The Federal Government has changed the forms used for lenders' Good Faith Estimates (GFE's) and closing statements (HUD-1) to improve the level of disclosure and make it easier to compare between different lender quotes.

Although their intention is good, these changes may cause some chaos until they sort out the problems they may bring to lenders, real estate agents and attorneys.

The New Good Faith Estimate (GFE) Form

 The new GFE form is three pages long and is mandatory for all lenders, the intention being to allow consumers to be able to compare one lender's proposal  to another. There are some costs that need to be pre-determined by the lender carefully, because those cannot chang...

Inventory Decreases in Belle Hall Plantation

Good news for Belle Hall homeowners: Inventory of single family, detached homes (SFD) has been steadily decreasing since reaching 69 active listings on the market in July 0f 2007 (and again in April of 2008).

As of January 30, 2010, we have 38 homes in "Active" status on the MLS, and 5 more appear under contract. Sales have been averaging between 4 and 5 a month in the last 12 months.

Although we are still in a "buyers' market" and sales and inventory are seasonal (lower sales AND inventory levels during the Winter months are the "norm"), the trend is favorable to returning to a "balanced" real estate market (defined as a market with 6 ...

Tips for Buying Foreclosures

These days it seems that most buyers want to:

a) Buy FORECLOSURES (it may be more accurate to say "DISTRESSED" rather than "FORECLOSED" properties); and

b) Make sure they take advantage of the extended TAX CREDIT for first-time and existing homebuyers which expires April 30th.

Invariably, every time I talk to a potential buyer, these two topics come out. And why not? Everyone is out there looking for "the best deal" - a home with no problems for a bargain basement price (buyers may be able to pick up a home for a fraction of its price from three years ago). And it seems that maybe 1 out of 4 new listings coming on to our MLS is either a "Possible Short Sal...

30-year Fixed Mortgage Rates Fall Below 5%

Two major economic stories this past week influenced mortgage rates favorably:

First, the news that China intends to slow down its economic growth to try and prevent inflation from getting out of control. In addition, the news of President Obama's proposed new restrictions on financial institutions and banks, which may impact their growth negatively. 

Both of these measures are expected to lead to a slower economic growth in the US economy, which hurt the stock market but helped the fixed income (i.e. bonds) markets, which had a positive income on mortgage rates.

FHA Toughens Down Payment Rules, Raises Mortgage Insurance Premiums

The Federal Housing Administration (FHA) announced that will raise the minimum down payment required for its higher risk borrowers, limit the allowable seller's contributions and increase their mortgage insurance premiums.

To build capital and reduce risk, the FHA said that it will raise mortgage insurance rates and tighten credit score requirements. The major changes include:

• increasing upfront mortgage insurance premiums from 1.75% to 2.25%;
• reducing the maximum seller contribution to buyer's closing costs from 6% to 3% of purchase price; and
• increasing the level of FICO scores from 500 to 580, below which a down...

White Lies Sellers Should Avoid Telling

Many states have mandatory "disclosure" laws for sellers. Some sellers may be tempted to tell a few "white lies" when they want to sell their home - after all - how will the buyers find out? Sellers may think no harm is done by omitting facts or "bending the truth". The fact is there are some issues that call for brutal honesty or they may come back to bite them later! As your real estate advisor, I always recommend my seller clients to tell nothing but the truth - it's their safest course of action! 

However, very few people will tolerate being lied to. Litigation often follows a failure to disclose a known fact about the house...

Here are a few...

'A much more positive place'

Median home prices rise about 2 percent to $195,534, reaching highest point in '09

By Katy Stech

The Post and Courier

Wednesday, January 13, 2010

The impact of an expanded government tax break for homebuyers trickled up in the Charleston area last month as the incentive appears to have given local prices a nudge.

Sales activity increased in the $200,000 to $250,000 range during December, helping push the median home price up by about 2 percent to $195,534 -- its highest point for 2009.

In all, the Charleston Trident Association of Realtors recorded a total of 618 local home sales last month, a 30 percent increase from the December 2008...

Restaurant Week Charleston

Do you enjoy gastronomic events? Restaurant Week South Carolina will provide dining opportunities for you, your family and friends all over the state. Charleston, of course, offers some of the best dining in the Southeast.

"Restaurant Week Charleston will be a seven day celebration of the cuisine scene in Charleston. From fine dining to casual, participating restaurants will feature special menu items, promotions and discounts. Diners can sample our newest restaurants, dine at old favorites and taste a variety of exceptional dishes being prepared by chefs at a great value for consumers. There is no ticket or pass to participate, simply make a reservation or g...

The Charleston 2009 Festival of Lights at James Island County Park was a resounding success this year! Record numbers of visitors came to drive the 3-mile display that everyone loves.

See more Charleston and Mt. Pleasant videos at BuyHomesInCharleston.com

Don't Be House-Rich & Cash-Poor! 

According to Jerry Garner, a reverse mortgage consultant for Wells Fargo Home Mortgage, a growing number of seniors are looking at reverse mortgages as a way to generate tax-free income.  "For people who are 62 years of age or older who need better cash flow - a reverse mortgage can make good sense." 

With a reverse mortgage, there are no monthly payments to make; and no income, employment or credit qualifying restrictions when applying. 

The home does not have to be totally paid off to qualify for a reverse mortgage. In fact, a common use of the reverse mortgage is the elimination of a current mortgage; the senior homeowner refinances into a reverse m...

Daily Real Estate News | December 28, 2009 

Misuse of Home Buyer Tax Credit Reported

A report earlier this month from the Treasury Inspector General for Tax Administration estimates that 73,799 taxpayers have incorrectly claimed the first-time home buyer tax credit. The report concludes: "The IRS is unable to verify eligibility for the majority of Recovery Act benefits at the time a tax return is processed."

The IRS didn't dispute the claim, but said it was studying the matter further. Some have suggested that this report and others will encourage Congress to put some safeguards in place before more claims result from the extension and expansion of the tax credit.

Source: The New Yo...

Although most analysts are crowing about the increase in sales and the early signals that the real estate market is turning around, there are a few items that may complicate matters and/or destabilize the market down the road (i.e. during the spring buying season):

• The Federal Reserve is expected to wind up a $1.25 trillion buyback program that has kept mortgage rates low. This "lack of demand" for mortgage-backed securities may trigger steep increases in mortgage interest rates.
• The FHA (Federal Housing Administration) has tightened underwriting standards and plans to further tighten these standards at the end of the first quarter. This could reduce demand by making it more difficult...

How to Get an Easy Mortgage Loan...

Many clients ask me the same question: How can I get better prepared to go smoothly through the loan approval process with a lender?

Great question! And one that merits consideration, given than an increasing percentage of real estate transactions are falling through because of financing problems (mostly at underwriting stage).

So, how can you get better prepared to avoid nasty suprises and unsavory delays?

Get Organized - lenders usually ask for the same documents that you will have to show over and over, update and verify:

• Last two years' federal tax returns. Include detail forms in addition to the 1040 if you are self-employed.
• If you are a s...

If You Don't Buy a House Now, You're Stupid or Broke

This is the title of this interesting article written by Marc Roth in Businessweek.The author explores the historic low in interest rates and predicts that those who wait to buy, may have to pay a much higher price in the end, given the trends in mortgage interest rates. Read the full article here...

IRS Sets New Rules for Tax Credit

The Daily Real Estate News reported that the Internal Revenue Service (IRS) has published new guidelines for eligibility for the home buyer credit when there are co-borrowers purchasing the home.

When a parent of an adult child co-signs for the mortgage and both names appear on the note, the IRS says that under some circumstances, the first-time home buyer can qualify for the whole amount. The parent does not qualify for claiming the tax credit, however, if the child has not owned a home in the last three years and qualifies based on income, he or she can claim the whole $8,000 credit.

When an unmarried couple co-purchases a home and only one of them is el...

I read this article on Inman News today about how lender-owned properties (REOs) and short sales are not always the bargain that buyers set out to get, and many times no the ideal way to acquire well-priced properties. I agree with the author wholeheartedly!

Read the whole article:

"REOs, short sales aren't always bargains" by Bernice Ross

Top 10 Reasons Some People May Not Like Charleston, SC

1. It's a Small Town - let's face it! With a population close to 600,000, Charleston is not a large metropolis and cannot offer NFL franchises or major league baseball teams, big rock concerts or high profile international visitors like a large metropolis does. Charleston still feels provincial, although you can find people from all over the world. In comparison to cities like New York, Paris or London, Charleston's cultural, ideological and ethnic diversity is still limited. IMHO, Charleston was probably the "forgotten jewel" along the East Coast that only hit the international "radar screen" after the Internet became ubiquitous. Th...

Top 10 Reasons Many People Love Charleston

After working with dozens of out-of-town clients who have relocated to Charleston from different parts of the U.S. and overseas, areI wanted to share some of the pro's and con's that I have heard from them about Charleston. Charleston (deservedly so) has been consistently named one of the top 10 small cities to live and visit in the USA. Today I will write about the things people rave about, tomorrow I will share some of the not-so-good aspects of this "Holy City"...

1. The Weather is (mostly) Great!  In the Winter, when most of the country is under snow, ice and sleet, Charleston's mild climate allows for year-round golf and tennis, while stil...

LONELY PLANET, the travel book company, recently released their 5th Edition of "Best in Travel 2010", a collection of countries, regions and cities they recommend as destinations that offer memorable and inspiring experiences. Charleston, SC was the ONLY American city to make this elite list!

Here are Lonely Planet's top choices:

Countries: El Salvador, Germany, Greece, Malaysia, Morocco, Nepal, New Zealand, Portugal, Suriname, United States.

Regions: Alsace, France; Bali, Indonesia; Fernando de Noronha, Brazil; Goa, India; Koh Kong Conservation Corridor, Cambodia; Lake Baikal, Russia; Oaxaca, Mexico; Southern Africa; The Lake District, England; Southwest Western Australia.

Cities: ...

Charleston Magazine is sponsoring this "before-and-after" remodeling contest. Have you remodeled your home? Maybe you can win it and be featured in this magazine!