Myrtle Beach considers giving The Market Common owners more time to finish public improvements

The developer at The Market Common and the surrounding area would have five extra years to build housing and other planned development and finish putting in nearly $5 million worth of public upgrades if the City Council approves a new agreement with the developer this afternoon.

The agreement between the city and LUK-MB1, BEI-Beach LLC and LUK-MB2 would keep the zoning the same to give the group five more years to finish its projects and the nearly $5 million of streetscape, utilities and streetlights that go with those developments.

The original agreement with the developer, which was signed in 2006, expires in July. The new agreement extends the contract five years, adds the new owner of The Market Common – a subsidiary of the original owners that bought the property out of foreclosure – and reduces the line of credit the company must put up for the public improvements from $10 million to $5 million.

Work on new housing and other projects stalled after the recession and the real estate bust, officials said.

“We want to provide as much flexibility as possible to respond to the market,” city councilman Wayne Gray said.

But some council members said they must ensure that the public improvements the developer has promised eventually get done, and said they didn’t want to lower the amount on the letter of credit because the cost of the work might increase in five years, especially with fuel prices already rising.

The council is set to vote on the new agreement during its 2 p.m. meeting at the Ted C. Collins Law Enforcement Center. The council must have another public hearing and vote on the agreement again before it is official.

Obama Loan Modification Plan – Saves Your Home From Foreclosure!

“The Obama loan modification plan aims to help the struggling homeowners and make their monthly payments affordable. $75 billion has been funded for this plan, wherein the monthly mortgage payment of the homeowner is modified and thus they can save their home form foreclosure.”

Many households are hit by the current economic recession and thus many people have lost their jobs. There are few people who have got salary cut. President Obama has thus set up Obama’s loan modification plan to help the needy individuals. This plan aims to help nearly four million people and saves their home from being foreclosed. Usloanz also provide services for this plan and helps all those who are struggling with their mortgage payment.

The Obama’s making home affordable program is also called as “The Homeowner Affordability and Stability Plan” and $75 billion was funded for this plan, it has two parts.

In the first part, assistance is given to the homeowners who are unable to refinance because of the depreciation in their values of homes in the recent housing downfall. Here, the homeowners will keep his home even if its value has been depreciated below the mortgaged amount. Foreclosure is because the family is unable to afford the payments. To qualify for this plan the current mortgage loans should be more than 80% of the home market value.

In the second part, those homeowners are given help who are on the verge of foreclosure. Here the modification is done in the mortgage and thus the payments are made affordable. This implies lowering the interest rate and the monthly payments shouldn’t be more than 31% of the mortgagor’s income.

Those homeowners are taking advantage of the federal loan modification program and are current on their payments will get $1000 of incentive for five years.

There are few Obama loan modification requirement, they are given below

• The property should be a single family residence home
• The home should be the primary residence of the borrower
• The current mortgage balance should not exceed $729,750.
• The loan should not have been originated before 1/2/2009.
• The borrower should be able to prove his financial hardship.

The Government loan modification program can save the homes of many people who were hit badly in recession. This will continue for few more years until the housing economy gets settled.

States Seek to Overhaul Foreclosure Process

State attorneys general are trying to change the foreclosure process among the nation’s five largest banks by giving the government more authority over how mortgage servicers handle foreclosures, The New York Times reports.

The state attorneys general proposal, which is still in draft form, would prohibit banks from starting foreclosure proceedings while a borrower is seeking to modify a loan, such as by trying to lower the interest rate or change loan terms.

Under the proposal, if borrowers successfully made three payments in the trial modification, they would then be granted a permanent mortgage modification. If a mortgage modification was denied, the borrowers’ situation would automatically be reviewed by an ombudsman or independent review panel.

The proposed changes will be discussed more by the attorneys general when they meet in Washington this week and would require negotiations with bank officials.

What's behind home-sales-scuttling low appraisals?

Low appraisals are hampering home sales, but whether they're inaccurate is in dispute.


Ten percent of the nation's Realtors said they had sales canceled because appraisals came in below the prices buyers agreed to pay, according to a January survey by the National Association of Realtors. Another 15% said contracts were renegotiated after appraisals came in too low. Sellers dropped prices or buyers put up more cash.


A third of home builders said they had lost sales because of low appraisals, according to an August survey by the National Association of Home Builders. That was up from 26% in a 2009 survey.


Lenders often require appraisals before approving a mortgage to ensure that the house's value exceeds the loan.


Low appraisals were rarely an issue during the housing boom, when prices rose steadily. But the bust revealed how inflated appraisals had contributed to the housing bubble. Now appraisal and lending standards are both tighter.


Lenders and appraisers say falling home prices, not flawed valuation practices, drive low appraisals. U.S. home prices are 30% off their 2006 peak, and many economists expect them to fall more.


"In a rapidly moving market, the appraisal process becomes more difficult," says Robert Davis, executive vice president of the American Bankers Association. "Home prices are still falling, and there's a lot of people who can't believe they're that low."


Foreclosures are a key factor. Market researcher RealtyTrac says foreclosed homes accounted for almost 26% of sales last year, fetching 28% less on average than non-foreclosed homes. In some markets, foreclosed homes are a greater share of sales.


Appraisers may count those to determine values of non-distressed properties, and the appraisals may not reflect the superior condition of the latter, says NAHB Chief Economist David Crowe.


Beazer Homes, a national home builder, said in a recent Securities and Exchange Commission filing that "appraisals continue to be negatively impacted by foreclosure comparables," boosting home sale cancellation rates in some markets.


Also, since 2009, new rules have aimed to lessen lenders' ability to influence appraisers. That's led to more lenders outsourcing appraisal selection to other firms. They may hire appraisers who aren't as familiar with the neighborhoods of the houses they're valuing, Realtors say.


"You get people from one end of the state appraising stuff in the other end," says Don Hammer, manager of Realty Executives in Paradise Valley, Ariz. In his office, about half of all canceled sales are appraisal-related, he says.


In Lake Arrowhead, Calif., million-dollar homes are across the street from $250,000 weekend cabins, says Steve Keefe, owner of Coldwell Banker Sky Ridge Realty. Low appraisals led to canceled sales for about six of the 48 homes his office has handled this year. In many cases, appraisers had never been to the area before, Keefe says.

Home prices continue fall in Grand Strand

Very interesting video and article on the prices of home in the area.




By Brandon Herring

MYRTLE BEACH, SC (WMBF) - Home prices took another hit at the end of 2010, as many real estate professionals expected the market to be improving.

According to a report by Standard and Poor's/Case Shiller national home prices dropped 4.1 percent in the last quarter of 2010, compared to the last quarter of 2009. Of the 20 major metropolitan areas included in the report, only two have seen an increase in prices year-to-year.

Real estate researcher Tom Maeser in Myrtle Beach said prices in Horry and Georgetown Counties have also declined.

"Every month I am a little bit surprised that prices still continue to deflate," admitted realtor Alex Holdert in Myrtle Beach.

Holdert said he expected home prices in the Grand Strand to be on the rise by now, but that just has not happened. With the national report showing large cities like Charlotte and Atlanta recently hit their lowest home prices since 2007, Holdert now realizes it may take several more months to hit bottom.

Maeser said he is seeing some positive signs though.

"I think we're seeing some stability in our single-family home market," he said. "There are not increases yet, but they're getting close to stabilization."

Nonetheless, he said condo prices are still dropping significantly, pulling down the overall real estate market. Lots of foreclosures are to blame for pushing down prices, and even newly constructed homes are selling for prices lower than other homes in the same neighborhood.

"The good news is they're coming in and we're seeing some construction and all of that, but the values are much lower than they were in the past," Maeser said.

The low prices are great news for buyers looking for deals, and the amount of homes sales is increasing. However, low prices are hurting people trying to sell.

As the depressed market continues, Maeser said it is not just affecting sellers and buyers.

"That's lenders. That's construction workers. That's attorneys who do closings, home inspectors, appraisers," Maeser said. "Real estate constitutes about 15 percent of our national economy. So it has a major impact."

Holdert said he expects prices to hit bottom latter in 2011, and he believes a rebound in prices may come in early 2012. He said every market will recover at a different rate though. He anticipates the Grand Strand will recover earliest, and any recovery will depend on improving the employment rate.

Pricing a Home to Sell

The most popular real estate slogan has always been "location, location, location." Well, folks, there's a new slogan in town, and his name is "price, price, price." You can have the most fabulous Malibu beach house, but if you are overpriced, you won't sell in today's market.



How do you know where to price your house? How do you know that your real estate agent has priced accurately to sell?

Here are a few tips to steer you in the right direction.

Appraisals: Your real estate agent or brokerage will have a list of local appraisers. You can also visit The Appraisal Institute online at appraisalinstitute.org. Simply click on "find an appraiser". An appraisal costs just a few hundred dollars, but it affords you a clear idea of the amount for which a buyer can be approved.

Comparables: What are homes like yours selling for? Comparables can be found by analyzing homes in your neighborhood, or in nearby neighborhoods, that have similar square footage, upgrades, and amenities. If a comparable home sold for $150,00, there's little chance you'll find a buyer willing to pay $180,000 for your overpriced home. You always want to be the least expensive home in the neighborhood, when it comes to selling, not the most! Everybody loves a deal.

Be Competitive: Underpricing a home is a strategy that some agents employ to garner interest and to create a bidding war through multiple offers. A well-priced home is sure to get more showings than a home that costs more than the competition. More showings mean more exposure, which ups the chances of you receiving an offer.

Lender Communication: Lenders will only allow a buyer to borrow up to the amount a home appraises for. That means if you are overpriced, even an eager buyer may hit a lending road block.

Consider Leasing: If you've been caught in a depreciating market, you may have more money in your home than you can sell it for at this time. A reasonable option is to lease your home. Your real estate agent should be able to work out the specifics of any contract for you.

How Bad You Need to Sell: This is the real kicker. Some homeowners want to sell, but they don't need to. That means they can wait out a down market, or even wait for the "perfect" buyer. If, however, you find yourself needing to move across town, or across the state, then you will have to be more willing in today's market to compromise. And compromise is all about price when it comes to real estate.

Buyers are savvy. Technology allows them to search the local MLS, research the latest trends, and even see how your neighborhood's prices have changed over the last 30 days. They will know if your home is overpriced. It is best to error on the side of too little than too much in this numbers game. If you price your home right, however, you're sure to find a ready and willing buyer.

Distressed Sales Continued to Drag Down U.S. Home Prices in Q4, Says Freddie Mac

This week Freddie Mac (OTC: FMCC) announced the results of its fourth quarter Conventional Mortgage Home Price Index (CMHPI) Report, which showed  a continued decline in U.S. home values for the fourth quarter of 2010 as a result of distress property sales in the same period.

Freddie Mac's chief economist Frank Nothaft said, "Foreclosed-property and short sales remain a big part of the market. However, new foreclosures will begin to gradually slow. Delinquency rates reported by the Mortgage Bankers Association continue to recede from their peaks but remain high, particularly in distressed areas of the country."

Report Highlights Include:

• The Conventional Mortgage Home Price Index (CMHPI) Purchase-Only Series for the United States registered a 2.6 percent decrease (-10.1 percent annualized) in the fourth quarter relative to the third quarter on a not-seasonally-adjusted basis. U.S. home values fell 4.3 percent relative to the fourth quarter a year ago.

• Home values fell in all nine Census Divisions.

• The revised change in home values for the third quarter of 2010 is a decline of 2.2 percent (-8.5 percent annualized) relative to the second quarter of 2010 and a decrease of 3.3 percent relative to the third quarter of 2009.

• The CMHPI Classic Series, which includes data on both home purchase values and appraisals, indicated that average U.S. home values fell 0.8 percent (-3.3 percent annualized) during the fourth quarter. Comparing the fourth quarter of 2010 with the fourth quarter of 2009, the Classic Series shows 1.1 percent depreciation.

Nothaft further stated, "Low mortgage rates and home prices have combined to push homebuyer affordability to levels not seen in decades in most places. This high affordability will likely translate into an increase in 2011 home sales relative to last year."

Regional Summary

The CMHPI Purchase-Only Series had the following regional house-price changes:

• Middle Atlantic Division (NJ, NY, PA): decreased 1.1 percent (−4.4 percent, annualized) in the fourth quarter of 2010. Over the last 12 months, home values decreased 1.7 percent, and during the last five years, home values decreased 0.6 percent.

• East North Central Division (IL, IN, MI, OH, WI): fell 2.2 percent (−8.3 percent, annualized) in the fourth quarter of 2010. Over the last 12 months, home values decreased 2.9 percent, and during the last five years, home values decreased 12.4 percent.

• East South Central Division (AL, KY, MS, TN): fell 2.2 percent (−8.5 percent, annualized) in the fourth quarter of 2010. Over the last 12 months, home values decreased 3.9 percent, and during the last five years, home values increased 1.5 percent.

• West South Central Division (AR, LA, OK, TX): fell 2.4 percent (−9.2 percent, annualized) in the fourth quarter of 2010. Over the last 12 months, home values decreased 2.1, and during the last five years, home values increased 8.4 percent.

• New England Division (CT, MA, ME, NH, RI, VT): decreased 2.3 percent (-8.8 percent, annualized) in the fourth quarter of 2010. Over the last 12 months, home values decreased 1.8 percent, and during the last five years, home values declined 11.7 percent.

• South Atlantic Division (DC, DE, FL, GA, MD, NC, SC, VA, WV): declined 2.8 percent (−10.6 percent, annualized) in the fourth quarter of 2010. Over the last 12 months, home values decreased 5.7 percent, and during the last five years, home values fell 16.9 percent.

• West North Central Division (IA, KS, MN, MO, ND, NE, SD): decreased 2.8 percent (−10.9 percent, annualized) in the fourth quarter of 2010. Over the last 12 months, home values decreased 3.8 percent; over the last five years, home values fell 5.3 percent.

• Pacific Division (AK, CA, HI, OR, WA): fell 3.8 percent (−14.4 percent, annualized) in the fourth quarter of 2010. Over the last 12 months, home values decreased 6.3 percent, and during the last five years, home values have decreased 26.7 percent.

• Mountain Division (AZ, CO, ID, MT, NM, NV, UT, WY): decreased 4.3 percent (−16.0 percent, annualized) in the fourth quarter of 2010. In the last 12 months, home values decreased 9.6 percent; during the last five years, home values declined 20.0 percent.