This Month in Real Estate - December

When Can I Buy a House after I have had a Foreclosure?

Thanks to Scott Tripp from BB&T for providing this information...

I get calls periodically regarding the waiting period required after bankruptcy, deed-in-lieu of foreclosure, short sale, or foreclosure for a potential home buyer. Below is a general guideline regarding these adverse credits events. Extenuating circumstances are events outside of the person's control. Typically job loss, death of immediate family member, and/or illness. I hope this proves useful.

Foreclosures.
 Foreclosure – 7 Years from completion date
 Foreclosure with Extenuating Circumstances – 3 Years from completion date
 Principal Residence;
Purchases - the lesser of 90% LTV/TLTV/HTLTV or the LTV/TLTV/HTLTV for the
transaction;
 Documentation of the conclusion of the Foreclosure proceedings is required.
Note: The purchase of second homes and investment properties is not permitted until the
seven year waiting period has elapsed.

Deed in Lieu of Foreclosure or Pre-Foreclosure (Short sale).
 Deed in Lieu – 2 to 7 Years from completion date
 2 Years – lesser of 80% LTV/TLTV/HTLTV or LTV for the transaction
 4 Years – lesser of 90% LTV/TLTV/HTLTV or LTV for the transaction
 7 Years – LTV ratios per the BB&T LTV Charts
 Deed in Lieu or Short Sale with Extenuating Circumstances – 2 Years from completion date.
 Documentation of the conclusion of the Deed in Lieu or Short Sale is required.

Bankruptcy.
 Chapter 7 or Chapter 11 Bankruptcy – 4 Years from discharge or dismissal date
 Bankruptcy with Extenuating Circumstances – 2 Years from discharge or dismissal
 Chapter 13 –
2 Years from discharge date. It is recognized that the borrower has met part of the waiting
period when a discharge occurs.
4 Years from dismissal date. A dismissal means the borrower was unable to meet the
bankruptcy requirements and needs a longer waiting period.
 Chapter 13 with Extenuating Circumstances – 2 Years from dismissal
 Multiple Bankruptcy Filings within 7 Years – 5 Years from discharge or dismissal date
 Documentation of the discharge or dismissal must be provided.

Write-offs to Remember

From Mike Hogue at First Home Mortgage...

Write-offs to Remember
Deductions in the Loan Process

Write-offs are the government's way of rewarding taxpayers when they've done something the government likes. And to judge by the write-offs, the government likes it when people borrow money to buy a house. There are write-offs aplenty, many of which people often forget.

Make sure your clients take advantage of every break the IRS will give. Here are a few they tend to forget:

Points:
According to the IRS, origination fees charged as points must be paid for the use of money, (for example, to obtain a lower interest rate) in order to be tax deductible. Origination fees that constitute a "service fee" are not tax deductible. The question must be asked, "Does the fee apply to the use of money, or is it a service charge?"

Pre-payment penalties:
Unforeseen circumstances often cause borrowers to pull out of their mortgages sooner than expected. Fortunately, pre-payment penalties are tax deductible, which helps ease the pain.

Pro-rated real estate taxes:
Even if the seller sent the tax collector the check, chances are the buyer paid a pro-rated portion of the taxes for the year at closing. Be sure they know to deduct their fair share.

Pro-rated mortgage interest:
Depending on when in the month the home sale closes, buyers pay either a hefty or a tiny amount of pro-rated mortgage interest for that month. Big or small, they can write that off. The Final Closing/Settlement Statement will show just how much they're due.

Home construction loan interest:
As long as the construction period doesn't last more than two years before they make the new place their "principal residence," they can write off the interest for that construction loan.

It pays to pay attention – all these write-offs can add up to some serious savings when tax time comes around.

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).

Listing Update

Lot 126 Brighton Lakes
Myrtle Beach, SC
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My listing at Lot 126 Brighton Lakes in Myrtle Beach is now under contract. This lot is located in the Carolina Forest area. Check back in about 30 days for an update on the final closing price.

If you have any questions about this lot or the Myrtle Beach market, please contact Kathy Rukat at (843) 267-2710 or Kathy@KathyRukat.com. Details about the Myrtle Beach market can be found on my website.

Listing Update - SOLD

9651Kings Grant Drive

Murrells Inlet, SC

My listing at 9651 Kings Grant Drive in Murrells Inlet closed Friday, May 15th. This 3 bedroom, 2 bathroom home sold for $143,500.

If you have any questions about this house or the Myrtle Beach market, please contact Kathy Rukat at (843) 267-2710 or Kat@KathyRukat.com. Details about the Myrtle Beach market can be found on my website.

Listing Update

9651 Kings Grant Drive
Murrells Inlet

My listing at 9651 Kings Grant in Murrells Inlet is now under contract. This house has three bedrooms and two bathrooms. Check back in about 30 days for an update on the final closing price.

If you have any questions about this house or the Myrtle Beach market, please contact Kathy Rukat at (843) 267-2710 or Kathy@KathyRukat.com. Details about the Myrtle Beach market can be found on my website.

March 2009 MLS Stats

March 2009 was an interesting month in real estate for Myrtle Beach. First-time home buyers started showing interest in the market mainly because of the $8,000 tax credit. We have a long way to go but some signs are showing a pick up in the market. It is still a Buyers' Market in Myrtle Beach so jump off the fence if you are in the financial position to purchase a home. Below are the end-of-the-month stats for March 2009. If you have any questions, please add a comment to my blog.

The Residential category includes new construction, single family detached homes, single family semi-detached homes, single family home with HPR, modular homes, manufactured homes on leased land and manufactured homes with land. The Condo/Townhouse category includes new construction, 1/2 duplexes, condos and townhouses.

Total Active Residential - 5,698
Average Listing Price - $431,458
High Price - $7,900,900
Low Price - $13,900

Total Pending Residential - 588
Average Listing Price - $220,028
High Price - $1,249,999
Low Price - $14,500

Total Sold Residential - 223
Average Sold Price - $221,930
Average Listing Price - $239,306
High Sold Price - $1,699,900
Low Sold Price - $19,400

New Residential Listings Added in March 2009 - 796
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Total Active Condo/Townhouse - 6,567
Average Listing Price - $242,376
High Price - $4,469,000
Low Price - $29,900

Total Pending Condo/Townhouse - 602
Average Listing Price - $258,828
High Price - $786,300
Low Price - $19,900

Total Sold Condo/Townhouse - 160
Average Sold Price - $172,409
Average List Price - $189,700
High Sold Price - $900,000
Low Sold Price - $21,000

Total Condo/Townhouse Listings added in March 2009 - 801

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.

January 2009 MLS Stats

Welcome to 2009! This year, I will add each month's end of the month stats to my blog so you can keep up-to-date with the Myrtle Beach area real estate market. If you have any questions, please add a comment to my blog.

The Residential category includes new construction, single family detached homes, single family semi-detached homes, single family home with HPR, modular homes, manufactured homes on leased land and manufactured homes with land. The Condo/Townhouse category includes new construction, 1/2 duplexes, condos and townhouses.

Total Active Residential - 5,713
Average Listing Price - $423,451
High Price - $8,000,000
Low Price - $14,500

Total Pending Residential - 52
Average Listing Price - $249,644
High Price - $625,000
Low Price - $29,900

Total Sold Residential - 165
Average Sold Price - $239,245
Average Listing Price - $259,549
High Sold Price - $1,780,000
Low Sold Price - $17,000

New Residential Listings Added in January 2009 - 827
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Total Active Condo/Townhouse - 6,499
Average Listing Price - $251,571
High Price - $4,469,000
Low Price - $19,900

Total Pending Condo/Townhouse - 545
Average Listing Price - $286,763
High Price - $865,000
Low Price - $29,900

Total Sold Condo/Townhouse - 102
Average Sold Price - $183,733
Average List Price - $204,450
High Sold Price - $975,000
Low Sold Price - $42,500

March MLS Stats

I defined residential homes as single family detached homes and single family new construction as these are the most popular residential properties.

Total Active SFH - 5,291
Average Listing Price - $478,961
High Price - $9,000,000
Low Price - $17,500

Total Pending SFH - 611
Average Listing Price - $283,198
High Price - $2,400,000
Low Price - $40,000

Total Sold SFH - 197
Average Sold Price - $155,540
Average List Price - $163,405
High Price - $210,000
Low Price - $24,500

New SFH Listings Added in November - 950

As you can see with the number of sold listings versus total listings, the Myrtle Beach market is a Buyers' Market. Currently, we have over a two year supply of single family homes to sell. However, when you compare the sold price versus the list price, homes are selling for an average of 95% of the listings price. This percentage is slightly higher than in months past.

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The condo and townhouse category includes condos, townhouses, 1/2 duplexes and new construction projects.

Total Active Condos/Townhouses - 6,993
Average Listing Price - $274,197
High Price - $4,499,000
Low Price - $45,950

Total Pending Condos/Townhouses - 1,051
Average Listing Price - $99,630
High Price - $128,000
Low Price - $49,000

Total Sold Condos/Townhouses - 177
Average Sold Price - $229,801
Average List Price - $244,525
High Price - $1.075,000
Low Price - $45,000

New Condos/Townhouses Listings Added in November - 914

The condo market is similar to the single family home market in that we currently have a high level of inventory. Our sale price versus list price has fallen sightly. Sellers are receiving, on average, 93.9% of their listing price. More condos sold in March 2008 than did in the previous months.

Property Tax Increase - Point of Sale

Last week, I discussed some points of the new South Carolina Property Tax Reform in one of my posts. The South Carolina REALTORS Association created a short Point of Sale brochure to outline the changes, list what steps to take if you think you are paying too much for your property taxes and a worksheet to estimate your property taxes.

Take some time to review the brochure and estimate your property taxes based on the new formulas. If you have any questions about the new changes to the SC property taxes, call me at (843) 267-2710 or email me at Kathy@KathyRukat.com.

SC Property Tax Reform

In 2006, the South Carolina legislature passed property tax reform. The new law was enacted in January 2007, but most counties did not change their property tax evaluations until June or July of 2007. Horry County changed their property tax evaluations at that time. Many of you saw the changes when you received your tax bill in October of 2007. You might be curious about what changed and how the changes effect you.

Owner occupied properties saw the biggest tax decrease because the school operating taxes were eliminated for owner occupied properties.

The other biggest change was how properties are assessed. Previously, South Carolina assessed property values every 5 years. Then, the county used their millage rate and tax rate to calculate your property taxes. Now, the point of sale becomes the new assessed value. Your property taxes will be based on the sale price of the property.

The new law capped the increases in assessed value to 15% over a 5-year period. Also, the law enacted spending and millage caps on local governments.

Investors and second home owners did see an increase in their property taxes after the new changes took place. Many investors, vacation home owners and businesses have decided to not invest in South Carolina based on the increased property tax. South Carolina REALTORS are active in getting changes to this law passed. A Bill will be presented to a House Sub-Committee this week. Watch this Blog for updates on the property tax reform in South Carolina.

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.

Foreclosure Deals in Myrtle Beach?

Foreclosures are making lots of news lately. Buyers and investors are sure to wonder if they are making a sound investment decision by purchasing in the Myrtle Beach area. Current homeowners wonder if their house will lose value because of increased foreclosures in the area.

These questions are valid, and I have some reports to help you decipher the foreclosure market. Each year a report is published of the top 100 Metropolitan Statistical Areas (MSA) in the US in foreclosure filings. Where does Myrtle Beach stand against other cities with regard to foreclosures? For 2007, the greater Myrtle Beach area is not ranked in the Top 100! The Detroit, MI area is ranked #1 - most likely due to the unstable automotive industry. Some South Carolina cities are ranked in the top 100 (Columbia ranked 88th, Charleston ranked 89th and Greenville ranked 100th).

For 2006, the MSA report ranted 378 cities (#1 is the worst city for foreclosure rates and #378 is the best). Myrtle Beach was ranked #366!

Foreclosures will happen in any market. You can feel secure that when you buy in the Myrtle Beach area, you are buying in one of the most stable areas in the country. We have foreclosures in our area, but they are well below the national average.

If you would like a copy of either report, please email me at Kathy@KathyRukat.com.

November MLS Stats

I defined residential homes as single family detached homes and single family new construction as these are the most popular residential properties.

Total Active SFH - 5,065
Average Listing Price - $496,498
High Price - $26,500,000
Low Price - $15,000

Total Pending SFH - 545
Average Listing Price - $291,779
High Price - $3,195,000
Low Price - $32,500

Total Sold SFH - 279
Average Sold Price - $281,954
Average List Price - $303,474
High Price - $1,900,000
Low Price - $5,000

New SFH Listings Added in November - 740

As you can see with the number of sold listings versus total listings, the Myrtle Beach market is a Buyers' Market. Currently, we have over a year supply of single family homes to sell. However, when you compare the sold price versus the list price, homes are selling for an average of 93% of the listings price. This percentage is slightly lower than in months past.

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The condo and townhouse category includes condos, townhouses, 1/2 duplexes and new construction projects.

Total Active Condos/Townhouses - 7,246
Average Listing Price - $284,619
High Price - $2,900,000
Low Price - $48,000

Total Pending Condos/Townhouses - 1,245
Average Listing Price - $298,922
High Price - $849,900
Low Price - $49,000

Total Sold Condos/Townhouses - 38
Average Sold Price - $340,715
Average List Price - $342,223
High Price - $710,000
Low Price - $78,500

New Condos/Townhouses Listings Added in November - 755

The condo market is similar to the single family home market in that we currently have a high level of inventory. Our sale price versus list price is holding high. Sellers are receiving, on average, 99.5% of their listing price. While our listing inventory has skyrocketed, Sellers are receiving a higher percentage of their listing price.

Search the Grand Strand MLS

Search the Grand Strand MLS for the most up-to-date properties for sale. From this link, you can search by MLS number, Area, Subdivision, Address, Property Type, Property Features and more. Register a unique username and password on the site and save your searches and your favorite properties. Easily communicate with me your favorite properties, and I can "Help You Find the Sandcastle of Your Dreams" even faster!

If you have any questions about a property you see, please call me at (843) 267-2710 or email me at Kathy@KathyRukat.com.

Buyer and Seller Instant Notification

Do you want to be INSTANTLY notified when a home in the area you like is for sale? It could be the "Sandcastle of Your Dreams"! Complete this form.

Do you currently have your home listed for sale and you would like to know when you have more competition? Knowledge is key! Complete this form.