More foreclosures likely in South Carolina

No doubt South Carolina’s high unemployment rate will lead to more foreclosures. Couple that with the 90 day hold on foreclosures back in May and there will certainly be a spike of REO in South Carolina in the next few months.

Why are consumers Paying to find real estate Bargins?

According to the National Association of REALTORS® 87% of buyers go online to find a home in most cases before they contact a REALTOR. While there are many home search sites online for free there are also sites that will sell home buyers the opportunity to use their searches for a fee. The question is “Why are consurmers paying to find a bargin?” when a REALTOR can and will find properties in many cases without upfront fees?

As a REALTOR® I certainly appreciate the fact that the home buying public searches online for real estate. What I find troubling is that the so called bargin home search sites charge consumers a fee to sell them old information in some cases. One property I had an REO listing on back in November is still be referred to me as recently as today. The sad part is these bargin hunters have no interest in my helping them locate property. My guess is that they would rather spend their time trying to make sure they get what they are paying for from the bargin search site.

No problem for me there as I’d much rather spend my time helping serious buyers find the bargins and get my pay only when they close on their purchase. The sad truth is that most bargins are quickly snapped up by the buyers working with REALTORS® and it is likely the ‘bargin hunters’ will just spend their time chasing the deals. Copyright© 2009 Sandra Bundy, Broker-in-Charge, B&P, Inc. For more information or assistance in purchasing or selling REO properties in the Pee Dee or along the Grand Strand contact Sandra Bundy.

Response times vary when making offers on REO listings

As an REO agent listing bank owned real estate (or any listing) I take my duty to represent my clients very seriously. As a general rule outside of REO listings buyers agents that submit offers get timely responses on the offers they make on behalf of their clients. On REO properties the process can be much longer and response times vary and hand holding is not an option. Buyers and their agents need to understand the process of buying REO properties and why response times aren’t always what they would like them to be when submitting offers.

Any agent that has ever worked as an REO listing agent is duty bound to submit all offers and aware that ‘time is of the essence’ and it is my practice to notify the buyer agent once I have submitted their offer to the asset manager. This gives the buyer agent assurance that I have indeed put their buyers offer on the table for consideration. While every listing agent doesn’t take the time to give such notice IMHO it would certainly help put an end to the chatter about the issue and let the buyers agent know instead of wonder why they haven’t heard anything about the status.

REO buyer agents need to consider that the listing agent has no control over when a reponse will be received about the offers regardless of what deadlines are placed in the contract. While most REO companies use automated systems for offer submissions one Asset Manager may handle a large volume of properties. The REO listing agent also has other listings, customers and clients they work with on a daily basis. Once a reponse comes back from the Asset Manager the listing agent will act according to their instruction and are constantly graded on their performance and risk the loss of future assignments if they fail to adhere to the companies guidelines.

In many instances offers on REO properties are much lower than the list price and buyers need to understand that the listing agent has in most cases valued the property for sale in ‘as is’ condition and factored in the amount of needed repairs. Buyers Agents need to make sure they advise their clients accordingly and provide them with current market data to help them make an attractive offer if they want to buy the property. To do anything less is to risk the purchase to a better offer.

Recently I submitted a full price offer on a new REO listing and didn’t get any response or acknowledgement of my offer. Because I called the listing agent and informed them I was faxing it over, I knew they received it but I was also informed that another offer had been made on the same property. A few days later I received a fax thanking me for my offer and that no highest and best was requested but they had accepted another offer. As it turned out the other offer was above list price as I learned by seeing the sold data in the MLS.

I’m not complaining about the way the REO listing agent handled my offer or lack of response for several days because I know that is how the process works. I had informed my buyer upfront that it might take a while before we hear anything and that there would be competition for the property. Instead of complaining I moved on with my buyer as this is not the first time we didn’t get an accepted offer but will keep looking until they have found a home. Copyright© 2009 Sandra Bundy, Broker-in-Charge, B&P, Inc. For more information or assistance in purchasing or selling REO properties in the Pee Dee or along the Grand Strand contact Sandra Bundy.

The trouble with looking for real estate bargins

I received the news today that a full price offer I had submitted yesterday as a Buyer Agent on a great REO bargin in Darlington had been passed over completely. It wasn’t that I didn’t know when we submitted the offer there were other offers on the property but what I did not expect was that the seller never looked at the offer. It seems that some of the bargins are under contract before the ink is dry on the listing agreement.

No highest and best, not even a chance that the offer was higher than the other because the first offer was accepted by the Asset Manager without any others being acknowledged. That is good news for Asset Managers and REO Departments working to move an ever growing REO inventory but it can be difficult for buyers that are looking for the little gems out of the pile of foreclosures on the market in South Carolina.

So what is a buyer to do when they are looking for bargins? One of the first rules of thumb is to remember that “Time is of the Essence” and to take that very seriously.

Like any good buyer agent I research listings numerous times a day and when I find a fit for a buyer I let them know it is available. In the case of this latest dissapointment for my buyer one day of delay could have cost them the house. The bargins don’t last long and while there will be others my buyer now knows to move a bit faster when looking for the bargins.

Short sales listings increasing along the Grand Strand

After the State of South Carolina halted foreclosures for 90 days in May the number of potential short sale listings appears to be on the increase in the Myrtle Beach area. While this increase in short sales may not be directly tied to the passage of the foreclosure freeze, homeowners who are unable to make their monthly mortgage payments could be better off selling for less than they owe if they can get their lender approval.

In Myrtle Beach there are currently 137 potential short sale listings for single family homes with only 10 in pending sale status. There have been 22 short sales of single family homes since 1/1/09. By contrast there are currently 379 short sale listings for condo’s in Myrtle Beach and only 12 pending sales. There have been only 20 short sales of condo’s since the first of the year.

Expanding the numbers for all condo units reveals there are 574 potential short sale listings for condo’s with only 23 pending. The residential sector is fairing better with only 300 potential short sale listings and 6 pending sales. In the coming months it is likely that the number of residential homes and condo’s in foreclosure will rise accordingly since it appears that potential short sales that actually close are limited. Copyright 2009. B&P, Inc.For more information contact Sandra Bundy, Broker-in Charge

New law gives tenants extra time after Foreclosures

Tenants that occupy properties that have been through foreclosure have added protection from immediate eviction effective May 20, 2009 when President Obama signed The Protecting Tenants in Foreclosure Act, Title VII of the Helping Families Save Their Homes Act of 2009.

The new law requires the new owners of foreclosed residential units to honor the lease terms of the tenant, with limited exceptions. A minimum 90 day notice is required prior to eviction on occupied units.

Foreclosures Halted in South Carolina for some homeowners

Homeowners that qualify for federal loan modification programs have been given breathing room by the SC Supreme Court. That is good news since the new regulations on loan modifications went into effect for some borrowers and many that may qualify have not taken the opportunity to take steps to save their homes.

With the 90 day hold on owner occupied foreclosures homeowners now will have plenty of time to get modifications worked out with their lenders. Ultimately this could help to reduce the number of foreclosures in South Carolina but it may prove to be temporary since our state ranks among the top for unemployment at 11.2%. The UI rates posted on CNN show SC rates in December of 2008 and illustrate the dramatic rise in jobless numbers in the Palmetto State ranking it among the nations highest.

Three months down the road we may see a large increase in South Carolina foreclosures since many people have lost jobs that would help them qualify for a loan modification. This writer knows a few homeowners who have tried to get their loans adjusted however with lower take home pay, it is impossible for lenders to justify any changes to loan terms. B&P, Inc. Copyright 2009. For more information contact Sandra Bundy, Broker-in Charge

If foreclosures are down why are new REO Listings on the rise?

I’ve had a busy week and received 4 new REO assignments which got me to thinking about what we hear on the nightly news and what I am seeing in my area real estate markets. If foreclosures are down why are new REO listings on the rise?

Several factors can be attributed to the rise in REO listings now hitting the MLS. These properties most likley have been vacant for quite a while, could have been sold at auction and picked up by other investors in bulk, or didn’t sell at auction and were packaged up with large pools of properties.

Whatever the reason for the increase in REO listings with interest rates low and home buyer tax credits and a glimmer of light at the end of the foreclosure tunnel it appears that at least for some it is an excellent time to buy a home or investment property. Copyright© 2009 Sandra Bundy, Broker-in-Charge, B&P, Inc.

Online market values not always reliable

I’ve been completing Broker Price Opinions for over 7 years and recently had a troubling QC issue.  A rejection to be sure of work that I take very seriously as I think I  know that the most important aspects of valuing property.  What would it sell for in this market at this time and in this condition.  To make things very clear I am not an appraiser which I proudly make part of every report.  “This is an opinion only and not an appraisal.”  Yes I do have access to similar information, mainly public records and the MLS, but I do not claim that any of the information I provide is by any means an appraisal.  The reason for my trouble is that QC asked me to consult Trulia for comparables in the neighborhood.

 

When Trulia and Zillow for that matter were new on the scene in real estate I certainly did take a look to see what all the hoopla was about.  Yes I was there along with millions of consumers looking for information about home values and what homes were for sale in the neighborhood.  What I found was lots of information about the values and what was for sale, had recently sold and other information about any variety of products that I might be able to use if buying or selling a home.  How wonderful it is all there and I don’t need to call anybody to get it!  But wait I know that house is sold and this one did not sell and is off the market but it still is right here for all the public to see. 

 

What I know as  a real estate professional and student of the markets I serve is different then what these sights often display as fact and it is becoming increasingly apparent to me that often real estate investors and homeowners alike continue to rely on what they believe is relevant and timely information to make important decisions about buying and selling real estate.  On the surface the information seems factual and much of it is but there is more  to it than just seeing what sites like Trulia and  Zillow have on any given day in the market area in which you are looking to find your facts.

 

The truth is that no matter how much information you can relish over on any public website it is REALTORS® who are able to give you the most up to date information about home values and listings in any neighborhood.  Not only that but a true professional is able to provide you with as close to real time as it gets statistics and trends about the marketplace.  Copyright© 2009 Sandra Bundy, Broker-in-Charge, B&P, Inc.   For more information or assistance in purchasing or selling REO properties in the Pee Dee or along the Grand Strand contact Sandra Bundy.

 

 

 

 

REO and the first time buyer

Buying REO property can pose many challenges for buyers especially the first time buyer seeking to buy  bank owned homes.  With the increase in foreclosures in the Pee Dee and along the Grand Strand of South Carolina it is important that first time buyers be informed about the process and how to find the right Buyer Agent to assist them with the transaction.

Like any home purchase buyers should contact their bank or seek out the assistance of a Mortgage advisor to counsel them on loan products to meet their objectives.  Interest rates vary but having a lender selected prior to looking at property is a must in any market.  If an REO property is what you are looking to purchase you must be sure your lender can work within the seller guidelines. 

While these guidelines will vary among the REO sellers many are similar as they relate to getting loan approval, providing a program of repairs if required by the property and lender, and meeting the requirement to have the loan package to the closing agent several days prior to the closing date. 

Unlike a traditional home purchase buying an REO property means the seller has no knowledge of the property and will not provide you with a SC Property Disclosure that is required by state law.  Foreclosures are exempt under South Carolina law from providing the disclosure and it is up to the buyer to discover property issues during the inspection period that is often dictated by the seller.   Strict adherence to timelines is important since as they expire buyer obligations can change. 

Discovering unacceptable conditions after the inspection timeline is the last thing a first time buyer needs.  That is why hiring a Buyers Agent that has training and experience with REO properties should be a buyer priority.    Certified REO Specialists have been trained to guide buyers through the purchase of bank owned homes and as your Buyer Agent will work for you to protect your interest throughout the process.   Copyright© 2009 Sandra Bundy, Broker-in-Charge, B&P, Inc.   For more information or assistance in purchasing or selling REO properties in the Pee Dee or along the Grand Strand contact Sandra Bundy.