The Russ Boyce Group's Blog by The Russ Boyce Group

Financial Illiteracy

Men and Women around the country are overwhelmed by debt, have no savings, or don’t invest for retirement. Understanding economic and personal finance doesn’t mean you won’t make mistakes, but you can lessen the odds and repair damage faster if you know the rules of the game. You must understand the difference between needs and wants. Your actual needs are pretty limited: Food, Shelter, Clothing, and Companionship. Just about everything else is a want. Because our resources are limited, we have to make choices about which wants to fulfill, but the way you fulfill your needs involves a lot of choice. Shelter for example can be a townhouse for $125,000 or a $125 Million Dollar Mansion. Many people believe they have to spend in a certain way, when in reality their spending is a choice. If you’re facing a monster mortgage payment, it’s because you chose to buy that ..(read more)

The Hope Initiative: Home Owners Preserving Equity

Launched by Governor O'Malley, the Hope Initiative addresses problems with homeowndership and neighborhoods threatened by defaulting subprime and "exotic" mortgages. (e.g., adjustable-rate mortgages or ARM's) They have committed $111 million in financial assistance to leverage significant capitol in order to effectively attack this potential foreclosure crisis with financing, incentives, education, and other support. They will also partnership with DLLR, the Department of Labor, Licensing, & Regulation, to establish the Maryland Homeownership Preservation Task force. The purpose of this program is to maintain homeownership. The borrower must be able to show financial difficulty caused by either a sub-prime or exotic mortgage and must be either in delinquency or in imminent danger of delinquency with no other existing alternatives available. The loans may include a fixed rate at least 3% above market, a negative amortization mortgage, or an ARM ..(read more)

Benefits of Buying a Short Sale Home

If you have been considering purchasing a home, you have probably heard that our local housing market has many short sales and foreclosures available. A short sale is a home where the market value of the property is less than the loan amount owed to the lender. Purchasing a short sale home can be a long and complicated process; but don’t be scared off by these shot sale properties, they may turn out to be a great deal for you! Experienced Realtors, like The Russ Boyce Group, can help make it a smooth transaction. Short sale homes will not have a seller’s unrealistic price; they are priced at or below the true fair market value. This allows the buyer to gain equity faster in the home because it was not purchased at housing market highs. While getting a great deal on their new home, the buyer also helps the seller out of a difficult situation. Many buyers can benefit from the supply of homes available for sale as short ..(read more)

Avoid Foreclosure & Bankruptcy with Short Sales

Behind on your mortgage and owe more on your house than what it will sell for? There is an alternative to foreclosure; you can sell your home as a “Short Sale”. Short sales are a way for homeowners to avoid foreclosure and still be able to pay off their loans by settling with the lender. Different banks have different procedures for short sales. You must contact your lending institution’s Loss Mitigation Department and ask what their procedures are for short sales. Many lenders are willing to work with you by reducing the amount owed or by making other arrangements. Lenders are willing to work with you on a short sale because this is better for everyone than the alternative, foreclosure. Short sales require many offers and counteroffers between the buyer, you the seller, and the bank. Because short sales are a complicated and timely process, it is best for an experienced Realtor to handle. The Boyce Group ..(read more)

Homestead Tax Credit

The Homestead Tax credit limits the amount of assessment increase the homeowner will pay property taxes in the tax year on the one property that was used as the primary residence. This credit was automatically given to you in the past, if you are eligible, which most of us are. This year you must apply for it. Maryland assesses a property’s value every three years. Notices mailed at the end of December reflect a statewide average increase of 33% since those properties were last assessed in 2004. That breaks down to an average annual increase of 11% to be phased in over the next three years. In Maryland those annual increases will be capped at rates that vary by county. Residents of Charles county have a 7% cap. This year if you do not fill out the application you will not be granted the homestead tax exemption and your tax bill will go up accordingly. You can file the Homestead Tax Credit Application ..(read more)