Will I get More Money if I wait?

Sellers want to get the best price for their home and many of them think that by waiting they will see a higher price. However, if they are planning to sell within the next year, today's price may be the highest they will get. Check out today's post below to see why waiting to sell may not make sense.

Sellers in any real estate market are looking to get the best possible price. If you are looking to sell in the next year, today’s price may well be the best price. Home values stabilized somewhat in 2010. Many hoped that was a sign that values had bottomed out and we would see price appreciation in 2011. Studies released this week have painted a different picture.
If we look at CoreLogic’s January Home Price Index (HPI), we see that prices are again beginning to decline:

National home prices, including distressed sales, declined by 5.7 percent in January 2011 compared to January 2010…
Mark Fleming, chief economist with CoreLogic, said, “A number of factors continue to dampen any recovery in the housing market. Negative equity, which limits the mobility of homeowners, weak demand and the overhang of shadow inventory all continue to exert downward pressure on housing prices. We are looking out for renewed demand in the coming months as the spring buying season gets underway to hopefully reduce the downward pressure.”

They are not talking about the spring market increasing or even stabilizing prices. They hope it will “reduce” the pressure to drive prices lower.
Radar Logic’s RPX Composite Price comes to virtually the same conclusion:

Radar Logic believes the RPX Composite price will continue to exhibit year-on-year declines throughout 2011 due to a growing supply of homes for sale and in the inventories of financial institutions, and weakening demand due to the reduction of government incentives for home buyers. Moreover, banks are facing uncertainty over whether they will be forced by regulators to expand mortgage modifications, and may reduce lending and tighten standards as a result.
“No matter what you call it, a ‘double dip’ or the continuation of a long process of deterioration, the current trend in home prices is evidence that housing markets are continuing to languish,” said Quinn Eddins, Director of Research at Radar Logic. “We expect the negative trend to continue under a severe supply overhang that includes a large and growing ‘shadow inventory’ of homes in default or foreclosure.”

Bottom Line

It seems that prices have again begun to fall nationally. With the overhang of existing and shadow inventory, prices will probably continue to decline throughout most of 2011. If you’re thinking of selling, now might be the best time. Check with a local real estate professional to see how this might impact your area.

Roz Bailey
704-913-4754

Mortgage rates have become a wait and see scenario

Mortgage rates have become a wait and see scenario

Mortgage rates have been pretty erratic throughout the month of January. Last week, mortgage rates mostly made up for the subtle decline we saw the week before:

HSH.com’s overall mortgage tracker — our weekly Fixed-Rate Mortgage Indicator (FRMI) — found that the overall average rate for 30-year fixed-rate mortgages increased by a mild six basis points, landing at an average 5.11% during a holiday-shortened week. FHA-backed 30-year FRMs, a considerable and crucial part of the first-time homebuying market, ticked just three basis points upward to 4.75% for the week. Borrowers looking to alternatives to the benchmark 30-year FRM might consider a 5/1 Hybrid ARM, which is available at an attractive 3.82%, up just a lone basis point from the week prior. The gap between long-term fixed rates and the most common hybrid ARM should makes them at least a consideration for homebuyers and refinancers with short time horizons. HSH.com’s FRMI and other public data series includes rates for conforming, jumbo, and most recently the GSE’s “high-limit” conforming products and so cover much of the mortgage-borrowing public.

A lack of clear direction

So far this year, mortgage rates have been locked in a bob-and-weave pattern, an up-and-down, back-and-forth motion. One of the main reasons for this is the economy’s lack of clear direction:

Mortgage rates took back last week’s little decline, as what seems to be a lack of a clear direction for the economy has helped them to find a plateau. Unlike the last quarter of last year, when economic improvement was trending higher, it may just be that we’ve gotten to a “wait and see what develops” kind of state.

Positive sign for 2011?

As we mentioned last week, December’s existing-home sales showed quite an improvement last month, and if the sales trend continues into the winter, we should be better suited to handle the influx of housing inventory that will surely be supplied by continued foreclosures:

As we move away from distortions in the market created by on-again, off-again tax incentives, we should be able to again discern true demand levels for housing. With low interest rates still in place and affordability at very high levels, existing home sales managed to jump to an annualized rate of 5.28 million in December, the highest such figure in more than six months. The kick higher in sales came even as interest rates were firmer than many periods earlier in the year, and also drained some inventory out of the market, drawing it down to 8.1 months of available homes at the present sales pace. More inventory is slated to hit the market in 2011 as foreclosures continue unabated. Still, that there is growing demand for homes as the economy has shown signs of life does portend well for the market in 2011, and increasing employment opportunities during the year may even forestall or even cancel some expected foreclosures.

Should the economy improve enough for that to happen, it would be truly good news.

Roz Bailey
704-913-4754

South Carolina Homeownership and Employment Lending Program (SC HELP)

If you know of someone who can benefit from this federally-funded program, please share with them!

“SC HELP is intended to help responsible borrowers!”

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.

Roz Bailey

River Hills Palntation in Lake Wylie, South Carolina 29710

River Hills Plantation is a unique Charlotte area country
club community. It was carefully designed and is beautifully
maintainedwith it's natural beauty and serenity.

Nearly 1,100 homes and a championship golf course blend into this park-like

setting of rolling hills, lush tree canopy and lake vistas. Lake Wylie surrounds

much of the community, providing year-round water activities. A private, blue-flag

awarded marina offers executive offices and business services and full-service

boat slips as well as lake access for those residents not on the water. A ten

court tennis complex, swimming pools, a covered pavilion, private parks,

community gardens and play areas provide activities for all ages.

Homes range from affordable, cedar-sided condominiums and free-standing

houses to spectacular lakeside private estates. This wide range of options

promotes a diverse community. An active Country Club, on-site Service

Clubs and strong volunteerism with local charities enhances community

activities and spirit.

River Hills is gated with a private security force continuously patrolling

the streets and entrances. Its own no-cost emergency medical service

contributes to the feeling of security and peace.

Located only 20 minutes from Charlotte, North Carolina (and Gastonia,

NC and Rock Hill, SC) we are close to medical care, education, arts,

sports and fine dining and shopping. Fortunately, York County,

South Carolina has low taxes and the exceptional Clover School District.

Roz Bailey

704-913-4754

RozBailey.com

Roz.Bailey@atcmail.com

Camp Thunderbird in Lake Wylie, South Carolina 29710

Since 1936 Camp Thunderbird has provided thousands of kids an unforgettable experience that includes adventure, fun, and friendship! Camp Thunderbird has nationally recognized water programs, including wakeboarding, water skiing, sailing, kayaking, canoeing, water slides and “the Blob”. They offer 28 land activities including horseback riding, skating, high and low ropes courses, sports, and crafts. Their resident camp provides boys and girls an exciting, safe experience that they will remember for a lifetime.

YMCA Camp Thunderbird operates throughout the year as a summer resident camp, environmental education center, day camp and afterschool site and conference and retreat center. Located on beautiful Lake Wylie, S.C., their 100-acre camp is 20 minutes south of Charlotte, N.C., and is easily accessible from all directions. Their goal is to provide facilities, service and programs that make your visit to Camp Thunderbird an amazing experience leading to lifelong memories.

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Lake Wylie, South Carolina

Lake Wylie, South Carolina is a vibrant and thriving community where geography, people and economic vitality have fashioned a distinctive Southern lifestyle. The leisure and excitement of lakeside living, our comfortable, small town atmosphere and convenient proximity to regional commercial and cultural centers make Lake Wylie the perfect setting to live and do business.

For enterprising individuals, growing families and active retirees, Lake Wylie is indeed the perfect setting for home and business. Nestled on the northwest shore of 12,455-acre Lake Wylie in York County, our community is ideally situated for both work and play. Lake Wylie is 17 miles from Charlotte, one of the nation's fastest rowing commercial and financial centers and site of Charlotte Douglas International Airport; 15 miles from Rock Hill, strongly emerging as an economic hub in piedmont South Carolina; and less than 75 miles from Columbia, the capital of the Palmetto State.

Residents of Lake Wylie also enjoy the advantage of living little more than a three-hour drive from the celebrated Carolina beaches and the beautiful Blue Ridge Mountains. Easy access to all points beyond the engaging surroundings of Lake Wylie, if desired, is provided by SC Highway 49, I-77 and I-85.

Our location, quality of life and the productive involvement of our residents have helped establish a dynamic business environment. Carefully planned infrastructure improvements and close attention to preserving the area's natural beauty assure continued quality growth.   The Lake Wylie community offers a wide range of housing options. Elegant lakeside living, cozy wooded neighborhoods and spacious, convenient condominiums add to the feeling that you are enjoying life in a year-round resort.

The Lake Wylie community has the additional advantage of an excellent educational system. The schools our children attend are among the best in the state, employing highly qualified and dedicated teachers, building outstanding learning facilities and providing students with effective resources and advanced equipment.

Recreation is an integral part of the Lake Wylie lifestyle. With 325 miles of shoreline, the Lake is ideal for boating, fishing, water skiing and sailing. The temperate, yet wonderfully distinct, seasonal changes not only enhance the area's beauty, but also afford year-round enjoyment of such outdoor pastimes as golf, tennis and bicycling. For sports lovers, the NFL Carolina Panthers, the NBA Charlotte Bobcats play their home games in Charlotte and the Charlotte Knights play professional baseball at Knights Stadium a few minutes away in Fort Mill. Roz Bailey 704-913-4754 http://www.rozbailey.com/

Short Sales

Shortening the Short Sale

In today’s complex housing market, real estate agents are handling an increasing volume of short sales. While many agents view short sales as a win-win for both homeowner and buyer, they can cause many complications if not properly understood and executed.

Since there is no provision in the mortgage agreement for a short sale, the primary lien holder—the mortgage servicer—must approve the homeowner’s request for one. Any additional parties with liens against the property, such as a second mortgage holder, must also approve the request before a short sale can commence. While each short sale scenario is unique and includes numerous variables, the primary benefit to the homeowner is simple—it lets them avoid foreclosure on their credit record at a time when a good credit history is critical for financial and personal reasons.

Homeowners rarely enter into this process on their own—instead they rely on real estate agents, attorneys and/or other vendors to communicate directly with the mortgage servicer. Since each servicer has their own guidelines and requirements, they play the lead role in approving or declining the terms of a short sale.

The Role of MIs in Short SalesGenerally, if the property was purchased with less than a 20% downpayment and required private mortgage insurance (MI), once the servicer determines the sale meets its requirements, they must request the mortgage insurer’s approval of the sale as well.

That’s because the MI company is not obligated to pay a claim until a clear property title is acquired via the foreclosure process, and must waive certain coverage requirements each time they approve a short sale to preserve the insured lender’s coverage.

MI companies generally consider short sale requests for two reasons: for loss mitigation purposes and to provide the homeowner with an alternative to a potential foreclosure. With each request, an in-depth review of the following is conducted:
-Purchase amount relative to property value and seller costs, such as real estate commission: To determine if they are reasonable.
-Loan purpose: To determine why the property was originally bought, i.e., as a primary/second home or an investment property.
-Default situation: To determine the reason why a short sale is being requested.
-Homeowner’s financial situation: To assess the homeowner’s employment status, credit report, income and assets, checking account statements and tax returns to make a decision on the short sale.

Homeowner Contribution and PitfallsWhile many short sales occur due to the homeowner’s obvious financial difficulties, some involve “questionable” hardship, where there does not appear to be financial difficulty so severe as to make a financial contribution impossible. Mortgage insurers strive to make their approval terms favorable so a short sale can be finalized, but it’s important that homeowners with questionable hardship—determined by the in-depth review of the homeowner’s personal and financial situation—realize they may be required to participate financially in the workout. This is typically accomplished via a cash contribution, or execution of an unsecured promissory note to repay a reasonable portion of the loss.

Making Short Sales WorkDespite obstacles that can arise, one of the keys to short sale success is the turnaround time it takes to process each short sale request.

As one of the nation’s largest mortgage insurers, Radian is leading the way in expediting this type of workout. The company estimates it will review more than 11,000 short sale requests in 2010, typically responding to each within two business days with an approval or feedback as to what is needed to obtain an approval.

When it comes to short sales, agents are dealing with homeowners and buyers who, quite simply, cannot afford to wait days—or even months—for an answer. As a behind-the-scenes ally, Radian has the experienced resources in place to move quickly, providing immediate feedback to servicers so they can consider and issue their final approval in the fastest time possible. This ensures a win-win for homeowners, buyers, servicers and agents alike.

More information may be found at www.radian.biz.