South Carolina Real Estate Law Blog

Fixed rate mortgages at or below 4% for third consecutive week

joshlonon — Mon, 21 Nov 2011 03:21:12 +0000

According to Freddie Mac, average fixed mortgage rates remained at or near 4.00 percent for the past three weeks. The increasingly popular 15-year fixed rate mortgage averaged 3.31 percent for the week the week ending November 17, 2011.

“Palmetto Heroes” offered $15 Million in assistance to buy a home

joshlonon — Tue, 10 May 2011 00:57:12 +0000

Teachers, firefighters, EMS workers, nurses, military veterans and those in law enforcement may be eligible for low-interest loans and down payment assistance to purchase a home under the “Palmetto Heroes” program. The program, which has been available in South Carolina for three years has now been expanded to veterans, according to an announcement by SC State Housing today.

Up to $15 million in assistance is available and eligible home buyers can get a fixed rate of 4.625% on their mortgage and down payment assistance of up to $5,000. The down payment assistance might even be forgivable over time in some cases, depending on the borrower’s income.

You can get more information at www.schousing.com.

South Carolina foreclosures put on hold pending modification process

joshlonon — Wed, 04 May 2011 13:37:52 +0000

South Carolina Supreme Court Chief Justice Jean Toal entered an administrative order this week halting foreclosure proceedings in the state to allow for the opportunity for homeowners to apply for loan modifications. The order, issued May 2, 2011, requires that all foreclosure actions concerning owner-occupied residential dwellings pending on May 9, 2011 be stayed until the foreclosing attorney certifies that the borrower has been served with notice of his or her right to “foreclosure intervention” (a loan modification or other means of loss mitigation), the borrower has had a “full and fair opportunity” to submit information and apply for a modification or other loss mitigation, that the lender or servicer has reviewed the submitted information, and that it has properly notified the borrower and given them thirty days to respond.

For such actions filed after May 9, 2011, the notice to the borrower of the right to foreclosure intervention may be included in the foreclosure summons and complaint. The order also made it clear that the borrower has the right to communicate with the lender through its attorney once an action has been filed. Either party may be subject to sanctions including the assessment of attorney fees and costs for failure to comply with the order in good faith.

Click here to view the complete order.

HUD to delay enforcement of new RESPA rule for 120 days

joshlonon — Thu, 19 Nov 2009 14:22:41 +0000

The U.S. Department of Housing and Urban Development (HUD) says it will, for 120 days, ”exercise restraint” in enforcing the Real Estate Settlement Procedures Act (RESPA) regulatory rule set to take effect January 1, 2010. The ”final rule“ will require, among other things, that lenders provide borrowers with new Good Faith Estimate (GFE) which HUD hopes will more clearly disclose loan terms and closing costs. In addition, settlement agents will be required to provide a new HUD-1 Settlement statement which will compare borrower’s final costs versus their estimated costs.

The new rules, which HUD estimates will save consumers an average of $700 in settlement costs, went into effect at the beginning of 2009, but provided for a one-year transition period for incorporation of the changes. HUD says it will restrain against enforcing these rules against service providers “who demonstrate a good faith effort” towards implementation. Among other things, the lender will look at whether the service provide has made “sufficient investment and commitment in technology, training, and quality control designed to comply with the new rule” in determining whether or not a good faith effort has been made.

A copy of HUD’s press release is available online. You can also visit their website for more information and answers to frequently asked questions.

Homebuyer tax credit extension and expansion signed into law

joshlonon — Fri, 06 Nov 2009 21:06:04 +0000

President Obama signed into law today an extension of the popular home buyer tax credit through June 2010 and an expansion to include people with higher incomes and some who want to trade up into new homes.

The original up to $8,000 credit was scheduled to lapse on Dec. 1 but will now be in effect through the end of June. Homebuyers must sign a contract before April 30 and close by June 30. The income limits were also raised: Single buyers can now earn up to $125,000 and still get the full credit while a married couple can earn $225,000. The bill also made more homeowners eligible to claim the credit on their taxes. First-time buyers — those who have not owned a home in the past three years — still qualify for an $8,000 rebate. But now people who want to trade up can also qualify. Those who have owned and occupied a residence for at least five years out of the past eight can claim up to a $6,500 tax credit if they close on a purchase by the end of June.

The National Association of Realtors has released a comparison chart of changes in the law which you can read by clicking here.

Congress extends and expands homebuyer tax credit

joshlonon — Fri, 06 Nov 2009 16:29:46 +0000

Congress has extended and expanded the homebuyer tax credit which will become effective upon signing by President Obama. The provisions include an extension of the up to $8000 tax credit until April 20, 2010 and an expansion of the credit to single homebuyers making up to $125,000 per year (formerly $75,000) or couples making up to $225,000 per year (formerly $150,000). In addition, the new rules provide fo an up to $6,500 tax credit for existing homeowners purchasing a new home. To qualify, these homeowners must have lived in their current home for at least five of the last eight years.

September national housing numbers offer mixed bag

joshlonon — Thu, 29 Oct 2009 13:53:09 +0000

Existing-home sales bounced back strongly in September with first-time buyers driving much of the activity, marking five gains in the past six months, according to the National Association of Realtors®. However, after five consecutive months of increases, sales of newly built, single-family homes fell 3.6% to a seasonally adjusted annual rate of 402,000 units in September 2009, according to data released by the U.S. Commerce Department.

The inventory of new homes on the market continued downward for a 29th consecutive month, to 251,000 units in September. This is the lowest inventory since November 1982. However, the slower pace of sales kept the months’ supply unchanged, at 7.5.

The National Association of Home Builders used the opportunity to stress the importance of extending the homebuyer tax credit: “This critical loss of momentum corresponds with the ending of the $8,000 first-time home buyer tax credit, since for the most part, September was too late to sign a deal that could be completed by the time the credit expires at the end of November,” said Joe Robson, chairman of the National Association of Home Builders (NAHB) and a home builder from Tulsa, Okla. “The fact that sales are now heading downward just shows how important the tax credit has been for stimulating buyer demand up to this point, and how essential it is for Congress to move quickly on legislation that would extend the credit’s expiration date and expand its eligibility to more buyers. Doing so would keep the housing market on the road to recovery while stimulating much-needed job growth across the economy.”

U.S. House amendment would sunset HVCC

joshlonon — Thu, 29 Oct 2009 13:42:57 +0000

An amendment that would ultimately sunset the Home Valuation Code of Conduct (HVCC) has passed the U.S. House Financial Services Committee. The amendment to the “Consumer Financial Protection Act of 2009″, offered by Representative Gary Miller (D-CA) would require the new Consumer Financial Protection Agency to promulgate an appraisal independence rule within 60 days of enactment of HR 3126. Upon the effective date of the appraisal independence rule the HVCC would sunset.

The HVCC has been widely criticized for its effect on the housing market, including slowing down appraisals and lowering the appraised values of homes.

Tax credit extension may include “move-up” buyers

joshlonon — Thu, 29 Oct 2009 13:30:53 +0000

A proposed extension to the the homebuyer tax credit hashed out among key U.S. senators last night would extend availability of the credit for seven months, raise income limits and broaden the benefit to include existing homebuyers buying a new home. The tax credit for “move-up buyers” would be up to $6,500; less than the up to $8,000 credit for first-time buyers, but still significant. “Move-up buyers” would have to have owned their current homes at least five years.

The proposed exentions would extend credit availability for seven months and income limits would rise from $75,000 per year for individuals and $150,000 for couples to $125,000 for individuals and $225,000 for couples.

A vote on the extension may come within days.

Tips for Getting a Good Appraisal

joshlonon — Wed, 05 Aug 2009 18:49:05 +0000

Appraisals can be tricky these days. Here’s some advice on getting an accurate and fair appraisal.

Both the real estate practitioner and the owner should be present for the appraisal and follow the appraiser around. Make sure he doesn’t miss anything important.
Ask questions to determine if the appraiser has identified the correct neighborhood boundaries and if she’s comparing the home to similar properties.
Bring a copy of a recent tax bill and a survey of the property, and give them to the appraiser.
Provide a list of improvements to the home.
Offer your professional opinion about what makes this property worth more than other properties in the area.