NEWS ON THE POINT OF SALE ISSUE
Senate expected to pass bill to ease reassessments on commercial property greenvilleonline.com The Greenville News
Thursday, January 28, 2010
Saturday, January 23, 2010
Dr Don Schunk, Research Economist, BB and T Center for Economic and Community Development
The December labor market data indicate ongoing weakness that highlights the precarious nature of this economy. The fragile recovery will need a return of consumer confidence and spending to be sustainable, but the fact that labor markets continue to deteriorate weakens the chances of improvement for confidence and spending. The economy needs a spark in terms of job and income creation. Historically, this spark has come from a rebound in home construction or business investment. However, both of these sectors are dealing with excess capacity: inventory of unsold homes working against construction and idle productive capacity working against business investment. The light at the end of the tunnel continues to flicker.
Tuesday, January 19, 2010
Tuesday, January 12, 2010
Columbia, SC The State Capital
The Market: Geographically, Columbia -- the state capital -- is in the center of the state, with a two-hour drive from either the Atlantic coast or the Blue Ridge Mountains, and about halfway between New York City and Miami, with easy access to interstate highways. Not just the center of state government, Columbia also is home to the main campus of the University of South Carolina (with 27,000 students) and its developing research park, Innovista, and to Fort Jackson, the largest Army training base in the country.
Area Population: 576,557
Area Households: 223,500
Household Growth Rate: 7.45% (projected 2006-20011)
Households with Children: (Younger than age 18) 36.8%
Households Owned: 69.1%
Median Value of Owned Homes: $121,762
Average Household Income: $62,501
Median Household Income: $47,821
Education: (Columbia Metro, which includes Richland and Lexington counties)25.6% have high school degrees21.7% have some college education27.2% have associate or bachelor's degrees10.2% have advanced degrees
Ethnic Makeup: 61.9% white; 33.3% African American; 0.3% American Indian and Alaska Nat.; 1.6% Asian; 0.1% Nat. Hawaiian and other Pacific Islander; 1.3% other; 1.6% two or more races
Median Age: 35.3 years
Average Rent: $826
Climate: A temperate climate year-round, averaging 82 degrees in summer, 53 degrees in
winter; average annual rainfall 50 inches
Major Employers/Industries: Palmetto Health, 7,500 employees; Blue Cross Blue Shield of South Carolina, 5,100 employees; University of South Carolina, 1,621 employees; Richland School District #1, 5,000 employees; SCE&G, 4,000 employees; UPS, 3,528 employees; Wachovia Bank, N.A., 3,422 employees; Richland School District #2, 2,500 employees; Fort Jackson, 4,200 employees; South Carolina State Government, 30,753 employees
Culture: Koger Center for the Arts, a $15 million complex; The Columbia Museum of Art; South Carolina State Museum; Carolina Coliseum; the new Colonial Center; 11 theater groups including professional theater; professional ballet troupe and numerous other dance companies; opera; symphony; The Township, which has hosted cultural events in Columbia since 1929.
Major Community Events: First Ladies' Walk for Life: Steps Against Breast Cancer; Summer Concert Series; Central Carolina Community Foundation's International Festival of Food and Wine; South Carolina State Fair; Palmetto Health Children's Hospital's Festival of Trees; Junior League of Columbia's Clean Sweep Sale; Columbia Festival of the Arts; Home Builders Association of Greater Columbia's Home and Garden Show; Black Expo
Famous Citizens: Coach Steve Spurrier; anchor Rita Cosby; Leeza Gibbons; astronaut Charles Bolden; the late novelist and poet James Dickey; novelist William Price Fox; the late Republican National Committee Chairman Lee Atwater; Miss America Kimberly Aiken; Hootie and the Blowfish; actress Kristen Davis; Strom Thurmond; Jesse Jackson; the late James Brown; comedian Steven Colbert
Area Population: 576,557
Area Households: 223,500
Household Growth Rate: 7.45% (projected 2006-20011)
Households with Children: (Younger than age 18) 36.8%
Households Owned: 69.1%
Median Value of Owned Homes: $121,762
Average Household Income: $62,501
Median Household Income: $47,821
Education: (Columbia Metro, which includes Richland and Lexington counties)25.6% have high school degrees21.7% have some college education27.2% have associate or bachelor's degrees10.2% have advanced degrees
Ethnic Makeup: 61.9% white; 33.3% African American; 0.3% American Indian and Alaska Nat.; 1.6% Asian; 0.1% Nat. Hawaiian and other Pacific Islander; 1.3% other; 1.6% two or more races
Median Age: 35.3 years
Average Rent: $826
Climate: A temperate climate year-round, averaging 82 degrees in summer, 53 degrees in
winter; average annual rainfall 50 inches
Major Employers/Industries: Palmetto Health, 7,500 employees; Blue Cross Blue Shield of South Carolina, 5,100 employees; University of South Carolina, 1,621 employees; Richland School District #1, 5,000 employees; SCE&G, 4,000 employees; UPS, 3,528 employees; Wachovia Bank, N.A., 3,422 employees; Richland School District #2, 2,500 employees; Fort Jackson, 4,200 employees; South Carolina State Government, 30,753 employees
Culture: Koger Center for the Arts, a $15 million complex; The Columbia Museum of Art; South Carolina State Museum; Carolina Coliseum; the new Colonial Center; 11 theater groups including professional theater; professional ballet troupe and numerous other dance companies; opera; symphony; The Township, which has hosted cultural events in Columbia since 1929.
Major Community Events: First Ladies' Walk for Life: Steps Against Breast Cancer; Summer Concert Series; Central Carolina Community Foundation's International Festival of Food and Wine; South Carolina State Fair; Palmetto Health Children's Hospital's Festival of Trees; Junior League of Columbia's Clean Sweep Sale; Columbia Festival of the Arts; Home Builders Association of Greater Columbia's Home and Garden Show; Black Expo
Famous Citizens: Coach Steve Spurrier; anchor Rita Cosby; Leeza Gibbons; astronaut Charles Bolden; the late novelist and poet James Dickey; novelist William Price Fox; the late Republican National Committee Chairman Lee Atwater; Miss America Kimberly Aiken; Hootie and the Blowfish; actress Kristen Davis; Strom Thurmond; Jesse Jackson; the late James Brown; comedian Steven Colbert
Lake Murray Lexington, SC Shore Line
NEWS YOU CAN USE
Lake Murray Lake Levels
Lake Murray Shoreline Miles by County
RICHLAND COUNTY 37.1 MILES
LEXINGTON COUNTY 313.2 MILES
SALUDA COUNTY 146.6 MILES
NEWBERRY COUNTY 160.25 MILES
Lake Murray Lake Levels
Lake Murray Shoreline Miles by County
RICHLAND COUNTY 37.1 MILES
LEXINGTON COUNTY 313.2 MILES
SALUDA COUNTY 146.6 MILES
NEWBERRY COUNTY 160.25 MILES
Contact Us Curb Appeal List Closing costs - loans Closing costs - Ins. Free Home Valuation Find A Home! How Escrow Works BLOG Search MLS Newsletter South Carolina Facts Realtor Referal About Lexington About Lake Murray About Irmo LINKS Realtor Ethics Kids Eat Free Why a Realtor Real Estate Info Community Links Homes for Sale About Chapin / Ballentine About Forest Acres Heathwood Area Lake Murray Irmo Homes Lake Murray Lexington Homes Lexington Homes Rosewood Area Homes Irmo / St Andrews Homes West Columbia Homes North East Homes Golf Page Dave Ramsey Lexington Town of Lexington Lexington County Lexington Cities Lexington Zip Codes Lexington Neighborhoods Utilities Lexington County Data Richland County Data About Edwin Gerace Medium Sales Price Community Grant Seminar American Town TheZoo Things to Do Lake Level SCDOT-Traffic Columbia Attractions Sporting Events Travel to Columbia Columbia Events Area Events Famously Hot Lexington County Info Lexington Chamber South Carolina Realtors Columbia Realtors Russell & Jeffcoat Home Buyer Seminar Press Release Just Lexington Home Buyer Home Buyer Info Home Search Chapin Homes Columbia SC Homes Heathwood SC Homes Newberry SC Homes South East Homes Closing Costs First Time Buyers For Buyers Press Release Selling Your Home Our Featured Homes Home Applying for a Loan Bi-Weekly Mortgage Your Buying Power Neighborhood Prices Staging Your House 9 Steps to Owning Site Map ARM Calc Fixed Rate Mtg Calc 15 vs 30 Year Mtg Calc Mtg Tax Savings Calc Mortgage Qualifier Calc Required Income Calc Maximum Mortgage Calc Refi Interest Savings Calc Refi Breakeven Calc Mortgage Calculators The Kitchen Ethics in Real Estate Home Appreciation
Sunday, January 10, 2010
Point of Sale in South Carolina -- 2010 Session Begins
Point of Sale in South Carolina -- 2010 Session Begins
Changes to South Carolina's property tax structure, known as Act 388, have had a negative effect on the real estate market and the economy of SC. Act 388 included a provision allowing for point of sale reassessments. Now, property is reassessed each time there is an assessable transfer of interest (ATI), based on the sales price.
Point of sale assessment point of sale (ATI) reassessment translates into a dramatic increase in property tax and is driving real estate investors out of our state, while businesses considering locating in South Carolina are choosing our neighboring states instead. From industrial properties in the upstate to commercial facilities in the midlands to investment residential property along the coast, every market has suffered.
South Carolina REALTORS are supporting H.3272 that addresses the inequities caused by point-of-sale assessment. H.3272 extends the 15% reassessment cap applied to all properties at countywide resassement to assessable transfers of interest (ATIs) and uses that value as the baseline for the next countywide reassessment cycle. It has already passed the House and is awaiting consideration on the Senate floor.
Addressing point of sale is paramount to attracting commercial investment and job creation in South Carolina and sends the message to potential investors that SC is ready to compete. Passage of H.3272 will put South Carolina back on the path to economic growth.Tell me more
Talking Points
Prior to 2006, counties in SC assessed property every five years, though each of the forty-six counties had a different assessment method. Some counties assessed very close to market value, while others assessed at just fifty percent of market value.
In the residential market, neighboring properties now have gross differences in property tax obligations, because one property sold post 2006 property tax reform and the other has not changed hands. This inequity will only worsen over time, as longtime residents now have a disincentive to move.
In the commercial market, when a property changes hands; the additional property tax burden must be bourn by the tenants. If the leases on that property do not allow for the increase, then the actual value of the property decreases as the commercial facilities net operating income decreases.
Further, a commercial facility that has not changed hands that is located near another that has been sold recently has an unfair and inequitable market advantage – the ability to offer lower lease costs with wider income margins. This produces another disincentive to transfer.
Addressing point of sale assessment cannot wait!
Subject:Approve Point of Sale Legislation
The time to act on point of sale legislation is NOW! Please support H.3272, which has been set for Special Order and is awaiting second reading.While I am disappointed that the Senate did not vote on or even debate H.3272 last year, the start of the new session provides the opportunity to immediately address this issue and move our state forward. Correcting the inequities caused by point of sale assessment is paramount to attracting commercial investment and job creation in South Carolina.Here are the facts: Point of sale assessment results in disparate property tax burden between neighboring properties, higher office and store rental costs for South Carolina businesses, higher rents for non-homeowners, increased pricing on the goods and services South Carolinians enjoy, disincentives to transfer property, inequitable tax burdens based on whether a property has transferred, and property devaluation. All of this forces businesses looking to locate in South Carolina to take their investment and jobs elsewhere. Hundreds of millions of dollars of commercial investment in South Carolina has been lost since Act 388 took effect. That's just the tip of the iceberg.
I respectfully urge South Carolina Delegation to bring H.3272 up for consideration and vote yes for this bill. The continued economic recovery of this great state depends on it.
Changes to South Carolina's property tax structure, known as Act 388, have had a negative effect on the real estate market and the economy of SC. Act 388 included a provision allowing for point of sale reassessments. Now, property is reassessed each time there is an assessable transfer of interest (ATI), based on the sales price.
Point of sale assessment point of sale (ATI) reassessment translates into a dramatic increase in property tax and is driving real estate investors out of our state, while businesses considering locating in South Carolina are choosing our neighboring states instead. From industrial properties in the upstate to commercial facilities in the midlands to investment residential property along the coast, every market has suffered.
South Carolina REALTORS are supporting H.3272 that addresses the inequities caused by point-of-sale assessment. H.3272 extends the 15% reassessment cap applied to all properties at countywide resassement to assessable transfers of interest (ATIs) and uses that value as the baseline for the next countywide reassessment cycle. It has already passed the House and is awaiting consideration on the Senate floor.
Addressing point of sale is paramount to attracting commercial investment and job creation in South Carolina and sends the message to potential investors that SC is ready to compete. Passage of H.3272 will put South Carolina back on the path to economic growth.Tell me more
Talking Points
Prior to 2006, counties in SC assessed property every five years, though each of the forty-six counties had a different assessment method. Some counties assessed very close to market value, while others assessed at just fifty percent of market value.
In the residential market, neighboring properties now have gross differences in property tax obligations, because one property sold post 2006 property tax reform and the other has not changed hands. This inequity will only worsen over time, as longtime residents now have a disincentive to move.
In the commercial market, when a property changes hands; the additional property tax burden must be bourn by the tenants. If the leases on that property do not allow for the increase, then the actual value of the property decreases as the commercial facilities net operating income decreases.
Further, a commercial facility that has not changed hands that is located near another that has been sold recently has an unfair and inequitable market advantage – the ability to offer lower lease costs with wider income margins. This produces another disincentive to transfer.
Addressing point of sale assessment cannot wait!
Subject:Approve Point of Sale Legislation
The time to act on point of sale legislation is NOW! Please support H.3272, which has been set for Special Order and is awaiting second reading.While I am disappointed that the Senate did not vote on or even debate H.3272 last year, the start of the new session provides the opportunity to immediately address this issue and move our state forward. Correcting the inequities caused by point of sale assessment is paramount to attracting commercial investment and job creation in South Carolina.Here are the facts: Point of sale assessment results in disparate property tax burden between neighboring properties, higher office and store rental costs for South Carolina businesses, higher rents for non-homeowners, increased pricing on the goods and services South Carolinians enjoy, disincentives to transfer property, inequitable tax burdens based on whether a property has transferred, and property devaluation. All of this forces businesses looking to locate in South Carolina to take their investment and jobs elsewhere. Hundreds of millions of dollars of commercial investment in South Carolina has been lost since Act 388 took effect. That's just the tip of the iceberg.
I respectfully urge South Carolina Delegation to bring H.3272 up for consideration and vote yes for this bill. The continued economic recovery of this great state depends on it.
Surge in short sale requests unlikely to impact housing market
Although short sales are likely to increase in 2010, the jump in these transactions is unlikely to have any real impact on the housing market, according to a new study by Housing Predictor. While more at-risk homeowners are turning to short sales as an alternative to foreclosure, Housing Predictor says the small number of short sales that are actually approved by banks represent less than 1 percent of all homes facing foreclosure. In the first half of 2009, only 40,000 short sales were completed, according to the most recent data available from the Office of the Comptroller of Currency shows.In addition, Housing Predictor said only an estimated 8 to 12 percent of all homeowners who request short sales accomplish a completed transaction. Because lenders only write off short sales as a loss when a property is sold, this small percentage of completed transactions leaves a gaping hole in the troubled banking industry's problem with short sales.
Source Real Trends
Although short sales are likely to increase in 2010, the jump in these transactions is unlikely to have any real impact on the housing market, according to a new study by Housing Predictor. While more at-risk homeowners are turning to short sales as an alternative to foreclosure, Housing Predictor says the small number of short sales that are actually approved by banks represent less than 1 percent of all homes facing foreclosure. In the first half of 2009, only 40,000 short sales were completed, according to the most recent data available from the Office of the Comptroller of Currency shows.In addition, Housing Predictor said only an estimated 8 to 12 percent of all homeowners who request short sales accomplish a completed transaction. Because lenders only write off short sales as a loss when a property is sold, this small percentage of completed transactions leaves a gaping hole in the troubled banking industry's problem with short sales.
Source Real Trends
Friday, January 8, 2010
FHA to provide early relief to struggling homeowner
FHA to provide early relief to struggling homeowners
In an announcement Friday, HUD said homeowners with mortgages insured by the Federal Housing Administration (FHA) who are experiencing financial hardship are now eligible for loss mitigation assistance before they fall behind on their mortgage payments.Previously, these homeowners were not eligible for such assistance until after they had missed payments. But the Helping Families Save Their Home Act of 2009 signed into law by President Obama expanded FHA's authority to use its loss mitigation tools for borrowers facing "imminent default." FHA issued guidance Friday to its loan servicers on how to assist these homeowners before they default.According to FHA Commissioner David Stevens, FHA has always required lenders to establish early contact with delinquent borrowers to discuss the reason for missing a payment and to evaluate reinstatement options. But now, he says, servicers will have additional options for those homeowners who seek help before they go delinquent, increasing the likelihood that the borrower will be able to retain their home.Effective immediately, the loss mitigation options of forbearance and FHA's Home Affordable Modification Program may be used to assist borrowers facing imminent default. FHA defines a "borrower facing imminent default" to be one who is current or less than 30 days past due on their mortgage obligation, and who is experiencing a significant reduction in income or some other hardship that will prevent them from making the next required payment.Under the agency's forbearance program, the loan servicer can agree to postpone, reduce, or suspend payments due on a loan for a limited and specific time period. FHA-HAMP allows qualified FHA-insured borrowers to reduce their monthly mortgage payment to an affordable level by permanently reducing the payment through the use of a partial claim combined with a loan modification. The partial claim defers the repayment of a portion of the mortgage principal through an interest-free subordinate mortgage that is not due until the first mortgage is paid off. The remaining balance is then modified through re-amortization and in some cases, an interest rate reduction.The borrower must be able to document the cause of the imminent default, such as unemployment or reduced pay, or a change in household financial circumstances such as a death in the family or serious illness. FHA said loan servicers are required to document the basis for their determination that a payment default is imminent and retain all documentation used to reach that conclusion. The servicer's documentation must also include information on the borrower's financial condition.Source: Carrie Bay, DSNews.com
In an announcement Friday, HUD said homeowners with mortgages insured by the Federal Housing Administration (FHA) who are experiencing financial hardship are now eligible for loss mitigation assistance before they fall behind on their mortgage payments.Previously, these homeowners were not eligible for such assistance until after they had missed payments. But the Helping Families Save Their Home Act of 2009 signed into law by President Obama expanded FHA's authority to use its loss mitigation tools for borrowers facing "imminent default." FHA issued guidance Friday to its loan servicers on how to assist these homeowners before they default.According to FHA Commissioner David Stevens, FHA has always required lenders to establish early contact with delinquent borrowers to discuss the reason for missing a payment and to evaluate reinstatement options. But now, he says, servicers will have additional options for those homeowners who seek help before they go delinquent, increasing the likelihood that the borrower will be able to retain their home.Effective immediately, the loss mitigation options of forbearance and FHA's Home Affordable Modification Program may be used to assist borrowers facing imminent default. FHA defines a "borrower facing imminent default" to be one who is current or less than 30 days past due on their mortgage obligation, and who is experiencing a significant reduction in income or some other hardship that will prevent them from making the next required payment.Under the agency's forbearance program, the loan servicer can agree to postpone, reduce, or suspend payments due on a loan for a limited and specific time period. FHA-HAMP allows qualified FHA-insured borrowers to reduce their monthly mortgage payment to an affordable level by permanently reducing the payment through the use of a partial claim combined with a loan modification. The partial claim defers the repayment of a portion of the mortgage principal through an interest-free subordinate mortgage that is not due until the first mortgage is paid off. The remaining balance is then modified through re-amortization and in some cases, an interest rate reduction.The borrower must be able to document the cause of the imminent default, such as unemployment or reduced pay, or a change in household financial circumstances such as a death in the family or serious illness. FHA said loan servicers are required to document the basis for their determination that a payment default is imminent and retain all documentation used to reach that conclusion. The servicer's documentation must also include information on the borrower's financial condition.Source: Carrie Bay, DSNews.com
Tuesday, January 5, 2010
2010 is Here
2010 is HERE………… Is it 20-10 or 2,010?
Coming into 2010, there are many people trying to decipher all the data that is being reported regarding the housing industry. Due to the information highway, we have and use and some times abuse, data is being thrown at us at a high rate. The main goal is to try to bring clarity to a market that has been clouded with confusion for the last Three to four years.
We must not allow the truth to overshadow the facts. What do I mean by that? Let me give you an example. The housing market is better than it was, that is a fact.
But the truth is that home prices in many areas (NOT ALL) are still falling and will continue to fall for a period of time.
Many people except when they hear that the market is doing better that implies we are back to 2005-2007. News Flash….. That is not the case and will not be the case for many years. Prices in many markets are being adjusted. For example, a wise Realtor/Manager told me about equity and people saying that they lost value of their home. That is a misconception, they got their equity early (Prepaid).
Prices must still be adjusted in order for buyers to be able to afford the home. Proof of that is that the government is still subsidizing home purchases by artificially keeping interest rates low and offering tax credits to both first-time and move-up buyers. The good news is that those programs are creating a market for people looking to sell their home now. The bad news is that they will not last forever. The question that begs to be answered is what happens when interest rates rise (the government program that has kept them low ends on March 30) and the tax credit expires (April 30)? It is my belief that, when these inducements fade, so will demand. What will happen in June is the real question, what will banks and the governments do to keep this market moving.
Pricing has always been about supply and demand. The current housing market is no different.
If you are considering selling your house, put it on the market NOW to take advantage of the increased demand before the aforementioned government incentives that created it disappear. And please don’t wait for the distressed properties to come to market.
Edwin Gerace
About Lexington, SC Lexington, SC Homes For Sale Lake Murray, Irmo Homes for Sale West Columbia Homes For Sale
About Edwin Contact Us Curb Appeal List Closing costs - loans Closing costs - Ins. Free Home Valuation Find A Home! How Escrow Works BLOG Search MLS Newsletter South Carolina Facts Realtor Referal About Lexington About Lake Murray About Irmo LINKS Realtor Ethics Kids Eat Free Why a Realtor Real Estate Info Community Links Homes for Sale About Chapin / Ballentine About Forest Acres Heathwood Area Lake Murray Irmo Homes Lake Murray Lexington Homes Lexington Homes Rosewood Area Homes Irmo / St Andrews Homes West Columbia Homes North East Homes Golf Page Dave Ramsey Lexington Town of Lexington Lexington County Lexington Cities Lexington Zip Codes Lexington Neighborhoods Utilities Lexington County Data Richland County Data About Edwin Gerace Medium Sales Price Community Grant Seminar American Town TheZoo Things to Do Lake Level SCDOT-Traffic Columbia Attractions Sporting Events Travel to Columbia Columbia Events Area Events Famously Hot Lexington County Info Lexington Chamber South Carolina Realtors Columbia Realtors Russell & Jeffcoat Home Buyer Seminar Press Release Just Lexington Home Buyer Closing Costs First Time Buyers For Buyers Press Release Selling Your Home Our Featured Homes Home Applying for a Loan Bi-Weekly Mortgage Your Buying Power Neighborhood Prices Staging Your House 9 Steps to Owning Site Map ARM Calc Fixed Rate Mtg Calc 15 vs 30 Year Mtg Calc Mtg Tax Savings Calc Mortgage Qualifier Calc Required Income Calc Maximum Mortgage Calc Refi Interest Savings Calc Refi Breakeven Calc Mortgage Calculators The Kitchen Ethics in Real Estate Home Appreciation Home Price Index My Blog
.
Coming into 2010, there are many people trying to decipher all the data that is being reported regarding the housing industry. Due to the information highway, we have and use and some times abuse, data is being thrown at us at a high rate. The main goal is to try to bring clarity to a market that has been clouded with confusion for the last Three to four years.
We must not allow the truth to overshadow the facts. What do I mean by that? Let me give you an example. The housing market is better than it was, that is a fact.
But the truth is that home prices in many areas (NOT ALL) are still falling and will continue to fall for a period of time.
Many people except when they hear that the market is doing better that implies we are back to 2005-2007. News Flash….. That is not the case and will not be the case for many years. Prices in many markets are being adjusted. For example, a wise Realtor/Manager told me about equity and people saying that they lost value of their home. That is a misconception, they got their equity early (Prepaid).
Prices must still be adjusted in order for buyers to be able to afford the home. Proof of that is that the government is still subsidizing home purchases by artificially keeping interest rates low and offering tax credits to both first-time and move-up buyers. The good news is that those programs are creating a market for people looking to sell their home now. The bad news is that they will not last forever. The question that begs to be answered is what happens when interest rates rise (the government program that has kept them low ends on March 30) and the tax credit expires (April 30)? It is my belief that, when these inducements fade, so will demand. What will happen in June is the real question, what will banks and the governments do to keep this market moving.
Pricing has always been about supply and demand. The current housing market is no different.
If you are considering selling your house, put it on the market NOW to take advantage of the increased demand before the aforementioned government incentives that created it disappear. And please don’t wait for the distressed properties to come to market.
Edwin Gerace
About Lexington, SC Lexington, SC Homes For Sale Lake Murray, Irmo Homes for Sale West Columbia Homes For Sale
About Edwin Contact Us Curb Appeal List Closing costs - loans Closing costs - Ins. Free Home Valuation Find A Home! How Escrow Works BLOG Search MLS Newsletter South Carolina Facts Realtor Referal About Lexington About Lake Murray About Irmo LINKS Realtor Ethics Kids Eat Free Why a Realtor Real Estate Info Community Links Homes for Sale About Chapin / Ballentine About Forest Acres Heathwood Area Lake Murray Irmo Homes Lake Murray Lexington Homes Lexington Homes Rosewood Area Homes Irmo / St Andrews Homes West Columbia Homes North East Homes Golf Page Dave Ramsey Lexington Town of Lexington Lexington County Lexington Cities Lexington Zip Codes Lexington Neighborhoods Utilities Lexington County Data Richland County Data About Edwin Gerace Medium Sales Price Community Grant Seminar American Town TheZoo Things to Do Lake Level SCDOT-Traffic Columbia Attractions Sporting Events Travel to Columbia Columbia Events Area Events Famously Hot Lexington County Info Lexington Chamber South Carolina Realtors Columbia Realtors Russell & Jeffcoat Home Buyer Seminar Press Release Just Lexington Home Buyer Closing Costs First Time Buyers For Buyers Press Release Selling Your Home Our Featured Homes Home Applying for a Loan Bi-Weekly Mortgage Your Buying Power Neighborhood Prices Staging Your House 9 Steps to Owning Site Map ARM Calc Fixed Rate Mtg Calc 15 vs 30 Year Mtg Calc Mtg Tax Savings Calc Mortgage Qualifier Calc Required Income Calc Maximum Mortgage Calc Refi Interest Savings Calc Refi Breakeven Calc Mortgage Calculators The Kitchen Ethics in Real Estate Home Appreciation Home Price Index My Blog
.
Snap Shot look at Short Sales
There is some great issues with banks and learning the systems of "Short Sales" but over the last year. The banks have not been willing to work with the consumers. The banks are not willing to be timely with the getting information to the new buyers. The banks are not willing to work with in a timely manor with the sellers.
Studies have shown that it costs the bank more money if a property was foreclosed upon than if they accepted a 'short sale'. For homeowners, a 'short sale' makes much more sense for several reasons:
1- There is a much higher chance that the deficiency judgment could be negotiated in a short sale versus a foreclosure.
2- A short sale would have less of a negative impact on the homeowner's credit rating.
3- The homeowner would have at least some control over the timing of their relocation to new living arrangements.
4- A 'short sale' would allow the homeowner to leave with dignity.
5- It does not leave a house vacant for a year or more and bring other bank owned homes value down due to condition of subject property.
6- And Finally it just makes sense ( Banks don’t get it)
Just ten years ago, 37.4 percent of all mortgage loans were securitized (thus requiring a servicing company). Today, that number is 79.3 percent. Servicing companies actually collected more fees for a foreclosure than they did for a 'short sale'. Actually, the servicing company would lose money if they did a 'short sale'.
The federal government realizing that modifications were not the answer and banks realizing that the foreclosure process was too expensive, have agreed to change the fee structure to make it more profitable for the servicing companies to lean toward 'short sales'
Now knowing that information the process for short sales over the last 6 months to a year have become easier on everyone with one exception. While the process is easier, the volume has increased to the point that customer service has been thrown out the window and time of the essence is not spoken of.
My advice:
1- If you are in the need of a short sale, contact someone locally to help you through the process ( Loss Mitigation Specialist or an attorney). I can recommend someone to you if you need that assistance.
2- If you are interested in purchasing a Short Sale home, understand the process and understand it takes time and 85% of the time the delays are not the agents, or sellers fault. However, work with an agent that has done these type of transaction before. I can recommend someone to you if you need that assistance.
Studies have shown that it costs the bank more money if a property was foreclosed upon than if they accepted a 'short sale'. For homeowners, a 'short sale' makes much more sense for several reasons:
1- There is a much higher chance that the deficiency judgment could be negotiated in a short sale versus a foreclosure.
2- A short sale would have less of a negative impact on the homeowner's credit rating.
3- The homeowner would have at least some control over the timing of their relocation to new living arrangements.
4- A 'short sale' would allow the homeowner to leave with dignity.
5- It does not leave a house vacant for a year or more and bring other bank owned homes value down due to condition of subject property.
6- And Finally it just makes sense ( Banks don’t get it)
In the past, the banks used to process the loan (take the application, put together the file, etc.), lend you the money, and service the loan (send the bills, make collection calls, follow-up, etc.).
Over the last eight to ten years, the lending of mortgage money has shifted. First Wall Street and then the federal government became the primary lender in the mortgage sector. But, neither Wall Street nor the government had any interest in processing or servicing the mortgage. Mortgage companies continued to process the loans, but a new industry was created to fill the need for the servicing of these loans. So now, a separate and independent entity is servicing a tremendous portion of existing mortgages.
Over the last eight to ten years, the lending of mortgage money has shifted. First Wall Street and then the federal government became the primary lender in the mortgage sector. But, neither Wall Street nor the government had any interest in processing or servicing the mortgage. Mortgage companies continued to process the loans, but a new industry was created to fill the need for the servicing of these loans. So now, a separate and independent entity is servicing a tremendous portion of existing mortgages.
Just ten years ago, 37.4 percent of all mortgage loans were securitized (thus requiring a servicing company). Today, that number is 79.3 percent. Servicing companies actually collected more fees for a foreclosure than they did for a 'short sale'. Actually, the servicing company would lose money if they did a 'short sale'.
The federal government realizing that modifications were not the answer and banks realizing that the foreclosure process was too expensive, have agreed to change the fee structure to make it more profitable for the servicing companies to lean toward 'short sales'
Now knowing that information the process for short sales over the last 6 months to a year have become easier on everyone with one exception. While the process is easier, the volume has increased to the point that customer service has been thrown out the window and time of the essence is not spoken of.
My advice:
1- If you are in the need of a short sale, contact someone locally to help you through the process ( Loss Mitigation Specialist or an attorney). I can recommend someone to you if you need that assistance.
2- If you are interested in purchasing a Short Sale home, understand the process and understand it takes time and 85% of the time the delays are not the agents, or sellers fault. However, work with an agent that has done these type of transaction before. I can recommend someone to you if you need that assistance.
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Edwin Gerace's Lexington SC Real Estate Blog
About Me
- Lexington Real Estate with Edwin Gerace
- Lexington, SC, United States
- Edwin Gerace is Realtor with Holiday Builders in Lexington South Carolina. Edwin specializes in New Construction and 1st Time Home Buyers. Edwin is very active in Lexington South Carolina and is knowledgeable about the surroundings. Edwin is very active in his profession and community such as: On active committees with the Columbia Home Builders, active and on committees with Lexington Chamber of Commerce, Town of Lexington Performing Arts Center, Green Building Council of HBA, LORADAC, State Association of Realtors on State and Local Level, and many other community oriented service groups.