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).

Property Taxes

Property tax bills for property owners in Horry County have been mailed by the Horry County Assessor's Office. I received mine last week. Real estate property taxes are due on or before January 15, 2010 to avoid a penalty.

A Few Things to Remember:

• If your property taxes are escrowed into your monthly mortgage payment, you will receive a copy of your tax bill. The original will go to your mortgage company. The mortgage company will pay your taxes out of your escrow account. However, it is always best to check with your mortgage company to make sure the tax bill has been paid.
• The tax bill is sent to the owner of record as of January 1, 2009. If you purchased your property during 2009, the taxes were prorated at your closing. However, check with the Assessor's Office to make sure the taxes have been paid properly.
• Permanent residents qualify for their property to be assessed at 4% versus 6%. If your tax bill shows your property was assessed at 6%, you can apply for the permanent resident tax break at the Assessor's Office.
• Certain taxpayers may qualify for the South Carolina Homestead Exemption. The Assessor's Office can provide more information.
  

Changes to the tax law changed how properties are assessed. If you feel your property is assessed too high, you can appeal the assessment.

Important Phone Numbers and Websites:

• Horry County Assessor's Office (843) 915-5040, (843) 756-2121, (843) 205-5040 and (843) 915-5043
• Horry County Auditor's Office (843) 915-5050
• Horry County Treasurer's Office (843) 915-5470
• Horry County Website - www.horrycounty.org
  

Why You Need a Home Inspection

Why You Need a Home Inspection

Unlike other major purchases such as an automobile or a college education, your visits to and use of a home before you actually live in it are very limited. You can't "try before you buy" when you're shopping for a house or condominium. As a home buyer you seek out a property that fits your aesthetics, household needs and price range. Much of a home's value (and eventual cost to you) rests in how sound the property and its systems are - but the untrained eye isn't able to determine the significance of common home issues that might be apparent during a walk-through.

A home inspection is designed to give you the information you need to decide if you can accept the home as it is, if you'd be willing to buy it under certain conditions (such as the sellers addressing certain issues before closing), or if you should keep shopping for the right property. A home inspection reviews the condition of the home's structure (foundation, roof, walls, interior and exterior) and systems (electrical, plumbing, air and heating systems) so you can determine the degree of upkeep, anticipated repairs and other work you'd need to do to maintain a safe and habitable property.

Don’t make the largest investment in your life without the piece of mind provided by a Professional Home Inspection!

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Thanks to Jim Gribben of WIN Home Inspections for providing a great explanation of why you should get a home inspection. Jim can be reached at (843) 238-3454 or jgribben@wini.com. If you have any questions about the home inspection process or the home buying process, please contact Kathy Rukat at (843) 267-2710 or Kathy@KathyRukat.com.

Breaking News from Certifax Appraisals

MYRTLE BEACH, SC – Appraisers see improving market conditions. Recent appraisal orders (in the last month) reflect fewer days on market and narrowing gap between list and sales prices:

-Castlewood single family under contract, 33 days on market at 94% of list price ($150K-$200K range)

-Ocean Creek Tower North condo under contract, 57 days on market at 98% of list price ($400K-$450K range)

-A Place at the Beach condo, Shore Drive, under contract, 26 days on market at 99.9% of list price ($150K-$200K range)

-Briarcliffe Acres vacant residential lot under contract, 34 days on market at 94% of list price ($350K - $400K range)

-Wisteria Woods single family under contract, 36 days on market at 98% of list price ($100K to $150K range)

-The Island condo under contract, 34 days on market at 94% of list price ($300Kto $350K range)

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Good news is out there - focus on local news media to get the most up-to-date and correct information about your local real estate market. Now is a wonderful time to buy in Myrtle Beach. Recently, I was featured on our local news channel. I talked about the opportunities to purchase property at a good price. When I receive the audio story, I will be adding it to this Blog. In the meantime, please contact me if you have any questions about what is happening in our local real estate market. I can be reached at (843) 267-2710 or Kathy@KathyRukat.com.

Decorate on a Dime

Making your home or condo look like a showcase does not have to cost a lot of money. By doing things yourself and with some creativity, you can decorate on a dime.

Get your home in "tip top" shape now before the weather turns warm, and you start spending more and more time outdoors! Plus, if you plan on selling your home in the Spring or Summer, you home will be in showing shape.

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This article was brought to you by Lowe's.

Bank of America Chief Economist: "No Recession in Sight"

12 Oct 2007

In a featured op-ed piece published in Tuesday's The Wall Street Journal, Bank of America chief economist Mickey Levy provided a thought-provoking and informative outlook on the United States economy, and articulated his view that despite some near-term challenges, the economy remains fundamentally sound and is unlikely to go into recession. The full text of his article is included below.

Levy also was a featured guest on CNBC's "Squawk Box" program Oct. 11, discussing his editorial.


No Recession in Sight

Despite recent financial turmoil and a dismal housing market, there are key reasons why the economy will continue to expand, albeit at a modest pace, and not go into recession. Businesses are well poised to absorb a period of weaker product demand and are unlikely to significantly alter their hiring and investment behavior. Consumer spending is supported by rising incomes. Exports are strong. And monetary policy is consistent with sustained growth in domestic demand. Next year, we will look back and once again marvel at the flexibility and resilience of the economy.

To be sure, there is bad news. Housing construction and prices will continue to fall at least through 2008. There is an 18-year high in the inventory of unsold homes and soft sales that are constrained by several factors, including expectations that home prices have further to fall.
The surge in home ownership, which rose dramatically to nearly 70% in 2005 from 64% in 1994, has proved just as unsustainable as the reliance on subprime mortgages. That surge has begun to recede, and lower prices and onerous adjustable-rate mortgage resets point toward a modest further decline — each one percentage point represents about one million homes. That decline, along with foreclosures, will elongate the housing inventory adjustment, exert downward pressure on prices, keep builders on the sidelines, and shrink employment in construction and the home finance sector.

The good news is that other factors will provide an offset. First is international trade.
Strong U.S. exports and less reliance on imports, reflecting healthy economies overseas and the weaker U.S. dollar, are boosting production and job creation here. During the housing boom years 2002-2005, residential construction added an average 0.4 percentage points per year to real GDP as the widening trade deficit subtracted 0.6 percent. That's now reversing. Since mid-2006, while the decline in residential construction has subtracted 0.9 percentage points from GDP growth, the narrowing trade deficit has added 0.5 percentage points. Expect more of the same.

Second, U.S. businesses are poised to withstand contraction.

During the late stages of prior economic expansions, as product demand slumped in response to excessive monetary restriction, firms tended to maintain production and employment growth, resulting in large inventory overhangs. Business capital spending also tended to grow too rapidly — witness the late 1990s investment boom. Consequently, most of the decline in real GDP during prior recessions was attributable to inventory liquidation, which meant cutbacks in production and jobs, and sharp reductions in capital spending. Presently, those conditions don't exist.

Businesses in a wide range of industries outside of the housing sector have nimbly adjusted their production processes, and inventories are very lean. That significantly reduces the potential impact of any slowdown in demand on production and employment. Similarly, firms have constrained investment spending while maintaining high cash balances. Following the capital spending boom of the 1990s, the unwinding of the capital stock, net of depreciation, also lowers the probability of a jarring reduction in business investment spending.

Third, Fed monetary policy points toward sustained growth in nominal spending. Despite the financial turmoil, credit remains available to basic businesses and the vast majority of households, and a general "credit crunch" is highly unlikely to unfold.

Historically, real disposable personal income has been the dominant factor driving consumer spending. As long as businesses maintain employment, and wages continue to rise, reflecting tight labor markets, rising personal income will outweigh the negative impacts of declining home prices, declines in mortgage refinancing, and even the recent increase in energy prices, on consumption.

This assessment presumes that businesses will not cut net jobs. No doubt, jobs will be lost in some industries — real estate, mortgage brokers and related finance, to name a few. But that's minor in the context of 138 million U.S. workers.

Fourth, my discussions with a wide array of business executives in an assortment of non-financial industries suggest that they have not materially altered their hiring plans, despite heightened concerns about general economic conditions. The majority plan to maintain employment levels or increase them in the next year, with most of the planned increases in export and international-related activities. September's reported rise in employment, covering the period of maximum financial crisis, is encouraging.

Once again, turmoil on Wall Street doesn't necessarily translate to contraction on Main Street.
Remember, following both the stock market crash of 1987 (which involved a cumulative 35% decline in equity valuations) and the 1998 financial crisis, the economy continued to expand. In both cases the Fed eased, financial markets absorbed the shock, and the economy proved resilient. The same will unfold this time; recession is not in the cards.

Tax Consequences of Short Sales and Foreclosures

What are the tax consequences of a short sale or a foreclosure for a property owner? The IRS has provided some answers in "Questions and Answers on Home Foreclosure and Debt Cancellation". While short sales and foreclosures can have tax consequences, special rules can lessen the tax burden to the homeowner. Every situation is different though. Please consult a tax professional to discuss your specific situation if you may be effected by a short sale or foreclosure.

Fed Lowers Fed Fund Rate

Sept. 18 (Bloomberg) -- The following is the full text of the statement released today by the FederalReserve:The Federal Open Market Committee decided today to lower its target for the federal funds rate 50 basis points to 4 3/4 percent.Economic growth was moderate during the first half of the year, but the tightening of credit conditions has the potential to intensify the housing correction and to restrain economic growth more generally. Today’s action is intended to help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in financial markets and to promote moderate growth over time.Readings on core inflation have improved modestly this year. However, the Committee judges that some inflation risks remain, and it will continue to monitor inflation developments carefully. Developments in financial markets since the Committee’s last regular meeting have increased the uncertainty surrounding the economic outlook. The Committee will continue to assess the effects of these and other developments on economic prospects and will act as needed to foster price stability and sustainable economic growth.Voting for the FOMC monetary policy action were: Ben S. Bemanke, Chairman; Timothy F. Geithner, Vice Chairman; Thomas M. Hoenig; Donald L. Kobn; Randall S. Kroszner; Frederic S. Mishkin; Charles L. Evans; William Poole; Eric S. Rosengren; and Kevin M. Warsh.In a related action, the Board of Governors unanimously approved a 50 basis point decrease in the discount rate to 5 1/4 percent. In taking this action, the Board approved the requests submitted by the Boards of Directors of the Federal Reserve banks of Boston, New York, Cleveland, St. Louis, Minneapolis, Kansas City and San Francisco.Last UpdatecJ’ September 18, 2007 14:15 EDT
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What will happen to mortgage interest rates? I do not believe rates will change immediately. However, I do believe the stock market will see an increase based on the news from the Fed. A long-term stock market gain could mean lower bond prices.

Regardless of interest rates, Myrtle Beach is in a full-fledged Buyer's market. If you have been thinking of purchasing a home or investment property, now is a great time. Many sellers are offering great incentives, and many are willing to negotiate their prices. Call or email me if you have any questions.

The Basics of Home Owership

Homeownership is a critical part of The America Dream. Many potential buyers are worried about the current mortgage industry and where they stand in their goal of homeownership. Lenders are “getting back to the basics,” and potential buyers should “get back to the basics as well.

BASICS OF HOMEOWNERSHIP

• Create a Budget – As tough as it may be, create a budget and stick to it! To own a home, you will need to save money for a down payment. Know where every dollar comes from and where it goes. Staying on a budget is not always fun, but keep your long-term goal in mind – homeownership. Owning your own home will be well worth the sacrifices.
• Save, Save, Save – The more you can put down on a home, the better. Avoid having to pay Private Mortgage Insurance (PMI) by putting down 20%. Look over your budget and see where you can cut costs to save more money. Lenders like to see money for a down payment plus money for unexpected expenses. Top financial advisers recommend having 3-6 months of expenses saved in an emergency fund.
• Read Your Credit Report – Get your free credit report at www.AnnualCreditReport.com. Federal law states that you can check your credit report each year for free. Other sites claim to be free, but www.AnnualCreditReport.com is the only federally approved site. If you find any discrepancies within your report, follow the directions to correct the report. Having a good credit score can save you money when it comes time to apply for a loan.
• Lending Basics – Fixed rate loans are safer than adjustable rate mortgages. With a fixed rate interest rate, you will be protected from shifts in the market and world events affecting interest rates. Depending on your loan, a 15-year mortgage can save you thousands versus a 30-year mortgage.
  
  If you need help with any of these basics, consult a financial advisor, a loan officer, your real estate agent or a friend of family member. May books and online resources are available as well.

Labor Day Factoids

I hope everyone enjoyed an extra day off this week! I know I did. Here are some interesting facts about Labor Day...

• The first Labor Day observance is believed to have been September 5, 1882. A parade of 10,000 workers in New York City marked the occasion. The parade was organized by Peter J. McGuire the secretary of the Carpenters and Joiners Union
• By 1893, more than half of the states were observing Labor Day in some way or another. Celebrations took place on different days.
• In 1894, Congress passed a bill to establish a federal holiday and designated the first Monday in September as the official Labor Day. President Glover Cleveland signed the bill into law.

For other Labor Day facts, go to http://realtytimes.com/rtapages/20070903_laborday.htm.

Happy New Year!

Best wishes to you and your family for a safe and happy New Year!

Avoid 10 Common Mistakes First Time Home Buyers Make

Buying your first home can be a stressfull situation. Having an experienced real estate professional by your side can eliminate some of that stress. I have created a complimentary report entitled, "How To Buy Your First Home The Easy Way! Avoid 10 Common Mistakes First Time Homebuyers Make." To get a copy of this free report faxed to you, call 1-800-814-2712, ext. 9200. You will hear a brief description of the report, then you will be asked to enter your fax number. The report will be faxed to you in about 30 seconds. If you prefer to have the report emailed or mailed to you, call the toll-free number, enter the extension and follow the prompts to leave me a voicemail with either your email address or mailing address.

Update on Homeowners' Insurance

Homeowners' Insurance has been increasing over the last few months in the Myrtle Beach area. Many things contributed to this increase including the rough hurricane season the US saw in 2005. The Director of Insurance and other South Carolina politicians suggested expanding the South Carolina Wind and Hail Pool.

What is the South Carolina Wind and Hail Pool? The SC Wind and Hail Pool is a source of funds used to purchase wind and hail coverage provided by the state. In Horry county, residents east of Business 17 can obtain wind and hail coverage from the SC Wind and Hail Pool. This pool provides coverage for these property owners since their regular insurer will not provide wind and hail coverage east of Business 17. Insurance coverage through the SC Wind and Hail Pool is not cheap!

After the large increase in homeowners' insurance (especially in the condo community) seen this spring and summer, government officials suggested expanding the Wind Pool to the Waterway. Expanding the Wind Pool would help condo owners obtain insurance at lower rates. However, homeowners between Business 17 and the Waterway could be effected adversely. Traditional insurance providers would not provide wind and hail coverage to property owners if they could use the SC Wind and Hail Pool. Those homeowners could see an increase in their wind and hail premium. The conclusion (for now) is that the South Carolina Wind and Hail Pool will not be expanded.

I will be posted more information about homeowners' insurance over the next few days.

How To Guarantee You Will Get Your Home Sold This Time!

Having your home on the market and not having it sell can be frustrating for the homeowner and the listing agent. I have created a FREE report entitled, "How To Guarantee You Will Get Your Home Sold This Time!" To get a copy of this free report faxed to you, call 1-800-814-2712, ext. 9000. You will hear a brief description of the report, then you will be asked to enter your fax number. The report will be faxed to you in about 30 seconds. If you prefer to have the report emailed or mailed to you, call the toll-free number, enter the extension and follow the prompts to leave me a voicemail with either your email address or mailing address.