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 from 181 Myrtle Beach foreclosures in the year 2007 to 481 Myrtle Beach foreclosures last year in 2008, figures they obtained from local Garden City real estate information company, Sitetech Systems. Sitetech also found 260 Myrtle Beach foreclosures in the first nine months of this year by HOA’s. A Home Owners Association is comprised of all the people who own a house or condo in a given neighborhood or building. It is usually started by the developer of the property, and turned over to a committee of homeowners to enforce any covenants, laws or restrictions that are agreed upon by property buyers. They also collect fees for maintenance of common areas, landscaping and any neighborhood amenities, such as pools, walking trails, tennis courts, gyms and playgrounds. Every property owner must abide by the HOA agreement and pay these dues, and failure to do so creates a situation where the HOA has to take action to enforce the rules and collect the outstanding fees. This is where the foreclosure option comes into effect and increases the number of Myrtle Beach foreclosures on the market.
A great many condos, manufactured houses, and townhomes that are on the Myrtle Beach foreclosure market are not primary homes, but rather second homes for people from other areas of the country purchased during the past decade when the U.S economy was riding high. With the current economic downturn, people aren’t able to continue to pay for luxury items, like second homes at the beach, when the cost of necessities has sky-rocketed and out-of-control government spending threatens the small signs of economic recovery that we are experiencing the last few months. Home values continue to trend downward, even as sales have shown an increase from the Home Buyer’s Tax Credit, and many owners could find themselves underwater on not one, but TWO mortgages.
HOA’s are seeing a marked increase on the number of owners who are behind on their association dues, and under South Carolina laws they have the right to place a lien on the property, and in extreme cases they have the option to file foreclosure proceedings against the delinquent owner. A quick check of any Myrtle Beach foreclosure listing will turn up a significant number of short sales on second homes to try to avoid foreclosure as well. HOA’s are also reportedly seeing an increase in the numbers of owners who simply hand in the keys to the property and just walk away from their second home obligations to secure on their primary residence’s mortgage. Lenders are then sidled with a growing number of bank owned properties that aren’t selling and aren’t producing income.
This is where Coastal Reo Solutions can be of assistance. Our Reo Services team can take the burden off the lender, and our Reo Management agents can secure, preserve, market and capitalize these properties. Visit our contact page to leave us a message or call us concerning Myrtle Beach foreclosures, bank owned and realestate owned properties, or to see how our easy, low-cost comprehensive services compare to other reo asset management companies in Myrtle Beach, South Carolina.
Tags: Bank Owned, Economy, Foreclosure, Hoa's, reo services
Delinquencies aren’t a good thing. For sure don’t help the real estate market to have better moments