Sellers Still on the Hook after the Sale?

This is a great article about what a seller could face after a short-sale or foreclosure:
http://money.cnn.com/2010/02/03/real_estate/foreclosure_deficiency_judgement/index.htm
There isn't an "easy way out" of selling a home even if you just give up paying. If you have good income and assets, chances are banks will chase after you for the deficiency. Always seek the advice of a tax professional and attorney to advise you how to best handle these transcations!

New FHA Changes for 2010

Lenders continue to restrict guidelines for loans, and FHA has published some new changes that should take effect this Spring and Summer. The specific changes are noted here:
http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2010/HUDNo.10-016
If you plan on buying or refinancing this year, it is a good idea to go ahead and talk to a lender so you know what to expect, because it will be different form the last time you bought a property. Also, it is a good idea to keep an open dialouge with that lender - say, if you want to buy in 6 months, my recommendation would be to make it a point to speak monthly because guidelines are changing frequently these days and you don't want to be surprised, you want be prepared, once you find the perfect property.

Mitchell Wharf Homesites

The Spring 2010 Daniel Island Homesite Offering will be Mitchell Wharf in Smythe Park. This offering will consist of both marsh and premier deepwater homesites along the banks of the Wando River. Pricing and other details to follow.

Charleston Market Recovery in 2010?

Here is an article on what an independent research firm concludes the housing market here in Charleston will do in 2010:
http://www.scbizmag.com/content/view/136347/1/
Certainly we all hope values will rebound this year and time will tell. It will be interesting to look back an evaluate this information in 6 months to see how far we have come.

New RESPA Regulations

Today our office had an attorney come and speak to us highlighting some of the changes in new RESPA regulations which apply to contract written on or after January 1, 2010. The purpose of these new policies is to amend "HUD's regulations to further RESPA's purposes by requiring more timely and effective disclosures related to mortgage settlement costs for federally related mortgage loans to consumers." This will hopefully educate the public better so people know what they are signing up for at closing.
In short, the Good Faith Estimate (GFE) will be compared to the HUD at closing. Certain cost estimates the Buyer received when presented the GFE cannot change at all between the time the GFE was presented and closing or the attorney will not allow closing to take place, other costs cannot fluctuate more than 10%, and some (such as homeowners insurance) are allowed to remain variable.
One closing cost that will not appear on the GFE which a Buyer should always ask their agent about are HOA dues. Other than that, there should be few surprises for Buyers at closing today.
Two items on the GFE are lumped together are Item 1, the "Origination Charge" and Item 4 "Title Services and lender's title insurance." A Buyer should ask their Lender for a breakdown of the costs associated with Item 1 and should ask their attorney for a breakdown of the costs associated with Item 4.
These new regulations are designed to better protect consumers through more disclosures. In my opinion is it clearly a positive reform that will help Buyers shop loans better and make more informed decisions. For more information, please visit:
www.hud.gov/repsa

Buying a Foreclosure

Here is an article with some tips on how to best approach this type of purchase:
http://money.cnn.com/2009/11/19/real_estate/buying_foreclosures_tips/index.htm?postversion=2009111905
One strategy that I think is interesting which is mentioned here is waiting. Banks typically have timelines for lowering prices and are unlikely to accept low offers right off the bat. It seems the first few weeks of having the property on the market is used to evaluate the price more than anything. The risk you take with that strategy is that you could potentially lose out on the property.

LMC and SFR Certified!

In an effort to become as knowledgeable as possible about "distress sales" including short sales and foreclosures, I have taken the appropriate courses and webinars to receive both a LMC (Loss Mitigation Certification) and SFR (Short Sales and Foreclosure Resource). I definitely have a tighter grasp on how best to handle these transactions, but the bottom line is there is new information regarding distressed properties coming out every day.
My peers and course instructors all agree that no two transactions seem to take the same path or have the same timeline, so again for Buyers and Sellers associated with these type of transactions, avoid specific expectations.
The most basic benefit a Buyer can gain by purchasing a distressed property is getting a great deal under market value. Often times the uncertainty and long timeline the buyer has to tolerate is worth it to them in the end.