BUYING FORECLOSURES (Part 1)

Foreclosure is the legal process by which lenders (lien holders) recover the amount owed on a loan that is in default by exercising their right to repossess the property that secured the loan as collateral ("no pay, no stay clause").

The foreclosure process varies slightly from state to state, but it usually has the following steps:

PRE-FORECLOSURE
1.The homeowner (borrower) stops paying the mortgage
2.The lenders send the borrower a default notice, explaining the consequence if the borrower does not pay the owed amount plus late payment penalty.
3.The lenders hire an attorney to process the foreclosure and file a public notice ("lis pendens") announcing thei...

An incredibly expensive home just hit the Charleston MLS:

32 LEGARE ST. South of Broad (Downtown Charleston) was just listed for $23 Million! Maybe this is not a big deal in New York, San Francisco or Los Angeles, but for Charleston this is a huge price! More details here...

The National Association of Realtors has sent us an interesting article answering many of the most common questions we are being asked about the Tax Credit for first-home buyers. I decided to copy it here to make it available to my clients:

Bringing the Dream of Homeownership Within Reach

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed legislation that grants a tax credit of up to $8,000 to first-time home buyers.

Here is more information about how the 2009 First-Time Home Buyer Tax Credit can help prospective home buyers become part of the American dream.

Who Qualifies?
First-time home buyers who purchas...

Showings are at an 18-month high in Mt. Pleasant and also in Dorchester County (Summerville), according to data compiled by Centralized Showing Service, which records all showings booked for REALTORS via the MLS. Charleston (West Ashley) and areas of Berkeley County also exhibit a similar patter (see graphs). Because showings are an indicator of the level of buyer interest in the market, it can be used as a predictor for future sales, which will normally show up 2-3 months later. Many factors may be contributing to this uptick in showings: Families are back from summer holidays, interest rates are still low, prices have continued to drop, and the $8,000 First-time Home Buyers' Tax Credit ...

This is the last part of our brief guide for first-time home buyers in South Carolina. Once you have closed on the purchase of your home, you will still need to take care of some very important details (in addition to your move):

1.Change all the utilities in your name. Usually sellers stop their accounts as of the closing date, sometimes they give you 1-2 days grace. The last thing you want is to get to your newly purchased home and find the power is off, and the temperature outside is 98F...

2.Re-key all exterior doors. Although the sellers may have seemed very nice, you never know who else has keys for the home. Don't forget to re-program the garage door openers!

3.If there was a tr...

The Real Estate Closing 

You have finished performing your Buyer's Due Diligence and everything's lined up for a closing on a specific date and time (usually at the attorney's office). What happens at this "closing"?

A "real estate closing" is the name given to a completion of the real estate transaction, including legal (title) and financial (loans & mortgages) aspects. It is an event that normally takes about an hour, in which normally all the parties are present (the sellers and their listing agent, the buyers and their buyer's agent, the closing attorney, and in some instances the loan originator). The parties each sit facing each other, and the attorney will explain the process and...

 Great central location, 8 minutes to Downtown Charleston and yet away from it all! Solid brick home with traditional floorplan on quiet, marshfront,on quiet, marshfront, cul-de-sac lot in smaller, friendly neighborhood. As you walk in you will see the living and dining areas with hardwood floors and wainscoting. Facing the marsh you have the upgraded kitchen - with tiled floor, new granite countertops and stainless steel appliances, connecting with ample eat-in area and the family room with a fireplace and built-ins. Home was just repainted upstairs. The roof was upgraded this year with architectural grade shingles, and the top floor air conditioning unit had the coil just replaced. Bath...

The A-Z of Buying a Home (Part 3)

You found a home, negotiated a favorable contract ("ratified" = signed & delivered). You are supposed to close in 30 days. What now?

This period from contract to closing (also known as "escrow" in some states) is critical for the buyers to do their due diligence. This means investigating everything they want about the home including the bricks and mortar, the title, the neighborhood, etc. to their satisfaction. It is also the time to formally apply for the loan (you may have shopped around with different lenders before you got pre-approved by one of them. You do not necessarily have to use the same lender, but cannot hesitate to submit a formal applicat...

The A-Z of Buying a Home (Part 2)

by Alan Donald, BuyHomesInCharleston.com

OK - so you've hired a REALTOR, discussed your needs and buying criteria and got preapproved by a lender. Now it's time to go see homes! Although it is a relatively small city, the Charleston Metro Area is very large, with hundreds of neighborhoods, areas and subdivisions each with a different style, construction, lot size and price point. 

Step 4 - The Home Search

The home search is a collaborative effort between you and your REALTOR. If you are comfortable "sharing the news", make sure that you mention to everyone in your sphere of influence that you are looking to buy a home. It is impossible to know where y...

This guide for first-time home buyers is intended to provide general information to help buyers be aware of the buying process, and to dispel any myths about buying a home. Please discuss your particular situation with the appropriate professionals before making any decisions.

So, You want to Buy a Home?

Since buying a home is a BIG financial commitment, many first-home buyers (and some repeat buyers) feel very intimidated by the whole process, which, in itself is rather uncomplicated, but it involves a lot of small steps, that, if not done right, can produce expensive mistakes.

In my 12 years in Real Estate I have dealt with many types of buyers and different scenarios, so I have deve...

The 4th annual Flip-Flop Ball benefiting Wings for Kids is a local event (min. age 21) that has all the markings of the Lowcountry: Flip-flops, dancing, all-you-can-eat barbecue, open bar and live music (Two Three Ways and Kim Lhuillier & Tom Diettrich).

When: Sat, Jul 18, 2009 7-11 PM

Where: Goldbug Island, 1560 Ben Sawyer Blvd., Mount Pleasant, SC.

Tickets are $35 in advance and $40 at the door. For more info or to purchase a ticket, go online.

Have you ever danced in your flip-flops?

Boone Hall Plantation in Mt. Pleasant holds the Boone Hall Summer Concert Series.

This Sunday, July 19th at 5:30 pm (music starts at 7 pm) The Little River Band will animate the beautiful oaks and gardens of this Southern plantation.

You can come buy wine, beer and food, and enjoy a picnic-concert in a joyful summer evening setting under the oaks.

Tickets are $20 if you purchase them in advance, or $25 at the gate. You can also reserve seats. For more information or to purchase tickets, click here.

I thought that we had seen the last of the loans without income verification!

I just received a promo email advertising a "Stock Loan" for those who have a stock portfolio but don't have two years' tax returns as independent contractors, or lack the ability to show supporting income from employment or investments.

Has your stock portfolio tanked? You may still be able to use it to make some savvy investments!

With the recent tightening of the "traditional" mortgage loan markets, this could be the perfect solution for people seeking bridge loans, new construction purchase, lot purchase, home purchase, refinancing, investment property purchase, commercial property purchase & develop...

This 4-br. elevated home facing the marsh has great advantages!

• Quiet and serene natural setting;
• Close to schools and shopping;
• Within 30-min. drive of Downtown Charleston;
• Right across from new hospital (under construction)

Golf community with pools, clubhouse, tennis courts, walking trails. Very close to the beach!

Click here for more details or to arrange a showing!

The Federal Government has been busy trying to regulate the mortgage industry to try to avoid the continuing debacle caused by the sub-prime mortgage debacle. In 2008, Congress passed the Home Ownership and Equity Protection Act (HOEPA) and the Housing and Economic Recovery Act (HERA). In addition, semi-public Fannie Mae and Freddie Mac adopted the Home Valuation Code of Conduct (HVCC). While better regulation is welcome (Canada, for example, had a better regulated banking/mortgage industry and as a result they are not experiencing the same problems the US is experiencing), but their implementation timing may affect (adversely) the swift recovery of the real estate industry. Here is a bri...

Many parents would like to help their offspring become homeowners and realize the "American Dream". Here are a few tips that may help:

1. When they go off to college: Parents can buy a condo or home as an investment. Set up their child in one bedroom, rent out the other rooms to other students and get the benefits of owning an investment property. Even better: Instead of sending their son/daughter pocket money, hire him/her as the property manager - responsible for upkeep and rent collection - and pay them tax-deductible compensation..
2. When the children are ready to own their place:

• You can give them a cash gift. Individuals are allowed a maximum gift of $13,000 per year tax-free. ...

REALTOR.com just completed a quarterly national homeownership survey that uncovered interesting findings that may be useful to know:

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Affordability

• 76.4% of consumers think a median-income family can only afford 50% or fewer of the homes for sale in their area. In reality, a family earning the national median income can afford nearly 75% of the homes for sale today on Realtor.com.

Foreclosure

• 20.1% who say they or someone they know may be facing foreclosure haven't taken steps to resolve their situation, while 22.4% haven't taken steps but plan to before the Administration's refinance program expires next year.

• While 66.3% of respondents said they...

I just learned of a new version of a scam targeting prospective tenants and using real listings - here is how it works:

Scene 1: A Realtor lists an REO (lender-owned) vacant home for sale online (MLS, REALTOR.com, etc.)

Scene 2: The scammer picks up the pictures and address of the property, and uses them to place a "For Rent" ad on Craigslist or another online marketplace, at a below-market rental, saying they are the owners, that they were transferred out of town for work, that they tried selling, but since the economy is so bad, they are just going to rent it out.

They even send full applications and real contracts by email, ask the prospective tenants to email the application, act ...

On May 1st, Wells Fargo, one of the nation's largest mortgage lenders, decided to tighten its underwriting standards for 200 markets they considered as distressed or soft, requiring higher down payments and making state-income loans off limits in most of these markets. I believe this will cause other banks to follow suit (the bandwagon effect).

This is one more action that shows that the stimulus money provided by the Federal Government and intended to loosen up credit and provide funding to stabilize the real estate market is not working as intended. The government should have required the banks to lend this money out, instead of playing conservative and padding their balance sheets wit...

Most of us REALTORS® are animal lovers and have pets of our own, but we also share many stories about showing homes where our clients went into a sneezing fit, we got bitten by a cantankerous furry creature, or opened the front door only to helplessly see a cute kitty scoot toward the nearest busy street.

It is essential to take pets into consideration if you put your house on the market. Make sure you work out the showing arrangements/instructions carefully with your REALTOR®, since it is important for showing agents to know what to expect inside your home. Buyers could potentially be allergic or scared of cats or dogs (especially if they bring children along).

Although most pets are h...