In an effort to help bring stability to home values and accelerate the sale of vacant properties, the FHA anti flipping rules have been rescinded! Effective February 1, 2010 the FHA has waived the 90 day rule on financing of properties that have recently purchased by investors. This is great news! There are plenty of investment properties on the market in Myrtle Beach...it's time to take advantage of these deals.

Derek Heppe, REALTOR & CRS
REMAX Beach & Country
Phone: 843.655.5777
Email:  DerekHeppe@DerekHeppe.com
Website:  http://DerekHeppe.com

        

DR Horton is holding a grand opening on January 23rd, 2010 in Summerall Oaks.  This community has well constructed three bedroom homes that generally start around $160,000.00.  They are offering specials on some of their inventory homes as well, if under contract by the end of the month.  If you have any interest in learning more about these homes, please contact me.  I will be glad to provide you with full buyers representation. 

Derek Heppe
REMAX Beach & Country

        

You are invited to connect with DerekHeppe.com on Facebook. Keep up to date with Myrtle Beach Real Estate news, ask real estate questions and network with Derek Heppe.  Also, you can now find us on Twitter, LinkedIn & YouTube.

Click Here to connect with DerekHeppe.com on Facebook
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Find Derek Heppe on Twitter under DerekHeppe- Click Here


 

        

FOR IMMEDIATE RELEASE IN MYRTLE BEACH, SC

 

DEREK HEPPE HAS BEEN AWARDED THE CERTIFIED RESIDENTIAL SPECIALIST DESIGNATION BY THE COUNCIL OF RESIDENTIAL SPECIALISTS.

 

December 30^th, 2009- Derek Heppe, a local REALTOR in the Myrtle Beach area, has been awarded the prestigious Certified Residential Specialist Designation by the Council of Residential Specialist, the largest not-for-profit affiliate of the National Association of Realtors.

 

Realtors who receive the Designation have completed advanced courses and have demonstrated professional expertise in the field of residential real estate. Fewer than 38,000 Realtors nationwide have earned the credential.

 

Home buyers and sellers can be assured that Designees subscribe to the strict Realtor code of ethics, have access to the latest technology and are specialists in helping clients maximize profits and minimize costs when buying or selling a home.

 

Derek Heppe is a sales associate with RE/MAX Beach & Country in Longs, SC.  He is a member of the Coastal Carolina Association of Realtors. Derek Heppe is also a Certified New Home Specialist, Residential Construction Certified, a Certified Real Estate Negotiator and an NAR GREEN designee.

Visit Derek’s website at www.DerekHeppe.com and follow his blog at www.Blog.DerekHeppe.com.  Feel free to contact him at (843)655-5777 or email him at DerekHeppe@DerekHeppe.com

        

Last week I began a discussion on how a short sale would affect your credit as opposed to allowing your home to go into foreclosure.  There is a far greater impact on your credit if you do not take steps to sell your property as a short sale (see Part I also). 

Here are a few more differences between a Short Sale and Foreclosure:

Security Clearances:

Foreclosure:  The most challenging issue against a security clearance outside of a conviction of a serious misdemeanor or felony.  If a client is in the CIA, Military, Security, a police officer or holds any other position requiring a security clearance, in almost all cases the clearance will be revoked and the position will be terminated!                                                                            

Short Sale:  A Short Sale on its own doesn't challenge most security clearances.
______________________________________________________________________________________

Current Employment:

Foreclosure: Employers have the right to check employees credit regularly.  A foreclosure in many cases can be grounds for immediate termination or reassignment.

Short Sale:  A Short Sale isn't reported on a credit report and is not a challenge to employment.
______________________________________________________________________________________

Future Employment:

Foreclosure:  Many employers are required to run a credit check on all job applicants.  A foreclosure is one of the most detrimental credit items an applicant can have and in most cases will challenge employment.

Short Sale:  A Short Sale is not reported on a credit report and is not a challenge to employment.
_______________________________________________________________________________________

Deficiency Judgement:

Foreclosure:  In 100% of foreclosures (except in states where there is no deficiency), the bank has the right to pursue a deficiency judgement.

Short Sale:  In some successful Short Sales it's possible to convince the lender to give up the right to pursuit a deficiency judgement against the homeowner.
________________________________________________________________________________________

Deficiency Judgement  (Amount)

Foreclosure:  A foreclosure will go through an REO process if it doesn't sell at the auction.  In most cases this will result in a lower sales price and longer time to sale in a declining market.  This will result in a higher possible deficiency judgement.

Short Sale:  In a properly managed Short Sale, the home is sold at a price that should be close to the market value and in almost all cases will be better than an REO sale resulting in a lower deficiency.
________________________________________________________________________________________

If you need help with your current situation, contact me and I will be glad to assist you.  Our office specializes in Short Sales and can assist in getting your home sold before it goes into foreclosure. 

Derek Heppe
REMAX Beach & Country
Phone: (843)655-5777
Email:  DerekHeppe@DerekHeppe.com
Website: www.DerekHeppe.com

 

 

        

If you are a homeowner that is in danger of losing your home, there are ways of getting out of your situation without too much damage.  Selling your home as a short sale may be one way to get out of a bad situation.  As a short sale, you can sell your property for less than what you owe on your home or property if you can show that you're having trouble making your payments.  Our office specializes in short sales, so we have the necessary forms to help you get started and are accustomed to dealing with these banks.

Because credit is so important these days to obtain financing, it is important to understand how a short sale would affect your credit vs. foreclosure.  What are some of the differences?

Foreclosure: Primary Home- Ineligible for a Fannie Mae backed mortgage for 5 years (Investor or Non-primary  home 7 years)
Short Sale:    Primary Home- Ineligible for a Fannie Mae backed mortgage for only 2 years. (Investor or Non-primary home 2 years)

Foreclosure:  Credit Score lowered from 250-300 points for typically a 3 year period.
Short Sale:     Credit Score lowered as little as 50 Points and can be as brief as 12 to 18 months.

Foreclosure:  Will remain on your Credit History for up to 10 years or more.
Short Sale:     A short sale is not reported on your Credit History.  The loan will be marked as 'paid in full' or 'settled'.

If you are a homeowner in need, we can help.  Call us today at (843)655-5777 or email me at DerekHeppe@DerekHeppe.com.

        

There is always something interesting going on in Myrtle Beach.  I've added a Myrtle Beach Event Calendar to my website to make people aware of some of the events taking place in and around the Myrtle Beach area of South Carolina.  You will find events such as: Festivals, Parades, Concerts, Sporting Events, Real Estate Events, Bike Week and more.  Please add my event calendar to your favorites list: http://www.derekheppe.com/MyrtleBeachEvents.php



If you would like to add an event please contact me at (843)655-5777 or email me with the events title, location, time and a few details. 

Derek Heppe
RE/MAX Beach & Country
http://www.derekheppe.com/
Phone: (843)655-5777
Email: DerekHeppe@DerekHeppe.com

        

Up to this point, Short Sales have been anything but a smooth process for buyers, sellers and REALTORS.  This is because properties are listed for a set price and buyers assume that the property can bought for that price.  However, in the case of a short sales, the property is being listed for less than the current owner has mortgaged on the property.  So their lender is the one that actually has the final say as to what the property can be sold for.

For example, I currently have a short sale under contract.  We have been in contract for approximately 80 days already and the property listing price was $139,000.00.  The bank will not take less then $190,000.00 and we still haven't been given final approval.  Most short sales take between 60-90 days to close.  Because of the current structure, I prefer to find my clients a foreclosure or good deal before entertaining a short sale.  That being said, it is possible to get a great deal, if you are patient and willing to wait out the process.

Short sales are great for sellers in distress.  A short sale affects your credit far less than if you allow your property to go into foreclosure.  I will go into detail in another blog.

There is good news concerning short sales!  The process is going to become a little quicker and there will be some relief offered to the seller.  Here is a report I received from REMAX by Deborah Ball, RE/MAX Times Online Associate Editor:

"The U.S. Treasury Department's long-awaited guidelines to streamline Short Sales, announced Monday, will have a significant impact on families facing foreclosure, according to RE/MAX International Chairman and Co-Founder Dave Liniger.

The Home Affordable Foreclosure Alternatives Program (HAFA), part of the Home Affordable Modification Program (HAMP), provides financial incentives and simplifies Short Sales procedures by setting limits on the time it takes lenders to respond, freeing borrowers from debt and capping claims of subordinate lenders.

The Treasury's announcement comes on the heels of more than a year's work by RE/MAX leadership to persuade federal lawmakers to address the need for a simpler Short Sale process.

"While the plan doesn't include all of our suggestions, we feel it's a big step in the right direction," Liniger says. "These new policies will make Short Sales much more attractive to our clients and much easier for us to complete."

With unemployment over 10 percent and millions of adjustable-rate mortgages primed to reset next year, a "tsunami" of distressed properties could be on the horizon, Liniger says. The new guidelines, as well as a growing acceptance by lenders and second-lien holders, give homeowners a better chance of closing a Short Sale rather than losing their house to foreclosure.

Here are some of the program's key guidelines (download the program's full details in the HAMP Supplemental Directive):

• Lenders must respond to Short Sale requests within 10 business days of receipt of the offer package.
• The seller will be released from all liability for repayment of the mortgage debt.
• Subsequently, the seller is entitled to a relocation incentive of $1,500, which will be deducted from the gross sale proceeds at closing.
• The lender will be paid $1,000 to cover administrative and processing costs for a Short Sale or a deed-in-lieu.
• The property must be listed with a licensed real estate professional who does regular business in the community where the property is located.
• The lender is prohibited from requiring, as a condition of approving the Short Sale, a reduction in the agreed-upon real estate commission. 
• The investor will be paid a maximum of $1,000 for allowing a total of up to $3,000 in Short Sale proceeds to be distributed to subordinate lien holders, or for allowing payment of up to $3,000 to subordinate lien holders.

RE/MAX leaders have been advocating Short Sale improvements for quite some time. In September, Liniger met with Housing and Urban Development Secretary Shaun Donovan and other U.S. housing officials to discuss the need for prompt action. A meeting with Sen. Harry Reid (D-Nev.) also moved the process along.

For their part, RE/MAX Associates have embraced training in Short Sales and REOs. The network accounts for nearly 60 percent Certified Distressed Property Expert designees. That education will continue to play a vital role in order for Associates to successfully handle Short Sale transactions and establish themselves as the leading experts in their markets, Liniger says."

So some progress has been made and we continue to work hard to speed up the short sale process.  If you have questions concerning short sales please contact me anytime.

        

Do you want to buy a home but are having a hard time determining how much you can afford? There are a few major factors you need to take into account:

• Mortgage Payment- How much do you feel comfortable paying each month.  Here is a loan calculator to figure out how much your mortgage payment would be- http://www.derekheppe.com/Mortgage_Calculator.php  Please keep in mind that you need to determine what current interest rates are.  The interest rate can affect your mortgage greatly.  Currently, I would use a 4.35% to 5.5% interest rate to determine your approximate payment. Play with the rate to see how much it can affect your monthly payment.  Paying by weekly payments is one way to greatly reduce the interest paid over time.
• PMI (Private Mortgage Insurance)- If you are planning on putting less then 20% down on a home most times you are going to have this added to your mortgage payment.  It's based on credit, so it can vary greatly.  But expect to add $100.00 or more to your monthly payment.  There are loans that don't require PMI, but you have to qualify for the program. For example Rural Housing Loans (100% financing).
• Insurance- Insurance can vary greatly as well depending on location.  Factors such as flood and wind zones, home size and location, credit all play a part in how much your taxes will be. I typically tell people to figure between $1000-2000.00 for insurance depending on what deductibles they feel comfortable with, etc.  If the property is in a flood zone, flood insurance may be required by the lender and would be an additional expense. 
• Taxes- Property Taxes can vary dramatically depending on whether or not you are planning on making the property your primary residence, second home or investment property.  The very best way to determine what your taxes will be is to call the Tax Assessors office directly.  Don't base what you think you will pay off of what the current owner is paying because their circumstance's may be different then yours. 
• Closing Costs- A buyer will have to pay Attorney fee's ($450.00-600.00), Title Search ($270.00-350.00), Title Insurance ($3.00 per every $1,000.00 is a rough average),  HOA or POA dues (Homeowner Dues are pro-rated at usually pro-rated at closing), and additional lender fee's(many times there is a loan origination fee).

Working with a qualified REALTOR can save you time and money in the long run.  I can assist you with all aspects of the buying process and can do a lot of the leg work for you. If you are not currently working with a REALTOR and would like assistance please feel free to contact me anytime.  I would be glad to assist you with the purchase of your new home or investment property.  Contact me http://www.derekheppe.com/Contact_Us.html  Or call me at (843)655-5777.  View all Myrtle Beach & surrounding area property for sale at http://www.DerekHeppe.com .

        

SC Bank & Trust sends me a weekly update in regards to their current interest rates.  Last week, the rates were the lowest I've ever seen.  Listed below are some of the options that are available through their bank at this time.  If you are interested in getting pre-qualified call David Dupont (contact information listed below). 

                                          Conforming Fixed Rates (10% Down Payment Purchase):
                                                               
                                                                30 Year Fixed: 4.375%
                                                                20 Year Fixed: 4.250%
                                                                15 Year Fixed: 4.00%
                                                                10 Year Fixed: 3.875%

                                            Conforming Arm Rates (10% Down Payment Purchase): 

                                                                3/1 Fixed Arm: 3.25%
                                                                5/1 Fixed Arm: 3.00%

                                             FHA Rates (3.5% Down Payment Purchase): 

                                                                30 Year Fixed: 4.50%
                                                                3/1 Fixed Arm: 3.750%
                                                                5/1 Fixed Arm: 3.750%

                                                                Jumbo Loans (25% Down ): 

                                                                5/1 Fixed Arm: 4.00%

                     New Opportunities

                                                                90% Financing - No MI - Up to 800k - Primary Only
                                                                90% Financing - With MI - Second Homes
                                                                HomePath Mortgage
                                                                Equity Loans Available for Primary/Secondary
                                                                Portfolio Financing
                                                                Buyer's Mortgage Program 
                                                                     (Builder or Seller makes 6 months of Payments)

David Dupont
South Carolina Bank and Trust
1550 Oak St.
Myrtle Beach, SC 29577
Phone: 843-839-8772
Fax: 843-839-8616
Cell: 843-251-8207
Email: david.dupont@SCBTonline.com
A Forbes "Top 100 Most Trustworthy Company"