Ever wonder how you can change the direction of where we are headed as a society?  Try this website and find assistance to help others find what tue character is about.  It is not taught in the schools, in business or at least not consistently.  Go to www.CharacterFirst.com  There are 49 character traits and this is a great help for those looking for answers and help others develop a moral compass.  Ifyou like it then spread the word.  We can change behavior for the better.

Kindest Regards

Gail

Myrtle Beach, Pawleys Island

www.GreaterGrandStrand.com

Realtors are not CPA's or IRS Agents but are we disclosing the inevitable 1099 that the bank will send the seller for the shortfall?  It is the difference between what the bank received for the property and what was owed to the bank.  ARE WE DISCLOSING THIS?  I hope so because I saw one man 'do the right thing' he sold his property in a short sale and then got a 1099 for $100,000 which was the balance owed after the short sale.  A deed in lieu is the same situation or maybe worse, the entire amount owed is taxable as income.  The IRS will attach bank accounts and wages if the taxes are not paid. 

No matter what, if I'm in doubt I ask myself one question "Can I look myself in the mirror and know I did the right thing?' We all need to make a living but unless a seller client is full disclosed about the consequences of their actions, they may suffer and, yes, sue everyone for non disclosure.  Well, that is if they any money left.  What a thought. So everyone, CYA and get a 'Hold Harmless' signed before you journey down that road or just don't go.  Are you really doing the right thing?  Do unto others as you would have them do unto you.

Kindest Regards

Gail

Myrtle Beach, Pawleys Island SC

www.GreatrGrandStrand.com

Loss Mitigation, Owing too much & looking for Help, It seemed like a good idea at the time but now what?

The birth of some very creative but not necessarily legal or valid businesses has emerged. Just do a Google® search and they pop up instantly with names like "ThinkDebtRelief.com" and "NationalLossMitigationCompany.com."  Some of these companies legitimately do have a "back door" relationship with lenders and can speed the process & some don't but there are also plenty of free services out there as well.  All agree the sheer number of people in trouble is taxing the lenders and the non-profits, giving rise to these new companies.  Don't forget, skewing the situation there are so many debtors have SECOND MORTGAGES that add more than dollars and complexity to this situation.

The companies claim they will, for a fee, deal with the red tape of lender modification programs and get you to an affordable payment solution. Some are reputable and others are scams.  Some are legitimate and many are not that have been shut down.  NC is prosecuting some of these 'companies' and so are other states. Many are legitimate, but if banks are getting so aggressive in trying to help troubled borrowers & are ramping up their efforts as well, not to mention all the non-profits out there trying to help, why would you need to pay these companies for a service that should be provided by your lender for free?  Given the multitudes looking to modify their loans, the non-profit counseling agencies and lenders/servers are overwhelmed and people are desperate for help. If paying $1,500 to $2,000 means they can lower their payments and avoid foreclosure, it looks like a great deal.

$200 Trillion in Mortgages, 80% are Second Mortgages (edit/delete)

..................and No one notices the crucial piece?

What's wrong with this picture and why no one seems to notice:  The politicians & talking heads are not talking about the specific issue of the SECOND MORTGAGES and therefore little possibility of providing any solution.  Without recognition of the central & most important problem that most are not aware of the magnitude and level of difficulty that banks and consumers are facing in this distressed market.  The majority of compromised debtors have SECOND MORTGAGES and we hear nothing of it.  Perhaps it is too complicated to grasp?   Right....and I am no financial genius but even I can see this very essential piece of the murky mess is somehow being overlooked or disregarded. If ever there was a time that we need a financial Einstein, this is it!  Second mortgage holders can precipitate foreclosures just as the First mortgage holders.  Therefore, unless we can come to grips with the second mortgage dilemma only if we are aware of it.

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OBSERVATION:

Pardon my rant but you may enjoy commiserating with me.  I just hate it when broadcasters:

....pick things apart and point out the obvious and provide no solution.

....chase every negative piece of information to the bottom of the pit and then leave us there.

....push, prod and prick 'whatever bubble' they choose till it bursts.

....allow advertisers a prolific & poffering attitude of 'I am entitled and I want it NOW!'.

...and while I'm at it, is anyone sick of the commercials about Viagra and the other 'enhancing' drugs?  I no longer can stomach them every 8 minutes.

Let's face it, there are more urgent and important needs, after all and okay so WE GET IT ALREADY!  (I'm just saying.)

There is a systemic misunderstanding of the magnitude and level of difficulty that banks and consumers are facing in this distressed market.  Yet we hear nothing of this.  Perhaps it is too complicated to grasp?   Right....and I am no financial genius but even I can see this very essential piece of 'mud pie' is somehow being overlooked or disregarded by the 'talking heads' spouting their 'speak'.   I have not heard any of the pundants provide any solution.  Any ideas out there?  If ever there ws a time that we need a financial Einstein, this is it!

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

OBSERVATION:

Pardon my rant but you may enjoy commiserating with me.  I just hate it when broadcasters:

....pick things apart and point out the obvious and provide no solution.

....chase every negative piece of information to the bottom of the pit and then leave us there.

....push, prod and prick 'whatever bubble' they choose till it bursts.

....allow advertisers a prolific & poffering attitude of 'I am entitled and I want it NOW!'.

...and while I'm at it, is anyone sick of the commercials about Viagra and the other 'enhancing' drugs?  I no longer can stomach them every 8 minutes.

Let's face it, there are more urgent and important needs, after all and okay so WE GET IT ALREADY!  (I'm just saying.)

"The Bush Administration announced a plan that will help some homeowners that are in dire straits. The new FHA program is being implemented immediately by administrative action and is called FHA Secure. The plan gives the Federal Housing Administration the authority to insure loans for delinquent borrowers facing foreclosure.  The immediate implementation of the plan will be for borrower's who can demonstrate a good credit history but have been unable to keep up with the mortgage payments once their mortgage interest rates reset and their payments went up.  Homeowners who can take advantage of this FHA Secure program immediately, can currently be in default and unable to qualify for a conventional mortgage loan. The default would have to be shown to have occurred after the interest rate increase on their current loan.

There are 5 major points to this plan:

• Homeowner should have a history of on time payments before mortgage rate was reset.
• The interest rate reset needed to have occurred between 6/2005 and up to 12/2009.
• Homeowner must show at least a 3% equity in property , in either cash or equity in value of home.
• Borrower must demonstrate a history of employment
• Borrower must demonstrate sufficient income to pay for the new loan payments.

FHA will also roll out a risk based program which wo.gov uld match the borrower's credit profile with a corresponding level of mortgage insurance premium. This program will be paid for by increased premiums on the FHA Mortgage Insurance Premiums ( MIP) paid by the borrower.  With the current market constrictions on certain types of conventional loans, FHA has seen a substantial increase in the amount of refinance loans being made.  The Bush Administration also announced that it will ask the legislature to work towards increasing the ceiling on the maximum loan amounts that FHA can purchase and insure.   In addition, the president will also seek to have a tax break for homeowner's who were foreclosed and had part of the mortgage debt forgiven.  The tax law now would require that the homeowner pay income tax on the amount of mortgage debt that was the lender forgave.  This plan will not save everyone.   It won't help those speculators who thought they would be flipping the property or the buyer who can't prove income and bought into one of those stated income loans, but for those who do qualify for it,  it means saving their home!"

Press Release by FHA ShareThis

Is today's economic downturn different from all the others?

Most Americans are aware of the "Great Depression" and some are still around to remember.  Where are we headed?  "This time, it's different" an inference that this will be the worst. What's different about this particular economic downturn?  Greater unemployment, financial loss is different. The players and the politicians are different. The companies and the products are different. The reason they're all different is that the time frame is different. The average peak-to-peak (for the past 100 years) before each economic downturn has averaged fifty-eight months. Generally five years pass before each economic downturn. What's the same? The cause of this economic downturn is the same: The creation of artificial value through excess. The reason for the downturn is the same: To equalize the markets and marginalize the excesses.
The condition is a tipping point, the markets should bottom out and return to normal within a reasonable period, a large market correction. That is if legislators don't postpone the elimination of excesses to another day.

PET PEEVES AND OTHER MALFUNCTIONS FOR COMMENT:

Not that I am claiming any particular level of intelligence or inside knowledge but one could ponder the following:

SPELLING WORDS INCORRECTLY JUSTIFIES SAVING SPACE;

Why is it that airlines (and many news stations) have determined that the spelling of "cancelled" should be spelled "canceled"?  Apparently this was done without thought to our sensibilities.

INTERROGATION TECHNIQUES COULD BE SIMPLER;

Why aren't prisoners or suspects just given Sodium Pentothal instead of posturing with or torturing perpetrators?  Wouldn't it be simpler to try that first ?  If it is effective (and I am not a chemist) then why not try this as a first course of "treatment"?  Torture, it would seem, is more likely to affect an answer that would give the interrogator what he was seeking just to make the punishment stop.

AGGRESSIVE DRIVERS;

When the difference in arrival time is a few seconds, why are some people bent on making the road their personal battleground?  Apparently they own the road and everyone else needs to get out of their way.

POLICE AND EMERGENCY VEHICLES ARE IGNORED;

As an emergency vehicle approaches with sirens blasting, some drivers seem oblivious let alone pull aside for the vehicle to pass. Next time it could be someone they love or even themselves in the back of the ambulance. Worse yet, our law enforcement officers, standing along vehicles pulled over, are nearly sucked away by the draft of the cars driving within inches of them.  In NC it is the law to pull to the other lane and it should be here in SC. 

FUNERAL PROCESSIONS IGNORED;

Years ago, as a youngster, I was taught to pull over when I see the car lights of a funeral procession.  This is out of respect to the dead and their loved ones.  Respect is a lost art.

According to area market analyst Tom Maeser, the Myrtle Beach area market is returning to 2004 prices and activity level.  Comparing 2007 to 2006, 2005 (times of over the top growth) is not an accurate view.  Our market is correcting like the stock market and stabilizing and should pick up after the first of the year as inventory thins out. 

Gail Daly

866-466-4601