Foreclosure Myths

There always seems to be a "hot topic" that draws the public's attention. In the last 2-3 years foreclosures have taken over the media and it seems that every day there are news and articles written about this topic. I recently read an article on Trulia.com that mentioned some of the interesting myths around foreclosures:

1. Foreclosures Happen Quickly 
   Not necessarily - in many states the foreclosure process takes at least 6 months. However, the Home Affordable Program of the Obama Administration, while it has not prevented many foreclosures, it did slow them down. It seems that all parties (the banks, the government and the homeowners) want to delay the process rather ...

Bank of America announced this week that they were freezing all their foreclosure processes until all the foreclosure documentation had been reviewed. 

In its most recent report to shareholders, BofA disclosed that it solf $453 million in foreclosed properties during the second quarter of 2010. It still has an inventory (REO's) of $1,740 million worth of foreclosed homes it needs to dispose of.

Bank of America is the fourth lender that has temporarily halted foreclosures pending review of their documentation. The government is increasingly concerned that lienholders may not be carrying due process and correct documentation for their foreclosures, and lenders like BofA want to make sure ...

Today I listed this great 3 bedroom, 1.5 bath townhome that was extensively renovated 2 years ago, including new siding upstairs, new roof, new windows and exterior doors, engineered hardwood floors downstairs and complete kitchen re-do including new cabinets, stainless steel appliances and granite countertops.

Nestled in a group of quaint townhomes and single family homes, this home is located centrally, with very easy access to I-526, schools, restaurants and Town Center Shopping. A 15-minute drive will take you to Downtown Charleston or to the Airport, Charleston AFB and Boeing. 

Real lane access provides 3 spaces to store your vehicles or boat. A fenced backyard provides privacy and...

Why not be foreclosed? Why sell short?

Experienced professionals provide this list of reasons:

• Avoid the foreclosure stigma– Homeowners will always have to disclose that they had a foreclosure on any mortgage application and (many job applications) that they submit in the future. This can have an adverse affect on their future mortgage rates. Foreclosure is asked about specifically in credit inquiries. There is no seven-year time limit on this item. 
• Protect credit score– Credit scores will be lowered by 300-plus points (per loan) by foreclosure. The impact of a short sale—about half that much. 
• Improve eligibility for a government insured loan– The homeowner will be ineligible for...

My friend Chris Bavosa of East Cooper Termite and Pest Control sent me this article he wrote about rodent infestation, which I thought would be interesting to share...

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Summer is coming to an end. The weather will soon turn colder and the days will grow shorter. East Cooper residents have sent their children back to school. All these mean one thing to East Cooper Termite and Pest Solutions…RODENTS. These furry little friends will start looking for places to stay warm during the winter. Insulated crawlspaces, attics, garages, and wall voids may become a residence for the Norway or Roof rat. The white footed mouse may show up close to Halloween and nibbl...

The Charleston Battery, our local soccer team, is playing against the Richmond Kickers this Saturday, August 28 at Blackbaud Stadium on Daniel Island for the USL-2 league championship!

Tickets are priced from $10-$18 and can be purchased online or by calling 843-971-4625. Gates open at 4:30 p.m. and kickoff is slated for 6 p.m.

We hope the Battery takes the home field advantage and gets a victory - let's go and support our local team - Go Battery!

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POST GAME NOTE: The Charleston Battery defeated the Richmond Kickers 2-1 and became the USL-2 League Champions! 

Tips for Buying Lender-Owned Properties (REOs)

by Alan Donald, Team Leader, BuyHomesInCharleston.com

Every buyer in this market wants a bargain! And while you may want to hit the jackpot by buying foreclosed properties – those homes that are offered as real estate-owned (REO), lender-owned or corporate-owned properties - it is essential to understand the differences between buying a “regular” listing and buying an REO.

Lenders are not in the business of owning real estate. Once they decide to foreclose on a home and on-sell it, they are looking for:

• More Money
• More Certainty
• Less Time
• Minimum Additional Investment

In addition, you should know that:

1. REOs are normally PRIC...

This new SHORT SALE listing is a 3 bedroom, 2 bath Duplex in The Gates @ Wescott Plantation, Summerville. It just needs a little TLC (paint, cleaning) and you could buy this home and end up paying less than rent! Dorchester II schools, easy access to Charleston International Airport and Boeing. 

Great for investor or owner-occupier with patience - short sale may take some time...

More details...

Are Lender-Owned Properties (REOs) Smart Options for Buyers?

By Alan Donald, BuyHomesInCharleston.com

It seems that one out of three properties in the Charleston Metro Area is either a SHORT SALE or an REO (*)

(*) An REO (Real Estate Owned) is a lender-owned property - a property that has already been through foreclosure and is being offered for sale directly by the lender after taking control of it. 

Normally these properties are offered at very attractive list prices, so many of those properties offer terrific buying opportunities. But, like the old saying says: "Don't judge a book by its cover", there may also be challenges associated with buying REOs. Here is a list of potential p...

As of today, there are only 5 months' inventory for homes under $350,000 in Belle Hall (there are 22 active listings and we are selling about 4 a month). This segment of the market is now in what we call a "neutral" market, where both sellers and buyers are at a level playing field. If inventory drops below 5 months we will see prices start to creep back up, as it will turn into a "Buyers'" market...

See Belle HAll listings and recent sales at www.MyBelleHall.com

Tax Credit Closing Deadline Extended
After a close brush with the deadline, Congress has passed an extension of the Homebuyer Tax Credit closing deadline, the Homebuyer Assistance and Improvement Act (H.R. 5623).

The extension applies only to transactions that have ratified contracts in place as of April 30, 2010 that have not yet closed.  The legislation is designed to create a seamless extension the new closing deadline for eligible transactions is now September 30, 2010.  There is will be no gap between June 30 and the date the President signs the bill into law.

For additional information on the extension, click here.

Flood Insurance Restored
Additionally, the United States Senate has...

Boone Hall, the historic plantation in Mount Pleasant (Charleston, SC metro) is holding its annual BOONE HALL BEACH BLAST this Saturday, from 11 am until 10:30 pm.

This fun event is packed with activities: Shag lessons, beach volleyball, a bikini contest and ongoing music concert that kicks off at noon and includes artists such as Maurice Williams, The Zodiacs, The Sugarbees, Mystic Vibrations, The Fantastic Shakers and The Tams.

Tickets are $20 in advance, $25 at the gate. Gates open at 11 a.m. and close at 10:30 p.m.

BIG WEEKEND FOR MUSIC AND EVENTS IN CHARLESTON

Multiple events as part of Spoletto, Piccolo Spoletto and other musical events anticipate a terrific week in Charleston's art and music scene - including:

June 4 - Piccolo Beach Music Bash Block Party (Marion Square)

June 4 - Charlton Singleton Sextet (McCrady's Restaurant, Downtown Charleston)

June 4 - Satin Dolls String Quartet (Bethel Methodist Church)

June 5 - Barenaked Ladies (North Charleston Coliseum)

June 6 - Chris Daughtry (North Charleston Coliseum)

June 10 - Tony Bennett (Township Auditorium)

LAST MINUTE HICCUPS...!

In our own experience, and also through our discussions with fellow Realtors, it appears that recently about 8 out of 10 purchase transactions have had "last minute" surprises  that may have delayed or upset the closing in some shape or form. 

Normally, these "hiccups" are due to the financing. Underwriters (and transaction auditors, a second "firewall" established recently by a few large banks) are under the gun and are checking and re-checking all loan applications with a fine tooth comb SEVERAL TIMES.

Due to either the lenders' understaffing or lack of adequate systems, these hiccups tend to surface within a few days before the closing (it is not unusual to s...

This home seems like a great bargain!

Custom-built, with lots of upgrades, on a great lot, relatively easy access to I-526. Would make a great home for a Boeing executive! Only $125 per square foot!

Author Jay Papasan presents an update on the real estate market in this video, which discusses the effect that the $8,000 First-time home buyer's tax credit may have had on the real estate market in the U.S.

Mother's Day Special!

As we celebrate Mother's Day across the Western Hemisphere, one has to wonder why we call a house a "home"?...

Here's Wikipedia's definition of "home":

"A home is a place of residence or refuge comfort. It is usually a place in which an individual or a family can rest and be able to store personal property.........As an alternative to the definition of "home" as a physical locale, home may be perceived to have no physical definition--instead, home may relate instead to a mental or emotional state of refuge or comfort."

So what is it that makes a place (i.e. a house) a home? I would venture to say that we owe our mothers the creation of the "mental and emotional s...

Kiawah Island and Wild Dunes took the No. 1 and No. 2 spots respectively in the “Top 100 Tennis Resorts and Camps for 2010″ ranking made by Tennis Resorts Online.  This is the second year in a row that Kiawah takes the top spot.

These rankings are very significant, considering that they are compiled from surveys made to real tourists who stay at these resorts (i.e. from the users’ perspective, not some industry association’s).

Is Arbitration for Real Estate Always Enforceable in SC?

Attorney Clay Olson recently published a blog post analyzing a recent decision by the SC Court of Appeals in the matter of Faltaous v. Anderson Ocean Club Development, in which the "mandatory arbitration" clause was denied by the court. 

According to Olson, this means that SC courts may not enforce the mandatory arbitration as a matter of course, and it will depend on each individual case, and how specific the language to be enforced reads. 

Bottom line: Builders and real estate practitioners need to get sound legal advice on how to word arbitration clauses properly if they want them to be enforceable in SC. 

Read the whole arti...

BARGAINS OF THE WEEK

Many savvy buyers are stalking their prey as the real estate market tumbles down, supply and demand driving prices to market equilibrium.

Many people have lost their homes (whether because of a job loss, or high leverage), and although this is sad and affects whole communities, it also brings opportunity to buyers who may not have been able to afford to buy a home (or their ideal home) during the heyday of the real estate boom.

Market opportunities come in many shapes: Short Sales, Foreclosure Auctions and REOs (Real Estate Owned, Lender-Owned). Savvy buyers and investors are waiting for that opportunity to buy a real bargain-priced home that they can renovate or h...