TOP 10 REASONS TO BUY A HOME NOW

1.)                Investors are buying up houses and condos, in some instances paying entirely in cash. This is a good indicator that the market is ROCK bottom.

2.)                What goes down, must go up. Homes prices are expected to rise.

3.)                Good deals. Nationally, the cost of a house is the equivalent of about 19 months of total pay, the lowest level in 35 years.

4.)                Interest rates are historically low.

5.)                You own a real asset. If you own a home, vs a Stock you have a real asset that you can live in, rent out, or sell if you choose.

6.)                Home mortgage could be less than rent. With all of the recent foreclosures, there are a lot of renters. Therefore, it is a landlord’s market.

7.)                It’s forced savings.

8.)                There are many homes to choose from that are priced competitively. All ready for you to call home!

9.)                64% of Americans agree. Nearly two-thirds (64%) of all respondents polled in a study by Fannie Mae think it is a good time to buy a home, and nearly one in three (31%) think now is a very good time to buy a home.

10.)            Buying a home positively impacts our local economy. The National Assocation of Realtors® estimates that each home sale at the median national sales price of $173,000 generates $30,792 of economic impact, and $58,529 of economic impact when new housing is taken into account. Because of the significant economic impact a single home sale generates, the National Association of Realtors® also estimates that one job is generated for every two home sales.

For more information on buying a home in 2011, please contact Hope Dorn with ERA Wilder Realty at (803) 944-9544 or by email: hope.dorn@era.com.

FHA Mortgage Insurance Premium Increases

If you’re currently looking to purchase your home (house, condo, townhome) with an FHA Loan, the cost of that loan will be increasing soon. Effective April 18, 2011, the FHA monthly mortgage insurance premium will be increasing 0.25% for all loans with case numbers issued on or after April 18th.

The net effect of the change is two-fold. First, the monthly mortgage payments will increase. That means more money out of pocket every month. Second, as the cost of the mortgage rises, purchasing power decreases. In this case, not by much; it’s likely less than $10,000. Though, if you’re close to your limit, that could have an effect on how much home you can afford. To avoid the fee increase, buyers should act quickly.

Most FHA buyers will finance a 30-year term with the minimum 3.5% down, resulting in a 96.5% loan to value, and therefore will be subject to the 1.15% mortgage insurance premium.

If you're approved, get your offer in now!

No Fannie, no Freddie

Editorial Courtesy of the Los Angeles Times

The Obama administration has offered three options for reducing the government's role in home loans.

February 23, 2011

The Obama administration took its first, tentative step this month toward a future without Fannie Mae and Freddie Mac, the troubled mortgage finance giants. The Treasury Department laid out three options for reducing the government's role in home loans, each of which would phase out Fannie and Freddie and shrink or eliminate federal support for run-of-the-mill mortgages. Such an approach is likely to raise mortgage interest rates, especially for 30-year fixed loans, and could make it harder to get a mortgage during a financial crisis. But it would also greatly reduce the likelihood of taxpayers being stuck covering the cost if a downturn causes foreclosures to mount.
Congress created Fannie Mae and Freddie Mac to help lower the cost and increase the availability of home loans. Before the Depression, banks typically required mortgages to be paid off in one lump sum after five years. That's because banks' reliance on short-term sources of money, such as customers' deposits, left them ill prepared for the long-term risks posed by loans that wouldn't be paid back for years.
Launched in 1938, Fannie Mae's original mission was to purchase and hold loans guaranteed by the Federal Housing Administration. By offering banks the chance to sell the loans they issued, Fannie Mae made it possible for them to offer more mortgages and to allow longer payback periods. The eventual result was the wide availability of consumer-friendly 30-year fixed-rate loans. Freddie Mac, which Congress created in 1970, made even more capital available for mortgages by buying, bundling and selling loans to investors.
But Fannie Mae, which became a shareholder-owned company in 1968, and Freddie Mac, which has always been shareholder owned, combine public missions and private ownership in a dangerous way. Because Congress created the two companies and relied on them to promote affordable housing, investors and lenders assumed (correctly) that they wouldn't be allowed to fail. That made it cheaper for Fannie and Freddie to borrow money, giving them an unfair advantage over competitors in the secondary market for home loans.
More important, the implicit federal guarantee encouraged the companies to take excessive risks, which they did by jumping into the market for subprime and other exotic loans late in the housing bubble. After racking up billions in profits for their shareholders and employees, they foundered in 2008, sticking taxpayers with more than $150 billion in losses.

Let's Go Shopping!

LEXINGTON:

Average listing price in Lexington went down 0.78% to $218,869 from prior week.

Median sales price in Lexington  went down 8.14% to $140,000 from prior quarter.

Average price per sqft in Lexington  went up 3.45% to $90/sqft from prior quarter.

There have been 399 price reductions in Lexington.

There are 122 foreclosures in Lexington.

NEWBERRY:
Median sales price in Newberry went down 61.11% to $35,000 from prior quarter.

There have been 39 price reductions in Newberry.

Average listing price in Newberry went up 2.21% to $145,817 from prior week.

There are 16 foreclosures in Newberry.

COLUMBIA:

Average listing price in  Columbia went down 0.03% to $188,026 from prior week.

Average price per sqft in Columbia went down 3.95% to $73/sqft from prior quarter.

There have been 1,195 price reductions in Columbia.

There are 691 foreclosures in Columbia.

IRMO:

Average listing price in Irmo went up 1.40% to $207,154 from prior week.

Median sales price in Irmo went down 9.76% to $143,000 from prior quarter.

Average price per sqft in Irmo  went up 5.88% to $90/sqft from prior quarter.

There have been 170 price reductions in Irmo.

The are 87 foreclosures in Irmo.

Call Hope Dorn with ERA Wilder Realty at (803) 944-9544 to begin your dream home search!

Free Money to Buy a Home!

If you have been procrastinating about buying a home, get off of the fence! Rates are starting to climb and home prices are at an unbelievable low. If downpayment is an issue, consider this:

Many lenders are offering the 5-to-1 down payment match. If you bring $500 to the table, they turn it into $2,500. If you bring $1000, they turn it into $5,000.

SC State Housing Authority  - The Authority offers $5000 down payment assistance based on availability, which may be used toward down payment and closing.

USDA Rural Development  - Rural Housing Direct Loans are loans that are directly funded by the Government.   These loans are available for low- and very low-income households to obtain home ownership.  Applicants may obtain 100% financing to purchase an existing dwelling, purchase a site and construct a dwelling, or purchase newly constructed dwellings located in rural areas. Some of the neighborhoods are closer into town than you think.  

For more information on finding the perfect home and making it happen, contact Hope Dorn with ERA Wilder Realty at (803) 944-9544 or by email at hope.dorn@era.com.

What do real estate agents really do?

One of the most complex and significant financial events in peoples' lives is the purchase or sale of a home or investment property. Because of the complexity and importance of this transaction, people typically seek the help of real estate brokers and sales agents when buying or selling real estate.
Real estate brokers and sales agents have a thorough knowledge of the real estate market in their communities. They know which neighborhoods will best fit clients' needs and budgets. They are familiar with local zoning and tax laws and know where to obtain financing for the purchase of property.
Brokers and agents do the same type of work, but brokers are licensed to manage their own real estate businesses. Agents must work with a broker. They usually provide their services to a licensed real estate broker on a contract basis. In return, the broker pays the agent a portion of the commission earned from the agent's sale of the property. Brokers, as independent businesspeople, often sell real estate owned by others; they also may rent or manage properties for a fee.
When selling property, brokers and agents arrange for title searches to verify ownership and for meetings between buyers and sellers during which they agree to the details of the transactions. In a final meeting, the new owners take possession of the property. Agents and brokers also act as intermediaries in price negotiations between buyers and sellers. They may help to arrange financing from a lender for the prospective buyer, which may make the difference between success and failure in closing a sale. In some cases, brokers and agents assume primary responsibility for finalizing, or closing, sales, but typically this function is done by lenders or lawyers.
Agents and brokers spend a significant amount of time looking for properties to buy or sell. They obtain listings—agreements by owners to place properties for sale with the firm. When listing a property for sale, agents and brokers compare the listed property with similar properties that recently sold, to determine a competitive market price for the property. Following the sale of the property, both the agent who sold it and the agent who obtained the listing receive a portion of the commission. Thus, agents who sell a property that they themselves have listed can increase their commission.
Before showing residential properties to potential buyers, agents meet with them to get an idea of the type of home the buyers would like, and how much the buyers can afford to spend. They may also ask buyers to sign a loyalty contract, which states that the agent will be the only one to show houses to the buyer. An agent or broker then generates lists of properties for sale, their location and description, and available sources of financing. In some cases, agents and brokers use computers to give buyers a virtual tour of properties that interest them.
Agents may meet numerous times with prospective buyers to discuss and visit available properties. Agents identify and emphasize the most pertinent selling details. To a young family looking for a house, for example, they may emphasize the convenient floor plan and the proximity to schools and shopping. To a potential investor, they may point out the tax advantages of owning a rental property and finding a renter. If negotiation over price becomes necessary, agents must follow their client's instructions thoroughly and may present counteroffers to reach the final sales price.
Once the buyer and seller have signed a contract, the real estate broker or agent must ensure that all terms of the contract are met before the closing date. If the seller agrees to any repairs, the broker or agent ensures they are made. Increasingly, brokers and agents must deal with environmental issues as well, such as advising buyers about lead paint on the walls. In addition, the agent must make sure that any legally mandated or agreed-upon inspections, such as termite, heating & air and mold inspections, take place. Loan officers, attorneys, and other people handle many details, but the agent must ensure that they are carried out.
Most real estate brokers and sales agents sell residential property. A small number—usually employed in large or specialized firms—sell commercial, industrial, agricultural, or other types of real estate. Every specialty requires knowledge of that particular type of property and clientele. Selling, buying, or leasing business property requires an understanding of leasing practices, business trends, and the location of the property. Agents who sell, buy, or lease industrial properties must know about the region's transportation, utilities, and labor supply. Whatever the type of property, the agent or broker must know how to meet the client's particular requirements.
Work environment. Real estate agents and brokers often work more than a standard 40-hour week, often working evenings and weekends for the convenience of clients. Although the hours are long and frequently irregular, most agents and brokers have the freedom to determine their own schedule.
Advances in telecommunications and the ability to retrieve data about properties over the Internet allow many real estate brokers and sales agents to work out of their homes instead of real estate offices. Even with this convenience, workers spend much of their time away from their desks—showing properties to customers, analyzing properties for sale, meeting with prospective clients, or researching the real estate market. - Courtesy of Bureau Of Labor and Statistics


For the Ultimate Real Estate Experience, contact Hope Dorn with ERA Wilder Realty at (803) 944-9544 or by email, hope.dorn@era.com.

Home Loan Checklist

     

     After you have received your prequalification letter, freeze your credit activity! The initial credit application that you fill out with your lender is not the final application.  The final application is signed at closing. If your financial condition changes during the period between the initial application and closing then those changes need to be addressed in the final application and loan is re-underwritten. A final credit report, called a “soft pull”, is required within 48 hours prior to closing to make sure there are no new inquires or accounts. Be prepared to offer explanation on any recent credit inquires.

     To ensure a smooth closing without delay, use the following checklist to have everything ready for your lender ahead of time.

• $450.00 For application fee (to cover appraisal). Credit card or debit card preferred.
• Current pay stub to cover a minimum of 30 days. (If you get paid weekly that means 5 pay stubs).

• Copy of past 2 years W2’s

• Most recent 2 years tax returns

• Copy of driver’s license.

• 2 Months of bank statements. All pages/all accounts. All large deposits other than payroll need to be explained. Document source of down payment.
• Latest statements of assets accounts. i.e. 401K retirement accounts and terms of Withdrawal

• Copy of the front and back of the earnest money check once it has cleared the buyer’s account along with an online account history tying back into the end of the last full bank statement provided.

• Copy of purchase contract.

• Name, address, phone number and email for current employer and prior employer with dates to cover a minimum period of two years of employment history.

• Current address and any prior addresses, with dates, as needed to cover two year history of residence. If renting Please provide landlord’s name and phone number.

• Choose your attorney and have contact information.

• Choose home owners insurance agent and have contact information.

• Copy of award letter verifying income, social security, retirement, etc.

• Copy of business license if self employed.

• For VA applicants please provide a Statement of Service from your admin shop (active duty) or Co DD-214 (non-active duty), a copy of orders and military id.

     For more information on obtaining a home mortgage loan, please contact Hope Dorn with ERA Wilder Realty to get started! (803) 944-9544.

The Truth About Investing in Real Estate

Between holidays and snow, my sleep schedule has been a disaster, however, very informative. I have learned that late night cable television has not changed much at all.

In flipping through the channels, there is one sleazy infomercial after another. Topping the sleaze-ball list, is none other than the promotion of real estate courses that are guaranteed to teach you how to make a fortune buying and selling real estate for little or no money down, and for pennies on the dollar”! But, that’s not all…you’ll also learn how to buy homes from the owners with no money down and have the owner give you the mortgage…but wait, that’s not all, you’ll also learn how to buy properties for as little as $200- free and clear from tax sales. The courses and mentoring are promised to put you on the path to financial freedom for the low, low cost of $49.95.

Further, these fast talking “mentors” stress that anyone can do it. Then there are “actual” interviews of people who have reportedly gone from rags to riches…essentially overnight all thanks to the program.

It’s all a bunch of bologna. Seriously, would you sell your home for no money down to someone you have never met and owner finance it for them? Sellers that offer the owner financing option are savvy. They know that with little money invested in a home, a buyer could leave them with a damaged, abandoned home. Afterall, they have NOTHING to lose. That is why the down payment is so much higher when you request a seller to finance.

I feel quite sure that a quick glance into the backgrounds of these “real estate gurus” would reveal a history one “get rich quick” scam after another.

While it is true that there is a lot of money to be made in real estate investing, it certainly does not happen overnight.

Real estate investing is a full time job. Like any other business, it takes hard work, dedication, and ongoing education. The sad part is that most of the people that fall for these scams are young and genuinely interested in getting into the business of real estate investing.

Do not waste your money on these scams! My best advice is to buy your own home. You can generally do that with no money down if you have decent credit. Fix it up and then either sell it or refinance it and use the profits for a down payment on an investment property. Get a real estate agent in your corner to ensure that you are getting the best possible deal. There is a fortune to be made, but you must crawl before you walk.

For more information on buying distressed properties or for a free list of foreclosed homes in your area, contact Hope Dorn with ERA Wilder Realty at (803) 944-9544 or by email at hope.dorn@era.com.

Renting vs. Buying in 2011

In a real estate market flooded with foreclosures, one would think that rental prices have decreased. Not so. In fact, the opposite is true. The average rental price in 2010 increased by 11.6% according to HOT PADS. The bottom line is that the increase of foreclosures in 2010 yielded a surplus of renters. It is not a renters market.

While the average rental price increased by 11.6% in 2010, the average home price decreased by 9.8%. 

Home buying has never been more affordable. In fact, the rate of home construction is the lowest since before the Second World War.

There will never be a better time to buy.

For information on becoming a homeowner in 2011, contact Hope Dorn with ERA Wilder Realty at (803) 944-9544. Let’s get started!

SC Real Estate: Have We Hit Rock Bottom?

With 2010 coming to a close, there is one burning question on everyone’s mind; Have we hit rock bottom?

In real estate, just as in any other facet of life, it is important to look at the past to see where you are going. Statistically we are in the year 2000. The party of 2005 is over and we are all dealing with the clean up.

What goes up, MUST come down. The home prices leading up to 2005 were ridiculously high. Mix ridiculous real estate prices with easy credit approvals and the outlandish belief that real estate always goes up and what do you have? Voila! The recipe for a Real Estate Market crash. We have arrived, my friends. This IS rock bottom.

Make no mistake about it, the foreclosures in the past two years have not all been due to job loss. A great number of foreclosures were simply people walking away (even when they could afford it) because they owed more than their property was worth and felt it was a “good business decision”.

No more “get rich quick”. Stabilization is here. While buying a home now is certainly a wise choice and a great investment, do not expect a quick return.

While the market is turning, it did not fall overnight and it will not rise overnight. Luckily, South Carolina did not suffer devastation to the degree that other markets did. We were fortunate.

We are sure to see a slight decrease in home prices in some areas and stabilization in others in 2011. If you are a seller, you need to list your property now to prevent any further loss.

If you are a buyer, there will never be a better time to buy. As the year progresses, we will see stricter lending practices and higher interest rates (they are climbing now), plus you will never see home prices this low again. 

For question on buying or selling in today’s tough market, contact Hope Dorn with ERA Wilder Realty at (803) 944-9544 or hope.dorn@era.com.

South Carolina: Best Place to Retire

If mild winters, low taxes, plenty of recreational activity, and low cost of living sound appealing to you, then the Palmetto State is the best place for you to retire!

TAXES. All residents at age 65 are eligible for a deduction of up to $15,000 from income, regardless of the source. Social security and most disability payments are not taxable. People over 65 can exclude $50,000 of market value from property taxes. South Carolina does not collect inheritance taxes or estate taxes.

COST OF LIVING.  According to the Tax Foundation, SC has the 37th highest tax burden in the nation. Per capita income (in 2008 inflation-adjusted dollars) is well below the national average. The statewide average median home price in South Carolina is $121,800 (as reported by Zillow) while the national average (as reported by the US Census) is $218,200.

SOCIAL SECURITY & MEDICARE.

At age 65, you can apply for Social Security whether planning to retire or not (may apply 3 months prior to Social Security retirement age). You can also apply for Medicare (automatically eligible if qualify for Social Security benefits).

Part A – hospital insurance – free.

Part B – other medical services, which require a monthly premium. There is a penalty for late enrollment.

Medicare pays 80% of allowable charges after deductible. Individual must pay remaining 20% and any other additional charges.

Part D – Prescription drug benefit, effective January 2006.

**May be eligible for Supplemental Security Income (SSI) payments depending on resources and income. If you are eligible for SSI, you automatically receive Medicaid.

AUTO INSURANCE. Automobile insurance credit is mandated for persons who are 55 years of age or older and have successfully completed a driver training course approved by the Department of Public Safety. Contact local 55 Alive program through AARP.

EDUCATION. At age 65, free tuition at all state supported educational institutions that include state universities, colleges, and technical schools (subject to space restrictions and usual entrance requirements). To be eligible you cannot receive compensation as a full-time employee.

CLIMATE. South Carolina has a humid subtropical climate, with hot summers and mild winters.

HUNTING & FISHING LICENSE. State residents at age 64 may buy $9 senior lifetime licenses that include hunting and fishing privileges.

RECREATION. Lakes, rivers, mountains, and the ocean! With 368 golf courses, 47 state parks, and over 400 annual festivals- the possibilities are endless!

For more information on retiring in South Carolina, please contact Hope Dorn with ERA Realty at 803-944-9544 or hope.dorn@era.com.

How to Trade Real Estate -Tax Free

Because of its favorable tax treatment, investing in real estate can be extremely advantageous.

If you are considering selling an investment property and intend to purchase another “like-kind” property with the proceeds, a 1031 exchange should be considered. A 1031 exchange is a legal provision that allows a seller to sell one property, purchase another property, and defer capital gains taxes. (Section 1031 exchange does not apply to exchanges of inventory, stocks, bonds, notes, other securities or evidence of indebtedness, ETC.) This is strictly for real estate.

How does it work?

• Both properties involved must be investment properties and of “like-kind”;
• You cannot experience any gain from the sale;
• The purchase price on the new property must be equal to or more than the net proceeds from the sale of the old property;
• You cannot act as your own facilitator. In addition, your agent (including your real estate agent or broker, investment banker or broker, accountant, attorney, employee or anyone who has worked for you in those capacities within the previous two years) can not act as your facilitator. Everything must pass through a qualified intermediary (QI);
• The tax on the gain is deferred, not forgiven. When the replacement property is ultimately sold (not as part of another exchange), the original deferred gain, plus any additional gain realized since the purchase of the replacement property, is subject to tax.

For more information on Like-Kind Exchanges Under IRC Code Section 1031, please visit irs.gov or consult with your attorney.

How a Few Hundred Dollars Can Save You Hundreds of Thousands

Title insurance protects you against financial loss due to defects in title.

Unlike life, auto,health, or homeowners insurance; title insurance coverage ends on the day of issuance and extends backwards.

More than likely your property underwent many changes in ownership prior to you contracting to purchase. Title insurance ensures that should a dispute ever arise, your equity is protected. (e.g.: forged deeds, inadequate legal descriptions, improperly recorded legal documents, defective acknowledgements, ECT.)

Although your closing attorney will search your title before closing, (typically the search is 40 years for residential and 60 years for commercial) disputes can still arise. No search is altogether dependable. This is why lenders require a lender’s policy. They want their interest protected!

While the lender will require a policy to protect their interest, this does not protect your interest. You will need an owner’s policy to accomplish this. 

Once you purchase your owner's title insurance policy, your interest is protected indefinitely. There are no further premiums. If you decide to refinance at a later date, the lender will require a new lender’s policy be purchased. This is because their policy terminates once you pay off the old mortgage. The owner’s policy remains in place.

Title insurance is relatively inexpensive. Purchasing an owner’s title insurance policy is a wise decision and one that you will surely never regret. It is amazing how a few hundred dollars can save you hundreds of thousands.

Stop Borrowing TROUBLE- 10 Steps to Healthy Credit

Mortgage lenders are in the process of raising credit score requirements from 620 to 640. Raising your credit score is more important now than ever! Further, it is estimated that the lifetime cost of poor credit is in excess of $200k.

Please review the following steps to ensure you are doing what you should be to stop borrowing trouble:

1.)   Obtain a FREE credit report at: FREE CREDIT REPORT

2.)   Dispute all inaccurate information to the reporting credit bureau(s). The goal is to make sure all information on your report is correct.

3.)   Dispute collections accounts with the credit bureaus as “not mine” or “unjust charge”. (eg: an unfair cell phone bill that went unpaid) The older and smaller a debt that has been sent to collections, the more likely the collection agency will not investigate your dispute.

4.)   Once you are financially able, start settling old debt. Contact the creditor and negotiate what you can afford. Once you reach an agreement, request that the creditor report the debt as, "Settled in Full" or "Paid in Full." Make sure you receive a copy of the settlement agreement.

5.)   Pay your bills on time.

6.)   Limit the number of inquiries on your credit.

7.)   Keep your credit card balances below 30% of their limit.

8.)   Use your oldest credit card. The older your credit history, the better!

9.)   If you’ve been a good customer, a creditor may agree to remove a late payment from your credit report. Make the request in writing. It never hurts to ask.


10.) Stay away from those companies that promise to "fix your credit".

How's the Market?

In an article published on June 24, 2010 and entitled America's Most Recession-Proof Cities, CNNMoney.com, Columbia, SC ranked the 6^th strongest performing metro area by Brookings Institution.

Since Columbia and surrounding counties did not experience a housing bubble collapse that so many markets did during the financial crisis of 2007-2010, its market is fairly stable.

While sellers are not walking away from the closing table with tens of thousands in profit, like they did at the height of the market, most are able to sell at a reasonable price and within a reasonable time frame. Cities such Las Vegas and New Orleans have not been as fortunate.

Columbia, South Carolina continues to be a great place to live!

How To Be An Effective Seller

Price your home right.  While everyone would like to walk away with a large profit, the price you place on your home is essential. Since the first few weeks a home is on the market is the most crucial, you need to price it right immediately. If your home is priced too high you will lose exposure during the first few weeks of the listing. Of course you can always reduce it later. However, you will have lost the original listing period and your opportunity to sell quickly.

Make sure you home shows well. Look at your home from a buyer’s standpoint. Your home should be clean and remain that way for the duration of your listing. Touch up paint where necessary. Do whatever it takes to make your home look bigger. This includes de-cluttering the entire house…even the closets and kitchen drawers. Remove furniture if necessary. The bottom line is if you’re not using it, pack it up and store it away. You’re moving anyway!

Make sure your home is easy to show. When buyers are hot, they are hot! If you are called at 3pm for an immediate showing, make it happen. Chances are, your home is not the only home on the buyer’s list and the next house shown may be the one that gets the offer.

Marketing. This is key. If you are trying to sell your home on your own, chances are it is not being marketed well. You do not have access to the marketing tools that a licensed real estate agent has, plain and simple. Further, neither does discount brokers. After all, there is a reason they are discount brokers.

How Do You Want to Hold Title?

This is a question that should be asked by your closing attorney prior to your real estate closing, but if it is not, you should make sure that you are taking title the way you intend.

There are three ways to take title to real property in South Carolina:

1.)    Sole Ownership. When a person hold title this way, upon his death, title is passed to whoever s/he has named in their Will. If there is no Will, title will be passed to his/her heirs.

2.)    Tenants-in-Common. Two or more people who take title to property usually take title this way. Tenants-in-common do not have to own equal interest in the property. For example one owner may own ¼ and the other may own the remaining ¾. However, each owner has an undivided interest. For example, it cannot be broken down into, “you own two bedrooms and I own three bedrooms”, unless there is a separate agreement. With this type of ownership, one person can sell his/her interest to a third party without the consent of the other owners. More importantly, when an owner dies his/her interest is passed on to whoever is named in their Will. If there is no Will, interest will pass to his/her heirs. Even when a husband and wife take title this way, the property still has to be probated.

3.)    Joint Tenants with Right of Survivorship. This is the most common way that married people take title, although you do not have to be married to take title this way. The most important feature of holding title this way is that if one owner dies, the other automatically takes the deceased persons interest in the property. The property does not have to be probated.

If you do not specifically ask the closing attorney to convey title as Joint Tenants with Right of Survivorship, s/he may prepare a Deed that leaves you holding title as Tenants in Common and not as Joint Tenants with Right of Survivorship. Make sure you have the attorney review the Deed with you prior to recordation.

S.C Attorneys Violating Attorney-Client Privilege?

As of January 1, 2010,  HUD requires that loan originators provide borrowers with a standard Good Faith Estimate that discloses all key loan terms and closing costs and that the “settlement agent” provide the borrower with a copy of the new HUD1 (this includes the borrower's Good Faith Estimate, key loan terms, interest rate, etc.). The Seller is also given this document for his/her signature and provided with a copy.

In South Carolina, the “settlement agent” is an attorney and the buyer is always represented. Please note that in the case of a dual representation disclosure, an attorney may represent both parties to the closing but still owes the duty of confidentiality to both.


As far as I know, there are no documents produced for a closing that are of public record that disclose loan terms, interest rates, etc.


In the past closing attorneys separated buyers and sellers so as not to disclose the buyers confidential loan information to the sellers. After all, this information really isn’t any of the seller’s business.


Are the new RESPA regulations forcing South Carolina attorneys to violate the attorney-client privilege?

Looking for a deal?

You are not alone.


Everyone is looking for a real estate bargain in today’s market. While buying a foreclosed home is certainly an option--- that is just what it is…an option. By only viewing foreclosed homes, you are doing yourself a huge injustice.


There are MANY motivated sellers out there who are pricing their homes at a discount in order to get them sold. In fact, nearly 30% of listed homes owned by individuals have had at least one price reduction. There is also the possibility of purchasing a home through short sale. Further, when you are working with an individual, you can negotiate repairs, warranties, and closing costs. There is little flexibility in negotiating with the banks.         

Make sure you view ALL homes in the price range you can afford and never underestimate the value of purchasing from an individual on your quest in finding a deal.

Listing Your House During the Holiday Season

Waiting until after the New Year really is not the best decision.

Consider this. During the winter months, there is far less competition. By listing during this time, you are able to sell high. When Spring rolls around, the market picks up and you will have the opportunity to buy low. It’s all about supply and demand. Less inventory means more demand. More demand means more money in your pocket. Sell high, buy low!

Even though your home is listed during the holidays, restrictions can be set on showings and houses actually show better when decorated for the season. Further, buyers are more emotional during this time and are more likely to buy.

It’s amazing how tire-kickers disappear during the winter months. Folks looking during this time are serious buyers.

In short, selling during the holidays is a smart choice!