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By Jerry Pinkas
Carolina Forest Chronicle
A short sale is a sale of real estate in which the sale proceeds fall short of the balance owned on the property’s loan. It occurs when a borrower cannot pay the mortgage loan for reasons such as unemployment, reduced income, divorce, medical emergency, job transfer out of town, bankruptcy, or death in the family. The lender decides that selling the property at a moderate loss is better than pressing the borrower. Both parties consent to the short sale process because it allows them to avoid foreclosure.
It is very important for sellers and buyers to understand what a short sale is and the process it takes. Because many buyers do not understand the short sale process, they become impatient. Actually, the buyers who cancel the transaction prior to short sale approval are the biggest problem facing short sale specialists.
In simpler words, a short sale is a win-win solution for the current home owner, the lender, and also the buyers. The bank/lender gets the highest price for a quick sale at the current market price. The homeowner gets his credit restored and gets relief from possible future legal actions like a foreclosure. In a short sale, the homeowners get complete relief from all of their mortgage debt. For a buyer, a short sale is also a win-win situation because he can own a great property for a fantastic price.
There are procedures the homeowners need to go through with the lender. The homeowner needs to prepare a financial package for submission the short sale bank. Each bank has its own guidelines, but the basic procedures are similar. The short sale package will consist of a letter of authorization, which lets the agent speak to the lender, completed financial statement, seller’s hardship statement, two years of tax returns and W-2’s, recent payroll stubs, last two months of bank statements, HUD-1 or preliminary net sheet, and comparative market analysis or list of recent comparable sales. This will let the lender understand that the seller cannot continue paying for the property, not that he just doesn’t want to.
The typical short sale process at the bank may go like this: bank acknowledges receipt of the file, a negotiator is assigned, a BPO (broker price opinion) is ordered, the file is sent for review, the bank may want an Arm’s-Length Affidavit signed, then the bank issues a short sale approval letter.
Horizon 2010: Real estate prices to stabilize
Sunday, Feb. 21, 2010
By Adva Saldinger - The Sun News
The worst is over in the Grand Strand real estate market, with 2010 bringing continued sales increases and price stabilization, according to industry professionals.
"I think it's just going to be a slow uphill climb the rest of the year to get back to the levels of a balanced market," said Alex Holbert, the president of the Coastal Carolinas Association of Realtors. "We had a strong start to the year, which I hope is not an anomaly. On balance, I think we'll come out better than last year."
After a rough start in 2009, residential home sales finished up 3 percent and condominium sales finished up 7 percent for the year, according to the Multiple Listing Service. "[Sales] got so bad a year ago that it has to get better," said Tom Maeser, a real estate analyst with the Realtor association.While the real estate market has improved, it will not continue on that path until businesses start hiring and the double-digit unemployment rate drops, he said. If interest rates continue to stay low and banks ease lending standards a bit, then things may look up, Maeser said. And the home buyer tax credit, which helped jump-start sales in 2009 and was extended to the spring, will be another factor influencing sales in 2010.
"I still think we're going to be one of the first recovering areas and recover quickly if those things happen because we have a pent-up demand," he said.
The number of properties on the market has been declining, which is a good sign and could help lead to a stabilization of prices, Maeser said.
"The only time we're going to see a recovery in average sales price is if we get rid of the short sales and foreclosures," he said.
Short sales will persist.
Short sales, which have become popular as homeowners are struggling to keep their homes, occur when a seller tries to avoid foreclosure by negotiating with the lender to sell the property for less than the amount owed on the mortgage.
The number of short sales will likely increase this year, said Greg Harrelson, the owner of Century 21 The Harrelson Group.
"It's not that there's that many more people in trouble," he said. "It's really consumer awareness that it is an option."
The number of foreclosures may drop a bit but will stay at an elevated number, Harrelson said. The number of short sales and foreclosures are causing prices to decline.
"We still see a little bit of downward pressure because of short sales," Harrelson said. "At the end of the year, my personal thought is we may see some sort of stabilizing."
The median price - the price at which half of properties sold for more and half sold for less - for single-family homes was down 12 percent to $175,000 in 2009. The median condo price dropped 19 percent to $128,000 last year, according to the MLS.
"You're still going to see some good deals, but you're going to see a general firming up of prices," said Rod Smith, the director of general brokerage at Coldwell Banker Chicora. "I honestly believe that we are going to see a slow and steady increase in the number of sales and we're going to see a slow and steady stabilization in prices."
Financing properties
The consensus is that the market has hit the bottom, and that is translating into more interest from potential buyers, he said. One of the biggest remaining issues is the strict regulations buyers are facing when they try to get a loan so they can buy a property, Smith said.
"Lenders have money to lend, not under the same scenarios that we had them two years ago, but there is money available to borrow," said Rhonda Marcum, the executive director of the Mortgage Bankers Association of the Carolinas.
There will continue to be relatively strict requirements for borrowers, who must have good credit scores and a large down payment, she said. The criteria bankers used a few years ago were not strict enough, as is evident with the number of delinquencies and defaults during the past couple years, Marcum said.Borrowers may have more difficulty getting loans along the Grand Strand because many of them are buying second homes or investment properties.
"For investment and second homes it is tougher than it's ever been. The potential purchaser is going to have more invested... I don't see that going away in 2010 or 2011," Marcum said.
The challenges in getting financing, especially for second homes and investment properties, have fueled a surge in cash sales.
Last year, 37 percent of all Grand Strand real estate sales were cash, the largest percentage in at least 15 years, with 52 percent of transactions paid for with conventional financing and 11 percent with other forms of financing such as a Federal Housing Administration or Veterans Administration loan, according to the MLS.
Many of Radha Herring's buyers are bringing cash to the table. Herring, the broker-in-charge of the Watermark Real Estate Group, works with a lot of investors and people looking to buy oceanfront condos.
Those cash buyers are helping drive prices further down, because there is a limit to how high a price people can pay in cash, she said.
Sales will continue to rise
While Herring said prices will continue to fall, she expects sales will continue to rise, based on the number of inquiries Watermark received in January.
Other real estate agents across the Grand Strand are receiving more calls, e-mail queries and showings.
"I feel that we're going to see an increase in traffic, that's people looking, which they've been reluctant to do," said Chuck Houseman of The Litchfield Co.
He said that Georgetown County and the south end have not experienced the same volume of foreclosures and distressed properties as other parts of the Grand Strand.
"Across the board... I would say that this year will be improved over last year unless something unusual happens, something ... that would curtail the confidence people are showing," Houseman said.
Home buyer tax credit
When the home buyer tax credit expires, it will likely have some impact on sales, Houseman said. The tax credits - which give first-time home buyers a credit of up to $8,000 and other buyers up to $6,500 - are scheduled to expire this spring. Buyers must sign a contract by April 30 and close on the house by June 30 to qualify for the credit.
"Even though it's hard to measure the future, common sense would tell you that might have a slowing down effect temporarily," Houseman said.
The tax credit has prompted some of Harrelson's clients to buy. If it is not extended, sales will decline, but not as much if consumer confidence hadn't ticked up, he said.
"One good thing that I see is consumer confidence in buying real estate seems to be increasing," he said. "Because confidence is so high right now, I think there would be less impact."
Buyers have gotten more conservative with price, he said. About 73 percent of the properties purchased last year in Horry County and 50 percent of properties purchased in Georgetown County sold for less than $225,000, according to Site Tech Systems, a local company that tracks the real estate market.
The most expensive properties are still seeing the biggest discounts, while the under $200,000 market will probably continue to be the most successful in 2010, Harrelson said.
Posted At : February 19, 2010 10:10 AM
| Posted By : The Weichert Team
Related Categories:
Weichert Open Houses, Carolina Forest real estate, Myrtle Beach South Carolina real estate, coastal South Carolina real estate, North Myrtle Beach real estate, Grand Strand area, Myrtle Beach real estate, Carolina Forest Myrtle Beach, Surfside Beach real estate, Myrtle Beach SC, South Carolina real estate, beach property in Myrtle Beach, WEICHERT, REALTORS
Looking for Myrtle Beach Real Estate?
Get out and enjoy the beautiful weather this weekend and come visit one of Weichert's Open houses. Who knows, you may find the home you've been looking for! Feel free to call one of Weichert Realtors Southern Coast's Sales Associates today, for help in finding the locations of this weekend's open houses.
Open House: 02/21/2010 -02/21/2010 from 1:00 PM - 4:00 PM
| Address: |
1100 Commons Blvd. Myrtle Beach SC 29572 |
Open House: 02/21/2010 -02/21/2010 from 1:00 PM - 4:00 PM
| Address: |
237 Wedgefield Drive Conway SC 29526 |
For a complete list of this weekend's open houses, Click Here.
Located in Murrells Inlet, SC, Blackmoor is one of the most beautiful golf course communities in the Myrtle Beach real estate area. The golf course is designed by world-renowned golf-course architect Gary Player, making it fun yet challenging for residents. Just a short drive from the many attractions of Myrtle Beach as well as Wilmington, NC, this Murrells Inlet community is a great place to live.
Take a look at some of the homes currently available in Blackmoor from Southern Coast Realtors.
| Property 1 of 18 |
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| MLS Number: |
826291 |
| Listing Price: |
$271,500 |
| Town: |
Murrells Inlet SC 29576 |
| Section / Subdivision: |
Blackmoor |
| Br / Ba: |
3 / 2 |
| For detailed information Click Here |
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| Property 2 of 18 |
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| MLS Number: |
826618 |
| Listing Price: |
$274,900 |
| Town: |
Murrells Inlet SC 29576 |
| Section / Subdivision: |
Blackmoor |
| Br / Ba: |
3 / 2 |
| For detailed information Click Here |
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| Property 3 of 18 |
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| MLS Number: |
810241 |
| Listing Price: |
$275,000 |
| Town: |
Murrells Inlet SC 29576 |
| Section / Subdivision: |
Blackmoor |
| Br / Ba: |
3 / 2 |
| For detailed information Click Here |
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| Property 4 of 18 |
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| MLS Number: |
711366 |
| Listing Price: |
$299,500 |
| Town: |
MURRELLS INLET SC 29576 |
| Section / Subdivision: |
Blackmoor |
| Br / Ba: |
3 / 2 |
| For detailed information Click Here |
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| Property 5 of 18 |
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| MLS Number: |
811493 |
| Listing Price: |
$299,999 |
| Town: |
Murrells Inlet SC 29576 |
| Section / Subdivision: |
Blackmoor |
| Br / Ba: |
3 / 3 (1 Half Baths) |
| For detailed information Click Here |
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| Property 6 of 18 |
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| MLS Number: |
824653 |
| Listing Price: |
$310,000 |
| Town: |
Murrells Inlet SC 29576 |
| Section / Subdivision: |
Blackmoor |
| Br / Ba: |
3 / 2 |
| For detailed information Click Here |
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| Property 7 of 18 |
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| MLS Number: |
807200 |
| Listing Price: |
$315,000 |
| Town: |
MURRELLS INLET SC 29576 |
| Section / Subdivision: |
Blackmoor |
| Br / Ba: |
3 / 2 |
| For detailed information Click Here |
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| Property 8 of 18 |
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| MLS Number: |
825374 |
| Listing Price: |
$315,000 |
| Town: |
Murrells Inlet SC 29576 |
| Section / Subdivision: |
Blackmoor |
| Br / Ba: |
3 / 2 |
| For detailed information Click Here |
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| Property 9 of 18 |
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| MLS Number: |
816665 |
| Listing Price: |
$330,000 |
| Town: |
Murrells Inlet SC 29576 |
| Section / Subdivision: |
Blackmoor |
| Br / Ba: |
3 / 2 |
| For detailed information Click Here |
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| Property 10 of 18 |
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| MLS Number: |
810627 |
| Listing Price: |
$339,500 |
| Town: |
Murrells Inlet SC 29576 |
| Section / Subdivision: |
Blackmoor |
| Br / Ba: |
3 / 2 |
For detailed information Click Here
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Posted At : October 9, 2008 10:34 AM
| Posted By : Weichert Realtors
Related Categories:
South Carolina, Pawleys Plantation, Hunters Ridge, Arrowhead, North Carolina, Covington Lake subdivision, Lakes of Lockwood, Grand Strand area, Seaside Plantation, July 4th, real estate in Myrtle Beach, Inflation, Interest and Mortgage Rates, Myrtle Beach South Carolina real estate, WEICHERT, REALTORS, North Myrtle Beach oceanfront real estate, Carolina Forest real estate, Litchfield Plantation, protect your real estate, Loris, Mortgage, Myrtle Beach SC, Myrtle Beach real estate, Myrtle Beach condos
Two encouraging bits of real estate news brightened my morning today.
First, pending home sales, based on contracts signed in August, jumped unexpectedly to the highest level since June 2007. According to Lawrence Yun, chief economist for the National Association of Realtors, this improvement was a result of improved affordability and lower interest rates.
In addition, the Mortgage Bankers Association reported that mortgage applications increased 2.2 percent last week due to lower home loan rates.
More pending home sales and loan applications mean more closed business. Paired with the expectation of freer credit moving forward and the $7,500 buyer tax credit, this is all promising news for the real estate industry.
"It pays to ask" and it also pays to tell. Pick up the phone and share this news with your prospects and clients. Let them know that now is the time to buy.
Let's move this market,
Posted At : October 2, 2008 9:37 AM
| Posted By : Weichert Realtors
Related Categories:
South Carolina, Pawleys Plantation, Hunters Ridge, Arrowhead, North Carolina, Covington Lake subdivision, Lakes of Lockwood, Grand Strand area, Seaside Plantation, July 4th, real estate in Myrtle Beach, Inflation, Interest and Mortgage Rates, Myrtle Beach South Carolina real estate, WEICHERT, REALTORS, North Myrtle Beach oceanfront real estate, Carolina Forest real estate, Litchfield Plantation, protect your real estate, Loris, Mortgage, Myrtle Beach SC, Myrtle Beach real estate, Myrtle Beach condos
Credit Update!
Do not believe everything you hear on the NEWS! You are witnessing a POLITICAL tug of war right now.
I have had several of my business partners (Agents) call and ask me if it is getting harder to lend money…here is the bottom-line, you can pass this information off to your clients & prospects if you wish.
FHA is financing 97% of the purchase price. SunTrust is STILL financing 95% second home. The Mortgage Insurance companies have put higher credit score requirements in place, but the biggest challenge would be on 2nd home and investor properties with most of what I have been seeing for second homes credit scores being over 680…NO PROBLEM… otherwise we FHA for lower scores on primary home, and get a better rate anyway.
THE SKY IS NOT FALLING!
- USDA & VA is lending 100%. For information on Rural Development, feel free to call me. You will be surprised to know how much of our area qualifies for that product.
- Fannie & Freddie…Like I said, we still do 95% financing on both Primary & Second home
- Jumbo Money…Still available and strong.
I saw a report the other day that showed that the national sale price had only dropped 2.2% over the last couple months. (CNBC) That is great news, and shows a potential bottom.
courtesy of ed bucchino
Myrtle Beach, S.C., May 9, 2008 — wEICHERT, REALTORS®- Southern Coast has announced the addition of experienced sales associate Darlene “DJ” Marshall to its Carolina Forest office. Specializing in residential sales and relocation, she serves clients from Murrells Inlet to Carolina Forest and all surrounding area beaches. She has earned the GRI (Graduate, REALTORS® Institute) designation.
The Aliquippa, Pennsylvania native is a certified veterinarian assistant. Prior to real estate, her work experience included many years in areas of sales and management relative to the construction industry. She is active in the community through membership in a church-affiliated women’s group.
Marshall can be reached at WEICHERT, REALTORS® - Southern Coast, telephone (843) 903-4443.
Still looking for that perfect property along the Grand Strand or surrounding Myrtle Beach areas? Well there has never been a better time than now...
Below are a few of our featured listings. These are only a few of the many properties currently available.
Community: Colonial Charters - 117 Stegal Circle, Longs SC
It's Panic Time - Owner can't hold out, so this 4BR/2.5BA newly constructed home has been reduced. Call or just stop by the open house and see this amazing home for yourself. MLS# 731482 Listed by Nannette Nelson.
If you're in town here's a map to this fantastic home or you can preview the virtual tour. Click here for more information on this property.
Community: Arrowhead -669 Tidal Point Lane, Myrtle Beach SC
A Trophy House - Forget understated elegance. This 4BR/3BA traditional style home exudes quality with every modern amenity imaginable. Everything about this residence is impressive except the price. MLS# 807629
Listed by Sean Kort.
If you're in town here's a map to this fantastic home or you can preview thevirtual tour. Click here for more information on this property.
Posted At : April 24, 2008 8:20 AM
| Posted By : The Weichert Team
Related Categories:
Grand Strand area
Myrtle Beach, S.C., April 23, 2008-- New Realtor Sherry J. Walker begins her real estate career as a residential specialist with WEICHERT, REALTORS®- Southern Coast in Carolina Forest. She serves clients in Myrtle Beach and surrounding areas.
Born in Wilmington, North Carolina, Walker is a five-year resident of Myrtle Beach. She holds two associate degrees, one in social science and the second in paralegal studies. Prior to real estate, she worked in the field of paralegal management. She is a member of the congregation at The River.
Walker can be reached at WEICHERT, REALTORS® - Southern Coast, telephone (843) 903-4443.
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