CHARLESTON REALTORS® ASSOCIATION AND EAST COOPER HABITAT FOR HUMANITY

CHARLESTON, SC—(April 23, 2009) Terri and Elizabeth Naguib will finally have a place to call home this Saturday afternoon, as their new home is dedicated at 1 p.m. on Saturday after months of work by REALTORS® and volunteers from East Cooper Habitat for Humanity.

The work on the home began during the South Carolina REALTORS® Annual Conference last September. More than 150 REALTORS® contributed over 1,000 hours of labor to this project.

The Charleston REALTORS® Housing Opportunities Fund (RHOF) exceeded their fundraising goal of $50,000—an achievement which ensured that not only were building costs covered, but a portion of the land as well.

“East Cooper Habitat for Humanity, Inc. (Habitat) has been the recipient of funds from the Realtors Housing Opportunity Fund (RHOF) since its founding. In the last year, however, the support by RHOF and by the Realtor community in South Carolina has been truly remarkable” said Bob Hervey, Executive Director for East Cooper Habitat for Humanity.

“Working alongside the REALTORS® was Terri Naguib, who has been hammering away, helping to build a safe and secure home for herself and her daughter, Elizabeth. She has completed her 350 hours of sweat equity as well as her required homeownership classes and is now ready to assume an affordable mortgage. East Cooper Habitat for Humanity is most pleased to have been able to partner with the REALTORS® to make the dream of homeownership possible for the Naguib family, giving Terri and Elizabeth a “hand up,” not a “hand out” said Hervey.

With approximately 4,200 members, CTAR’s mission is to promote the highest standards of professionalism, ethics, education and technology, and to ensure that its members are the primary source for real estate services in the South Carolina Lowcountry. Only those who are members of the Association of REALTORS® and its parent organizations are called REALTORS®. To learn more, visit www.CharlestonRealtors.com

LESS THAN 1% OF HOME IN FORCLOSURE IN S.C. METRO AREA

Wednesday, 22 April 2009
By Andy Owens
aowens@scbiznews.com

CHARLESTON — Less than 1% of the homes owned in South Carolina’s largest metropolitan areas are in foreclosure, according to data released this morning.

A national comparison of homes owned vs. homes in foreclosure shows the foreclosure problem to be concentrated in a relatively small number of metro areas, said the CEO of RealtyTrac, a national real estate data tracking firm.

The Columbia metropolitan statistical area posted the second-lowest percentage of homes in foreclosure statewide for the first quarter of 2009.

Spartanburg’s metropolitan statistical area posted the lowest percentage of homes in foreclosure for the first quarter of 2009. The second highest rate was in the Greenville-Mauldin-Easley MSA.

The Charleston-North Charleston metropolitan statistical area posted the highest percentage of homes in foreclosure at 0.77%.

RealtyTrac released its analysis of foreclosures in the nation’s 203 MSAs, which include metropolitan areas with at least 200,000 people. The analysis shows a percentage of the number of homes in a region that have received at least a notice of default, which is one of the first steps in the foreclosure process.

The Columbia MSA ranked 155 out of 203 with 0.19% of homes with at least one foreclosure filing during the first three months of 2009. The Columbia metro area saw a 20.39% decline in foreclosures in the first quarter compared to the fourth quarter of 2008.

The Greenville-Mauldin-Easley MSA ranked 66 with 0.59%. The Greenville metro area saw a 0.06% decline in foreclosures in the first quarter compared to the fourth quarter of 2008.

The Charleston-North Charleston MSA ranked 51 with 0.77%. The Charleston metro area saw a 36.56% increase in foreclosures in the first quarter compared to the fourth quarter of 2008.

Las Vegas-Paradise, Nev., posted the highest percentage at 4.48%.

Merced, Calif, was the next highest at 4.21%.

Cape Coral-Fort Myers, Fla., was third at 3.85%.

Stockton, Calif, was fourth at 3.72%.

Riverside-San Bernardino-Ontario, Calif., finished the top five at 3.54%.

“The metro areas with the highest levels of foreclosure activity in the first quarter of 2009 paint a picture of concentrated problems in a relatively small number of hard hit areas,” said James J. Saccacio, RealtyTrac’s CEO.

Saccacio said sales activity appears to be increasing in some of these larger markets as home prices have fallen to levels that are attractive to first-time homebuyers and investors.

“While we expect many of these metro areas to continue to experience high levels of foreclosure activity throughout 2009, we also expect to see other markets rise up the ranks as unemployment rates surge throughout the country,” he said.

Nationally, RealtyTrac reported 0.63% of homes in the U.S. had a foreclosure filing in the first quarter of 2009 or 803,489 homes.

Last week, RealtyTrac reported a 9% increase in foreclosure activity across the U.S. from the last quarter of 2008 to the first quarter of 2009. Saccacio attributed a declining rate of actual bank ownership of foreclosed on properties, called REOs, for the quarter to an early year moratorium on foreclosures.

RealtyTrac forecasted that a large number of new notices of default and a lifting of the moratorium could increase those numbers in the second quarter of the year.

Published April 22, 2009

If you are considering making purchasing a primary residence or investment property in the Greater Charleston area please feel free to call Owen at 843.224.5398 or e-mail Owen@OwenTyler.com.

WHAT IS YOUR MOTIVATION TO SELL?

If you are considering selling real estate in the Charleston area and have questions or would like to know the current value of you property, please feel free to call Owen at 843.224.5398 or e-mail Owen@OwenTyler.com.

MARCH RESIDENTIAL REAL ESTATE SALES SURGE

Sales at their highest level since October 2008

CHARLESTON, SC—(April 10, 2009) The unprecedented number of showings in January and March have translated into higher sales volume, driven by incentives like the $8,000 tax credit, incredibly low interest rates and a great selection of reasonably-priced homes on the market.

The Charleston Trident Association of REALTORS® report that the Lowcountry residential real estate market made significant sales gains in March, soaring 37% over February levels with 568 closed transactions. The median sales price also increased nearly 3% month-over-month, climbing to $185,000. The most movement in the market occurred in the $200,000-$249,000 range.

While below year-over-year levels, the increases in showings, sales and median price has led to cautious optimism among industry leaders. “In addition to increased showings and closings, we’re seeing a lot of first-time homebuyers, which indicates that consumer confidence is on the rise. People are realizing the incredible selection and value in this market, and making the smart decision to invest in real property” said Gettys Glaze, President of the Charleston Trident Multiple Listing Service. March 2008 saw 752 closed transactions, with a median price of $197,500.

There are 11,221 homes currently listed for sale with the Charleston Trident Multiple Listing Service, and 351transactions pending. Average Days on Market (DOM) for this period was 142.

DORCHESTER COUNTY
Sales in Dorchester County increased significantly for the second month in a row, up 29%, with 112 closed transactions. The median price dipped slightly, to $161,000 after February’s unprecedented jump to $169,995. Nearly half of the County’s activity was in the Ridgeville area—a total of 50 closed sales, with a median price of $171,300.

CHARLESTON COUNTY
Charleston County was the leader in March sales, more than doubling closed transactions in February. 288 homes sold in March, compared to last month’s 180. Median price held strong at $225,000. Most of the market activity was concentrated in the northern portion of Mount Pleasant, which includes Park West, with 52 sales and a median price of $321,250.

BERKELEY COUNTY
Sales increased 32% in Berkeley County in March with a total of 137 closings and resulted in a median price of $165,000, up 2% over February. The most activity in the county was reported in Goose Creek/Moncks Corner (Highway 52 to Oakley Road) with 34 sales and a median price of $165,000.

If you have questions regarding the real estate market in the Charleston area please call 843.224.5398 or e-mail Owen@OwenTyler.com.


With approximately 4,200 members, CTAR’s mission is to promote the highest standards of professionalism, ethics, education and technology, and to ensure that its members are the primary source for real estate services in the South Carolina Lowcountry. Only those who are members of the Association of REALTORS ® and its parent organizations are called REALTORS®.

CAN LOAN MODIFICATION HELP YOU

What is a Loan Modification?

Whether it's called a loan modification, mortgage modification, restructuring, or workout plan, it's when a borrower who is facing great financial hardship, having difficulty making their mortgage payments and is facing foreclosure, works with their lender to change the terms of their mortgage loan to make it affordable. The workout plan varies by lender, but changes could include temporary or permanent changes to the mortgage rate, term and monthly payment of the loan, the past due amount could be rolled into the loan, and the new balance re-amortized.

What is a loan modification under Obama's plan?

Under the Homeowner Affordability and Stability Plan President Barack Obama announced on Feb. 18, 2009, the goal of Obama's "Make Home Affordable" loan modification plan is to reduce the amount struggling homeowners owe per month to sustainable levels. According to plan details:
· The lender would first be responsible for bringing down interest rates so that the borrowers monthly mortgage payment is no more than 38 percent of his or her income.
· Next, the initiative would match further reductions in interest payments dollar-for-dollar with the lender to bring that ratio down to 31 percent.
· Lenders will also be able to bring down monthly payments by reducing the principal owed on the mortgage, with Treasury sharing in the costs.
· Borrowers will be put on a trial modification at the new interest rate and payment for three months. If they make all their payments on time, the modification will be implemented at the new rate and be fixed for five years.

Under Obama's plan, loan modifications will be standardized, with uniform loan modification guidelines used by Fannie and Freddie Mac, and then they will be implemented throughout the entire mortgage industry.

Who is eligible for a loan modification?

To qualify, you must:
· Have originated your mortgage before Jan. 1, 2009.
· Be an owner-occupant.
· Have an unpaid balance that is equal to or less than $729,750 (for a single-family home).
· Have trouble paying your mortgage due to financial hardship. That could be because you have had an increase in your mortgage payments, or because your income was reduced or you suffered a hardship (like medical problems) that increased your bills, or, you can show that you soon will be unable to make your payments. You will be required to enter an affidavit of financial hardship.
· Your monthly mortgage payment must also be more than 31% of your gross (pre-tax) monthly income.

According to the Department of Treasury: Anyone with high combined mortgage debt compared to income or who is underwater (i.e., has a combined mortgage balance higher than the current market value of his house) may be eligible for a loan modification. This initiative will also include borrowers who show other indications of being at risk of default. New borrowers will be accepted until Dec. 31, 2012.

Who's not eligible for a loan modification?

Speculators or those who bought homes for investment purposes -- are not eligible. All homes must be owner/occupied. Also, if you cannot afford the home due to job loss or a complete inability to pay, you will not be eligible. Also, mortgages with amounts above the conforming loan limits would not be eligible.

How does someone get a loan modification?

First, gather this information:
· Information about the monthly gross (before tax) income of your household, including recent pay stubs if you receive them or documentation of income you receive from other sources.
· Your most recent income tax return.
· Information about your assets
· Information about any second mortgage on the house.
· Account balances and minimum monthly payments due on all of your credit cards.
· Account balances and monthly payments on all your other debts such as student loans and car loans.
· A letter describing the circumstances that caused your income to be reduced or expenses to be increased (job loss, divorce, illness, etc.).

Second, call your mortgage servicer and ask to be considered for a "Home Affordable Modification." The number is on your monthly mortgage bill or coupon book. Honestly state your situation. They will assess your financial state through phone calls and paperwork to determine whether you qualify for a loan modification. Keep copious, detailed notes on who you speak with and details of the conversations so you have documentation down the road if you are faced with foreclosure.

Third, depending on the direness of your financial difficulties, its always good to hire legal counsel. Get a referral from your local state bar association.

Fourth, call a local HUD-Approved Housing Counseling Agency for guidance.

How do loan modifications benefit lenders and borrowers?

A loan modification is usually a win-win situation: the lenders get their money in a reworked fashion and borrowers get a new chance to support their mortgage payments at a reduced cost.

Also, under the Obama plan, there are incentives for both lender and borrower. According to the Treasury:
· Pay for Success Incentives to Servicers: Servicers will receive an up-front fee of $1,000 for each eligible modification meeting guidelines established under this initiative. They will also receive pay for success fees awarded monthly as long as the borrower stays current on the loan of up to $1,000 each year for three years.
· Incentives to Help Borrowers Stay Current: To provide an extra incentive for borrowers to keep paying on time, the initiative will provide a monthly balance reduction payment that goes straight towards reducing the principal balance of the mortgage loan. As long as a borrower stays current on his or her loan, he or she can get up to $1,000 each year for five years.
· Reaching Borrowers Early: To keep lenders focused on reaching borrowers who are trying their best to stay current on their mortgages, an incentive payment of $500 will be paid to servicers, and an incentive payment of $1,500 will be paid to mortgage holders, if they modify at-risk loans before the borrower falls behind.
· Home Price Decline Reserve Payments: To encourage lenders to modify more mortgages and enable more families to keep their homes, the Administration -- together with the FDIC -- has developed an innovative partial guarantee initiative. The insurance fund to be created by the Treasury Department at a size of up to $10 billion will be designed to discourage lenders from opting to foreclose on mortgages that could be viable now out of fear that home prices will fall even further later on. Holders of mortgages modified under the program would be provided with an additional insurance payment on each modified loan, linked to declines in the home price index. Also, banks would rather have you stay in your home than risk foreclosure since they stand to lose more money through foreclosure. Think about it: a bank would need to make any repairs to the home, pay real estate agents to list it, and then perhaps list it at a discounted price.

And, if the real estate market is slow, the price could be further reduced.

BILL TO END POINT-OF-SALE REASSESSMENT GETS HOUSE APPROVAL

Monday, 06 April 2009
SCBIZ Daily Staff

COLUMBIA -- The S.C. House has given key approval, on an 85-23 vote, to a bill to end immediate reassessment of properties at their sale price. The measure passed the Ways and Means Committee on Thursday.

The bill, which now heads to the Senate for passage, would put off reassessments until the county’s regular five-year cycle. Real estate experts have complained that the immediate reassessments based on the sale price have brought a huge jolt for taxpayers, because the sale price has often been far more than the most recent assessment on the books.

Rep. Harry Ott, D-Calhoun, said that the measure’s 15% reassessment cap forces homeowners of moderate means to help carry the tax burden of those with fancier homes that can gain value more quickly. He also said the bill cuts needed funding that the reassessments had been generating for state and local government.

Top executives in the real estate industry have complained that the changes created huge inequities and disincentives to buy. When a property sells, its assessment can jump to far more than that of a similar property that has not changed hands. In many commercial leases, these taxes are passed on to tenants, who sometimes flee to other properties that have not been sold. Others have complained that the resulting higher taxes are putting off deals entirely.

“Given our state’s current 11% unemployment rate, the second-worst unemployment rate in the country, the governor was asked what his job creation plan was,” Harrell said.

“Unfortunately, the governor had no answer to the question.”

Published April 6, 2009

CHARLESTON COUNTY DELAYING REASSESSMENT

By David Slade
The Post and Courier
Monday, April 6, 2009


Charleston County plans to postpone its next property reassessment by one year, with a new target date of 2011.

County officials said the delay will allow time for the General Assembly to make up its mind about several legislative proposals that could affect the way homes, stores and other land are assessed and taxed, and the delay also will save the county money during a tough budget year.

It would cost the county about $150,000 simply to mail reassessment notices, and more staff would be needed to conduct a reassessment, which takes about two years and already is behind schedule, County Assessor Toy Glennon said.

For property owners, the delay could be good news or bad news depending on how their property's value has changed since 2003, particularly compared to other county properties.

In a reassessment, properties that have gained the most value generally end up with higher tax bills, while those that have gained less value relative to other properties get lower tax bills.

County Councilman Paul Thurmond said last week that some property owners might think the county is denying them a decrease in taxes.

"What I'm worried about is people thinking their house is worth less than it was five years ago, and that we're cheating them," he said.

Glennon said people might well believe that, but they would be mistaken. She said a greater source of trouble could come if people get assessment notices next summer showing that their property values increased, and they don't understand why.

"If you mail reassessment notices in the summer of 2010, people will not believe their values have gone up, and there will be a backlash," she said.

Glennon explained that the property values now used for taxes, which were set during the 2005 reassessment, represent what properties were believed to be worth in December 2003.

Even though Charleston County property values have fallen recently, they are, with some condominiums being a notable exception, still about 25 percent above their values in 2003.

Another exception is property that was sold after the statewide property tax reform of 2006 took effect. Under that law, properties that are sold get reassessed at full current values, immediately resulting in higher tax bills.

Otherwise, properties are reassessed every five years, with state law allowing for a possible one-year delay.

The 2006 law also established caps on how much the value of a property can be raised during a reassessment. The cap was set at 15 percent, well below the rate of appreciation typically seen with properties over a five-year period.

The cap helps the owners of properties that have gained the most value since the last reassessment, while shifting some of the tax burden to properties that have appreciated less quickly.

County Council voted unanimously Thursday to delay the reassessment and is expected to affirm that decision Tuesday. If it does, then the next reassessment would take place in 2011 and would be reflected in property tax bills that fall.

Reach David Slade at dslade@postandcourier.com or 937-5552.

If you have questions regarding real estate in the Greater Charleston area or even questions about the status of the current tax reform pending in the General Assembly, please feel free to call Owen at 843.224.5398 or e-mail him directly at Owen@OwenTyler.com.

STATE ALLOCATES $44M TO MITIGATE FORECLOSURES

Tuesday, 31 March 2009
By Ashley Fletcher Frampton
SCBIZ Daily Staff

CHARLESTON -- More than $44 million has been awarded to communities and organizations across the state to buy foreclosed homes to sell or rent at affordable prices.

The top three awards include $7.4 million for the Lowcountry Housing Trust, representing Charleston, Berkeley and Dorchester counties; $5 million for the city of Greenville; and $4.28 million for the Catawba Regional Council of Government, representing Lancaster County.

The money comes through the federal government’s Neighborhood Stabilization Program, which is meant to prevent blight and declines in home values in neighborhoods with clusters of foreclosed homes.

At the same time, the program increases the inventory of affordable homes for those people earning 120% of area median income, said Tammie Hoy, director of the Lowcountry Housing Trust, which received the largest chunk of the state’s NSP funding.

The S.C. State Housing, Finance and Development Authority announced the awards last week and the money likely will flow to local housing officials by the summer, Hoy said.

Hoy estimates that the money will allow local housing officials to purchase about 100 homes now owned by banks. The $7.4 million will also cover the cost of any needed repairs to the homes, which might have been vacant for months. In addition, the money can provide homebuyers with assistance in making a down payment.

By April 15, her organization and its partners must submit to state housing officials the homes they intend to purchase. The trust’s original application sought nearly $20 million for the three counties, so local officials must pare down the list of homes they plan to buy.

Hoy emphasized that the money isn’t meant for isolated foreclosures. The federal program targets clusters of foreclosures or likely foreclosures that could bring down neighborhood values.

Hoy said the money could end up going further than the estimated 100 homes. When housing officials sell a home they have purchased, sales proceeds will be available for additional investments.

The money comes through the federal government’s Housing and Economic Recovery Act of 2008. This year’s federal stimulus plan includes $2 billion for the program, but details on applying for those dollars are not expected until May, Hoy said.

The homes would be available to people earning up to 120% of area median income. Based on 2008 data, individuals earning up to $49,000 and families of four earning up to $79,000 would qualify, though Hoy said the program might use updated 2009 income data.

Communities and organizations receiving awards: Allocation:

Lowcountry Housing Trust (Charleston, Berkeley and Dorchester counties) $7,409,679
City of Greenville $5,000,000
Catawba Regional Council of Government (Lancaster County) $4,283,000
City of Columbia $3,900,000
Beaufort Housing Authority $2,943,000
Housing Authority of Myrtle Beach $2,500,000
Greenville County $2,260,000
Richland County $2,220,000
City of Anderson $2,173,087
City of Spartanburg $2,000,000
Sumter Housing Authority $1,700,000
Community Assistance Provider (Lexington County) $1,500,000
Santee-Lynches Affordable Housing CDC (Orangeburg County) $1,293,612
TN Development Corp. $1,038,350
SC Assoc. of Community Development Corp. $1,000,000
City of Florence $1,000,000
Community Development & Improvement Corp. (Aiken and Darlington counties) $1,000,000
Companion Associates (Pickens) $700,000
Pickens County Habitat for Humanity $225,000
Source: S.C. State Housing, Finance and Development Authority


Published March 31, 2009