George Wilson

I just heard that next year Social Security recipients would not see a cost-of-living adjustment (COLA) to their payments. That is a troubling thought for the 41 million seniors whose financial security depends on the program. Some depend on their COLA payments to pay on their mortgage or equity line of credit to keep their homes while paying for other essential necessities.

While overall inflation might not be rising in the United States, the daily costs for seniors are growing fast - especially on the things that seniors need most, such as health care and prescription drugs. The average senior spends $4,400 out of pocket every year on health care alone.

Further, a depressed housing market, investment losses, and low returns on CD's and money market accounts make it even harder for seniors to recover from the recession or, in terms of real estate, to sell their home & move into a smaller home, either as a new purchase or as rental. Now is the worst time for a lack of a COLA for Social Security.

Not only would this relief help seniors afford health care, prescription drugs, food and other necessities, but it will also inject money directly into the economy, because seniors are more likely to spend the money than any other age group.

If Congress can come up with trillions of dollars for banks, Wall Street & find money to pay themselves a 5% raise then they can surely find the money to pay for a COLA for Social Security recipients.

Please contact your congressional delegates on this important issue.

Estate planning is a very sore subject for most of us and one that most of us avoid talking about until too late to correct or modify.

Depending on your situation, you might say no but are you sure? You say that you do not need to because I have my will done and I do not own a home or I put it in a life estate for my survivors to "fuss" over. That may be true and I will not get into the Pros and Cons of estate planning as there are plenty of websites that give an in-depth look at estate planning. Instead, I will iterate what could happen to your heirs if you do not take a proactive approach to settling your estate before you suffer a serious illness or sudden death.

THE SETUP: Recently my father died after a long illness. He stated several times things were in order. After the funeral, my siblings and I found out different. During the course of getting ready for Probate Court, we found assets that we were not told about and was not listed in the will or anywhere else. To understand what we were up against, my Dad's filing system consist of putting things in unmarked bags in a home safe (he had 4 of them). My Dad's life was spent in full measure: joined the US Navy in 1944 and retired after serving for 22 years and then he worked at the Charleston Naval Shipyard as a civil service employee until they closed the Naval Base down at which time he retired putting in 20 years. He rejected retirement and started volunteering with the Constructors for Christ organization until he could no longer travel cross-country due to illness and injuries. He told us that between his 2 life insurance policies & death benefits from the VA and Social Security Administration his burial expenses would be covered. We should have heeded Murphy's Law or the old adage "Waiting for the second shoe to drop".

THE FIRST SHOE: During the setup of the funeral, we found that he had two policies worth about $15,000 and what the VA and SSA would pay would cover his funeral and probate court costs. Funeral homes require a person to be personally responsible for the debt ($12,000) not the estate in case the estate is found to be insolvent and unable to pay the decease's outstanding bills and funeral expenses. The silver lining was he had previously sold his home and had moved into an assistant living apartment building.

The SECOND SHOE: Now several weeks later we find that SSA does not pay burial benefits if the deceased is single and does not have any dependents using the IRS definition of dependents. OUCH! No money there. VA will only pay up to $600 but may take up to 90 days to pay after the claim has been filed & verified (funeral services will wait 30 days then go after consignor). Now locate the military discharge papers (called DD-214) among Dad's files otherwise submit to Veterans Dept for copy (90 days to respond). Life Insurance policies he took out several years ago will be issued to beneficiaries on file but cannot be sent to the estate directly if he has any living relatives (wife, sibling(s), sibling's children, parent(s), sister(s), brother(s), etc. on down the line; get the picture). Oh, now we find out in one of his financial statement letters that he may have stocks with "broker name" but he cannot say how much or with whom without court papers. Another financial statement letter is received in the mail the following week. Civil Service Admin now says because of his entry into service in 1944 there maybe another life policy but cannot say how much or with whom without court papers. So on and on it goes as quarterly financial statements are received in the mail.

The REST OF THE STORY: Since my Dad never took the time before his illness to document and discuss where and what insurance policies and stocks he had, where they were located nor whether or not he had copies of his DD-214 (certification not required) nor that he might have life insurance policies that were put into effect after 1950 by the Federal Employees Act nor that recent Federal Law changes in regards to injuries sustained in 1944 while serving in the Navy that may result in back pay, it has been a long arduous journey to get his estate in order. Every week something new crops up with more paperwork to locate, print, fill out & file.

The bottom line is not waiting until you are seriously ill to start getting your estate in order. Think of your heirs as you get your affairs in order. Update your will, especially if you own real estate or have a valuable collection, review your life insurance policies, direct payout to your executor(s) with written directions on how to distribute the payout, list your policies and stocks with who they are with and finally check with local authorities on what forms need to go with them to file benefit claims. Then give copies of the papers to your executor or somebody in the family so they don't have to hunt for them when the time comes.

So check with your local estate planner or go to one of the numerous websites soon, he/it can help you get everything in order before it is too late to get it in order.

2008 Market Report for Lincoln County, NC

By now most everyone has gotten back into the regular routine following the holidays. Barack Obama has been inaugurated as the new President of the United States and he will be trying to get Congress to come onboard for his plans to get the economy back on track.

2008 has ended with several changes in all markets, some good and some bad. In some areas of the country foreclosures and layoffs are making news daily. Other areas are now just beginning to show the effects from Wall Street and consumer spending. Other areas are starting to see consumers coming back into the real estate market.

Lincoln County overall was never part of the "real estate bubble" that affected many other parts of the country. Our prices did go up as buyers, able to procure higher loan limits, where able to meet seller's prices. But as the "mortgage melt down" began filtering down, foreclosures started creeping into neighborhoods, first with buyers' ARMs then with developers unable to sale but still making loan payments and unable to refinance their short term loans.

The last six months of 2008 ended with companies either merging or closing down causing layoffs; banks & mortgage lenders raising the criteria for loans for new homeowners and refinancing home loans; investors, who in the past had no trouble getting loans with little to no documentation, now have to verify income producing properties to satisfy lenders.

I have produced some charts below showing the year end results of properties within Lincoln County that are still active, pending, and sold between January 1, 2008 and December 31, 2008. The information is based on scans of the Charlotte Multiple Listing Service (CMLS) and review of tax records for private sales (when available). The information provided is for informational purposes only and should not be used to determine the value on your home. For a true market value of your property, contact a licensed appraiser.

2008 CMLS Home Statistics ⁺⁺

Homes are still available fitting a buyer's budget. Most sellers are willing to negotiate both price and/or terms as properties are staying on the market longer. Most real estate professionals agree that it is a buyers market but sellers want proof that the buyer has the means to buy before taking homes off the market.

Interest rates are still at historically low rates. Buyers can still find qualified home loans but should expect the loan process to take longer and require more documentation than a year ago. Mortgage brokers recommend that buyers interested in purchasing a home should get prequalified first as this helps to speed up the loan process when they find their dream home.

2008 CMLS Land Statistics ⁺⁺

Vacant land sales both inside & outside established subdivisions are still a viable method for buyers who cannot find their dream home among existing homes being offered. Like home sales sellers are eager to negotiate as days on the market continue to increase. Several types of construction loans are still available for the qualified buyer and with construction of new homes slowing, a buyer can shop for a deal in building their new home using local builders.

2008 CMLS Commercial Statistics ⁺⁺

Even though several large local businesses have closed their doors, there are several stand alone commercial buildings for sale along with new mini-malls being built. These buildings range from warehouses w/office space to gas stations to restaurants w/land. There are also new construction buildings opening up for lease options. These small businesses are providing jobs for some of the laid off labor market and students looking for part time employment. As with residential loans, investors & small business owners should expect the loan process to take longer and require more documentation than a year ago.

++ Data Source: Carolina Multiple Listing Services, Inc.

Market Index - Q4-07

On a scale of 1 - 5 (1 being a Buyer's Market and 5 being a Seller's Market), the current market index is a 2.

Labor Market:

During the first two months of this quarter approx. 727 jobs were added to Lincoln County payrolls. The average monthly unemployment rate fell from 5.4% to 5.2% in October and November. The job situation in Lincoln County still remains a strong factor and should continue to increase the demand for housing. Both historically low mortgage rates and a steady job market should help to keep the market moving.

Housing Market: ***

Data by Zip Codes for Q4 2007++

*** % Change of current quarter compared to the same quarter a year ago.

++ Source: Carolina Multiple Listing Services, Inc. and the National Association of Realtors^®