A recent list on CNN Money rank Myrtle Beach as 6th in the highest percentage of Foreclosure increase in the nation. As a resort destination the vast majority of these foreclosures are second homes. Many of the properties were purchased by speculators and “flippers” that found themselves without a seat when the music stopped. This has presented a great opportunity for the many buyers that were priced out of the real estate market during the boom of 2006 and 2007.

However, this trend could easily be stopped with a process called a “Short Sale”. A short sale in real estate occurs when the outstanding debt (mortgage) against a property is greater than what the property can be sold for. Short sales are a way for homeowners to avoid bankruptcy or foreclosure proceeding by convincing the bank to accept a discounted payoff, meaning the lender will release the lien that is secured to the property upon receipt of less money than is actually owed. With a successful short sale you can avoid the public notification of a foreclosure and more importantly keep the foreclosure off of your credit report.

There is absolutely no reason to let your property go to foreclosure. At Coastal REO Solutions one of our asset managers will assist you through the Short Sale process. Through a short sale you still maintain some control and we can negotiate the deficiency (money still owed to Lender after the sale) down and even sometimes away. If you do nothing and let the lender foreclose on your property they will dictate how much money is owed.

Don’t forget to sign up for our monthly newsletter to stay informed and feel free to use our custom one-touch short sale and bank owned property search application. Timing has never been better to purchase property in Myrtle Beach.

If you are headed towards foreclosure please call or email us!! We can HELP! 843-839-8046 or info@coastalreosolutions.com.

Coastal REO Solutions specializes in short sales, bank owned homes, property preservation, and other aspects of distressed real estate, in Myrtle Beach, North Myrtle Beach, Surfside Beach, Garden City Beach, Murrells Inlet, Pawleys Island, Grande Dunes, Plantation Lakes, Plantation Point, The Dunes Club, North Beach Plantation, Legends Resort, Ocean Front Condos, The Grand Strand and many other areas along the Coastal Carolinas.

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, and I expect that this trend might continue in the foreseeable future. We have seen great gains in the number of homes and condos that have been sold this summer, partly from the First Time Buyers Tax Credit and hopefully because the worst of the recession is behind us. But a great many of those sales have come from the value buyers are finding in short sale and foreclosed properties.

Q - Jason, what exactly is a Foreclosure?

A – This is the lawful course of action that a mortgage lender could employ to repossess your house. Once this happens, you must move out of your home, because possession and ownership reverts to the mortgage holder. If your property is “underwater”, which means its value is less than the total sum of money that you owe on your real estate loan; a deficiency judgment could be pursued by the lender against you as well.  Foreclosures and deficiency judgments could both severely impact your ability to qualify for credit for at least 7 years, and in some cases up to 10 years.

Q – What steps should I take if I am unable to make my mortgage payments?

1.  NEVER avoid your lender. The bank doesn’t want to take your property from you, believe it or not. They would much prefer to work out a solution to the problem at hand, rather than create a new more complex one for themselves.

2.  Document whatever fiscal adversities you face: the loss of a job, salary reduction, medical problems, natural disaster, death of cosigner, etc.

3.  Your lender can’t help you if they don’t know how to contact you! Call, visit, or write to your lender’s Loss Mitigation Department as quickly as possible to begin a loan workout.  Your lender will be more apt to work out a solution with you if they realize you are making an effort to correct the situation before it gets any further out of hand.

Q – What options are available to me avoid foreclosure?

A – I can think of a few that will help prevent a person from losing their home to foreclosure. Of course, every situation is different and that’s why I suggest getting to a professional agent as quickly as possible. They will know all the arrangements and options that are on the table, and they have a better chance of saving your home than you would on your own, in most cases.

Mortgage Modification – Under certain circumstances your lender can modify your present loan to make it more affordable and repackage any missed payments into the new loan. You might qualify for this option if you have recovered from your financial problems and can afford the new payment amount.

Special Forbearance – This is an arrangement that would be made with the lender to acquire a brief suspension of your mortgage payments. The missed payments, delinquency fees and accrued interest would then be added to the outstanding loan balance. The structure of the repayment plan would vary depending on the lender. One lender may add the back payments owed on to the principle amount of the loan.  A different lending company might lower the interest rate on the mortgage, or could even lower the monthly payments for a prearranged amount of time.

Pre-Foreclosure Sale or Short Sale - This option might permit you to sell your property for less money than is necessary to pay off the full balance of your mortgage loan. In a short sale, the mortgage lender or bank agrees to markdown the value of the loan balance because of a financial or economic hardship experienced by the borrower. The property owner sells the mortgaged property for less money than the outstanding balance of the mortgage and turns over the entire amount of the sale to the lender to satisfy their debt in full. Neither side can be said to be “doing the other a favor.” A short sale could simply be the most simple and economical solution to the problem.

Deed In Lieu Of Foreclosure – This option will allow you to willingly return the property to your lender without damaging your credit further. The “deed in lieu of foreclosure” offers numerous advantages to both the borrower and the lender. The chief advantage to the borrower is that it releases them instantly from the majority, or possibly all, of their personal debt connected to the defaulted loan. The borrower also avoids the public embarrassment of a foreclosure proceeding, and they could obtain more liberal workout terms than they might in formal foreclosure actions.

Q – Couldn’t I just file for Chapter 7 or Chapter 11 bankruptcy and keep my home?

A – Bankruptcy needs to be avoided at all costs.  It’s very important to stress that point to the people who find themselves in this unfortunate position. Bankruptcy is the most damaging thing a person can do to their credit. If this is your only option and you are consulting with a Bankruptcy Attorney, provide the attorney’s name and phone number to your bank.  This will at least get the bank, or collection agencies they have hired, to stop calling you directly.

Q – How could your company help a person or institution in the foreclosure process, and how can they reach you?

A – Coastal REO Solutions (CRS) is a firm devoted to stabilizing the Myrtle Beach real estate market by offering property assessment and risk management services of  property and other assets in any stage of foreclosure. We are the Grand Strand’s leading REO and Troubled Asset Real Estate Firm, so no matter what state of the foreclosure process you find yourself in, call Coastal REO Solutions and we will do our best to help you through this troubling time in your life. We can’t help you if we don’t know about your situation, and contacting us early in the proceeding is absolutely vital for a positive outcome. We accomplish this by utilizing our staff’s superior knowledge of market conditions and strategies. Our phone number is 843-839-8406 and our email address is Info@coastalREOsolutions.com.

If you are a buyer, investor, or speculator looking to purchase foreclosed real estate be sure to use the proprietary search application located on our website.  CRS also has access to Bulk REO packages and Bank Notes that may be purchased.

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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.

Coastal Reo Solutions is at the forefront of receivership management for local and national lenders in Myrtle Beach and along the Grand Strand. Our experienced, reliable team is prepared to take control of your toxic assets. CRS’s primary goal in receivership is to protect the integrity of the asset and income stream by securing the physical property, accounts, and records. Our secondary objective is to establish management procedures that protect and preserve the asset during the transition period.

Coastal’s asset management group is properly acquainted with the court proceedings involved in the foreclosure process and the appointment of a receiver. Our experience gives us the capacity to participate in the legal process alongside our clients and their attorneys, ensuring the orders appointing the receiver are adequate in scope and authority. We provide the essential tools for a smooth conversion and the financial stability to maintain and generate worth in the REO asset. This service comes at a time when foreclosures can be expected to rise. Loan modifications are not going as quickly and smoothly as hoped for, according to a recent article from the Associated Press, and may lead to even more bank owned real estate in the near future. Through receivership, Coastal REO will transfer the risks and hassles of the foreclosure process from your institution, thus releasing your organization from potential insurance, maintenance, legal and local ordinance issues. This service can also be useful to banks by avoiding taking title of new properties that have been foreclosed and the associated problems of construction defect lawsuits or liability issues that can arise from a deserted and unsecured property or building site.

To find out if the receivership process is right for your institution’s situation, contact our knowledgeable team of professionals by email or give us a call at 843.839.8046. We look forward to working with you and for you during these difficult times.

In April, the National Association of Realtors Pending Homes Sales Index rose 6.7 percent. This index is a forward looking indicator of the housing market and is based on the pending sales of existing homes. This index is based on contracts that have been signed in the last two months. These sales are listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing. April marked the third consecutive month that the Index has risen. The Index rose to 90.3, up 6.7 percent from the 84.6 that was posted in March.

An economist for the NAR, Lawrence Yun, said “Buyers are responding to very favorable market conditions. Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market.” Continuing, he said “Since first-time buyers must finalize their purchase by November 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers.”

In other positive news for the housing market, the NAR’s Housing Affordability Index rose to 174.8 in April. It was the second highest monthly reading on record after peaking at 176.9 in January of this year. The Housing Affordability Index is an expansive measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income tracking and was begun in 1970.

If you are interested in buying a primary or secondary home in Myrtle Beach, our full service real estate office is ready to assist you. Check out featured properties here ». If you are a lender, banker or asset disposal firm, click here » to learn more about our extremely unique fixed cost “cradle to grave” asset management offer.