David Thompson

Beaufort, SC History in the Making

Much has been made here in the Beaufort South Carolina Real Estate Market and all over the nation for that matter about the first-time homebuyer tax credit spurring home sales in the United States, but maybe lost in the hoopla has been another driver of sales: mortgage rates.

We've all heard or read the phrase "at or near historic lows," or something like that, but we really are living in a time at which our future selves will most likely look back and say, "Boy, remember 2009? Interest rates were so low." Maybe even the way our grandparents told us about buying a gallon of milk for a dime.

The real estate website Zillow.com reported on Monday, Nov. 16, that the national average for a 30-year fixed-rate mortgage was 4.75 percent for the week ending Nov. 15, according to quotes from its Mortgage Marketplace.

That rate is nine basis points lower than the national average from the week before, 4.84 percent, and the lowest U.S. average since Zillow launched its mortgage offerings in April 2008.

And the very same day that Zillow reported the news, the average rate dropped even further - to 4.64 percent, according to the site. It's very inexpensive to borrow money for a home right now.

Of course, the interest rates are being manipulated a bit as the Federal Reserve tries to bolster the economy. They've been low for such a long time now that we're probably taking them for granted, but the fact is they're not going to be around forever.

The Fed is keeping a close eye on inflation, and it will definitely adjust borrowing rates if inflation appears a risk. Some experts predict higher rates as soon as next spring, which means right now might be the best time to buy a home.

Maybe the best time in history.

Beaufort, SC Foreclosure Real Estate for Sale
David Thompson, Foreclosure Specialist and his REO Masters Team offers expertise in identifying, evaluating and assisting clients in purchasing and liquidating foreclosure and short sale properties in the Beaufort and Bluffton, SC area. (843) 812-5214

Organization Crisis

I have to laugh as I write this week's David's Minute. While it has to do with organization I have to admit it has nothing to do with time or schedules!

My family and I finally did the "summer is now over" pack up and clear out this past weekend. All I can say is WOW!! We woke up Saturday morning and as I sipped my first cup of coffee (the stronger the better) we told all the kids what we had planned for the day. Time to clear the closets! Seeing how it was Saturday and according to the kids it is supposed to be a vacation type day this obviously didn't go over to well at first. But after going over how it was going to work they buckled right down and got to it.

We went from kids room to kids room and yes, my wife and I did ours too. We took out the does not fit clothes, wore it out clothes, don't like it anymore clothes and of course we came across the why did grandma buy that kind of clothes. As we weeded through the overabundance of clothing they then began to do their own dirty wash. By the end of the day we had all reduced the closet clutter and had all of the laundry done and put away where it belongs. Way to go kiddos!

We finished up and it was amazing how they all reacted. Now, I won't get into how many bags of clothes we bagged up but let's just say it was definitely more than one bag per person. Anyway, they were excited about how much better everything fit into the dressers and hung in the closets. One of them shouted "I'm organized!".

As I am preparing to take the bags to the drop off center I thought about how I can imitate this "clean out" exercise to other areas of my life. Let me tell you, there are a few areas I can definitely clean out. How about you? I'm not necessarily talking about anything drastic but for some of you it might be.

As the days and weeks go by and we visit with people, work with others and share in experiences we can't help but generate some baggage. I know there are times when I walk away from an experience feeling heavy with baggage. Some of it is good but of course we always feel more of the bad. Unfortunately, it sometimes gets carried with us during the day and even longer. This can definitely be unhealthy and can have short and long term attitude effects.

As I wind down the year I want to do a bit of closet cleaning. I have to get rid of the bags that got filled up this year with "stuff" that no longer needs me to store it. If it doesn't have an educational impact for me, an income producing opportunity for me or if I don't enjoy doing it I have to let it go. This will free up time to enjoy expanding on opportunities and sharing with family and friends. And yes, keep my attitude in check.

So, back up the trash truck and fill it on up. I think we all can feel better and be more productive with a clean closet!

Beaufort, SC Foreclosure Real Estate for Sale
David Thompson, Foreclosure Specialist and his REO Masters Team offers expertise in identifying, evaluating and assisting clients in purchasing and liquidating foreclosure and short sale properties in the Beaufort and Bluffton, SC area. (843) 812-5214

Are Banks Better off Foreclosing Beaufort, SC Homes?

Remember this past summer, when loan modification statistics were starting to become revealed? The data was murky, at best, when it came to determining whether the government's Making Home Affordable efforts - part of the overall stimulus package - was helping distressed homeowners keep their homes.

There were early indications that banks were dragging their feet. Then the U.S. Treasury started to put pressure on the banks, who pledged to increase those in trial modifications from about 200,000 to 500,000 by Nov. 1.

Now that we're past that date, there's no hard-and-fast data yet that shows that goal has been met. What there HAS been is complaining that banks are still reluctant to help homeowners avoid foreclosure - even though the government has put in place incentives for them to do just that - and the suggestion that a staggering number of new foreclosures lies ahead.

It begs the question. "If banks are being given incentives to modify loans, why aren't they doing so?"

Well, a consumer advocacy group called the National Consumer Law Center says banks are financially better off foreclosing than modifying.

In a report titled "Why Servicers Foreclose, When They Should Modify, and Other Puzzles of Servicer Behavior," NCLC lawyer Diane Thompson concludes that banks would rather start the foreclosure process than work with a struggling homeowner.

"With home values plummeting and layoffs common, homeowners are crumbling under the weight of mortgages that were at best only marginally affordable when made," Thompson said in a press release. "One common sense solution to the foreclosure crisis is to modify the loan terms in more instances. Foreclosures are a costly ordeal for the homeowner, the lender, and the community. Yet they continue to outstrip loan modifications because servicers have no incentive to help borrowers stay in their homes."

According to the report:

Loan modifications inevitably cost the servicer something. A servicer deciding between a foreclosure and a loan modification faces the prospect of near certain loss if the loan is modified, and no penalty, but potential profit, if the home is foreclosed."

The report's blames the securitization of mortgage products for the lack of interest on the part of loan servicers to work out principal and interest reduction plans. The report concludes that paying investors holding mortgages that are modified is more expensive than going into foreclosure. The report makes several recommendations to change the existing modification issue:

The NCLC report outlines the following action steps:

•· Avoid irresponsible lending through regulation of loan origination
•· Mandate loan modifications before a foreclosure
•· Fund quality mediation programs
•· Provide for principal reductions on existing loans in the Administration's Home Affordable Modification Program (HAMP) and through bankruptcy reform
•· Increase automated and standardized loan modifications for borrowers in default and provide a safety net for borrowers for whom a standardized modification is not affordable or who later default, through no fault of their own, on a loan modification
•· Ease accounting rules for modifications to facilitate standardized review, encourage long-term modifications, and enhance servicer recovery of the expenses incurred in performing a modification
•· Require more transparency and uniformity in how servicers report loan modifications to investors
•· Limit fees charged borrowers in default to reasonable and necessary ones

You can access the full report at www.ConsumerLaw.org

Beaufort, SC Foreclosure Real Estate for Sale
David Thompson, Foreclosure Specialist and his REO Masters Team offers expertise in identifying, evaluating and assisting clients in purchasing and liquidating foreclosure and short sale properties in the Beaufort and Bluffton, SC area. (843) 812-5214

Beaufort, SC "Move-up" Buyers Join the Party

If you've owned the same home for the past five years and are looking to move, you just got invited to the party.

The bill signed by President Obama on Nov. 5 that extended the tax credit for first-time home buyers also included a provision for a reduced credit for "move-up" buyers.

Those who have lived in a home for five consecutive years during the past eight years are eligible for a credit similar to the first-time buyers credit if they purchase a new home that is more expensive than their current one.

Like the first-time buyers credit, it is 10 percent of the purchase price of a new home, up to a maximum of $6,500 (the first-time buyers credit has a max of $8,000). You must have a signed purchase contract by April 30 of next year and the transaction must close by June 30.

Income restrictions on both credits were eased a bit under the new legislation. Single tax filers earning up to $125,000 ($225,000 for couples filing jointly) can get the full credit.

The extension of the first-timers credit should help the recovering housing market keep the momentum it has gained since the credit was established. The National Association of Realtors estimates that about 350,000 people who would not have otherwise purchased homes did so because of the credit, which was set to expire on Nov. 30.

The inclusion of move-up buyers could bring even more buyers into the market, which would help stabilize prices further. The original credit, NAR Chief Economist Lawrence Yun said, did not have the impact on the "move-up" part of the market that the NAR had hoped.

With so many foreclosures for sale, many of the first-time homebuyers who qualified for the credit moved into houses whose sellers were not in position to buy another home. So it was the entry-level, "starter" home segment of the market that mostly benefited.

Beaufort, SC Foreclosure Real Estate for Sale
David Thompson, Foreclosure Specialist and his REO Masters Team offers expertise in identifying, evaluating and assisting clients in purchasing and liquidating foreclosure and short sale properties in the Beaufort and Bluffton, SC area. (843) 812-5214

Thanks to the Veterans.... And Happy Birthday USMC

Well, another week has come and gone! As I think about all I needed to do and how some things I still didn't get to, I also think about some things and moments that I missed out on due to the pace of the days. What did you miss out on this week?

Did you take a moment to think about it? How happy would it have made you or better yet how happy would it have made the other person if you would've been able to share the moment with them?

Today is November 10^th which is the 234^th Birthday of the United States Marine Corps. Happy Birthday Marines!! Since its beginning in 1775 in a Philadelphia, PA bar named Tun Tavern the Marine Corps service members and their families faithfully continue to make enormous sacrifices for us on a daily basis. Some give everything. Take the opportunity to wish them a happy birthday and let them know you are thankful for all that they do. As a Marine myself, I had the opportunity to participate in this historic celebration annually and to this day I still consider it my Birthday as well. My wife and kids even told me "Happy Birthday" today! So, on behalf of the Thompson family I wish all you Devil Dogs a Happy Birthday and thank you for your service!

Now, November 11^th is a holiday too. It's Veterans Day! As we remember all who have served in the armed forces I again encourage you to find a veteran and say thank you. November 11 is a day for us to give thanks and remember all of those who through their selfless service showed they cared about protecting our freedoms and right to pursue happiness. So again, from the bottom of our hearts here in the Thompson house, THANK YOU for your service. We appreciate all that you have done and continue to do without hesitation.

Unfortunately all that we love comes at a price. As I asked you earlier to think about a moment you missed, I now ask you to remember all of the moments that our service members miss. I know that there are some choices in the past that I have made that kept me from participating in "moments" that I will never have the opportunity to experience, share or do over. I missed the birth of my first son (Austin) due to me being deployed overseas. I remember how happy yet how sad I was all at the same time. Every day we have choices to make and there are some we will get wrong. I just hope I get more right! I am sure you do too.

I know there are some things we can't avoid due to our many responsibilities in our daily lives and sometimes there is no way to around it. But as we go around within our daily lives let's do so understanding that others are sacrificing their moments so that we may have the opportunity to experience ours.

Take some time out of your day to remember those who have served and call a veteran you know, write them a thank you, send them a quick email or go up to one and shake their hand and say thank you. Thank you for your sacrifices and giving me the opportunity and the freedom to have my moment.

Beaufort, SC Foreclosure Real Estate for Sale
David Thompson, Foreclosure Specialist and his REO Masters Team offers expertise in identifying, evaluating and assisting clients in purchasing and liquidating foreclosure and short sale properties in the Beaufort and Bluffton, SC area. (843) 812-5214