HOMEBUYER TAX CREDIT EXPANDED; EXTENDED TO APRIL 2010

CHARLESTON, SC—(November 6, 2009) The deadline for buyers to take advantage of the first-time homebuyer tax credit has been extended to April 30, 2010 and new provisions have been added to include a credit for existing homeowners.

An $8,000 tax credit is available to first-time homebuyers. Purchaser (and purchaser’s spouse) may not have owned a principal residence in 3 years prior to purchase to meet first-time homebuyer definition. A $6,500 credit is available to homebuyers who have owned and lived in that home for 5 consecutive years of the last 8 years.

Any single family residence (including condos, co-ops and townhouses) that will be used as the principal residence and has a purchase price of less than $800,000.

The full amount of credit is available for individuals with adjusted gross income of no more than $125,000 or joint gross income of no more than $225,000. The credit is phased out to lower amounts for individuals and joint filers with higher gross incomes.

The previous agreement required that buyers close on their home by November 30 to qualify for the credit. The expanded agreement gives buyers until April 30, 2010 to ratify a contract and requires that the closing take place within 60 days. The existing home buyer tax credit takes effect immediately, which means all qualified buyers under the new law with an upcoming closing is eligible for the credit as well.

“The Charleston market has maintained a strong momentum coming out of the summer season—due in large part to the tax credit—and we cannot let this momentum lag. This crucial expansion allows all homebuyers to make an investment in a market that is more affordable than it’s been in years” said Ralph Wetherell, President of the Charleston Trident Association of REALTORS®.

The tax credit, in its original form, helped to establish more than one million families as new homeowners.

“The homebuyer tax credit has been a critical component to restoring the health of the Charleston real estate market. We’ve been showing signs of a recovering market since this summer—inventory is decreasing and prices continue to stabilize. Extending this credit, not just in timeframe, but to a new group of homeowners will certainly support the continued economic recovery of our area” said Wetherell.

Contact:
Meghan Weinreich
(o) 843.760.9400 x110 (c) 843.270.4393

With nearly 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®. To learn more, visit www.CharlestonRealtors.com



###

FANNIE MAE FREEZES FORECLOSURES

Thursday, 07 May 2009

By Ashley Fletcher Frampton
aframpton@scbiznews.com

Mortgage-backer Fannie Mae said it singled out South Carolina for an unusual court-ordered freeze on home foreclosure sales because the state gives local judges the authority to dismiss delayed cases, which other states do not.

Fannie Mae isn’t seeking a similar temporary freeze in other states, said Brian Faith, spokesman for the mortgage company.

“In South Carolina, judges have the discretion to cancel an ongoing foreclosure process if there is a significant delay between the foreclosure judgment date and the actual foreclosure sale,” Faith said in a statement.

If masters-in-equity — the special county judges that usually handle foreclosures in South Carolina — were to dismiss delayed cases, “the process begins anew, which leads to higher costs and losses,” Faith said.

“The court ruling effectively addresses this situation,” he said.

Fannie Mae suspended its foreclosure proceedings in late 2008 and during the first of quarter of 2009 while it reviewed cases for potential workout strategies, Faith said. In some cases, that created significant delays.

At Fannie Mae’s request, the S.C. Supreme Court issued a temporary restraining order late Monday afternoon on foreclosure sales for some homes. It targets properties that could be eligible for a mortgage modification program that President Barack Obama’s administration is rolling out. The program offers more affordable mortgage payments to homeowners whose loans are backed by Fannie Mae or Freddie Mac and who meet certain other criteria.

Fannie Mae did not want homeowners potentially eligible for the program to lose their homes in foreclosure before they had a chance to participate. The mortgage company estimates that more than 1,000 homes in South Carolina were headed to foreclosure sales this week. It filed the petition for a temporary restraining order on Friday.

Obama announced the Home Affordable Modification Program in February, but details were not outlined until April 6.

Masters-in-equity say they are still sorting through the implications of the S.C. Supreme Court order, which requires lenders seeking foreclosure to submit affidavits by May 15 stating whether loans in default are eligible for the modification program.

Homes not eligible will continue in the foreclosure process, according to the restraining order.

Published May 7, 2009

If you have questions regarding the real estate market in the greater Charleston, South Carolina area please do not hesitate to call or e-mail Owen at 843.224.5398 or Owen@OwenTyler.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.

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.

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

Foreclosures...Always a Good Buy?

Everyday I get at least one phone call from someone looking for a good deal and the word foreclosure always follows. Why is it that our culture always believes that sales and discounts and foreclosures must mean we are getting the best deal?

Sure some sales and foreclosures are great deals, but one has to look at the context of the situation. The majority of foreclosures are sold without repairs and have been vacant for extended periods of time before they hit the market. Many of the foreclosures on today's market would not even qualify for an FHA loan due to the condition of the property. And lets face it, banks aren't exactly willing to just give the property away.


In today's market many sellers that are not in financial trouble are ready to wheel and deal. These are houses that are well cared for with sellers that will generally make repairs and negotiate. A good deal doesn't have to be a distress sale!


The foreclosure market is not for the faint at heart, expect longer waiting periods and lag times to have agreements signed and at times odd requests from the selling bank. And remember that in a foreclosure, an inspection becomes key and you should take a long hard look at the property prior to making your offer.


And if you are a property owner that is facing forclosure you can get advice on how to handle the situation from Family Services - The Home Ownership Resourse Center.


http://www.familyserviceschassc.com/home_ownership_resource_center.asp


Below are some foreclosure numbers from the staff at SCBIZ Daily --


Year-end foreclosures top 2.3 million across U.S.

Monday, 19 January 2009


SCBIZ Daily Staff CHARLESTON -- More than 15,000 properties across South Carolina went into foreclosure in 2008, according to RealtyTrac, a national real estate tracking firm. Of those properties, 4,333 were in the Greenville-Spartanburg-Anderson area, followed by the Charleston-Dorchester-Berkeley region with 3,501 homes that went into foreclosure.The rate of foreclosures might be contributing to the glut of homes on the real estate market, slowing sales in the region and creating an extreme buyer's market, real estate agents say. Foreclosures in the Lowcountry, however, did fall between November and December from 678 to 378, a positive downward trend. In its annual and monthly foreclosure reports released this week, RealtyTrac said filings were reported on 303,410 properties nationwide in December, up 17% from the previous month and up nearly 41% from December 2007. To end the year, more than 2.3 million properties across the U.S. were in some state of foreclosure, an increase of 81% from the previous year. Greenville County posted the largest number of foreclosures for December, with 590, and the most in 2008, with more than 2,500 foreclosures last year. Five counties posted more than 1,000 properties in foreclosure, including Charleston, Berkeley and Dorchester. By contrast, in 2007, Lexington County had the largest number of foreclosures in the state at 499. Nationally, the majority of foreclosures were in Nevada, Florida and Arizona. For example, one out of every 14 homes in Nevada was in some state of foreclosure in 2008.


Year-end foreclosure numbers

County 2008

Greenville 2,540
Spartanburg 1,053
Anderson 740
Richland 1,305
Lexington 1,200
Berkeley 906
Charleston 1,716
Dorchester 879

If you have any questions or would like to discuss the possibility of having me represent you on the sale of your home or the purchase of a home, you can contact me directly at 843-224-5398 Owen Tyler, Realtor®, Carolina One Real Estate.