FLOOD INSURANCE

The Senate adjourned without approving H.R. 4851, which would have extended a number of programs including the National Flood Insurance Program (NFIP). Authority for the NFIP expires at midnight on Sunday March 28, which will delay real estate transactions where a new flood policy is required but has not been issued before the expiration date. Efforts to reach bipartisan agreement between the House and Senate failed over how to pay for the broader bill. A procedural motion has been filed in the Senate setting up a vote the week of April 12th.

Bank of America to Cut More Loan Balances

By JAMES R. HAGERTY

Bank of America Corp. said it would offer more borrowers reductions in their mortgage-loan balances in the latest twist on efforts to avert foreclosures.

The plan is the mortgage industry's boldest move yet to address the plight of the millions of U.S. homeowners who are "underwater," owing more than the current values of their homes. It enhances an agreement Bank of America reached 18 months ago with state attorneys general to settle claims they made over certain high-risk loans made by Countrywide Financial before Bank of America acquired that lender in mid-2008.

Reductions of as much as 30% in loan principal will be offered to struggling borrowers who have subprime or so-called option adjustable-rate mortgages, known as option ARMs. (Option ARMs, no longer available, allow borrowers to start with minimal monthly payments and face steep increases later.) Also included will be certain loans that have a fixed interest rate for the first two years before starting to adjust annually.

The program is limited to Bank of America customers who are at least 60 days overdue on payments, who can demonstrate that a financial hardship prevents them from making payments at the current level, and whose loan balance is at least 120% of the estimated home value. The bank estimated that 45,000 customers will qualify for the relief.

Amid the worst wave of foreclosures since the 1930s, banks generally have been reluctant to reduce principal. Instead, most loan modifications—including those under the government-subsidized Home Affordable Modification Program—involve reducing interest rates to as low as 2%. Some also extend loan terms to 40 years to shrink monthly payments.

But banks are finding that many deeply underwater borrowers aren't willing to keep making even reduced payments because they believe they have little hope of ever having equity in their homes and would be better off renting and perhaps buying a cheaper home later. The Bank of America program is aimed to give such borrowers more hope by reducing their loan balances to current estimated home values.

Bank of America said the program might eventually be extended to other types of loans. The U.S. Treasury, which runs the HAMP loan-modification program, also has been considering ways to encourage more principal reduction but has indicated that any such steps were likely to be modest.

Under the Bank of America plan, the maximum decrease in principal will be 30%, and borrowers will have to "earn" the lower balances in stages over five years by keeping up on their new, lowered payments.

By cutting principal, Bank of America said, it will reduce the risk that these borrowers will default again later. "We believe this could become an industry model for principal forgiveness," the bank said.

The program also addresses the woes of option ARM borrowers whose loan balances have increased over the years because they made minimal payments that deferred part of their interest due. Some of these borrowers will qualify for a reduction in their principal to as low as 95% of the home value.

To determine the market value of a home under the program, Bank of America plans to use computer models that estimate those values or, in some cases, opinions from real-estate brokers. Those estimated values will then be adjusted annually using metropolitan-area price indexes, Bank of America officials said.

First American CoreLogic, a real-estate data provider, has estimated that 11.3 million U.S. households, or 24% of those with mortgages, were underwater at the end of 2009.

Write to James R. Hagerty at bob.hagerty@wsj.com

Courtesy of THE WALL STREET JOURNAL Digital Network http://online.wsj.com/article/SB10001424052748703312504575141763259183050.html?mod=rss_Buying_and_Selling

Boat Slip - The Harborage at the Ashley Marina

Great location, now has never been a better time to own a boat slip in Charleston!

Residential Real Estate Sales Increase Again, Median Prices Remain Stable

CHARLESTON, SC—(March 10, 2010) Preliminary data from the Charleston Trident Association of REALTORS® (CTAR) shows 509 homes sold in the Charleston region in February, at a median price of $179,900. This reflects a 22% increase in sales and essentially no change in median sale price from preliminary numbers reported on March 10, 2009, which showed 417 sales at a median sale price of $179,450.

As of March 10, 2009, CTAR data showed 789 sales at an average median sale price of $178,100. This year, CTAR has recorded 940 sales at an average median sale price of $185,500. Year-to-date numbers show a 7% increase in sales and median sale prices are a slight 4% higher than this time last year.

At the close of the month, there were 9,532 homes actively listed for sale with the Charleston Trident Multiple Listing Service, a 4% increase from last month, when there were 9,171 homes on the market.

January 2010 Adjustment
Preliminary numbers reported on February 10 indicated that in January 2010, 416 properties had sold at a median price of $194,000. Adjusted numbers show that 429 properties sold at a median price of $191,100. This equates to a negligible (-0.9%) decrease in sales and a 9% increase in median prices when compared to January 2009, which showed 433 sales at a median price of $175,000.


BERKELEY COUNTY
Berkeley County saw a 16% increase in sales and a 3% variance in median price over February of last year. February’s preliminary numbers show 108 properties sold at a median price of $157,495. On March 10, 2009, preliminary numbers reflected 93 sales at a median price of $162,400.

In Berkeley County, the areas of Goose Creek and Moncks Corner showed the most activity, and Crowfield Plantation was the most active neighborhood.

CHARLESTON COUNTY
Charleston County continues to lead the regional market recovery with 60% more closed sales and a 5% increase in median price when compared to last year. In February, 288 homes sold at a median price of $235,950 in the county compared to February 2009 preliminary figures which showed 180 homes sold at a median price of $225,000.

In Charleston County, the area south of Highway 41 had the most activity in February, with the Rivertowne neighborhood showing the highest sales for that area.

DORCHESTER COUNTY
In February, 91 residential properties changed hands at a median price of $145,000 in Dorchester County. When compared to February 2009 preliminary figures, this data shows a 5% increase in sales and a 15% decline in median price. Last year, 87 homes sold at a median price of $169,990.

The Summerville/Ridgeville area showed the most activity in Dorchester County, and the Legend Oaks subdivision had the most sales within that area.

Please note: “Preliminary number” indicates all sales and values for closings posted within 10 days following the close of the month. “Adjusted number” indicates the value after all sales have been posted.

# # #
With approximately 4,000 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®.

Palmetto Heroes Program - Police Officers - Fire Fighers - EMS - Teachers

SC State Housing Authority is excited to announce our 2010 PALMETTO HEROES PROGRAM.

The Heroes selected for the 2010 initiative are “Police Officers – Fire Fighters – EMS - Teachers”. Borrower(s) must meet SC State Housing's first-time home buyer requirements. The program features a reduced mortgage interest rate and down payment assistance is available. The funding will be limited to $40 million. Loans are available on a first-come first-served basis and borrowers must have an accepted sales contract on a home prior to reserving funds. All SC State Housing loan policies and procedures will be in affect for this program. See our program guides and manual for specific loan details.

Police Officers – Borrower must be a full-time police officer with state or local government agency including correctional officers with the South Carolina State Department of Corrections

Fire Fighters and EMS - Borrower must be a full-time or volunteer fire fighter or EMS with a state or local government agency

Teachers - Borrower must have a South Carolina Teachers Certification and be employed as a classroom teacher or have a contract to receive a paycheck begin teaching within 60 days of closing on the home.

INTEREST RATE –The fixed interest rate will be 5.125

DOWN PAYMENT ASSISTANCE

Category I - Up to $7,000 Repayable Down Payment Assistance.
Category II - $7,000 Forgivable Down Payment Assistance

America's Top Places For Boomers To Retire

Charleston, South Carolina

Listed in AARP The Magazine's selections for "Dream Towns" and the "best places to reinvent your life," Charleston, South Carolina is a great place to retire. Although in the city retirement income is taxed, social security is exempt in the state and an income tax deduction for couples filing jointly that are 65 years or older reaches $30,000.

The city has a bustling historic district and is dotted with a variety of gardens, both publicly and privately maintained. The town has been named "The Holy City" for its large volume of churches and other places of worship and has a history of religious tolerance, dating back even before the founding of the country.

More recently, in 2002, Charleston established the country's first "Livability Court," which has jurisdiction over cases involving non-compliance of local codes and standards concerning housing, environment, noise, traffic and tourism. Charleston is also close to resort towns and other pleasure locations, such as Hilton Head, Kiawah, Seabrook Islands and South Carolina's major seaside golf destination, Myrtle Beach.

No jury duty today, now I can get some work done