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…)
Many news outlets are reporting officials from Deutsche Bank AG have recently released the results of a study that estimates the number of “underwater” mortgages will rise to nearly 50% of all U.S. mortgages by the year 2011. A mortgage is considered “underwater” when the borrower owes more on a property than the actual value of the property. Borrowers with loan-to-value ratios of 125 percent or more will increase from 14 percent to 28 percent the study concluded. A 14% decrease in home values across the board is predicted as well.
The analysts noted that lack of consumer confidence and cautionary spending would create even more loan defaults, as unemployment rates continue to rise and the housing market correction carries into 2010. They also foresee a potential rise in the number of borrowers who “strategically default” or “walk-away” from these negative equity loans to escape the underwater mortgage situation and improve their immediate financial situation, at the risk of being able to obtain mortgage financing in the future.
As foreclosure rates increase, once highly evaluated properties in a neighborhood begin to decrease in value, and some estimates put the loss of value as high as 9%. This depression of property values causes the remaining mortgages to go underwater, and creates a spillover effect on foreclosed properties and the generation of additional REO assets. An REO asset is one owned by a bank because it has not sold at auction, usually because the amount owed to the lender on the home is greater than the properties market value. This increase in “underwater” mortgages will inevitably lead to an increase in bank owned real estate. Coastal REO Solutions has many options and services available to lenders and banks to deal with these foreclosures, defaults and walk-aways. Contact us today to learn about all the options available to your institution.
Summer is upon us here in beautiful Myrtle Beach, South Carolina and at Coastal REO things are heating up as well. The foreclosure and bank owned segments of the market are still growing, unfortunately, but we are poised to handle your REO properties with our unique set of asset management services. Even though foreclosures have hit the resort and second-home real estate segments especially heavy, there is good news on the consumer front.
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.
…a simple two part solution that will not cost taxpayers a dollar out of pocket
With billions of dollars flowing into various industries and no apparent results or an end in sight, what is the answer? By now, everyone is aware the root cause of the economic downturn is real estate and real estate mortgages.
The solution is simple. The first part everyone will like. The second part will not be so popular, but is an evil we will have to live with.
First, we are all aware that outside of diminishing consumer confidence largely perpetuated by the media; the biggest trouble in the housing industry is SUPPLY. There are simply too many homes for sale! How do we cure this problem? We need demand and urgency…
If Congress would enact a law making every real estate purchase completed prior to December 31, 2009, exempt from Capital Gains, investors would flee the instability of the stock market and flood into the real estate market.
The demand comes from the investors leaving the stock market and others looking to capitalize on the exemption…they have to have somewhere to put their money.
The urgency comes from this being a ONE YEAR exemption. Any home bought in the 2009 tax year will not be subject to Capital Gains Taxes when sold – EVER. With people flooding back into the market not only will inventory/supply dwindle, prices will stabilize, homeowners will regain equity lost, and much more. With regained equity and stability, consumer confidence will be improved and people will start spending money again…and in turn jobs will be created.
608 16th Avenue N. Suite E
Myrtle Beach, SC 29577
Phone: 843.839.8046
Fax: 843.839.9406
info@CoastalREOsolutions.com
