Time is Running Out for Goose Creek and Charleston SC Area First Time Home Buyers Looking to Buy a Foreclosure

By Matthew Naumann

Real Estate Agent with Exit Realty Charleston Group

August 01, 2009 09:41 AM

Time is Running Out for Goose Creek and Charleston SC Area First Time Home Buyers Looking to Buy a Foreclosure
Many first time home buyers in the Goose Creek and the Charleston SC Area are still searching for their first home, looking to get an incredible deal. Many home buyers are continuing to search, expecting more foreclosures to hit the market at prices well below the market. This is has not happened for many buyers, due to the rule changes for foreclosues. Many First Time Home Buyers may not realize that time is starting to run out to be eligible for the $8000 Tax Credit. In order to be eligible for the $8000 Tax Credit as the law currently stands, you need to close on a house by Nov. 30, 2009. Which means you need to be under contract to buy a home by no later than third week of October, because of the Thanksgiving holiday (i.e. minimum of 30 days to close).

Rule slows foreclosures

By KATY STECH - The (Charleston) Post and Courier - Tuesday, July 21, 20009 - Lenders were foreclosing on Charleston-area homes at a record pace in the second quarter of the year until the state's highest court issued a rule that slowed the trend, leading to fewer foreclosures throughout South Carolina.

Though the drop is probably not a sign of an economic rebound, it shows that the S.C. Supreme Court's order has kept hundreds of local homeowners out of immediate danger of losing their homes.

"There's no magic bullet, but consumers now have options, and the attitude in the industry is slowly changing," said Lil Ann Gray, a staff attorney for the State Department of Consumer Affairs. "The attitude in the industry was ‘We'll just foreclose if you can't come to terms or work with us. ...' They are now encouraged to do foreclosure avoidance techniques if possible."

The system calls for most lenders to see whether struggling homeowners qualify for lower monthly payments through the Obama administration's "Making Home Affordable" plan. Through the $75 billion program, mortgage companies can get incentive money for reducing mortgage payments, typically by cutting the interest rate.

If a lender hasn't checked to see whether a homeowner is eligible for help, the company can't begin foreclosure proceedings to take back the property. That has reduced the number of filings at the local county courthouses.

An analysis by The Post and Courier shows that during June - the month after the court order was issued - lenders began foreclosure procedures on 284 Charleston-area properties. That's the lowest monthly volume in more than a year.

Nationwide data shows that foreclosures grew about 4.5 percent during June, while South Carolina's rate dropped 32 percent that month compared to May.

For the second quarter, Charleston-area foreclosures totaled 1,242, an 11 percent drop from the quarter before.

Lenders that did file foreclosure actions after the court order were required to state the reasons why the affected homeowners did not qualify for help.

Many homes did not qualify because they were not the owner's primary residence. Second homes and rental properties aren't eligible for the help.

Some homeowners weren't making enough money to be able to pay a lower mortgage, while others didn't respond when lenders tried to contact them.

In a few cases, the mortgage was not insured by Fannie Mae or Freddie Mac and the company that handles the loan wasn't required to participate in the federal plan, which meant the foreclosure could proceed.

State Supreme Court Chief Justice Jean Toal announced a change in the process May 1 after consumer groups across the state complained that lenders were continuing to foreclose on homeowners, even if they qualified for help.

The high court's new rule gives homeowners more time to work out potential loan changes with their mortgage lenders, a process that sometimes takes four months just to get an initial response, said Debbie Kidd, who oversees foreclosure counseling for the nonprofit Family Services Inc. in North Charleston.

"They're not losing their home, but sometimes that wait is just unbearable," she said. Her agency met with 4,616 homeowners across South Carolina during the second quarter.

When the economy began to sour, Family Services counselors often met with low-income residents who used risky mortgages to buy their homes. Now, their typical client is more affluent.

"This is someone who was making $200,000 to $250,000 a year, never needed help from anyone, had all the toys and a big house," she said. "And someone in that household has lost a good job, ... and getting another job like that is tough right now."

To read the rest of this article, http://www.thestate.com/breakingbiz/story/871627.html

Groups:: 1st Time Buyers; EXIT REALTY RAINMAKERS; Exit Realty--Real Estate Re-Invented; EXIT REALTY USA - Give and Gain Knowledge; South Carolina Real Estate

Tags:: goose creek charleston sc 8000 tax credit; goose creek charleston sc first time home buyer; goose creek charleston sc foreclosures