Do You Need Help Staying in Your Home?

For release: January 19, 2011

SC HELP Foreclosure Prevention Program Now Available Statewide

Almost $300 million in funds to keep homeowners in their homes.

[Columbia, SC] Following a successful pilot program and Treasury’s approval of South Carolina’s readiness assessment, SC Housing Corp. will take its foreclosure prevention program statewide. Starting January 20, the South Carolina Homeownership and Employment Lending Program (SC HELP) will use almost $300 million in federal funds to help responsible but struggling homeowners in the state.
Key components for SC HELP include:
Monthly Payment Assistance-assisting homeowners with monthly payments for a defined period of time while they seek employment and a return to self sustainability.
· Direct Loan Assistance-for borrowers who have experienced a hardship but have regained the ability to pay. Funds can be used to pay arrearages in order to bring the loan current.
· Property Disposition Assistance-in cases where the mortgage cannot be salvaged, funds may be provided to incentivize short sales, deeds-in-lieu of foreclosure and to help transition families from homeownership to rental housing.

Homeowners applying for Monthly Payment Assistance or Direct Loan Assistance must meet certain threshold requirements in order to apply for help:
1. Borrower or co-borrower must be able to document that the delinquency was a result of a hardship event beyond his/her control (i.e. unemployment, death of a spouse, catastrophic medical expenses, etc.)
2. Mortgage payments must have been made on time for 12 months preceding the hardship event with no more than two 30-day late occurrences
3. The property securing the mortgage must be owner-occupied as a full-time residence
4. Borrower must provide a financial hardship affidavit
5. Mortgage can be no more than 120 days delinquent
6. Loan servicer/investor must be willing to accept payments and provide required data and reporting

Assistance from SC HELP will be provided in the form of a nonrecourse zero-percent interest, non-amortizing, forgivable loan secured by a subordinate lien on the subject property. The loan will be forgiven over a five-year period at a rate of 20% per year. If property is sold or refinanced prior to the loan termination date, funds will be recovered should sufficient equity be available from the transaction. The Property Disposition Assistance Program will provide a one time, lump sum grant to the recipient.
Additional criteria and documentation requirements must be met for final eligibility determination. Homeowners wishing to make an application should apply online at www.SCMortgageHelp.com. SC HELP officials emphasize that using the online application is the fastest and most efficient way to begin the process. Homeowners without internet access may call toll-free to 855-HELP-4-SC (855 435-7472) to begin the process.

SC HELP is intended to assist responsible borrowers – those borrowers who are facing possible foreclosure due to circumstances beyond their control, i.e. unemployment, death of a spouse, catastrophic medical expenses and/or divorce. SC HELP is NOT intended to serve borrowers who are facing foreclosure due to poor credit and/or debt management, stripping the equity from their home for non-essential purposes, or overall mismanagement of their personal budget.
Additional information, background and resources are now posted on SC State Housing’s website, as well as www.SCMortgageHelp.com, and will be updated frequently.

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SC Housing Corp. is a nonprofit division of the South Carolina State Housing Finance and Development Authority (SC State Housing).

Can You Afford to Buy a Home?

Prices in the Myrtle Beach area are at an all-time low. You may still wonder if you can afford to buy a home?

Although rates aren't as low as several weeks ago, they are still VERY low. In the greater scheme of things that means affordable home prices and payments.

Let's take a $125,000 home loan. Assuming a 30 year fixed at 4.625%, that is a principle and interest payment of $642. Add $150+- for taxes and insurance and you are looking at a home payment just less that $800/mo!!!

How many renters pay $800 per month in rent?

There are 100% programs still out there. Low down payment programs. We still have 80-10-10 loans to help avoid PMI. Too many ways and reasons to help make homeownership a reality.

Please let me know how I can help you make it a reality!

Price Reductions

9651 Kings Grant Drive
Murrells Inlet

The price on this listing was reduced by $35,000 today to $145,000. The three bedroom, two bathroom house is located in Murrells Inlet, SC near restaurants, entertainment and the beach. The large backyard is completely fenced and the Sellers replaced the heat pump in August 2008. The front door, master bedroom and shutters were painted in 2008. The wallpaper in the kitchen was removed.

103 Paula Court
Conway

The price on this listing was reduced by $10,000 to $199,900. This house is also a three bedroom, two bathroom home in Conway, SC. The large backyard is also fenced. The seller replaced all the carpet in the house, painted the house and replaced the vinyl. The refrigerator was replaced in 2009. This house is located conveniently between Highway 544 and Highway 501 near the Conway Medical Center and Coastal Carolina University.

If you are a first-time home buyer, you may qualify for the recently passed $8,000 tax credit.
Contact Kathy Rukat at (843) 267-2710 or Kathy@KathyRukat.com.

Obama's Housing Plan

Today in Mesa, Arizona, President Obama announced his $75 billion plan to help the housing market. He outlined the three-part plan that would help up to 9 million borrowers. Obama pointed out that his plan "will not rescue the unscrupulous or irresponsible by throwing good taxpayer money after bad loans" and he urged Americans to “learn to live within our means again.”

Obama explained that the high foreclosure rates seen recently in many American towns does not only effect the homeowners losing their homes but also effects neighbors not facing foreclosure. Foreclosures lower the value of surrounding homes making the homes of homeowners current on their mortgages harder to sell, refinance or obtain home equity loans.

Homeowner Stability Initiative
The Homeowner Stability Initiative would help up to 4 million homeowners that are considered "at risk." The government would provide incentives to mortgage lenders if the lender worked with these borrowers to modify their current loan. The goal is to get the mortgage loan under 31% of the homeowners' income.

Upside Down Mortgages
Many Americans now see their home worth less in the current market than they currently owe of their mortgage. Part of Obama's plan is to help these homeowners refinance their mortgage. In the past, regulations would not allow homeowners to refinance if they owed more than 80% of the current market value of their home. The plan would removed the 80% loan-to-value guideline if the mortgage is owned or guaranteed by Fannie Mae or Freddie Mac. The homeowner must be current with their current mortgage and the new mortgage (including refinancing costs) cannot be higher than 105% of the current property value. The homeowner would need to refinance into a 15-year or 30-year fixed rate mortgage.

New Mortgages
The third prong of Obama's plan focuses on keeping interest rates low for new home buyers. Obama plans to add more money to Fannie Mae and Freddie Mac so the companies can continue to buy mortgages from other companies.

More on the $8,000 Tax Credit

President Obama signed the stimulus package yesterday in Denver, CO. Part of the package included an $8,000 tax credit for first-time home buyers. The National Association of Home Builders credited a website to explain the tax credit - not a tax deduction. The website explains this part of the stimulus package as "A tax credit of up to $8,000 is now available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. Unlike the tax credit enacted in 2008, the new credit does not have to be repaid."

From the front page, click on the blue box to gain more information. From there, you will find information such as the Tax Credit at a Glance, FAQs, The Law's Other Provisions and Home Buyer Resources.

Today at 12:15 p.m. EST President Obama will be speaking about his housing plan in Mesa, Arizona. The plan is expected to help homeowners that owe more on their homes than they are worth and also help homeowners getting close to foreclosure. Watch the news conference and feel free to leave a comment.

2009 Stimulus Package

Today, President Barack Obama will sign the 2009 stimulus package in Denver, CO. Below is a brief synopsis of the credits available for first-time home buyers.

2009 Home Buyer Tax Credit

1) Must buy a primary residence home between January 1, 2009 through December 31, 2009

2) Must owner occupy the home for 3 years otherwise credit must be paid back

3) Income must be less than $75,000 for individuals ($150,000 for couples)

4) Cannot have owned a home for the past three years

5) Tax credit is 10% of homes sale price up to $8,000 maximum credit

6) Tax credit claimed on 2009 tax return (year home purchase occurred)

Fannie Mae Guideline Changes

Fannie Mae announced that they will now allow investors to finance up to 10 properties (the former limit was 4 properties). Fannie Mae added some strict qualifications standards, but they are acknowledging this market needs help. The servicing banks will still need to change their regulations, but change is happening in the investor financing market.

If you have questions about this new policy, please give me a call or send an email.

Are Lower Mortgage Rates Possible?

Treasury Weighs Action on Mortgage Rates

Intervention Would Aim to Buoy the Housing Market by Forcing Down the Cost of Loans

The Treasury Department is considering a plan to force down mortgage rate and stimulate the housing market, sources said (By Steve Helber -- Associated Press)

By David Cho, Zachary A. Goldfarb and Dina ElBoghdady

Washington Post Staff Writers
Thursday, December 4, 2008; Page A01

The Treasury Department is strongly considering a plan to intervene directly in the mortgage industry to dramatically force down rates and stimulate the moribund housing market, according to sources familiar with the proposal.

Under the initiative, the Treasury would offer to buy securities that finance newly issued loans for home purchases, according to the sources. But to participate in the government's program, mortgage lenders would have to set exceptionally low interest rates, for instance, no more than 4.5 percent for traditional, 30-year fixed-rate loans.

These securities would be purchased primarily from Fannie Mae and Freddie Mac, the financing giants that buy most mortgages from U.S. lenders, according to sources who spoke on condition of anonymity because the plan has not been finalized.

The cost of the plan and source of funding remain unclear. One possibility is for the Treasury to raise money by issuing bonds to the public at 3 percent interest. This could allow the government to turn a profit because it would be buying securities that pay 4.5 percent.

At a meeting attended by the Treasury's Interim Assistant Secretary for Financial Stability Neel Kashkari and the National Association of Realtors in mid-November, senior Treasury officials said they were optimistic that subsidizing lower mortgage rates with taxpayer dollars would help revive the housing market, sources said.

Treasury officials told the Realtors that the plan could be a more effective way to help homeowners than focusing efforts solely on borrowers who are struggling to meet their monthly payments, the sources said. Democratic lawmakers have been advocating a proposal to modify the mortgages of distressed homeowners.

A source said Treasury officials suggested at the meeting that the Realtors start a grass-roots campaign to press the mortgage rate plan with lawmakers.

Treasury officials described the situation as fluid and said the plan was still being finalized, according to people in contact with the department. The officials expressed concerns yesterday that premature disclosure of the plan could prompt Americans to put off buying homes and hold out for a better rate, sources added.

Treasury spokeswoman Brookly McLaughlin said she would not comment on the matter.

Treasury Secretary Henry M. Paulson Jr. has said that a recovery in the housing market is key to solving the financial crisis. Such a rebound would restore confidence in the banking system and support the value of troubled assets backed by mortgages.

Though he has said a mortgage modification plan proposed by Federal Deposit Insurance Corp. Chairman Sheila C. Bair could help the housing market, Paulson has expressed concerns about whether it would reward borrowers who bought houses they couldn't afford. Bair's plan would use tens of billions in federal funds to modify adjustable-rate mortgages for several million financially troubled homeowners.

The initiative under review at the Treasury would be an alternative. Borrowers would have to meet standards set by Fannie Mae, Freddie Mac or the Federal Housing Administrations that include documenting their income, sources said. Fannie and Freddie were put under government control in September. The Treasury plan would not apply to refinances.

Purchasing Investment Property

New Lending Rules Effective November 1, 2008

Effective November 1, 2008, no Private Mortgage Insurance (PMI) will be available for investment properties. If you are thinking about purchasing investment property, you will now have to put down 20% of the loan amount. PMI will still be available for primary homes and second homes.

If you have any questions, please call Kathy Rukat at (843) 267-2710 or email at Kathy@KathyRukat.com.

Special Loan Program for SC Teachers - 5.875% Interest Rate

Much of the state of South Carolina is currently in a Buyers' Market - a.k.a. a GREAT time for buyers to purchase a property. Let's say you've found the perfect property. Now, your big concern is obtaining financing... that's a solid concern with the credit crunch lately. If you are a teacher in South Carolina, the SC State Housing Authority announced a new program. See the details below...

SC State Housing Authority is excited to announce our 2008 PALMETTO HERO PROGRAM. The Hero selected for the 2008 initiative is "Teachers." The Borrower must have his or her South Carollina Teachers Certification and currently teach or have a contract to begin teaching within 60 days of closing on the home. He/she must live and teach in South Carolina. The borrower(s) must meet State Housings First-Time homebuyer requirements. The program has a reduced mortgage interest rate and down payment assistance available. The program will be limited to $20 million. Loans are on a first come first serve basis and borrowers must have an accepted sales contract on a home prior to reserving funds. All State Housing loan policies and procedures will be in affect for this program. See our program guides and manual for specific loan details.

INTEREST RATE - Interest rate will be 5.875

DOWN PAYMENT ASSISTANCE:

Tier I - $5,000 Repayable Down Payment Assistance.

$5,000 Repayable Loan has an interest rate of 0% and payments will begin the third anniversary of the first payment on the first mortgage. The payment on the maximum assistance amount of $5,000.00 will be $83.33 per month for 5 years.

Tier I I - $7,000 Forgivable Down Payment Assistance

$7,000 Forgivable Loan requires the borrower to live in the purchased property for five years in order for the loan to be forgiven. The loan must be repaid if the Borrower(s) fails to remain in the property for a minimum of 60 months. (20% of the loan amount is forgiven each year).

Any teacher in South Carolina thinking about buying a property in the next few months should consider this financing option. Take advantage of this limited money!!

If you are thinking about purchasing real estate in the Myrtle Beach area, please contact me at (843) 267-2710 or Kathy@KathyRukat.com. I can get you in touch with a lender that can help you with this loan option.