SC REO

Smooth sailing ahead for Short Sale purchases

Sandra Bundy — Sun, 12 Jun 2011 23:46:59 +0000

Since SC halted foreclosures in early May for owner occupied homes more lenders are required to prove to the court that they have exhausted attempts to work with homeowners to avoid foreclosures. For homeowners that are unable to pay their mortgage one viable option is to sale the property as a short sale since it is very likely the home is now worth less then the amount owed on the mortgage. With increased efficiencies by mortgage servicers and cooperation by all parties short sales should be set for a much smoother process going forward and buyers should begin to take notice of short sale bargins on the market.

While the number of foreclosues in South Carolina are certain to decline over the next few months the number of short sale closings are likely to increase. In the first quarter of 2011 single family forclosure sales increased over 40% from the first quarter of 2010 along the Grand Strand and short sales increased over 51%. Short sales have been less popular with buyers due to lengthy lender response times but most lenders and servicers are now working to make short sale decisions in weeks rather than months.

The new pain coming to the housing market

Sandra Bundy — Tue, 05 Apr 2011 16:11:53 +0000

If there was any question that we were nearing the end of troubles in the housing market 60 Minutes uncovered the answer and it is a resounding no. In this most recent report that you can view here another wave of issues appears to be looming large for the banks that were bailed out by taxpayers.

Short Sales are for MARS

Sandra Bundy — Wed, 16 Mar 2011 01:48:18 +0000

Used to be that REO’s were everywhere and the Short Sale was a wish and a prayer for sellers who met the falling market at the worst possible time and hoped to be able to get their bank to allow a short sale so they could move on to a new life. Now banks have a new tune and more and more are encouraging the short sale so that buyers can avoid foreclosure and save the seller from the inevitable and both parties are better for working together. While it turns out short sales are more common MARS has come into play and in theory consumers will be protected from scammers out to take advantage of home owners that must sell their homes for less than they are worth.

Mortgage Assistance Relief Services or MARS are now regulated by the FTC and under new regulations anyone offering services to help homeowners must make certain disclosures to anyone using their services. Topping the list of disclosures that must be made for REALTORS® are facts pertaining to payments for services and termination of service without penalty.

What many homeowners may not realize is that many REALTORS® (myself included) also work in Loss Mitigation or Home Retention. As such I now require all clients sign new disclosures relating to short sales but will now advise all customers and clients that MARS is not only a planet but also a new layer of consumer protection to help them as they struggle making mortgage payments and search for options. Hopefully the new rules will work as they are intended and will not prevent homeowners from seeking trusted advisors to assist them with the short sale proccess without adding unnecessary costs to the consumer. Copyright©2011 Sandra Bundy, Broker-in-Charge, B&P, Inc. Serving the Pee Dee and Grand Strand of South Carolina.

The elephant in the neighborhood

Sandra Bundy — Sat, 26 Feb 2011 01:49:01 +0000

More often then not home values are based on sales of similar homes with similar square footage often referred to as GLA. This week as I was working on a BPO I came to understand how GLA can in some instances become the elephant in the neighborhood and that what you see is not always what you get when doing drive by inspections. Not that I didn’t know there could be flaws but I gained clarity in what is and what might not be when it comes to doing drive by inspections.

I am not an appraiser but for the last 10 years I have supplemented my income by providing opinions of value based on market information and I consider myself to be fairly good at determining what a particular property is worth based on market information. Over the last several years I have run across homes that were constructed of pieces and parts of used building materials while the outward appearance presents itself as normal. These instances have amounted to substantial losses for lenders and those costs are generally passed on to consumers.

What I have found in some instances on interior inspections is far from normal and most troubling is a recent find where builders appear to be constructing for GLA aka more space that could in fact game the system of appraisal as it has been in practice where square footage is how value is assessed instead of the practicle application or usability of the space. This has forever changed my perspective and made me more suspicious of larger than usual homes that don’t seem to sell and been an eye opener in the process.

In the past I would often suggest that interior inspections are recommended when completing a drive by inspection. In the future I will strongly encourage interior inspections, especially since I now know that the oversized property in a great location can be the elephant in the neighborhood and could be more about adding GLA to an appraisal rather than actually providing usable living space that buyers are looking for in a troubled market. Copyright©2011 Sandra Bundy, Broker-in-Charge, B&P, Inc. This work may not be copied or reproduced in any manner without the express written consent of the Author.

Off the beaten path or into the path of progress?

Sandra Bundy — Sun, 13 Feb 2011 02:26:38 +0000

GCWSA future water tower site

I received some bad directions from OnStar today as I was heading to preview an REO listing in Pawleys Island. It seems my trusty assistant had bad info and lead me down a gravel road that didn’t look like where I needed to be headed. Not the first time that I’ve been sent down a bad road but today I decided to go with it and in fact it turned out to be a good thing because now I know more about a particular neighborhood than I would have if I hadn’t followed the bad directions. Don’t get me wrong, when I preview properties I do investigate surrounding neighborhoods but I wasn’t aware of this site and would venture to guess many of the neighbors don’t know about it either.

Hidden down the gravel path I found a site that is dedicated as a planned elevated water tower location in Pawleys Island. Nesteled between the desirable neighborhoods of Allston Plantation and Prince George in Pawleys Island I found this little sign and learned in that 2 minute side trip that while there are very few paths left along the South Carolina Coast due to all the progress that has occured over the last 10 years it is worth taking the time because what you find could be priceless when providing advise to my real estate clients.

Thanks to OnStar I’ll be looking more for the paths so I can provide my clients with relevant information they have come to rely on me for when previewing homes for them to purchase. As it turns out, the property I previewed along with most homes on the street will have a new neighbor rising above them and it just might not be welcome. Copyright©2011 Sandra Bundy, Broker-in-Charge, B&P, Inc. This work may not be copied or reproduced in any manner without the express written consent of the Author.

Avoiding another Financial Crisis

Sandra Bundy — Fri, 28 Jan 2011 17:58:36 +0000

The federal inquiry into the greatest financial crisis since the great depression concluded that the meltdown might had been avoidable as reported by Carrie Bay at DNS News. The Financial Crisis Inquiry Commission noted among other things that the “captains of finance & public stewards ignored warnings”.

I agree that conclusion is correct but problems remain in the market that should not go overlooked namely lenders not even knowing how to contact the homeowners they entrusted with large mortgages during the boom. REALLY?

Loss mitigation will never work if the lenders and servicers don’t know how to make contact with their clients. A good start is the property that is mortgaged which would seem most logical. Don’t waste time looking at their former address. Oh but wait, did that even get checked for accuracy when you were handing out the money? Having a way to contact the borrower might help to avoid adding to the foreclosure stats going forward if it was a requirement rather than a request. Keep it simple and avoid CRISIS going forward.

Grand Strand tops list for investment suitability

Sandra Bundy — Tue, 18 Jan 2011 16:45:57 +0000

According to Local Market Monitor Myrtle Beach is ranked number one for investment suitibility ratings for speculative investors. That comes as no suprise when you consider the high number of available REO’s at bargain prices and desirability of the area and prime location on the South Carolina Coast.

Condo market prices are at all time lows and according to a recent report Tourism is expected to recover in 2011 adding to the positive aspects of investing in the Myrtle Beach area as rental unit demand should improve especially for oceanfront rental units. In addition to the condo market single family home rentals should continue to be a good investment in certain areas of the Grand Strand for vacation rentals as well as long term leasing.
Copyright©2011 Sandra Bundy, Broker-in-Charge, B&P, Inc. Serving the Pee Dee and Grand Strand of South Carolina.

Can winning the lottery can save your home from Foreclosure?

Sandra Bundy — Thu, 13 Jan 2011 18:21:07 +0000

A Pawleys Island man that was $2 bucks away from foreclosure hit the Palmetto Cash 5 jackpot this week and will use the money to save his home from foreclosure. Lucky for him the $200,000 prize might be his saving grace in a foreclosure action but can winning the lottery really save your home from foreclosure?

Many homeowners are not aware of options they may have when it comes to foreclosure but first and foremost they should keep communications open with their lender. The oposite is what happens in many cases as people tend to shut down when facing financial difficultites. As a Home Retention Counsultant I have knocked on many doors that would not open when somebody was obviously inside and avoiding answering the door. If you don’t talk to anyone else at least talk to your lender.

The foreclosure process in South Carolina generally takes from 6 to 9 months but it can take much longer. Horry County had to hire additional staff last year to help process the large number of foreclosures along the Grand Strand. The backlog in foreclosures can add to the normal timeframe. In addition moratoriums and the robo signing fiasco could add time to the process but it could also cause the industry to become much more efficient going forward.

Once a foreclosure action has been started and goes to sale at the courthouse steps winning the lottery might help you be the buyer at the auction if you get you funds in time to attend the monthly sale and in the case of the latest Palmetto 5 winner from Pawleys Island winning the lottery is the ticket for him to save his home from foreclosure.

Consult an attorney for information regarding specific legal questions relating to foreclosure. Copyright©2011 Sandra Bundy, Broker-in-Charge, B&P, Inc. Serving the Pee Dee and Grand Strand of South Carolina.

Foreclosure paperwork fiasco continues

Sandra Bundy — Sat, 08 Jan 2011 12:55:22 +0000

More trouble ahead in the foreclosure market by way of a recent court ruling in Massachusetts Supreme Court that is likely to have far reaching impacts on titles of thousands of foreclosed homes across the country. This ruling makes it clear that the chain of title must be protected and that the securitization of mortagages without proper assignment could put titles at risk and open the door for similar lawsuits in other states. Copyright©2011 Sandra Bundy, Broker-in-Charge, B&P, Inc. Serving the Pee Dee and Grand Strand of South Carolina.

Foreclosures increase in Horry County

Sandra Bundy — Tue, 17 Aug 2010 14:07:46 +0000

The number of Foreclosure filings in Horry County rose in July almost doubling the average number of monthly filings. In July 489 cases were filed making Horry County the 3rd highest in South Carolina for foreclosure activity. More are likely on the way as subprime mortgage rates continue to reset for puchase loans on area properties.