mortgage lending process knowingly using any deliberate misstatements etc. receiving funds from a mortgage closing that resulted from fraud filing in the land records any document that the person knows to contain deliberate misstatements etc.

Establishes criminal and civil penalties, including criminal penalties of up to $100,000 or imprisonment up to 20 years for a person engaged in a pattern of mortgage fraud. Establishes criminal penalties of up to $5,000 or imprisonment of up to 10 years for a single violation.

This act is an emergency measure which takes effect April 3, 2008.

SB 218/HB 361 – Prohibition on Certain Foreclosure Transactions

Establishes requirements for a foreclosure consultant

Requires a foreclosure consulting contract to include a notice that the foreclosure consultant must provide the homeowner with written copies of information regarding the value of the homeowner’s property, including comparables or appraisals.

In addition to duties already prescribed under law, this bill adds additional requirements for foreclosure consultants, including:

Giving a homeowner a notice containing information regarding the financial details of the deal, the right to rescind the contract, and other information.

Limiting the amount of commission a foreclosure consultant can make to 8% or less of the sales price

Prohibiting the consultant from holding money in escrow or on a contingency basis on behalf of the homeowner

Mandating a foreclosure consultant engaged in real estate activity to hold a real estate license

Imposing a duty, similar to the fiduciary duties of real estate agents, on foreclosure consultants not engaged directly in real estate transactions
Requires a “Notice to Homeowner” to be included in any foreclosure contract that sells the property, and that also gives the homeowner a 5 day rescission period of the real estate contract. The notice is basically the same notice required under current law.

Establishes that a real estate licensee is NOT a foreclosure consultant as long as the licensee is:

Engaged in an activity for which they are licensed
D
oes not engage in prohibited foreclosure consulting activities

And, if working with a property in default, that the property in default is listed in the MLS, and is transferred through a settlement

Gives a homeowner whose property has been in default for more than 60 days, a 5 day rescission period after entering into a contract to the sell the property.

Prohibits purchasers of residences that have been in default for more than 60 days, from certain activities, including:

Representing that the purchaser is acting as an advisor or consultant on behalf of the homeowner

Representing that the purchaser has licensing or accreditation that the purchaser does not have

Representing that the purchaser is assisting the homeowner to “save the house” or substantially similar phrasing

Representing that the purchaser is assisting the homeowner in preventing a foreclosure if the result of the transaction is that the homeowner will no longer own the property

Making any false, deceptive or misleading statements regarding the value of the home or the amount of the proceeds the homeowner will realize

Recording any document before expiration of the 5 day rescission period

Requires purchasers to give a “State of Tenancy” if a tenancy agreement is included in the sale of contract for a residence in default.

This act is an emergency measure which takes effect April 3, 2008.

Lender Owned Foreclosures, Frederick, MD

Real estate foreclosures continue to surge in Frederick, Maryland. This is the recent report that we emailed to our clients.

LENDER OWNED FORECLOSURES, FREDERICK COUNTY, MD (Rev. 4/09/08)
(Contact us for further price reductions)

We have a very simple request if you wish to receive our information and advice. We ask you to agree to use us as your exclusive buyer agents for your next real estate purchase. Please advise us if you are represented by another real estate agent.

REO properties are foreclosed homes owned by lenders. We represent purchaser clients as their exclusive agents. The disclosures that are required for home buyers in Maryland will be provided when you meet with us. Buyers must have pre-approval letters for mortgage financing.

The following are available REO homes. Prices are reduced until they are sold.
REO: 109 A St., Brunswick 21716 5 BR/2.5 BA $172,500 SF REDUCED FROM $182,500
REO: 1701 Aldin Ct., Monocacy Landing I, Frederick 21701 4 BR/3 BA $450,900 SF REDUCED FROM $464,900
REO: 132 All Saints St., Frederick 21701 3 BR/1 BA $174,900 TH
REO: 45 Apple Way, Hillcrest Orchards, Frederick 21703 3 BR/2 FB/2 HB $164,900 TH
REO: 47 Apple Way, Hillcrest Orchards, Frederick 21703 3 BR/2.5 BA $165,900 TH
REO: 52 Apple Way, Hillcrest Orchards, Frederick 21703 3 BR/2.5 BA $165,900 TH
Fannie Mae: 4902 Arctic Tern Ct., Robin Meadows, Frederick 21703 3 BR/2 FB/2 HB $229,900 TH REDUCED FROM $249,900
REO: 53 Ashley Way, Ashley, Myersville 21773 4 BR/2.5 BA $378,550 SF REDUCED FROM $384,900
REO: 113 West B St., Brunswick 21716 2 BR/1 BA $175,000 SF
REO: 21 Bankbarn Cir., Glenrook, Middletown 21769 2 BR/2.5 BA $319,900 TH
Countrywide: 5618 Boone Ave., Frederick 21704 4 BR/1.5 BA $227,900 SF
Deutsche Bank: 6747 Brace Ct., Farmbrook, Frederick 21703 3 BR/1.5 BA $184,000 TH REDUCED FROM $210,000
REO: 6775 Brace Ct., Farmbrook, Frederick 21703 3 BR/2 BA $179,900 TH REDUCED FROM $189,900
Countrywide: 7087 Bradshaw Ct W, Foxcroft II, Frederick 21703 3 BR/2.5 BA $232,900 Gar TH REDUCED FROM $269,900
REO: 2127 Bristol Dr., Old Farm Station, Frederick 21702 3 BR/2.5 BA $219,900 TH
REO: 622 Brunswick St., Brunswick 21716 3 BR/2 BA $211,500 SF
REO: 13221 Catoctin Furnace Rd., Thurmont 21788 3 BR/1.5 BA $194,900 SF REDUCED FROM $234,900
REO: 5709 Catoctin Overlook Dr., Catoctin View, Mount Airy 21771 3 BR/2.5 BA $326,900 SF
REO: 104 Cavenrock Ct., Mill Crossing, Frederick 21702 4 BR/2.5 BA $259,900 TH
REO: 597 Cawley Dr. #5-3C, Ballenger Creek, Frederick 21703 2 BR/2 BA $205,000 Condo REDUCED FROM $210,000
REO: 837 Chadwick Cir E, Frederick 21701 2 BR/1 BA $154,900 TH
Countrywide: 5719 Chase St., The Chase of Foxcroft, Frederick 21703 3 BR/2.5 BA $208,900 Gar TH REDUCED FROM $215,900
Countrywide: 109 Chestnut Hill Way, Taskers Chance, Frederick 21702 3 BR/3.5 BA $259,900 TH
Fannie Mae: 7181 C Cimarron Ct., Country Side, Frederick 21703 3 BR/2.5 BA $199,900 TH
REO: 7285 F Coachlight Ct., Country Side, Frederick 21702 4 BR/2.5 BA $162,900 TH REDUCED FROM $215,250
REO: 6582 Colebrook Lane, Colebrook, Middletown 21769 4 BR/2.5 BA $360,000 SF REDUCED FROM $375,000
Wells Fargo: 2151 Collingwood Lane, Old Farm Station, Frederick 21702 3 BR/2 BA $259,900 SF
REO: 54 Concord Dr., Brunswick 21716 4 BR/2 BA $239,000 SF
REO: 12037 Coppermine Rd., Union Bridge 21791 3 BR/1.5 BA $199,900 SF NEEDS RENOVATION
Freddie Mac: 572 Cotswold Ct., Frederick Heights, Frederick 21703 3 BR/1.5 BA $163,500 TH REDUCED FROM $169,900
REO: 200 Cramer Ave., Glade Manor, Walkersville 21793 3 BR/2 BA $289,900 SF
American Home Mortgage: 6516 E Daytona Ct. #204, Crossing, Frederick 21703 3 BR/2.5 BA $249,900 TH
REO: 1742 Dearbought Dr., Monocacy Landing, Frederick 21701 4 BR/2.5 BA $384,900 SF
REO: 2502 Driftwood Ct., E #3A, Echo Glen, Frederick 21702 2 BR/2 BA $195,500 Condo
USB Warburg: 5203 Duke Ct., Kingsbrook, Frederick 21703 3 BR/2.5 BA $207,900 TH REDUCED FROM $230,000
Countrywide: 5303 Duke Ct., Kingsbrook, Frederick 21703 3 BR/2.5 BA $263,900 Gar TH
Freddie Mac: 1479 Eden Dr., Fredericktowne Village, Frederick 21701 4 BR/2 BA $247,500 SF REDUCED FROM $257,500
REO: 913 E St., Brunswick 21716 2 BR/1 BA $114,900 SF
Wells Fargo: 8841 Eureka Lane, Discovery, Walkersville 21793 3 BR/2.5 BA $139,893 TH REDUCED FROM $159,600
REO: 2627 Everly Dr., The Braemar, Frederick 21701 3 BR/2.5 BA $234,900 Gar TH Condo
REO: 7109 Feldspar Ct., Crest Manor Estates, Middletown 21769 4 BR/2.5 BA $279,900 SF
REO: 7104 Fern Lane, Fountaindale South, Middletown 21769 3 BR/2 BA $254,900 SF REDUCED FROM $299,900
HUD: 809 Fifth Ave., Hunters Knoll, Brunswick 21716 4 BR/2.5 BA $332,100 SF REDUCED FROM $350,550
Citi Financial Mortgage: 4410 Fishers Hollow Rd., Myersville 21773 2 BR/1 BA $226,900 SF REDUCED FROM $246,900
REO: 8524 Fortune Pl., Discovery, Walkersville 21793 3 BR/1.5 BA $145,000 TH REDUCED FROM $155,000
Countrywide: 116 Galyn Dr., Galyn Manor, Brunswick 21758 4 BR/2.5 BA $473,900 SF REDUCED FROM $495,900
Countrywide: 1615 Gibbons Rd, Point of Rocks Estates, Point of Rocks 21777 3 BR/2 BA $279,900 SF REDUCED FROM $314,900
REO: 9304 Granite Cir., White Rock, Frederick 21702 3 BR/1 BA $159,900 SF REDUCED FROM $199,900
Wells Fargo: 183 Greenway Dr., Willowcrest, Frederick 21702 3 BR/2.5 BA $241,000 SF REDUCED FROM $348,900
REO: 7059 Gresham Ct. W, Foxcroft, Frederick 21703 3 BR/2.5 BA $224,900 Gar TH
Countrywide: 111 Harpers Way, North Crossing, Frederick 21702 4 BR/2.5 BA $268,900 TH
Countrywide: 1512 Havilland Pl., Stonegate, Frederick 21702 4 BR/2 BA $222,900 SF
IndyMac Bank: 6293 Hawkins South Ct., Spring Ridge, Frederick 21701 4 BR/2.5 BA $410,900 SF REDUCED FROM $508,900
REO: 1723 Heather Lane, Amber Meadows, Frederick 21702 3 BR/1.5 BA $188,900 TH REDUCED FROM $199,900
Wells Fargo: 1737 Heather Lane, Amber Meadows, Frederick 21702 3 BR/2.5 BA $188,600 TH REDUCED FROM $189,000
REO: 820 A Heather Ridge Dr., Ambertowne, Frederick 21702 2 BR/2 BA $119,900 Condo
REO: 533 Hollyberry Way, Overlook, Frederick 21703 3 BR/2.5 BA $229,900 TH REDUCED FROM $236,500
Wells Fargo: 8731 Inquiry Ct., Discovery, Walkersville 21793 3 BR/2.5 BA $199,300 TH REDUCED FROM $199,900
REO: 229 Jefferson Pike, Knoxville 21758 3 BR/2 BA $214,900 SF
Amq. Mortgage: 3817 Jefferson Pike St., Jefferson 21755, 3 BR/1.5 BA $139,900 SF Built in 1890 REDUCED FROM $199,900
IndyMac Bank: 24 Jennifer Lynne Dr., Galyn Manor, Knoxville 21758 4 BR/2.5 BA $399,000 SF REDUCED FROM $441,400
REO: 800 Jubal Way, Tuscarora Knolls, Frederick 21701 3 BR/2 FB/2 HB $237,350 TH
U.S. Bank: 8995 Kay St., Park View Estates, Frederick 21702 4 BR/3 BA $329,900 SF REDUCED FROM $379,900
U.S Bank: 1403 Key Pkwy. #104, Key Parkway East, Frederick 21702 2 BR/1.5 BA $139,900 Condo REDUCED FROM $149,900
REO: 1403 Key Pkwy. #305, Key Parkway East, Frederick 21702 3 BR/1.5 BA $120,500 Condo
REO: 1525 Laurel Wood Way, Main, Frederick 21701 4 BR/3.5 BA $239,900 TH REDUCED FROM $249,900
REO: 130 Lauren Ct., Hillcrest Orchards, Frederick 21703 3 BR/2 FB/2 HB $189,500 TH REDUCED FROM $209,500
U.S. Bank: 5702 Lavender Plaza, Mountain Village, Frederick 21703 3 BR/2 BA $184,900 TH REDUCED FROM $209,900
REO: 1028 Lavenport Way, Mill Crossing, Frederick 21702 4 BR/2.5 BA $279,900 Gar TH
REO: 1805 Lawnview Dr., Amber Meadows, Frederick 21702 5 BR/1.5 BA $245,900 SF REDUCED FROM $269,900
Everhome Mortgage: 1303 Leafy Hollow Cir., Twin Ridge, Mount Airy 21711 4 BR/2.5 BA $449,900 SF REDUCED FROM $525,000
REO: 506 Logan St., Frederick 21701 5 BR/2.5 BA $227,500 SF
Ocwen: 11896 Lynn Crest Rd., Mid County View, Monrovia 21770 4 BR/2.5 BA $294,900 SF REDUCED FROM $304,900
REO: 405 Main St., Woodsboro 21798 3 BR/1.5 BA $239,900 SF REDUCED FROM $269,900
REO: 415 Maple Ave., Brunswick 21716 3 BR/2 BA $162,900 SF Built in 1915 REDUCED FROM $199,900
REO: 2832 Marker Rd., Christys Folby, Middletown 21769 5 BR/2.5 BA $435,000 SF REDUCED FROM $445,900
Freddie Mac: 127 McClellan Dr., North Crossing, Frederick 21702 4 BR/3.5 BA $309,500 Gar TH REDUCED FROM $319,500
Countrywide: 6951 Meadowlake Rd., New Market 21774 4 BR/3.5 BA $399,900 SF
REO: 4795 Mid County Ct., Mid County View, Monrovia 21770 4 BR/3 BA $319,900 SF REDUCED FROM $350,000
Countrywide: 1904 Middlefield Ct., North Crossing, Frederick 21702 5 BR/3.5 BA $464,900 SF REDUCED FROM $533,900
Countrywide: 602 Military Rd., Frederick 21702 4 BR/1 BA $244,900 SF REDUCED FROM $276,900
Keystone Asset Management: 6135 Mountaindale Rd., Frederick 21702 7 BR/6 BA $790,000 SF 14+ acres
Ocwen: 2222 Palace Green Ter., Whittier Pond, Frederick 21702 3 BR/2.5 BA $222,200 TH
Countrywide: 1222 Palladian Way, Coventry, Frederick 21702 3 BR/2.5 BA $331,900 SF
Fannie Mae: 2209 Parish Lane, Wormans Mill, Frederick 21701 4 BR/2.5 BA $315,900 Gar TH
Chase: 7269 Parkers Farm Lane, Westview, Frederick 21703 3 BR/2.5 BA $325,000 Gar TH
REO: 103 Pennsylvania Ave., Frederick 21701 2 BR/1 BA $208,000 SF
Countrywide: 9388 Penrose St. Villages of Urbana, Frederick 21704 3 BR/3.5 BA $369,600 TH REDUCED FROM $407,000
REO: 3671 Petersville Rd., Rosemont, Knoxville 21758 2 BR/1.5 BA $234,900 SF 1.67 acres
REO: 6125 Pine Crest Lane, Spring Ridge, Frederick 21701 3 BR.2.5 BA $286,900 TH
Freddie Mac: 3 Pleasant Acres Ct. E, Thurmont 21788 4 BR/3.5 BA $364,500 SF REDUCED FROM $414,900
GMAC: 218 North Pointe Ter., North Pointe, Middletown 21767 4 BR/3.5 BA $469,000 SF

REO: 509 Postoak Rd., Hillcrest Orchard, Frederick 21703 4 BR/3 BA $245,900 SF

Deutsche Bank: 10825 Powell Rd., Thurmont 21788 4 BR/3 BA $461,900 SF REDUCED FROM $560,000
REO: 527 Primus Ct. E, Prospect View, Frederick 21703 3 BR/3 BA $243,500 Gar TH REDUCED FROM $254,900
REO: 104 Quail's Nest Way, Taskers Chance, Frederick 21702 3 BR/2.5 BA $219,900 TH
REO: 6240 Ranier Dr., Stuart Mechanic, Frederick 21703 4 BR/2.5 BA $345,900 SF REDUCED FROM $379,000
Wells Fargo: 6524 Rimrock Rd., Eaglehead/Pinehurst, New Market 21774 3 BR/3 BA $289,900 SF
REO: 5634 Rockledge Ct., Hannover, Frederick 21703 3 BR/3.5 BA $215,900 TH
Fannie Mae: 6632 Rockridge Rd., Pinehurst, New Market 21774 4 BR/2 BA $335,900 SF
REO: 6834 Running Springs Ct., Culler Oaks, Frederick 21703 6 BR/3.5 BA $570,000 SF 6.7 Acres REDUCED FROM $580,000
Chase Home Finance: 6464 Saddlebrook Lane, Spring Ridge, Frederick 21701 5 BR/3.5 BA $524,900 SF REDUCED FROM $614,900
REO: 414 Shannon Ct., Croghan Square, Frederick 21701 3 BR/2.5 BA $205,900 TH
REO: 3809 Shetland Ct., Urbana Highlands, Frederick 21704 5 BR/3.5 BA $599,900 SF
Freddie Mac: 1641 Shookstown Rd., Frederick 21702 3 BR/1.5 BA $277,500 SF REDUCED FROM $289,990
REO: 3734 Singleton Ter, Villages of Urbana, Frederick 21704 4 BR/3.5 BA $329,900 Gar TH REDUCED FROM $349,900
REO: 5666 Singletree Dr., Farmbrook, Frederick 21703 3 BR/1 BA $265,000 SF
REO: 502 Smoketree Ct., Hillcrest Orchard, Frederick 21703 3 BR/1 BA $209,900 SF REDUCED FROM $332,500
REO: 1727 Springhouse Ct., Amber Meadows, Frederick 21702 3 BR/3.5 BA $180,000 TH REDUCED FROM $189,900
Lasalle Bank: 126 Stonegate Dr., Stonegate, Frederick 21702 3 BR/1.5 BA $205,900 Duplex
M&T Bank: 635 Swallowtail Dr., Emerald Farm, Frederick 21703 6 BR/3 BA $456,000 REDUCED FROM $509,900
Citimortgage: 433 Terry Ct #B1, Willow Glen, Frederick 21701 3 BR/1.5 BA $179,900 TH
REO: 12201 Timber Run Ct., Timber Run Estates, Monrovia 21770 4 BR/3.5 BA $554,000 SF REDUCED FROM $565,000
REO: 230 Timber View Ct., North Crossing, Frederick 21702 4 BR/3.5 BA $295,000 TH
Countrywide: 11803 Tommy Ct., Green Valley, Monrovia 21770 5 BR/3 BA $393,900 SF REDUCED FROM $456,900
U.S. Bank: 3987 Triton St., Villages of Urbana, Frederick 21704 5 BR/3.5 BA $482,500 SF REDUCED FROM $510,000
Wells Fargo Bank: 6906 Turnberry Ct., Mountain Village, Frederick 21703 3 BR/2.5 BA $197,370 TH REDUCED FROM $218,000
REO: 52 Vienna Ct., Willowcrest, Frederick 21702 3 BR/2 FB/2 HB $166,500 REDUCED FROM $174,900

REO: 12101 Weller Rd., Monrovia 2 BR/2 BA $149,900 SF REDUCED FROM $219,900
REO: 1506 Wheyfield Dr.,Main, Frederick 3 BR/2.5 BA $209,000 TH REDUCED FROM $295,000
REO: 1602 Wheyfield Dr., Monocacy Landing, Frederick 21701 3 BR/2.5 BA $239,900 TH REDUCED FROM $249,900
REO: 10405 Whiterose Dr., Greenview, New Market 21774 4 BR/2.5 BA $494,900 SF REDUCED FROM $559,900
Chase: 1205 Whitley Ct., Coventry, Frederick 21702 4 BR/3 BA $284,900 SF
Countrywide: 4922 Whitley Ter., Wellington Trace, Frederick 21703 3 BR/2.5 BA $236,900 TH
REO: 1122 Wilcox Ct., Tuscarora Creek Pond, Frederick 21702 4 BR/3.5 BA $499,900 SF REDUCED FROM $509,900
Countrywide: 5807 Woodville Rd., Hawthorne, Mount Airy 21771 4 BR/3 BA $471,900 SF REDUCED FROM $493,900
Please contact us if you have questions about the foreclosure process in Maryland. If you are searching for a property, please tell us about your specific needs.
Please refer your friends that may wish to purchase a residence or investment property.

Your Real Estate Advisor,

Roy Kelley

Roy Kelley & Associates
Associate Broker, RE/MAX Realty Group
6 Montgomery Village Avenue, Suite 200
Gaithersburg, MD 20879

Direct: 301-921-4569 Client Assistance: 301-670-8996
Email: roykelley@mris.com Fax: 301-921-4586 Main Office: 301-258-7757 x 569

Home Search Website: www.roykelley.com (All available listings may by viewed on Homes Prospector)
Realty Times Newsletter Link: http://realtytimes.com/c/RoyKelley

Providing Loss Mitigation services for home owners facing foreclosure. Marketing REO homes for lenders.

Montgomery County REOs: Please contact us if you wish to receive our Montgomery County report on lender owned foreclosures.

Montgomery County, MD Real Estate Tax Disclosure

In Montgomery County, Maryland, sellers and their agents have quoted the current real estate tax figures when providing information to prospective purchasers.

Now the rules have changed and the county is requiring full disclosure of the estimated real estate taxes for the new owners.

Montgomery County, MD - Disclosure - Property Tax Effective April 1, 2008: Effective April 1, 2008, a new law in Montgomery County, MD is in effect. The purpose of this new law is to provide the buyer of an owner-occupied principal residential property an estimate of the property tax bill (plus non-tax charges included on the bill) in the first full fiscal year of ownership. For more detail regarding this law: http://www.montgomerycountymd.gov/apps/OCP/Tax/Explanation.asp
To assist sellers and buyers and their real estate professionals in Montgomery County, the County’s Office of Consumer Protection, has developed an online “calculator” that determines the approximate property tax and other non-tax charges that a new homeowner would pay on a property during the first full year of ownership. The calculator is located at www.montgomerycountymd.gov/estimatedtax . By entering the address of any residence, the approximate tax obligation of a potential new homeowner is provided.