Coastal Reo Solutions is a Myrtle Beach Reo property preservation and REO management firm, and today our thoughts turn to the Myrtle Beach foreclosure market and a startling new trend in foreclosures that is creating a high number of the bank owned properties here in the Grand Strand area.
A recent article in The Sun News stated the number of Myrtle Beach foreclosures filed by Home Owners Associations (HOA’s) have more than doubled (more…)
Q + A with Jason Ellis, who manages Troubled Assets for Coastal Reo Solutions of Myrtle Beach, South Carolina.
I recently had a chance to sit down and discuss the current climate of Myrtle Beach real estate with one of the most successful and knowledgeable foreclosed property specialists in South Carolina, Jason Ellis of Coastal Reo Solutions.
Q – Jason, what are you seeing in the Myrtle Beach home market right now?
A – We are experiencing a rise in foreclosure properties and short sales, (more…)
Coastal REO Solutions is a lenders best weapon in the fight to effectively evaluate, secure, maintain, list and commodify their foreclosure properties. A recent transaction with Horry County State Bank (HCSB) involving the foreclosed Calypso Motel in Myrtle Beach, South Carolina provides an excellent example of the complex nature of commercial REO properties and our ability to manage these complexities on your behalf. Our agent’s keen understanding of the Grand Strand marketplace, combined with their ability to manage a property to its fullest potential, provides a stress free experience and a strong return on investment for our clients.
In this particular situation, we were able to negotiate a much higher than anticipated selling price for the property, and in fact, the foreclosed motel was sold for more than the original listing price. Our marketing effort included a targeted mailing strategy, extensive buyer databases, online media programs uniquely designed to reach prospective buyers via email, MLS listings, blogs, newsletters, and carefully selected website placements.
With our goal to provide a single point of contact and accountability for clients of distressed properties, we implemented a series of measures to secure, operate and maintain the property. An immediate visual inspection with an eye toward any situation that might be a potential safety hazard or local ordinance violation was completed, as well as an inventory of personal property and motel equipment. Next, we began the task of limiting liability for the customer by ensuring all assets were secure from intrusion, theft and damage. Within 48 hours CRS had all locks replaced with new ones and every existing tenant’s lease was converted to a lease that we structured to remove liability from HCSB. We coordinated all third-party billing of necessary repairs, maintenance services, staff and the motel’s utilities into the Coastal REO Solutions name to provide a solitary accounting payout for HCSB. We also established property rental management procedures and handled new rental customers to maximize the cash flow stream of the motel during the foreclosure process.
In essence, we became the new management of the site to ensure continued proper, legal and uninterrupted operation until a new buyer was located and ownership was transferred from our client to the new owner.
Here is Debbie Guyette’s (HCSB) take on it, “Today’s Market is perhaps the most challenging financial market many of us have ever faced. As a Commercial Banker and Manager for HCSB I whole heartedly welcomed the efforts of Coastal REO Solutions. Their thorough needs assessment analysis reassured me that I had made the right decision. Jason’s attention to detail, informative reports, responsiveness and marketing strategies for the Calypso gave me the piece of mind that I needed in order to focus my attention on developing new business for HCSB. Jason succeeded in increasing revenues by 33% With the increase in revenues Coastal REO Solutions was able to negotiate a higher sales price for the Bank.”
These examples are really only a portion of the all the services needed to facilitate the process of keeping a foreclosed commercial property in a viable position to operate, thrive and begin a new life as a healthy functioning entity. We realize that most lenders are simply not equipped to deal with these situations, and that’s why our single contact system is designed in this manner. Don’t let another day go by with a perfectly functional foreclosed commercial operation languishing on your balance sheet, when Coastal REO Solutions can have it adding to your bottom line with minimum effort from your institution.
Contact us today to find out more about our programs.
Reports from The National Association of Realtors show that approximately one-third of home sales over the last few months have been either a foreclosed property or a short sale. The sale of a property for less than the mortgage owed to a financial institution is known as a “short sale”. In some cases, the remaining debt is written off by the lender, and in others, the borrower must make provisions with the lender to settle the outstanding debt. Theoretically, delinquent homeowners get out from under a mortgage they cannot afford, and the institution avoids the costly procedure of a foreclosure, even though they generally lose money in the process. The money lost on the short sale is usually less than the cost of the foreclosure option, so it has a decided advantage for the institution. The Treasury department is expected to announce a new policy that will encourage mortgage lenders to increase short sale attempts through a financial subsidy and provide standardized guidelines and procedures for lenders and REO professionals. The Treasury plan, which is anticipated to be instituted later this month, would give loan servicers a $1,000 “success fee” when a short sale is finished, according to short sale specialists that have seen a preliminary outline of the policy. The home owner would be given up to $1,500 to aid in relocation expenses, like the “cash for keys” program that various servicers are offering.
A short sale has been considered a stopgap measure to prevent a surplus of foreclosures for an institution, but recent trends have shown that fewer and fewer short sales are actually being approved or completed, resulting in the continued climb in foreclose properties in the marketplace. Some buyers have become frustrated with the process and choose to pursue other options because short sale transactions have been delayed for many months. This has been attributed to the lack of standardized procedures within the mortgage industry to manage these arrangements. Each individual institution may have its own set of policies, which presents a difficult avenue for realtors and their clients to pursue. Many lenders simply do not have the requisite staffing, knowledge and systems in place to process short sales in a suitable time frame for a buyer to take advantage of the bargain. Another problem is lack of experience and education among real estate professionals in working with these new marketplace options.
Here at Coastal REO, we are ahead of the learning curve dealing with short sales and foreclosed properties and recently completed a million dollar deal on a property in Myrtle Beach, SC. You can be assured that working with our team can prevent the time loss and potential revenue loss that comes with attempting to complete these complex transactions with an inexperienced agent. Contact us today to see how we can move forward with your particular circumstance.
1. FORECLOSURES ONLY HAPPEN IN “BAD NEIGHBORHOODS”
There are countless factors that play into a foreclosure. A lot of foreclosures in the coastal region are on second homes, some that have been barely used and in plush resorts. With the recent economic down turn second homeowners have less residual income to support their ”vacation home” and have no choice but to let it go back to the bank.
2. FORECLOSURES NEED LOTS OF REPAIRS
This is just simply not true… Many homes need just the everyday maintenance and a lot of them are even in “move in” condition.
3. ALL THE GOOD PROPERTIES ARE BOUGHT BY “INSIDERS”
The foreclosure process is public knowledge – By law in South Carolina notice of sale requirements are posted in the courthouse and published in local newspapers 3 weeks prior to being sold. The best way to become an “insider” pay attention to the local markets and find a Realtor that has the pulse on the local markets.
4. BUYING AND/OR INVESTING IN FORECLOSED HOMES IS TOO COMPLICATED FOR ME
With the help of a trained professional buying a foreclosed home or REO property is actually as easy if not easier than a regular real estate transaction.
Don’t forget to check out our REO Information Page for more FAQ’s
Foreclosures jumped 46 percent in March compared to a year earlier and were up 17 percent compared to February with more than 340,000 properties affected nationwide, according to foreclosure marketer RealtyTrac.
Nearly 804,000 homes received at least one foreclosure-related notice from January through March, up from about 650,000 in the same time period a year earlier, RealtyTrac says.
Many lenders and servers had put a moratorium on foreclosures, waiting for the details of the Obama administration’s foreclosure plan. But now they are back with a vengeance. The end of the moratorium is also driving an increase in the availability of REO properties, according to RealtyTrac.
Nevada, Arizona and California had the nation’s highest foreclosure rate. Other states in the top 10 in the first quarter were Florida, Illinois, Michigan, Georgia, Idaho, Utah and Oregon.
States with the highest number of actual foreclosures, 60 percent of the total, were California, Florida, Arizona, Nevada and Illinois. Rounding out the top 10 were Michigan, Ohio, Georgia, Texas and Virginia.
One in every 159 homes nationwide was at some stage of foreclosure, according to RealtyTrac.
Source: RealtyTrac (04/09/2009)
Here is an informational article from the Wall Street Journal via Realtor.com Newsletter…
More borrowers are expected to lose their homes to foreclosure as the nation’s largest mortgage companies lift their internal moratoriums on home repossessions and start to determine which troubled borrowers cannot be helped.
The mortgage companies say the Obama administration’s housing plan has given them a better idea of which borrowers they should assist, but their actions could be politically sensitive because some lenders received funds from the federal government’s financial stimulus program.
An increase in foreclosures could lead to a further decline in residential prices and put more pressure on the earnings of banks as they write off troubled loans.
Source: Wall Street Journal, Ruth Simon (4/15/2009)
608 16th Avenue N. Suite E
Myrtle Beach, SC 29577
Phone: 843.839.8046
Fax: 843.839.9406
info@CoastalREOsolutions.com
