Homeowners

The Columbia Association has filed five lawsuits in Howard County Circuit Court, charging homeowners with covenant violations, as it tries to address rising complaints about deteriorating -- or just plain unsightly -- properties in the 30-year-old planned community.The alleged violations range from relocating a fence without permission to failing to trim backyard trees and bushes, to refusing to remove algae from house siding and a deck."I can agree with part of the deal to try to keep this place looking nice," said William Dragovich of Chase Lions Way in Dorsey's Search, who relocated a 5-foot-tall wooden fence and is facing a lawsuit.

When some Baltimore residents take to the War Memorial Building floor this evening to comment on next year's proposed city budget, the Taxpayers Night event will mark the 10th anniversary of the Baltimore Homeowners' Coalition.The homeowners' group of about 1,000 members formed in 1989 to stem the city's escalating tax rate. Members have watched the city property tax rate drop from $6 per $100 of assessed value to $5.82.Although the drop might not be viewed as dramatic, coalition organizers estimate that they have saved Baltimore property owners about $140 million by harping on city leaders to reduce spending and streamline city services.

The Columbia Association has filed five lawsuits in Howard County Circuit Court, charging homeowners with covenant violations, as it tries to address rising complaints about deteriorating -- or just plain unsightly -- properties in the 30-year-old planned community.The alleged violations range from relocating a fence without permission to failing to trim backyard trees and bushes, to refusing to remove algae from house siding and a deck."I can agree with part of the deal to try to keep this place looking nice," said William Dragovich of Chase Lions Way in Dorsey's Search, who relocated a 5-foot-tall wooden fence and is facing a lawsuit.

THOUSANDS OF homeowners who think they'll be able to stop paying for mortgage insurance with the help of a new federal law that takes effect July 29 could be in for a rude shock.They may discover that no matter what Congress decreed, they are locked into costly monthly premiums for years. That's because, often unknown to the homeowners, their mortgages carry fine-print terms requiring insurance coverage for a mandatory period of time -- sometimes as long as seven years.This is particularly true for thousands of loans owned by the behemoths of the mortgage industry, Fannie Mae and Freddie Mac.Though both companies have announced that they will allow eligible homeowners to request insurance cancellation when increased property values have pushed their equity in their homes to 20 percent, that policy has a little-known but important exception: Owners whose mortgages are part of "negotiated" packages purchased by Fannie or Freddie from major lenders may not be covered.

WASHINGTON -- The Federal Housing Administration wants Congress to let the agency insure up to $130 billion in home mortgages both this year and next.Housing and Urban Development Secretary Andrew M. Cuomo told a House Appropriations subcommittee yesterday that this year's cap of $110 billion is too low for the FHA to meet homebuyers' demand. HUD, which oversees the FHA, originally asked for a cap of $120 billion in its fiscal 2000 budget.Raising the cap would allow the FHA to insure an additional 400,000 mortgages this year at no cost to taxpayers.

Sixty-thousand homeowners -- many in Maryland -- will benefit from an increase this year in FHA loan limits, according to projections made by the Mortgage Bankers Association of America.In January, FHA raised its mortgage limits to 48 percent and 87 percent of the Fannie Mae/Freddie Mac loan limit -- to $115,200 and $208,800 from $91,200 and $180,000. The limits are determined by the median price of homes in metropolitan areas."In certain areas -- especially high-cost areas -- people were being locked out of home ownership," said MBA economist Brian Carey.

HERE'S A New Year's resolution that could save you thousands of dollars of needless home mortgage expense: Be on guard for a new wave of insurance pitches from your lender promising you low-cost life, credit, disability or accidental death benefits coverage.The odds are, say independent insurance and mortgage industry experts, that the coverage you're being offered is available elsewhere for a lot less -- if you need it at all.Consider the intriguing offer that came in the mail last month to a number of Maryland homeowners in the Washington suburbs from their mortgage company.

Liz Chantry bought a townhouse in Russett four years ago, thinking she'd surely be safe in a brand new home.But she and other owners of new townhouses and condominiums in the west Anne Arundel neighborhood have discovered that the sprinkler heads installed in their homes are the subject of a nationwide recall that has affected millions.Omega brand sprinkler heads have failed to turn on during fires, according to the U.S. Consumer Product Safety Commission, because of a faulty internal device.

THE PREDICAMENT of James Stuart, the man who thinks it "ludicrous" that the Columbia Association is taking him to court for violating homeowner covenants, is neither new nor unique to the planned city Jim Rouse built in Howard County. Over the years, we have seen countless conflicts involving covenants and similar fracases over alleged zoning infractions.These disputes pit the notion that a person ought to be able to do what he wants on his property against rules designed to keep neighborhoods attractive and property values stable.

A homeowner paints the front door a strange shade of green. The rules of the homeowners association state it's supposed to be hunter green, not lime green. That's a violation.Another homeowner owns too large a dog for the condominium building. A violation.In a townhouse community, the trash cans can be put out only the morning of collection. The family next door always drags them out the night before. Another violation.Some people abide by the rules of the community. Some don't. And when they don't, homeowners associations turn to the management company, the people they pay to keep order in the community.

With the number of home foreclosures on the rise again in Maryland, Gov. Martin O'Malley's plan to require mediation before banks can begin proceedings to seize the houses of delinquent borrowers is a good idea, but it doesn't go far enough to help struggling property owners stay in their homes. What's needed are more resources to ensure adequate legal representation for troubled homeowners who have been the victims of predatory lenders. Unscrupulous brokers and agents pocketed millions in fees during the housing bubble by targeting unsuspecting borrowers whom they knew could never repay the loans.

The housing market slump means sellers are agreeing to cover some or all of buyers' closing costs. A big savings for buyers - and a big expense for sellers. Doris Hall-Scheeler, senior vice president at Sage Title Group in Baltimore, sees sellers contributing up to 6 percent of the sales price to buyers in closing-cost assistance. That's $18,000 on a $300,000 house. And it's just part of what homeowners have been paying to move on. Add taxes and real estate commissions, and sellers can end up forgoing more than 12 percent of their sales price, Hall-Scheeler said.

Homeowners who are putting in additions to accommodate family moving in are giving a much needed boost to business at Trademark Remodeling in Eldersburg. At Starcom Design Build in Columbia, clients feeling a bit more confident about the economy are investing in home repairs and tackling small renovations. And at Wall to Wall Construction in Catonsville, homeowners who might have launched big home renovations in more robust times are still spending, though not as much and on smaller projects.

By now you probably all know what a short sale is: a deal in which the lender allows a home to change hands for less than the balance on the mortgage, forgiving most or all of the difference. For months, real estate agents have said there are far more would-be short sales than closed deals. The lenders reject the offers, or they take so long to consider that buyers give up and move on. Thus I was curious to hear what Olivia Surge, who negotiates short sales on behalf of homeowners at the Law Offices of G. Russell Donaldson in Crofton, is seeing now. Compared with 2007, when nine months could go by before lenders would even look at an offer, "things have gotten much, much better," she said.

Lori and Aaron Travis thought the brick rowhouse in Upper Fells Point was beautiful, so they bought it for $309,000 five years ago. Now - after a job loss and failed negotiations with their lender - they're trying to sell. For $190,000. They have plenty of company. The dramatic change from booming housing market to slump has left an increasing number of homeowners selling at a loss. More than a third of the Baltimore-area homes bought this decade and then resold between January and June changed hands for less than their previous purchase price, according to a Baltimore Sun analysis of state assessment data.

Months ago, when the subprime lending crisis first exploded, experts agreed that the key to avoiding lasting damage to the U.S. economy was to find ways to renegotiate millions of mortgage loans on owner-occupied homes headed for foreclosure. If lenders and borrowers would agree to share the economic pain, new affordable loans could be shaped and the housing market could be stabilized. Voluntary programs aimed at achieving that goal were established, but the benefits were slim as few banks signed up and there was little relief for homeowners.

I applaud the efforts by Keith Losoya and R. Paul Warren to demonstrate that the city is leaving millions on the table every year as a result of the underassessment of commercial properties ("Homeowners' burden," Commentary, Sept. 11). The city government needs to recognize that homeowners are one of the city's greatest assets. We help to stabilize and restore neighborhoods, clean and police the streets, and show our commitment to the city by purchasing property here, even though we know the suburbs offer better services for lower taxes.

The number of Maryland homeowners behind on their mortgage payments jumped a record 70 percent in the past year as a protracted housing slump and months of sharply tightened credit continue to take their toll. Delinquencies have not hit all-time highs in the state - the share of loans with late payments was larger at the end of the 1990s and in the early part of this decade, because of fraudulent property-flipping schemes in Baltimore. But housing counselors and Maryland leaders are alarmed by how quickly the mortgage situation has been worsening statewide, despite a low unemployment rate and high household income.

For many homeowners, the first and last time they talk to their insurance carrier is just before they buy a house. Once they move in, most people stuff their policy in a drawer and never look at it again.But consumer groups and industry experts say that approach is risky - especially considering the rising cost of construction and other goods. Some may find the cost of rebuilding after a catastrophic fire or storm is a lot more today than when they first took out their policy. That's especially true for the millions of consumers who remodeled kitchens or finished basements using money borrowed against the rising value of their homes during the real estate boom.

For 20 years now, St. Ambrose Housing Aid Center in Baltimore has run a matchmaking service. Think empty rooms, not lonely hearts. The nonprofit helps Baltimore City and Baltimore County homeowners, with space to spare, find people looking for a room to rent, and vice versa. The program, launched by employee Mark Benson, was conceived as a way to get elderly residents extra income and companionship. But it has proved popular with all ages. "It's one of the most creative things we do," says Vincent Quayle, executive director of St. Ambrose.