The decline in mortgage rates comes after aggressive moves by the Federal Reserve aimed at propping up the U.S. housing market. On Dec. 16, the Federal Open Market Committee lowered a key interest rate, and last month the Fed said it would buy $600 billion in mortgage-related securities and other debt issued by Fannie Mae, Freddie Mac and the Federal Home Loan banks.
The latest rate decline is likely to revive the ailing housing market. According to a survey by the Mortgage Bankers Association earlier this month, refinancings represented almost 77% of all mortgage applications.
But a refinance boomlet is also good news for the broader economy. Millions of homeowners still have costly adjustable-rate mortgages. With access to credit tightening, rates on consumer loans rising and the value of equities falling, the opportunity to lock into a fixed-rate mortgage and to reduce payments could relieve pressure on some household budgets.
On a $200,000 mortgage, for example, a shift from 6.25 to 5.25% interest can save more than $100 per month.
The lower interest rate offers buyers a chance to afford a more expensive home while keep on a budget.
With some local interest rates at 4.75% for a 30 year fixed rate some buyers feel they are seeing the bottom of the real estate market.
Tuesday, December 30, 2008
Monday, December 29, 2008
penny sales tax beginning January 1st 2009
The Horry County penny sales tax that voters approved in November 2008 will go into effect January 1st 2009.
The sales tax increase will show up on retail purchases beginning January 1st 2009.
The penny tax is to go for the construction of new schools in Horry County without raising property taxes.
80% of the proceeds will go to Horry County Schools, and the the rest will be divided between Horry-Georgetown Technical College and Coastal Carolina University.
The sales tax increase will show up on retail purchases beginning January 1st 2009.
The penny tax is to go for the construction of new schools in Horry County without raising property taxes.
80% of the proceeds will go to Horry County Schools, and the the rest will be divided between Horry-Georgetown Technical College and Coastal Carolina University.
Tuesday, December 23, 2008
rates hit their lowest point in history
Last week, rates hit their lowest point in history, and ended the week about a quarter percent lower than where they began. Although the week ahead will be a short one, there are still several economic indicators scheduled for release that will likely impact rates.
Before we address the week ahead, last week rates hit their lowest point since record keeping began. The big news last week was, of course, the Fed's announcement after their final FOMC meeting of 2008.
In a bold move the Fed decided to drop the Federal Funds Rate (the rate banks charge each other to lend money overnight) to a target of between 0 to .25% and the Discount Rate (the rate at which banks can borrow directly from a Federal Reserve Bank) by .75% to .50%.
Normally, this would have been devastating to mortgage rates and would have likely pushed rates much higher. (Remember, lower rates by the Fed often equate to increased inflation, which is the arch enemy of bonds.) However, in conjunction with the Fed's announcement of decreasing rates to their lowest point ever, the Fed also announced it would be buying as much as $600 Billion of debt issued or guaranteed by Fannie Mae, Freddie Mac and other government-backed mortgage businesses in a direct effort to help lower home loan rates. This news caused bonds to rally to their highest price ever, which in turn pushed rates to their lowest point ever.
The big question is - Will the actions of the Fed last and for how long? One thing is for sure, if your customers qualify for a refinance loan, they may be seeing the lowest rates ever right now.
Before we address the week ahead, last week rates hit their lowest point since record keeping began. The big news last week was, of course, the Fed's announcement after their final FOMC meeting of 2008.
In a bold move the Fed decided to drop the Federal Funds Rate (the rate banks charge each other to lend money overnight) to a target of between 0 to .25% and the Discount Rate (the rate at which banks can borrow directly from a Federal Reserve Bank) by .75% to .50%.
Normally, this would have been devastating to mortgage rates and would have likely pushed rates much higher. (Remember, lower rates by the Fed often equate to increased inflation, which is the arch enemy of bonds.) However, in conjunction with the Fed's announcement of decreasing rates to their lowest point ever, the Fed also announced it would be buying as much as $600 Billion of debt issued or guaranteed by Fannie Mae, Freddie Mac and other government-backed mortgage businesses in a direct effort to help lower home loan rates. This news caused bonds to rally to their highest price ever, which in turn pushed rates to their lowest point ever.
The big question is - Will the actions of the Fed last and for how long? One thing is for sure, if your customers qualify for a refinance loan, they may be seeing the lowest rates ever right now.
Wednesday, December 17, 2008
30 YEAR FIXED 4.750%
Mortgage Rates continue to drop.
These Rates are from local Myrtle Beach banks
CONVENTIONAL 30 YEAR FIXED 4.750%
FHA/VA FIXED 4.875%
These Rates are from local Myrtle Beach banks
CONVENTIONAL 30 YEAR FIXED 4.750%
FHA/VA FIXED 4.875%
Tuesday, December 16, 2008
Federal Reserve announced Tuesday
The Federal Reserve announced Tuesday that it has cut the target for its key federal funds rate to a range of 0 to 0.25 percent, down from 1 percent set back in October.
The federal funds rate is the interest rate banks charge each other. The new target range puts the rate at its lowest level on record.
In the Fed's policy statement, Chairman Bernanke said the committee will use all available tools in order to contain the financial crisis.
The statement also said "weak economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time."
The outlook for economic activity has weakened further since the Fed's last meeting. Labor markets, consumer spending and business investment all showed declining trends, according to the Fed.
Going forward the Fed will focus on supporting the function of financial markets and aim to stimulate the economy through open market operations.
The Fed said it will continue to purchase large amounts or agency debt and mortgage-backed securities.
The committee also approved a 75 basis point cut in the discount rate to .50 percent.
All changes made by the Fed committee on Tuesday were unanimously approved by the 12 Fed governors.
U.S. markets moved higher on the announcement while yields on 10 year and 30 year Treasury bonds fell.
The federal funds rate is the interest rate banks charge each other. The new target range puts the rate at its lowest level on record.
In the Fed's policy statement, Chairman Bernanke said the committee will use all available tools in order to contain the financial crisis.
The statement also said "weak economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time."
The outlook for economic activity has weakened further since the Fed's last meeting. Labor markets, consumer spending and business investment all showed declining trends, according to the Fed.
Going forward the Fed will focus on supporting the function of financial markets and aim to stimulate the economy through open market operations.
The Fed said it will continue to purchase large amounts or agency debt and mortgage-backed securities.
The committee also approved a 75 basis point cut in the discount rate to .50 percent.
All changes made by the Fed committee on Tuesday were unanimously approved by the 12 Fed governors.
U.S. markets moved higher on the announcement while yields on 10 year and 30 year Treasury bonds fell.
Sunday, December 14, 2008
4.5% mortgage rates
Reporting from Washington -- Could a 4.5% mortgage be your personal piece of the bailout pie?
Apparently many consumers thought precisely that the week after hearing that the Treasury Department was working on plans to slash loan rates for consumers who buy houses in the coming months.
The news threw a wrench into the marketplace -- making some shoppers reluctant to commit to purchase without guaranteed access to 4.5% mortgage money. In some cases, it stalled deals that were ready to go.
"It put us into limbo," said Dennis Badagliacco, chief executive of Altera Real Estate, a brokerage firm in San Jose. "Once [news] leaked out, it immediately slowed down" the pace of sales contracts and discussions, he said -- an ironic side effect of a plan ultimately meant to stimulate real estate transactions.
Customers didn't want to gamble that they'd be locked into a 5.5% mortgage when 4.5% financing might be readily available if they simply waited a week or two, Badagliacco said.
Another irony of the situation: The National Assn. of Realtors, of which Badagliacco is a director, was the primary force behind the concept of federal intervention to lower rates by a full percentage point. Representatives of the association brought the proposal to federal officials as part of a multipoint plan to kick-start the economy through housing.
The Federal Reserve has already formally adopted one of the group's recommendations -- committing to buy $500 billion in mortgage securities to inject liquidity into a market burdened by investors' fears, and to buy $100 billion in debt issued by Fannie Mae and Freddie Mac. Those moves knocked 30-year mortgage rates down by half a percentage point within a day, from 6% to 5.5%.
But setting up a program in which the government would buy securities backed by loans originated by private lenders at 4.5% would take longer to implement.
So what do you do if you're already well along in your shopping, you've found a house at a great price and you're ready to apply for a mortgage at 5.5%, but don't want to miss out on potentially lower rates?
Ask your broker or loan officer whether you can lock in today's rate but still have the ability to move down should cheaper money become available. Not all lenders can accommodate such requests, but some brokers offer 60-day locks with that option. Others may charge you.
Either way, you're better prepared for your own little bailout -- just in case it comes your way -- without having to risk losing the house you really want.
Apparently many consumers thought precisely that the week after hearing that the Treasury Department was working on plans to slash loan rates for consumers who buy houses in the coming months.
The news threw a wrench into the marketplace -- making some shoppers reluctant to commit to purchase without guaranteed access to 4.5% mortgage money. In some cases, it stalled deals that were ready to go.
"It put us into limbo," said Dennis Badagliacco, chief executive of Altera Real Estate, a brokerage firm in San Jose. "Once [news] leaked out, it immediately slowed down" the pace of sales contracts and discussions, he said -- an ironic side effect of a plan ultimately meant to stimulate real estate transactions.
Customers didn't want to gamble that they'd be locked into a 5.5% mortgage when 4.5% financing might be readily available if they simply waited a week or two, Badagliacco said.
Another irony of the situation: The National Assn. of Realtors, of which Badagliacco is a director, was the primary force behind the concept of federal intervention to lower rates by a full percentage point. Representatives of the association brought the proposal to federal officials as part of a multipoint plan to kick-start the economy through housing.
The Federal Reserve has already formally adopted one of the group's recommendations -- committing to buy $500 billion in mortgage securities to inject liquidity into a market burdened by investors' fears, and to buy $100 billion in debt issued by Fannie Mae and Freddie Mac. Those moves knocked 30-year mortgage rates down by half a percentage point within a day, from 6% to 5.5%.
But setting up a program in which the government would buy securities backed by loans originated by private lenders at 4.5% would take longer to implement.
So what do you do if you're already well along in your shopping, you've found a house at a great price and you're ready to apply for a mortgage at 5.5%, but don't want to miss out on potentially lower rates?
Ask your broker or loan officer whether you can lock in today's rate but still have the ability to move down should cheaper money become available. Not all lenders can accommodate such requests, but some brokers offer 60-day locks with that option. Others may charge you.
Either way, you're better prepared for your own little bailout -- just in case it comes your way -- without having to risk losing the house you really want.
Loan modifications
a private investor in mortgage-backed securities, filed a lawsuit in New York State Supreme Court on December 1st alleging that the proposed modification of some 400,000 home loans originally underwritten by the defunct lender Countrywide Financial is illegal.
The lawsuit, which seeks class-action status, was filed against Bank of America, which bought Countrywide in late 2007. Frey argues that most of the Countrywide loans are not Countrywide's or Bank of America's to modify, but rather are owned by trusts that bought them through securitization.
In an article published by BusinessWeek.com, Frey claims that BofA’s modifications will short bondholders $8.4 billion by reducing borrower payments. While those loan adjustments may help to keep struggling borrowers in their homes today, Frey says those alterations run the risk of permanently damaging the secondary market for housing finance.
At the heart of the issue is how loans are packaged and securitized. Typically once a loan is originated it is packaged and sold off to investors. These securities are called Mortgage Backed Securities or MBSs. These MBSs are purchased by trusts put together by Wall Street bankers. When borrowers pay interest and principal on their mortgage loans, those payments go to the trusts, not to the lender that initially made the mortgage loans. To raise the money to buy or fund the loans, the trusts sell interests in a pool to investors or bondholders. Therefore, when banks modify the terms or principle amount of the loans held by the trusts it is the trust not the bank that takes the loss.
"I am an advocate for investors' contractual rights," says Frey, 50, in the interview. He has publicly argued since March that loan modifications are against contract law, and has threatened to sue banks -- despite, he says, receiving pressure to back down from Washington.
"Investors' voices have been muted in this debate because they speak of an inconvenient truth: Current solutions sacrifice the long-term viability of this nation's housing finance system for short-term political gain. No matter how noble the intent, it is not in the interest of the United States now, or in the future, to tell its citizens and the world at large that U.S. contract rights may be bent with the political winds," added Frey.
While so far Frey is the only member of the proposed class against BofA, Frey says he's on a crusade on behalf of all large investors who bought Triple A-rated mortgage bonds, and not just those who bought bonds backed by Countrywide mortgages. The suit alleges that modifications favor bondholders who bought the riskiest pieces. Normally those investors should suffer losses first, but that's not what's happening in the current wave of workouts, according to the suit.
In another published report, BofA spokeswoman Shirley Norton says: "We have not yet received a filing and, therefore, we cannot comment on specific claims. We are, however, disappointed in this attempt to halt a program intended to keep as many as 400,000 at-risk families in their homes and, together with similar programs across the industry, stabilize the nation's housing market. We are confident that together with the attorneys general we have built a program that benefits both consumers and investors, whose interests we carefully considered in developing our program."
Frey suggests that a solution would be for the government to buy all the troubled loans from mortgage-backed securities pools at a price tag of roughly another $500 billion. Under Frey’s plan bondholders would be made whole and the government -- that is taxpayers -- would then have their investment reduced when loans are modified.
If successful, the suit may put a halt to modification of loans without getting permission from the trusts who ultimately own the loans.
The lawsuit, which seeks class-action status, was filed against Bank of America, which bought Countrywide in late 2007. Frey argues that most of the Countrywide loans are not Countrywide's or Bank of America's to modify, but rather are owned by trusts that bought them through securitization.
In an article published by BusinessWeek.com, Frey claims that BofA’s modifications will short bondholders $8.4 billion by reducing borrower payments. While those loan adjustments may help to keep struggling borrowers in their homes today, Frey says those alterations run the risk of permanently damaging the secondary market for housing finance.
At the heart of the issue is how loans are packaged and securitized. Typically once a loan is originated it is packaged and sold off to investors. These securities are called Mortgage Backed Securities or MBSs. These MBSs are purchased by trusts put together by Wall Street bankers. When borrowers pay interest and principal on their mortgage loans, those payments go to the trusts, not to the lender that initially made the mortgage loans. To raise the money to buy or fund the loans, the trusts sell interests in a pool to investors or bondholders. Therefore, when banks modify the terms or principle amount of the loans held by the trusts it is the trust not the bank that takes the loss.
"I am an advocate for investors' contractual rights," says Frey, 50, in the interview. He has publicly argued since March that loan modifications are against contract law, and has threatened to sue banks -- despite, he says, receiving pressure to back down from Washington.
"Investors' voices have been muted in this debate because they speak of an inconvenient truth: Current solutions sacrifice the long-term viability of this nation's housing finance system for short-term political gain. No matter how noble the intent, it is not in the interest of the United States now, or in the future, to tell its citizens and the world at large that U.S. contract rights may be bent with the political winds," added Frey.
While so far Frey is the only member of the proposed class against BofA, Frey says he's on a crusade on behalf of all large investors who bought Triple A-rated mortgage bonds, and not just those who bought bonds backed by Countrywide mortgages. The suit alleges that modifications favor bondholders who bought the riskiest pieces. Normally those investors should suffer losses first, but that's not what's happening in the current wave of workouts, according to the suit.
In another published report, BofA spokeswoman Shirley Norton says: "We have not yet received a filing and, therefore, we cannot comment on specific claims. We are, however, disappointed in this attempt to halt a program intended to keep as many as 400,000 at-risk families in their homes and, together with similar programs across the industry, stabilize the nation's housing market. We are confident that together with the attorneys general we have built a program that benefits both consumers and investors, whose interests we carefully considered in developing our program."
Frey suggests that a solution would be for the government to buy all the troubled loans from mortgage-backed securities pools at a price tag of roughly another $500 billion. Under Frey’s plan bondholders would be made whole and the government -- that is taxpayers -- would then have their investment reduced when loans are modified.
If successful, the suit may put a halt to modification of loans without getting permission from the trusts who ultimately own the loans.
Friday, December 12, 2008
5% for 30 years on a fixed rate mortgage
Many people are asking if it is time to buy?
With interest rates hitting 5% for 30 years on a fixed rate mortgage ( No Point or origin fees) the answer is easy.
Home and condo prices in the Myrtle Beach area are already low and the extra savings the great mortgage rate offer a great opportunity.
Contact 843Realtor.com for more help.
With interest rates hitting 5% for 30 years on a fixed rate mortgage ( No Point or origin fees) the answer is easy.
Home and condo prices in the Myrtle Beach area are already low and the extra savings the great mortgage rate offer a great opportunity.
Contact 843Realtor.com for more help.
Thursday, December 11, 2008
For Sale Hard Rock Park $35,000,000
This Friday is the deadline for bids to be submitted to buy the Hard Rock Theme Park
The park will be auctioned off next Monday, December 15th 2008.
A minimum bid of $35 million, with 10 percent of that put up in cash.
The park closed for the season and declared bankruptcy on September 24th, just five months after opening.
The park will be auctioned off next Monday, December 15th 2008.
A minimum bid of $35 million, with 10 percent of that put up in cash.
The park closed for the season and declared bankruptcy on September 24th, just five months after opening.
Wednesday, December 10, 2008
4.75% Fixed for 30 Years
Some Myrtle Beach new constuction homes are offering 4.75% Fixed rate for 30 Years. Contact an 843, Realtor rep for more info.
Monday, December 8, 2008
Myrtle Beach Council Meeting
City Of Myrtle Beach Council Regular Meeting held on the second and fourth Tuesdays in each month unless changed by a majority vote of members present at any regular or special meeting.
Tuesday, December 9, 2008 11:59 AM
937 Broadway Street
Myrtle Beach, SC 29577
Tuesday, December 9, 2008 11:59 AM
937 Broadway Street
Myrtle Beach, SC 29577
Friday, December 5, 2008
5.125% on a 30 year fixed
Myrtle Beach local banks are offering a fix 30 year home mortgage at 5.125
interest rate might even get a little lower. Now is the time to pick out the home you want so when the reate hit bottom you can lock in with a contract on your dream beach house.
interest rate might even get a little lower. Now is the time to pick out the home you want so when the reate hit bottom you can lock in with a contract on your dream beach house.
1 in 10 American homeowners
A record one in 10 American homeowners with a mortgage were either at least a month behind on their payments or in foreclosure at the end of September as the source of housing market pressure shifted to the crumbling U.S. economy.
The Mortgage Bankers Association said Friday the percentage of loans at least a month overdue or in foreclosure was up from 9.2 percent in the April-June quarter, and up from 7.3 percent a year earlier.
Distress in the home loan market started about two years ago as increasing numbers of adjustable-rate loans reset to higher interest rates. But the latest wave of delinquencies is coming from the surge in unemployment.
Employers slashed 533,000 jobs in November, the most in 34 years, catapulting the unemployment rate to 6.7 percent, the Labor Department said Friday.
"Now it's a case of job losses hitting more across the board," Jay Brinkmann, chief economist of the Mortgage Bankers Association.
The U.S. tipped into recession last December, a panel of experts declared earlier this week. Since the start of the recession, the economy has lost 1.9 million jobs.
Job losses are already having an impact in rising delinquency rates for traditional 30-year fixed rate loans made to borrowers with strong credit. Total delinquencies on those loans rose to 3.35 percent in September from 3.07 percent at the end of June, the Mortgage Bankers Association said.
There were some modest signs of stabilization. The number of loans that entered the foreclosure process totaled 1.07 percent of all loans in the third quarter, flat from the second quarter.
Though that number likely reflects changes in state laws that delay or extend the foreclosure process and efforts to work out or modify loans that could still fall back into foreclosure.
The Mortgage Bankers Association said Friday the percentage of loans at least a month overdue or in foreclosure was up from 9.2 percent in the April-June quarter, and up from 7.3 percent a year earlier.
Distress in the home loan market started about two years ago as increasing numbers of adjustable-rate loans reset to higher interest rates. But the latest wave of delinquencies is coming from the surge in unemployment.
Employers slashed 533,000 jobs in November, the most in 34 years, catapulting the unemployment rate to 6.7 percent, the Labor Department said Friday.
"Now it's a case of job losses hitting more across the board," Jay Brinkmann, chief economist of the Mortgage Bankers Association.
The U.S. tipped into recession last December, a panel of experts declared earlier this week. Since the start of the recession, the economy has lost 1.9 million jobs.
Job losses are already having an impact in rising delinquency rates for traditional 30-year fixed rate loans made to borrowers with strong credit. Total delinquencies on those loans rose to 3.35 percent in September from 3.07 percent at the end of June, the Mortgage Bankers Association said.
There were some modest signs of stabilization. The number of loans that entered the foreclosure process totaled 1.07 percent of all loans in the third quarter, flat from the second quarter.
Though that number likely reflects changes in state laws that delay or extend the foreclosure process and efforts to work out or modify loans that could still fall back into foreclosure.
Thursday, December 4, 2008
It's official, we are in a recession
The official announcement was made yesterday confirming that the country is in a recession. While the news of a recession is not surprising to anyone paying attention to the economy, November’s home sales may catch you a little off guard. Marc Fox pleasantly surprises us with the numbers for November and Allan Glass provides details to what exactly the recession is and why the announcement was finally made. Existing Home Sales Climb in West
By Marc Fox
“Sales of existing homes jumped in the Western region’s October 2008 stats according to the National Association of Realtors. Roughly 104,000 homes and condominiums were sold last month in the 13 western states. That represents a 41% increase from the same month last year and was a 6% increase from September’s statistics.”
Just Tell Us What You Want to Hear
By Allan Glass
“Most economists agree that a recession is “technically” when a country’s GDP sustains a negative growth factor for at least 2 consecutive quarters. The US GDP grew, although modestly, in the 1st and 2nd quarter of 2008 which means we really haven’t reached a recession as of yet. My feeling is that we’ve moved past the need for a technical definition. I also believe that most of the erratic movement in the stock markets and lack of movement in the real estate markets is due to a lack in acceptance that we are here everyone.”
By Marc Fox
“Sales of existing homes jumped in the Western region’s October 2008 stats according to the National Association of Realtors. Roughly 104,000 homes and condominiums were sold last month in the 13 western states. That represents a 41% increase from the same month last year and was a 6% increase from September’s statistics.”
Just Tell Us What You Want to Hear
By Allan Glass
“Most economists agree that a recession is “technically” when a country’s GDP sustains a negative growth factor for at least 2 consecutive quarters. The US GDP grew, although modestly, in the 1st and 2nd quarter of 2008 which means we really haven’t reached a recession as of yet. My feeling is that we’ve moved past the need for a technical definition. I also believe that most of the erratic movement in the stock markets and lack of movement in the real estate markets is due to a lack in acceptance that we are here everyone.”
National Association Of Realtors Four-Point Plan
Below is a list of the 4 point plan the National Association Of Realtors want to see happen in the next month
• Make the $7500 first-time homebuyer tax credit available to all buyers and eliminate repayment requirements. The credit's limited availability and repayment requirement severely limit the credit's use and effectiveness.
• Make the 2008 FHA, Fannie Mae and Freddie Mac loan limits permanent. New rules for 2009 will reduce them. Now is not the time to limit mortgage affordability.
• Get the Treasury relief program back on track and target more funds to mortgage relief. Create a federal mortgage interest buy-down program to make below-market rates available and stabilize home prices.
• Permanently bar banks from engaging in real estate brokerage and management. The banks have proved they have enough to do to simply manage the loan process. Banks should not manage home sales and purchases.
• Make the $7500 first-time homebuyer tax credit available to all buyers and eliminate repayment requirements. The credit's limited availability and repayment requirement severely limit the credit's use and effectiveness.
• Make the 2008 FHA, Fannie Mae and Freddie Mac loan limits permanent. New rules for 2009 will reduce them. Now is not the time to limit mortgage affordability.
• Get the Treasury relief program back on track and target more funds to mortgage relief. Create a federal mortgage interest buy-down program to make below-market rates available and stabilize home prices.
• Permanently bar banks from engaging in real estate brokerage and management. The banks have proved they have enough to do to simply manage the loan process. Banks should not manage home sales and purchases.
Wednesday, December 3, 2008
out-of-state boaters a break on their property taxes
Horry County Council will meet Tuesday to decide whether to give out-of-state boaters a break on their property taxes.
Local marina owners say they're losing business, because the county boat tax law is not keeping up with other states and counties.
The marina operator says the word has gone out to boaters in northern states to avoid Horry County.
"The Web sites that deal with boaters that travel the Intracoastal Waterway, all the boating publications are telling boaters to bypass South Carolina because of this tax law," said Myrtle Beach-based marina consultant Gregg Smith.
Right now, northern boaters who want to spend their winters in Horry County have to start paying property taxes on their boats after being docked in the county for 60 days.
Each county is allowed to set its own time limits before taxes are assessed and some counties, like Beaufort, have already lengthened theirs to 180 days.
That's what marina operators want for Horry County, to give them a level playing field and keep boaters here.
"These folks spend thousands and thousands of dollars in our economy during the winter months when they're here and in these tough economic times, we sure don't need to see that stop," Smith said.
County Auditor Lois Eargle supports the change, but says it could cost the county $160,000 in lost revenue.
Smith said the loss will be even greater if the law isn't changed.
"In sales tax and groceries and all of those kinds of things that these boaters would buy, I would say that that $160,000 would be a small drop in the bucket for what the economy of Horry County will get by changing this law."
One marina operator says she's already lost 50 boats in the past six months because of the law.
Many residents are convenced that the County will show its leadership as it did last year with lowering taxes for residents.
The boat tax law passed first reading in November. If it passes Tuesday, it would need one more reading to become law.
Local marina owners say they're losing business, because the county boat tax law is not keeping up with other states and counties.
The marina operator says the word has gone out to boaters in northern states to avoid Horry County.
"The Web sites that deal with boaters that travel the Intracoastal Waterway, all the boating publications are telling boaters to bypass South Carolina because of this tax law," said Myrtle Beach-based marina consultant Gregg Smith.
Right now, northern boaters who want to spend their winters in Horry County have to start paying property taxes on their boats after being docked in the county for 60 days.
Each county is allowed to set its own time limits before taxes are assessed and some counties, like Beaufort, have already lengthened theirs to 180 days.
That's what marina operators want for Horry County, to give them a level playing field and keep boaters here.
"These folks spend thousands and thousands of dollars in our economy during the winter months when they're here and in these tough economic times, we sure don't need to see that stop," Smith said.
County Auditor Lois Eargle supports the change, but says it could cost the county $160,000 in lost revenue.
Smith said the loss will be even greater if the law isn't changed.
"In sales tax and groceries and all of those kinds of things that these boaters would buy, I would say that that $160,000 would be a small drop in the bucket for what the economy of Horry County will get by changing this law."
One marina operator says she's already lost 50 boats in the past six months because of the law.
Many residents are convenced that the County will show its leadership as it did last year with lowering taxes for residents.
The boat tax law passed first reading in November. If it passes Tuesday, it would need one more reading to become law.
significant portion of $700 billion helping struggling homeowners
President-elect Barack Obama signaled a clear desire Wednesday to use a significant portion of $700 billion in financial bailout funds to stanch foreclosures by helping struggling homeowners with their mortgages.
"The deteriorating assets in the financial markets are rooted in the deterioration of people being able to pay their mortgages and stay in their homes," he said.
Obama's stance represents a policy clash with Treasury Secretary Henry Paulson, who has resisted proposals to use the rescue fund to help guarantee reworked mortgages.
At a Chicago news conference to introduce New Mexico Gov. Bill Richardson as his commerce secretary nominee, Obama said helping people pay their mortgages has to be a component of the rescue fund.
"We've got to start helping homeowners, in a serious way, prevent foreclosures," he said.
On Monday, Paulson said the administration was seeking to halt the record breaking number of foreclosures. But he did not drop his opposition to using the rescue fund for a program being pushed by Federal Deposit Insurance Corp. Chairman Sheila Bair. The FDIC plan would use the rescue fund to help back refinanced mortgages that would lower monthly payments.
Key congressional Democrats have also demanded that the financial rescue money be used to help homeowners.
Obama's comments came a day after the Government Accountability Office, in the first comprehensive review of the rescue package, concluded that the Treasury Department has no mechanisms to ensure that banking institutions limit their top executives' pay and comply with other restrictions.
"We're seeing some areas where we can be doing better in making sure that this money is not going to CEO compensation, that it's protecting tax payers and that the taxpayers are going to get their money back," Obama said.
The auditors acknowledged that the program, created Oct. 3 to help stabilize a rapidly faltering banking system, was less than 60 days old and has been adjusting to an evolving mission.
But auditors recommended that Treasury work with government bank regulators to determine whether the activities of financial institutions that receive the money are meeting restrictions on executive pay, dividend payments and repurchasing of shares.
"Treasury also has no policies and procedures in place for ensuring that the institutions are complying with these requirements or that they are using the capital investments in a manner that helps meet the purposes of the act," auditors said.
In a response to the GAO, Neel Kashkari, who heads the department's Office of Financial Stability, said the agency was developing its own compliance program and indicated that it disagreed with the need to work with regulators.
Congressional Democrats quickly pounced on the findings.
"The GAO's discouraging report makes clear that the Treasury Department's implementation of the (rescue plan) is insufficiently transparent and is not accountable to American taxpayers," said House Speaker Nancy Pelosi, D-Calif.
House Financial Services Committee chairman Barney Frank said Treasury's response comes "very close to telling the institutions that they will be free to use the funds as they wish."
"The bad news was confirmation by the GAO in its first report about the program that Treasury has no way to measure whether taxpayer funds invested in banks are being used in accordance with the purpose of the law to increase lending," Frank said. "The much worse news is Treasury's response that it does not even have the intention of doing so."
The GAO is one of three watchdogs that Congress has assigned to monitor the extraordinary $700 billion financial rescue package, known as the Troubled Asset Relief Program, or TARP. A congressional oversight panel is scheduled to issue its report on Dec. 10. In addition, Congress created an inspector general's office to oversee the program, but the confirmation of veteran federal prosecutor Neil M. Barofsky to the post has been blocked in the Senate by a senator who remains anonymous under Senate practice.
"This report proves the immediate need for oversight of the taxpayer dollars being expended right now as part of TARP," Senate Finance Committee Chairman Max Baucus, D-Mont., said in a statement. "Because of one senator's anonymous block on this nomination, three weeks have been lost _ a key element of the TARP oversight program is not in place."
Republican Sen. Jim Bunning of Kentucky, a member of the Senate Banking Committee who opposed the bailout bill, has said he had "serious concerns" with Barofsky's nomination, though he has praised his experience. Bunning spokesman Mike Reynard would not comment on whether Bunning had placed the hold.
"The deteriorating assets in the financial markets are rooted in the deterioration of people being able to pay their mortgages and stay in their homes," he said.
Obama's stance represents a policy clash with Treasury Secretary Henry Paulson, who has resisted proposals to use the rescue fund to help guarantee reworked mortgages.
At a Chicago news conference to introduce New Mexico Gov. Bill Richardson as his commerce secretary nominee, Obama said helping people pay their mortgages has to be a component of the rescue fund.
"We've got to start helping homeowners, in a serious way, prevent foreclosures," he said.
On Monday, Paulson said the administration was seeking to halt the record breaking number of foreclosures. But he did not drop his opposition to using the rescue fund for a program being pushed by Federal Deposit Insurance Corp. Chairman Sheila Bair. The FDIC plan would use the rescue fund to help back refinanced mortgages that would lower monthly payments.
Key congressional Democrats have also demanded that the financial rescue money be used to help homeowners.
Obama's comments came a day after the Government Accountability Office, in the first comprehensive review of the rescue package, concluded that the Treasury Department has no mechanisms to ensure that banking institutions limit their top executives' pay and comply with other restrictions.
"We're seeing some areas where we can be doing better in making sure that this money is not going to CEO compensation, that it's protecting tax payers and that the taxpayers are going to get their money back," Obama said.
The auditors acknowledged that the program, created Oct. 3 to help stabilize a rapidly faltering banking system, was less than 60 days old and has been adjusting to an evolving mission.
But auditors recommended that Treasury work with government bank regulators to determine whether the activities of financial institutions that receive the money are meeting restrictions on executive pay, dividend payments and repurchasing of shares.
"Treasury also has no policies and procedures in place for ensuring that the institutions are complying with these requirements or that they are using the capital investments in a manner that helps meet the purposes of the act," auditors said.
In a response to the GAO, Neel Kashkari, who heads the department's Office of Financial Stability, said the agency was developing its own compliance program and indicated that it disagreed with the need to work with regulators.
Congressional Democrats quickly pounced on the findings.
"The GAO's discouraging report makes clear that the Treasury Department's implementation of the (rescue plan) is insufficiently transparent and is not accountable to American taxpayers," said House Speaker Nancy Pelosi, D-Calif.
House Financial Services Committee chairman Barney Frank said Treasury's response comes "very close to telling the institutions that they will be free to use the funds as they wish."
"The bad news was confirmation by the GAO in its first report about the program that Treasury has no way to measure whether taxpayer funds invested in banks are being used in accordance with the purpose of the law to increase lending," Frank said. "The much worse news is Treasury's response that it does not even have the intention of doing so."
The GAO is one of three watchdogs that Congress has assigned to monitor the extraordinary $700 billion financial rescue package, known as the Troubled Asset Relief Program, or TARP. A congressional oversight panel is scheduled to issue its report on Dec. 10. In addition, Congress created an inspector general's office to oversee the program, but the confirmation of veteran federal prosecutor Neil M. Barofsky to the post has been blocked in the Senate by a senator who remains anonymous under Senate practice.
"This report proves the immediate need for oversight of the taxpayer dollars being expended right now as part of TARP," Senate Finance Committee Chairman Max Baucus, D-Mont., said in a statement. "Because of one senator's anonymous block on this nomination, three weeks have been lost _ a key element of the TARP oversight program is not in place."
Republican Sen. Jim Bunning of Kentucky, a member of the Senate Banking Committee who opposed the bailout bill, has said he had "serious concerns" with Barofsky's nomination, though he has praised his experience. Bunning spokesman Mike Reynard would not comment on whether Bunning had placed the hold.
Monday, December 1, 2008
Bush administration ignored warnings of financial meltdown
The Bush administration backed off proposed crackdowns on no-money-down, interest-only mortgages years before the economy collapsed, buckling to pressure from some of the same banks that have now failed. It ignored remarkably prescient warnings that foretold the financial meltdown, according to an Associated Press review of regulatory documents.
"Expect fallout, expect foreclosures, expect horror stories," California mortgage lender Paris Welch wrote to U.S. regulators in January 2006, about one year before the housing implosion cost her a job.
The Bush administration Bowing to aggressive lobbying _ along with assurances from banks that the troubled mortgages were OK _ regulators delayed action for nearly one year. By the time new rules were released late in 2006, the toughest of the proposed provisions were gone and the meltdown was under way.
In 2005, faced with ominous signs the housing market was in jeopardy, bank regulators proposed new guidelines for banks writing risky loans. Today, in the midst of the worst housing recession in a generation, the proposal reads like a list of what-ifs:
_Regulators told bankers exotic mortgages were often inappropriate for buyers with bad credit.
_Banks would have been required to increase efforts to verify that buyers actually had jobs and could afford houses.
_Regulators proposed a cap on risky mortgages so a string of defaults wouldn't be crippling.
_Banks that bundled and sold mortgages were told to be sure investors knew exactly what they were buying.
_Regulators urged banks to help buyers make responsible decisions and clearly advise them that interest rates might skyrocket and huge payments might be due sooner than expected.
Those proposals all were stripped from the final rules. None required congressional approval or the president's signature.
"Expect fallout, expect foreclosures, expect horror stories," California mortgage lender Paris Welch wrote to U.S. regulators in January 2006, about one year before the housing implosion cost her a job.
The Bush administration Bowing to aggressive lobbying _ along with assurances from banks that the troubled mortgages were OK _ regulators delayed action for nearly one year. By the time new rules were released late in 2006, the toughest of the proposed provisions were gone and the meltdown was under way.
In 2005, faced with ominous signs the housing market was in jeopardy, bank regulators proposed new guidelines for banks writing risky loans. Today, in the midst of the worst housing recession in a generation, the proposal reads like a list of what-ifs:
_Regulators told bankers exotic mortgages were often inappropriate for buyers with bad credit.
_Banks would have been required to increase efforts to verify that buyers actually had jobs and could afford houses.
_Regulators proposed a cap on risky mortgages so a string of defaults wouldn't be crippling.
_Banks that bundled and sold mortgages were told to be sure investors knew exactly what they were buying.
_Regulators urged banks to help buyers make responsible decisions and clearly advise them that interest rates might skyrocket and huge payments might be due sooner than expected.
Those proposals all were stripped from the final rules. None required congressional approval or the president's signature.
Planning And Zoning Commission Meeting
Town of Surfside Beach
Planning and Zoning Commission Meeting held on the first Tuesday monthly, beginning at 6:30 p.m in Council Chambers.
Tuesday, December 2, 2008
time:6:30 PM
Town of Surfside Beach
115 US Highway 17 North
Myrtle Beach, SC 29575
Planning and Zoning Commission Meeting held on the first Tuesday monthly, beginning at 6:30 p.m in Council Chambers.
Tuesday, December 2, 2008
time:6:30 PM
Town of Surfside Beach
115 US Highway 17 North
Myrtle Beach, SC 29575
fewer South Carolinians on the road for Thanksgiving weekend
Although gas prices are plummeting, fewer South Carolinians are expected to journey over the river and through the woods this Thanksgiving weekend.
AAA Carolinas says the troubled economy will mean the first drop in Thanksgiving holiday travel in six years.
The motor club expects 526,000 South Carolinians to travel more than 50 miles by road this weekend, down about 8,000 from last year.
About 73,000 South Carolinians are expected to fly, a decline of about 7,000 from a year ago.
AAA President David Parsons says the decline might be a bit smaller than otherwise because Thanksgiving is still a holiday people want to spend with family and friends.
Highway Patrol Lance Cpl. Josef Robinson says troopers will have checkpoints around the state, hoping to crack down on speeding and reduce traffic deaths.
Local Myrtle Beach gas prices are presently around $1.63 per gallon.
AAA Carolinas says the troubled economy will mean the first drop in Thanksgiving holiday travel in six years.
The motor club expects 526,000 South Carolinians to travel more than 50 miles by road this weekend, down about 8,000 from last year.
About 73,000 South Carolinians are expected to fly, a decline of about 7,000 from a year ago.
AAA President David Parsons says the decline might be a bit smaller than otherwise because Thanksgiving is still a holiday people want to spend with family and friends.
Highway Patrol Lance Cpl. Josef Robinson says troopers will have checkpoints around the state, hoping to crack down on speeding and reduce traffic deaths.
Local Myrtle Beach gas prices are presently around $1.63 per gallon.
Friday, October 31, 2008
lowered interest rate by a 1/2 %
The Federal Reserve Bank lowered a key interest rate by a half a percentage point Wednesday in the latest attempt to restore confidence in an economy hit by the worst financial crisis in decades.
Major banks responded by lowering the prime rate, the interest rate they charge their best customers, to 4% from 4.5%.
The lower rate will affect some consumer loans, including auto loans, home equity lines of credit and some mortgage loans and credit cards.
The central bank reduced the federal funds rate, the interest banks charge each other on overnight loans, to 1%, the lowest its been since 2003.
The cut was the second in the funds rate this month. The Fed slashed the rate by a half percentage point in a coordinated move with foreign central banks on Oct. 8.
“It was not a big surprise,” said Dean Croushore, associate economics professor at the University of Richmond. “The markets were anticipating it.”
Since rates are already low, the reduction was more of a psychological boost, Croushore said. “People have to get more confidence that the economy will turn around eventually.”
The injection of funds into banks from the government and the unwinding of complicated securities will have more long-lasting affects on the economy than the rate cut, he said.
The Federal Open Market Committee, in its statement yesterday, said the financial turmoil is likely to curtail consumer and business spending.
“The pace of economic activity appears to have slowed markedly, owing importantly to a decline in consumer expenditures,” according to the statement.
The Fed also noted that growth might not be as good as previously expected and a lot of uncertainty remains in the outlook, said Christine Chmura of Chmura Economics & Analytics in Richmond.
The expectation is the Fed will reduce the federal funds rate by another half a percentage point when it meets again Dec. 16, Chmura said.
The last time the rate fell below 1% was in 1958, when Dwight D. Eisenhower was president.
“A reduced rate takes nine months to a year to filter through the economy,” Chmura said. “Most economists expect the recession to last through the third quarter of next year.”
Over the past 13 months, the Fed has cut the federal funds rate from 5.25% to 1%. “It has been very aggressive in easing 1/8rates3/8 and that should have some impact on the economy,” Chmura said.
The Fed’s action should help keep adjustable rate mortgages low, notably those tied to Treasury rates, she said.
People buying cars also should see lower interest rates, although credit is more difficult to obtain. “Those with good credit should be able to make purchases at lower rates,” Chmura said.
The stock market responded by bouncing up and down yesterday, although not as wildly as in previous days, before two of the major indexes wound up slightly lower.
Major banks responded by lowering the prime rate, the interest rate they charge their best customers, to 4% from 4.5%.
The lower rate will affect some consumer loans, including auto loans, home equity lines of credit and some mortgage loans and credit cards.
The central bank reduced the federal funds rate, the interest banks charge each other on overnight loans, to 1%, the lowest its been since 2003.
The cut was the second in the funds rate this month. The Fed slashed the rate by a half percentage point in a coordinated move with foreign central banks on Oct. 8.
“It was not a big surprise,” said Dean Croushore, associate economics professor at the University of Richmond. “The markets were anticipating it.”
Since rates are already low, the reduction was more of a psychological boost, Croushore said. “People have to get more confidence that the economy will turn around eventually.”
The injection of funds into banks from the government and the unwinding of complicated securities will have more long-lasting affects on the economy than the rate cut, he said.
The Federal Open Market Committee, in its statement yesterday, said the financial turmoil is likely to curtail consumer and business spending.
“The pace of economic activity appears to have slowed markedly, owing importantly to a decline in consumer expenditures,” according to the statement.
The Fed also noted that growth might not be as good as previously expected and a lot of uncertainty remains in the outlook, said Christine Chmura of Chmura Economics & Analytics in Richmond.
The expectation is the Fed will reduce the federal funds rate by another half a percentage point when it meets again Dec. 16, Chmura said.
The last time the rate fell below 1% was in 1958, when Dwight D. Eisenhower was president.
“A reduced rate takes nine months to a year to filter through the economy,” Chmura said. “Most economists expect the recession to last through the third quarter of next year.”
Over the past 13 months, the Fed has cut the federal funds rate from 5.25% to 1%. “It has been very aggressive in easing 1/8rates3/8 and that should have some impact on the economy,” Chmura said.
The Fed’s action should help keep adjustable rate mortgages low, notably those tied to Treasury rates, she said.
People buying cars also should see lower interest rates, although credit is more difficult to obtain. “Those with good credit should be able to make purchases at lower rates,” Chmura said.
The stock market responded by bouncing up and down yesterday, although not as wildly as in previous days, before two of the major indexes wound up slightly lower.
Thursday, October 30, 2008
amendments you'll see on the Local ballot
Below is a list of all the amendments you'll see on the ballot. Everyone will vote on the three statewide amendments. Horry County residents will also vote on the sales tax question.
SOUTH CAROLINA AMENDMENT 1
Must Section 33, Article III of the Constitution of this State be amended so as to delete the provision that no unmarried woman shall legally consent to sexual intercourse who shall not have attained the age of fourteen years?
Yes
No
Explanation of Above:
This amendment deletes the section of the Constitution which says an unmarried woman must be fourteen years old or older in order to consent to sexual intercourse. Deleting this section would allow the state legislature to set the age of consent. Currently, the state legislature has the age of consent set at sixteen for most cases.
A "yes" vote would delete the section from the Constitution and let the state legislature set the age of consent.
A "no" vote would leave the section of the Constitution in place.
SOUTH CAROLINA AMENDMENT 2
Must Section 16, Article X of the Constitution of this State relating to benefits and funding of public employee pension plans in this State and the investments allowed for funds of the various state-operated retirement systems be amended so as to provide that the funds of any trust fund established by law for the funding of post-employment benefits for state employees and public school teachers may be invested and reinvested in equity securities subject to the same limitations on such investments applicable for the funds of the various state-operated retirement systems?
Yes
No
Explanation of Above:
"Post-employment benefits" are benefits, mainly health insurance, provided to eligible state government and school district retirees.
To comply with a change in accounting standards, the state has created trust funds to pay for these post-employment benefits. This amendment relates to how the money in these trust funds may be invested.
A "yes" vote would give the state government the option to invest these funds in equity securities (stocks).
A "no" vote would mean that state government is not allowed to invest these funds in any kind of equity securities (stocks).
SOUTH CAROLINA AMENDMENT 3
Must Section 16, Article X of the Constitution of this State relating to benefits and funding of public employee pension plans in this State and the investments allowed for funds of the various state-operated retirement systems be amended so as to provide that the funds of any political subdivision of this State that have been set aside for the funding of post-employment benefits for the political subdivision's employees, including those invested in independent trusts established for that purpose, may be invested or reinvested in equity securities of the type permitted for investment by the various state operated retirement systems, as provided for by the General Assembly?
Yes
No
Explanation of Above:
This amendment is the same as Amendment 2 except it applies to local governments' post-employment benefits (instead of the state government's post-employment benefits).
EDUCATION CAPITAL IMPROVEMENTS SALES AND USE TAX ACT REFERENDUM FOR HORRY COUNTY
Must a special one percent sales and use tax be imposed in Horry County for 15 years with the revenue of
the tax used to pay, directly or indirectly, the cost of some or all of the following education capital
improvement projects in Horry County:
(1) 80% of the revenue of the tax shall be used for the following projects of the School District of
Horry County:
(a) Future Capital Projects
Additions/Renovations including equipment for existing facilities:
Additions/renovations to, and equipment for, all 26 elementary schools
Additions/renovations to, and equipment for, all 10 middle schools
Additions/renovations to, and equipment for, all 9 high schools
Additions/renovations to, and equipment for, all academies and education centers
Additions/renovations to, and equipment for, the Aynor Conway Career Center
Constructing and equipping of new facilities:
15 new elementary schools
3 new middle schools
3 new high schools
Facilities to accommodate innovative curriculum and academic programs
Facilities jointly owned and/or operated with other educational institutions in the
County
Athletic facilities improvements at 7 high schools
Land acquisition
Purchase land for new school facilities
(b) Current Capital Projects
Additions/Renovations including equipment for existing facilities:
Additions/Renovations to, and equipment for, Aynor Conway Career Center, Aynor High
School, Carolina Forest Middle School, Carolina Forest High School, Conway Education
Center, Conway High School, Conway Middle School, Conway Primary School, Daisy
Elementary School, Forestbrook Elementary School, Forestbrook Middle School, Green
Sea Floyds Elementary School, Green Sea Floyds High School, Lakewood Elementary
School, Loris High School, Midland Elementary School, Myrtle Beach Elementary
School, Myrtle Beach High School, Myrtle Beach Intermediate School, Myrtle Beach
Middle School, Myrtle Beach Primary School, North Myrtle Beach High School, North
Myrtle Beach Intermediate School, North Myrtle Beach Middle School, North Myrtle
Beach Primary School, Socastee Elementary School, Socastee High School, South
Conway Elementary School, St. James Elementary School, St. James Middle School,
Waccamaw Elementary School, and Whittemore Park Middle School
Constructing and equipping of facilities:
Academy for Arts, Science, and Technology, Academy for Technology and Academics,
Aynor Elementary School, Aynor Middle School, Black Water Middle School , Burgess
Elementary School , Carolina Forest Elementary School, Carolina Forest High School,
Conway Elementary, Elementary for Carolina Forest Area, Forestbrook Middle School,
Homewood Elementary, Kingston Elementary, Loris Elementary School (including land),
Loris Middle School, Myrtle Beach Elementary School, Myrtle Beach Middle School,
North Myrtle Beach Elementary, North Myrtle Beach Middle School (including land),
Ocean Bay Elementary School, Ocean Bay Middle School, Pee Dee Elementary, Seaside
Elementary School, and St. James High School
(2) 13.3% of the revenue of the tax shall be used for the following projects of Coastal Carolina
University:
Construction, expansion and/or renovation of academic, classroom, faculty office, library,
student activity/recreation buildings and related equipment and furnishings on its campus
within the County.
Acquisition of real property for such facilities to accommodate renovation, expansion and
growth
Construction and equipping of facilities jointly owned and/or operated with other
educational institutions in the County
(3) 6.7% of the revenue of the tax shall be used for the following projects of Horry-Georgetown
Technical College:
Construction, expansion and/or renovation of academic, classroom, faculty office,
auxiliary service, administrative and/or student activity/recreation buildings and related
equipment and furnishings on its campuses within the County.
Acquisition of real property for such facilities to accommodate renovation, expansion,
and growth.
Construction and equipping of facilities jointly owned and/or operated with other
educational institutions in the County.
All revenue received by the School District from the sales and use tax will be used to reduce property
taxes needed to pay debt service on School District bonds and to directly pay costs of education capital
improvements projects of the School District identified herein. Shared revenue will be used to pay debt
service on bonds issued for Coastal Carolina University and Horry-Georgetown Technical College and to
directly pay costs of education capital improvement projects as identified herein.
Yes
No
Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after
the word "Yes," and those voting against the question shall deposit a ballot with a check or cross mark in
the square after the word "No."
SOUTH CAROLINA AMENDMENT 1
Must Section 33, Article III of the Constitution of this State be amended so as to delete the provision that no unmarried woman shall legally consent to sexual intercourse who shall not have attained the age of fourteen years?
Yes
No
Explanation of Above:
This amendment deletes the section of the Constitution which says an unmarried woman must be fourteen years old or older in order to consent to sexual intercourse. Deleting this section would allow the state legislature to set the age of consent. Currently, the state legislature has the age of consent set at sixteen for most cases.
A "yes" vote would delete the section from the Constitution and let the state legislature set the age of consent.
A "no" vote would leave the section of the Constitution in place.
SOUTH CAROLINA AMENDMENT 2
Must Section 16, Article X of the Constitution of this State relating to benefits and funding of public employee pension plans in this State and the investments allowed for funds of the various state-operated retirement systems be amended so as to provide that the funds of any trust fund established by law for the funding of post-employment benefits for state employees and public school teachers may be invested and reinvested in equity securities subject to the same limitations on such investments applicable for the funds of the various state-operated retirement systems?
Yes
No
Explanation of Above:
"Post-employment benefits" are benefits, mainly health insurance, provided to eligible state government and school district retirees.
To comply with a change in accounting standards, the state has created trust funds to pay for these post-employment benefits. This amendment relates to how the money in these trust funds may be invested.
A "yes" vote would give the state government the option to invest these funds in equity securities (stocks).
A "no" vote would mean that state government is not allowed to invest these funds in any kind of equity securities (stocks).
SOUTH CAROLINA AMENDMENT 3
Must Section 16, Article X of the Constitution of this State relating to benefits and funding of public employee pension plans in this State and the investments allowed for funds of the various state-operated retirement systems be amended so as to provide that the funds of any political subdivision of this State that have been set aside for the funding of post-employment benefits for the political subdivision's employees, including those invested in independent trusts established for that purpose, may be invested or reinvested in equity securities of the type permitted for investment by the various state operated retirement systems, as provided for by the General Assembly?
Yes
No
Explanation of Above:
This amendment is the same as Amendment 2 except it applies to local governments' post-employment benefits (instead of the state government's post-employment benefits).
EDUCATION CAPITAL IMPROVEMENTS SALES AND USE TAX ACT REFERENDUM FOR HORRY COUNTY
Must a special one percent sales and use tax be imposed in Horry County for 15 years with the revenue of
the tax used to pay, directly or indirectly, the cost of some or all of the following education capital
improvement projects in Horry County:
(1) 80% of the revenue of the tax shall be used for the following projects of the School District of
Horry County:
(a) Future Capital Projects
Additions/Renovations including equipment for existing facilities:
Additions/renovations to, and equipment for, all 26 elementary schools
Additions/renovations to, and equipment for, all 10 middle schools
Additions/renovations to, and equipment for, all 9 high schools
Additions/renovations to, and equipment for, all academies and education centers
Additions/renovations to, and equipment for, the Aynor Conway Career Center
Constructing and equipping of new facilities:
15 new elementary schools
3 new middle schools
3 new high schools
Facilities to accommodate innovative curriculum and academic programs
Facilities jointly owned and/or operated with other educational institutions in the
County
Athletic facilities improvements at 7 high schools
Land acquisition
Purchase land for new school facilities
(b) Current Capital Projects
Additions/Renovations including equipment for existing facilities:
Additions/Renovations to, and equipment for, Aynor Conway Career Center, Aynor High
School, Carolina Forest Middle School, Carolina Forest High School, Conway Education
Center, Conway High School, Conway Middle School, Conway Primary School, Daisy
Elementary School, Forestbrook Elementary School, Forestbrook Middle School, Green
Sea Floyds Elementary School, Green Sea Floyds High School, Lakewood Elementary
School, Loris High School, Midland Elementary School, Myrtle Beach Elementary
School, Myrtle Beach High School, Myrtle Beach Intermediate School, Myrtle Beach
Middle School, Myrtle Beach Primary School, North Myrtle Beach High School, North
Myrtle Beach Intermediate School, North Myrtle Beach Middle School, North Myrtle
Beach Primary School, Socastee Elementary School, Socastee High School, South
Conway Elementary School, St. James Elementary School, St. James Middle School,
Waccamaw Elementary School, and Whittemore Park Middle School
Constructing and equipping of facilities:
Academy for Arts, Science, and Technology, Academy for Technology and Academics,
Aynor Elementary School, Aynor Middle School, Black Water Middle School , Burgess
Elementary School , Carolina Forest Elementary School, Carolina Forest High School,
Conway Elementary, Elementary for Carolina Forest Area, Forestbrook Middle School,
Homewood Elementary, Kingston Elementary, Loris Elementary School (including land),
Loris Middle School, Myrtle Beach Elementary School, Myrtle Beach Middle School,
North Myrtle Beach Elementary, North Myrtle Beach Middle School (including land),
Ocean Bay Elementary School, Ocean Bay Middle School, Pee Dee Elementary, Seaside
Elementary School, and St. James High School
(2) 13.3% of the revenue of the tax shall be used for the following projects of Coastal Carolina
University:
Construction, expansion and/or renovation of academic, classroom, faculty office, library,
student activity/recreation buildings and related equipment and furnishings on its campus
within the County.
Acquisition of real property for such facilities to accommodate renovation, expansion and
growth
Construction and equipping of facilities jointly owned and/or operated with other
educational institutions in the County
(3) 6.7% of the revenue of the tax shall be used for the following projects of Horry-Georgetown
Technical College:
Construction, expansion and/or renovation of academic, classroom, faculty office,
auxiliary service, administrative and/or student activity/recreation buildings and related
equipment and furnishings on its campuses within the County.
Acquisition of real property for such facilities to accommodate renovation, expansion,
and growth.
Construction and equipping of facilities jointly owned and/or operated with other
educational institutions in the County.
All revenue received by the School District from the sales and use tax will be used to reduce property
taxes needed to pay debt service on School District bonds and to directly pay costs of education capital
improvements projects of the School District identified herein. Shared revenue will be used to pay debt
service on bonds issued for Coastal Carolina University and Horry-Georgetown Technical College and to
directly pay costs of education capital improvement projects as identified herein.
Yes
No
Those voting in favor of the question shall deposit a ballot with a check or cross mark in the square after
the word "Yes," and those voting against the question shall deposit a ballot with a check or cross mark in
the square after the word "No."
Tuesday, October 28, 2008
Looked at your real estate portfolio lately?
Looked at your real estate portfolio lately? Given the current financial crisis on world markets, most people have been looking at their financial portfolios – stocks, bonds, and other investment vehicles. But real estate generally makes up the bulk of a family's net worth.
Recently, that net worth has tumbled along with falling house prices. The average price of a Canadian resale home was 6.2 per cent cheaper in September than a year ago – at $315,461 compared to $336,321 in September 2007, according to the Canadian Real Estate Association. There are signs of stability in the market, though, with the sale of homes increasing 3 per cent in September over August.
With a market in Canada that seems to be stabilizing, people are asking themselves whether this is the time to sell their homes in order to realize the maximum gains from what is probably their biggest investment.
Your house is an asset that can be bought and sold like anything else to suit your financial circumstances.
And those close to retiring are worried about whether plunging house prices are going to affect their ability to retire the way they want to. Whether they're looking to sell and downsize, or are tempted by the prospect of a second home in another country, the financial landscape for real estate has changed over the last few months.
Lee Ann Davies, head of advanced retirement strategies at RBC, points out that, as advisers, "when we look at real estate, we look at it from a housing perspective and, firstly, as the primary home," she says. But, she admits: "Certainly, at this point in time, people might be looking at their portfolio and looking at whether their current home is suitable."
But rather than looking at your home's potential as an investment, she points out that anybody considering selling needs to ensure that any changes they are thinking of making suit their lifestyle – not just their investment portfolio.
"If you already own real estate and are looking at selling it, that's really a decision that should be made to fit with your life and lifestyle. (As real estate) is also part of your investment portfolio, timing the market is not something we would recommend."
For those thinking of downsizing to a smaller home, she suggests that people take a view of the bigger picture first.
"Go back to your priorities and talk about why would you be downsizing your home," Davies advises. "Would you be losing the services of your doctor? Your relationships with your church or other community services?"
The costs of both exiting and entering a home can be expensive – those most also be worked into a budget to ensure that the move will actually leave you better off, if you decide that, as a lifestyle choice, selling is a move you want to make.
Davies also notes that other costs must be taken into consideration: maintenance, insurance and, in some locations, she notes that you have to pay extra fees to be part of a community.
"Examine all of the `what ifs,'" she advises.
In terms of the United States, prospective "snowbirds" may be looking at the market and saying "aren't there some great bargains down there?" Davies points out that, while buying a second home or moving to a warmer climate might be perfectly feasible, in order to make an informed decisions, you need to get away from the emotional decision of a second home.
"Talk about it with an adviser. Does this fit your investment profile, risk and portfolio? Do you understand the location you might be thinking about? Have you talked to people who live there? Have you tried the location out by maybe renting there?
Another point in terms of foreign properties is currency fluctuations. We've seen that over the past few months with the Canadian dollar versus the American dollar. At the beginning of the summer it was trading well over the $1 mark; last week is was under the .80 cent mark. The point she makes here is that, since you can't time the market, you need to be aware of the risks.
"If you start to make the decision from an emotional perspective rather than having this type of discussion with your adviser, then later you'll second guess the decision that you've made. It's much harder to stick with those decisions then," Davies warns.
Whatever move you think you want to make , Davies suggests you make comparisons. Look at all the costs of owning versus renting, for example. Retirement money can grow for you, while real estate might not, for example. Again, she suggests seeing an adviser who will go through all of the trade-offs to help you make the right decision.
"I do understand why people are worrying," she says. "There's so much information coming at them so quickly, and it can be difficult to understand because of the amount of information. You should be able to see your adviser in good times and in bad."
So keep your eyes on the long-term and don't panic. Making an emotional decision could lead you on a long-term path to retirement you don't really want to be on.
Recently, that net worth has tumbled along with falling house prices. The average price of a Canadian resale home was 6.2 per cent cheaper in September than a year ago – at $315,461 compared to $336,321 in September 2007, according to the Canadian Real Estate Association. There are signs of stability in the market, though, with the sale of homes increasing 3 per cent in September over August.
With a market in Canada that seems to be stabilizing, people are asking themselves whether this is the time to sell their homes in order to realize the maximum gains from what is probably their biggest investment.
Your house is an asset that can be bought and sold like anything else to suit your financial circumstances.
And those close to retiring are worried about whether plunging house prices are going to affect their ability to retire the way they want to. Whether they're looking to sell and downsize, or are tempted by the prospect of a second home in another country, the financial landscape for real estate has changed over the last few months.
Lee Ann Davies, head of advanced retirement strategies at RBC, points out that, as advisers, "when we look at real estate, we look at it from a housing perspective and, firstly, as the primary home," she says. But, she admits: "Certainly, at this point in time, people might be looking at their portfolio and looking at whether their current home is suitable."
But rather than looking at your home's potential as an investment, she points out that anybody considering selling needs to ensure that any changes they are thinking of making suit their lifestyle – not just their investment portfolio.
"If you already own real estate and are looking at selling it, that's really a decision that should be made to fit with your life and lifestyle. (As real estate) is also part of your investment portfolio, timing the market is not something we would recommend."
For those thinking of downsizing to a smaller home, she suggests that people take a view of the bigger picture first.
"Go back to your priorities and talk about why would you be downsizing your home," Davies advises. "Would you be losing the services of your doctor? Your relationships with your church or other community services?"
The costs of both exiting and entering a home can be expensive – those most also be worked into a budget to ensure that the move will actually leave you better off, if you decide that, as a lifestyle choice, selling is a move you want to make.
Davies also notes that other costs must be taken into consideration: maintenance, insurance and, in some locations, she notes that you have to pay extra fees to be part of a community.
"Examine all of the `what ifs,'" she advises.
In terms of the United States, prospective "snowbirds" may be looking at the market and saying "aren't there some great bargains down there?" Davies points out that, while buying a second home or moving to a warmer climate might be perfectly feasible, in order to make an informed decisions, you need to get away from the emotional decision of a second home.
"Talk about it with an adviser. Does this fit your investment profile, risk and portfolio? Do you understand the location you might be thinking about? Have you talked to people who live there? Have you tried the location out by maybe renting there?
Another point in terms of foreign properties is currency fluctuations. We've seen that over the past few months with the Canadian dollar versus the American dollar. At the beginning of the summer it was trading well over the $1 mark; last week is was under the .80 cent mark. The point she makes here is that, since you can't time the market, you need to be aware of the risks.
"If you start to make the decision from an emotional perspective rather than having this type of discussion with your adviser, then later you'll second guess the decision that you've made. It's much harder to stick with those decisions then," Davies warns.
Whatever move you think you want to make , Davies suggests you make comparisons. Look at all the costs of owning versus renting, for example. Retirement money can grow for you, while real estate might not, for example. Again, she suggests seeing an adviser who will go through all of the trade-offs to help you make the right decision.
"I do understand why people are worrying," she says. "There's so much information coming at them so quickly, and it can be difficult to understand because of the amount of information. You should be able to see your adviser in good times and in bad."
So keep your eyes on the long-term and don't panic. Making an emotional decision could lead you on a long-term path to retirement you don't really want to be on.
Prices of U.S. single-family homes
Prices of U.S. single-family homes plunged a record 16.6 percent in August from a year earlier and plummeted more than 30 percent in Las Vegas and Phoenix, Standard & Poor's said on Tuesday.
Home prices in 20 major metropolitan areas fell 1.0 percent in August from July, according to the Standard & Poor's/Case-Shiller Home Price Indices.
S&P said in a statement its composite index of 10 metropolitan areas declined 1.1 percent in August from July for a 17.7 percent year-over-year drop, also a record.
"The downturn in residential real estate prices continued, with very few bright spots in the data," David M. Blitzer, Chairman of the Index Committee at Standard & Poor's, said in the statement.
A huge supply of unsold homes, tighter lending standards and record foreclosures have pushed down home prices, deflating a bubble from the early part of this decade.
For the fifth straight month, prices fell in every region on an annual basis, he said.
Both the 10-City Composite and 20-City Composite Home Price Indices have fallen from a year earlier for 20 consecutive months. In regions, annual returns worsened from last month's report, he said.
"As seen throughout 2008, the Sun Belt markets are being hit the most," he said.
Prices in Miami, San Francisco, Los Angeles and San Diego all dropped in excess of 25 percent, he said.
S&P noted one bright spot as the acceleration in decline was only moderate in August from July.
Home prices in 20 major metropolitan areas fell 1.0 percent in August from July, according to the Standard & Poor's/Case-Shiller Home Price Indices.
S&P said in a statement its composite index of 10 metropolitan areas declined 1.1 percent in August from July for a 17.7 percent year-over-year drop, also a record.
"The downturn in residential real estate prices continued, with very few bright spots in the data," David M. Blitzer, Chairman of the Index Committee at Standard & Poor's, said in the statement.
A huge supply of unsold homes, tighter lending standards and record foreclosures have pushed down home prices, deflating a bubble from the early part of this decade.
For the fifth straight month, prices fell in every region on an annual basis, he said.
Both the 10-City Composite and 20-City Composite Home Price Indices have fallen from a year earlier for 20 consecutive months. In regions, annual returns worsened from last month's report, he said.
"As seen throughout 2008, the Sun Belt markets are being hit the most," he said.
Prices in Miami, San Francisco, Los Angeles and San Diego all dropped in excess of 25 percent, he said.
S&P noted one bright spot as the acceleration in decline was only moderate in August from July.
Wednesday, October 22, 2008
SCEG gas customers will see bills drop 17 %
SCE&G gas customers will see their bills drop about 17.2 per-cent starting in November, a state utility agency said today.
The decline for a customer using 100 therms of gas will total $28.36 savings compared to the November 2007 bill, said Dukes Scott, executive director of the Office of Regulatory Staff.
“The drop in the cost of gas is really the driving force behind this reduction,” Scott said. The savings is the product of two agreements his staff reached with the utility, which is the principal subsidiary of Columbia-based SCANA Corp.
The first agreement was reached in October 2006. It re-quired monthly instead of annual adjustments to the company’s pass-through cost of natural gas, Scott said.
The second agreement was reached in September after Scott’s agency recommended a 21 percent reduction in SCE&G’s request to raise gas rates.
That agreement proposal is pending before the state Public Service Commission.
The decline for a customer using 100 therms of gas will total $28.36 savings compared to the November 2007 bill, said Dukes Scott, executive director of the Office of Regulatory Staff.
“The drop in the cost of gas is really the driving force behind this reduction,” Scott said. The savings is the product of two agreements his staff reached with the utility, which is the principal subsidiary of Columbia-based SCANA Corp.
The first agreement was reached in October 2006. It re-quired monthly instead of annual adjustments to the company’s pass-through cost of natural gas, Scott said.
The second agreement was reached in September after Scott’s agency recommended a 21 percent reduction in SCE&G’s request to raise gas rates.
That agreement proposal is pending before the state Public Service Commission.
Tuesday, October 21, 2008
real estate has long coincided with these fluctuations
Real estate has been in the news just about every day as housing prices have fallen in many areas. There are all kinds of opinions about what's going on and where this is all heading. But these opinions are just guesses and do not take every piece of the puzzle into consideration. History has shown us that the economy goes up and down all the time, and real estate has long coincided with these fluctuations.
So where are we in the current real estate cycle? Is waiting to buy a brand new home a safe option? These are very valid questions that require credible answers in order for homebuyers today to achieve the confidence that the future can and will be better than the past.
First, don't panic over newspaper headlines. Make an informed decision. Run your own numbers. For most buyers, there is no real need to wait for the market as a whole to officially adjust out. The bottom of the market is not a date, but a band of time or season and therefore what constitutes the bottom for the entire country is meaningless for those looking to buy and sell homes in their own communities. If you sit on the fence and wait for the absolute best deal, you could end up literally waiting for years. And most likely, your guess on market timing would be wrong. But if you choose to buy now, you will not only be in the driver's seat during the buying process, you will also reap the gains of price appreciation once you become a home owner.
Waiting for the right time to buy puts you at risk of missing it and getting caught in a market on the upswing. Plus, for some first-time buyers, owning simply makes better economic sense than renting. In such areas as Los Angeles, rents are getting close or surpassing a mortgage payment. And you don't receive any tax benefits from paying rent, nor do you accumulate any price appreciation, as you would if you owned a home of your own.
Next, realize there are always some people who need to move because of job relocations, expanding families, retire or a desire for better schools. In sought after neighborhoods, there's a price to pay for waiting. You have to ask yourself, If the price goes down much more, I'll have other people trying to buy it or interest rate may go up, even if it's not the absolute bottom of the market. In the end, you might erase the savings you thought you had achieved by waiting.
So where are we in the current real estate cycle? Is waiting to buy a brand new home a safe option? These are very valid questions that require credible answers in order for homebuyers today to achieve the confidence that the future can and will be better than the past.
First, don't panic over newspaper headlines. Make an informed decision. Run your own numbers. For most buyers, there is no real need to wait for the market as a whole to officially adjust out. The bottom of the market is not a date, but a band of time or season and therefore what constitutes the bottom for the entire country is meaningless for those looking to buy and sell homes in their own communities. If you sit on the fence and wait for the absolute best deal, you could end up literally waiting for years. And most likely, your guess on market timing would be wrong. But if you choose to buy now, you will not only be in the driver's seat during the buying process, you will also reap the gains of price appreciation once you become a home owner.
Waiting for the right time to buy puts you at risk of missing it and getting caught in a market on the upswing. Plus, for some first-time buyers, owning simply makes better economic sense than renting. In such areas as Los Angeles, rents are getting close or surpassing a mortgage payment. And you don't receive any tax benefits from paying rent, nor do you accumulate any price appreciation, as you would if you owned a home of your own.
Next, realize there are always some people who need to move because of job relocations, expanding families, retire or a desire for better schools. In sought after neighborhoods, there's a price to pay for waiting. You have to ask yourself, If the price goes down much more, I'll have other people trying to buy it or interest rate may go up, even if it's not the absolute bottom of the market. In the end, you might erase the savings you thought you had achieved by waiting.
FHA loans purchasing or refinancing a 1 to 4 unit, owner occupied home
With the Federal governments re-emphasis on the FHA as a key vehicle for resuscitating the real estate market, now is a good time to review FHA in more detail.
Let’s start with some basics. First, the FHA insures loans that approved lenders make, it does not purchase them as Fannie and Freddie do. If a FHA insured home goes into bankruptcy, FHA pays off the mortgage to the Lender, takes ownership of the home, and then proceeds to sell it (a HUD home843,Realtor also sells South Carolina HUD homes.)
To mitigate its risk and provide income to offset foreclosures and defray their expenses, FHA charges the borrower insurance premiums, both an up-front and a monthly premium. The up-front premium can be included in the mortgage amount.
FHA loans are available for purchasing or refinancing a 1 to 4 unit, owner occupied home. There a number of FHA programs that cover the gamut of real estate offerings, from your “vanilla” FHA loan to Condos to REO’s to Reverse Mortgages to Rehab to Veteran loans and more. In subsequent articles we will be reviewing these programs in more detail.
Over the last number of months, FHA began implementing some changes to their programs. In addition, the Housing and Economic Recovery Act placed additional changes in FHA practices, some of which modified FHA proposed changes. I have listed some of those changes below.
Converting Existing Homes to Rentals
The FHA changed their underwriting rules to limit the ability of a homeowner to use rental income from a previous residence that it converted to a rental property, when applying for a new mortgage on a second property. Under the new rule, the homeowner must prove sufficient income to make both mortgage payments without the rental income or has an equity position in the rental property that it will not likely result in defaulting on that mortgage. There can be an exception to this rule for employment relocations.
This change mirrors the announcement by Fannie in August. Apparently, homeowners, in increasing numbers, are choosing to vacate their existing principal residence and purchase a new residence. They are then providing misleading information on the rental income of the property being vacated to justify the new mortgage. These changes effectively end “bail and buy” loans.
Moratorium on Risk Based Premiums
The Housing and Economic Recovery Act provided for a one-year moratorium on the implementation of the FHA’s risk based premiums beginning October 1, 2008. The effect of the risk based premium was to increase the premium based on the amount of the down payment.
This will not delay the implementation of an upfront premium as well as well as monthly premiums on all loans.
Seller concessions of 6% are still allowed; however, down payment assistance programs have been eliminated effective October 1, 2008.
Down Payment Requirements
The Housing and Economic Recovery Act also called for an increase in down payment required to 3.5%. That change will not go into effect until January 1, 2009.
As with any loan program, there are a number of stipulations that need to be met to gain approval. That is why it is important to choose the right FHA approved lender. Not all FHA approved lenders service all FHA loan programs.
Let’s start with some basics. First, the FHA insures loans that approved lenders make, it does not purchase them as Fannie and Freddie do. If a FHA insured home goes into bankruptcy, FHA pays off the mortgage to the Lender, takes ownership of the home, and then proceeds to sell it (a HUD home843,Realtor also sells South Carolina HUD homes.)
To mitigate its risk and provide income to offset foreclosures and defray their expenses, FHA charges the borrower insurance premiums, both an up-front and a monthly premium. The up-front premium can be included in the mortgage amount.
FHA loans are available for purchasing or refinancing a 1 to 4 unit, owner occupied home. There a number of FHA programs that cover the gamut of real estate offerings, from your “vanilla” FHA loan to Condos to REO’s to Reverse Mortgages to Rehab to Veteran loans and more. In subsequent articles we will be reviewing these programs in more detail.
Over the last number of months, FHA began implementing some changes to their programs. In addition, the Housing and Economic Recovery Act placed additional changes in FHA practices, some of which modified FHA proposed changes. I have listed some of those changes below.
Converting Existing Homes to Rentals
The FHA changed their underwriting rules to limit the ability of a homeowner to use rental income from a previous residence that it converted to a rental property, when applying for a new mortgage on a second property. Under the new rule, the homeowner must prove sufficient income to make both mortgage payments without the rental income or has an equity position in the rental property that it will not likely result in defaulting on that mortgage. There can be an exception to this rule for employment relocations.
This change mirrors the announcement by Fannie in August. Apparently, homeowners, in increasing numbers, are choosing to vacate their existing principal residence and purchase a new residence. They are then providing misleading information on the rental income of the property being vacated to justify the new mortgage. These changes effectively end “bail and buy” loans.
Moratorium on Risk Based Premiums
The Housing and Economic Recovery Act provided for a one-year moratorium on the implementation of the FHA’s risk based premiums beginning October 1, 2008. The effect of the risk based premium was to increase the premium based on the amount of the down payment.
This will not delay the implementation of an upfront premium as well as well as monthly premiums on all loans.
Seller concessions of 6% are still allowed; however, down payment assistance programs have been eliminated effective October 1, 2008.
Down Payment Requirements
The Housing and Economic Recovery Act also called for an increase in down payment required to 3.5%. That change will not go into effect until January 1, 2009.
As with any loan program, there are a number of stipulations that need to be met to gain approval. That is why it is important to choose the right FHA approved lender. Not all FHA approved lenders service all FHA loan programs.
Monday, October 20, 2008
South Carolina Election info
Presidential Race
Democrat: Barack Obama
Republican: John McCain
Independent: Ralph Nader
Libertarian: Bob Barr
Green: Cynthia McKinney
Constitution Party: Chuck Baldwin
U.S. Senate
Democrats: Bob Conley
Republicans: Lindsey Graham
U.S. House of Representatives
1st District:
Democrats: Linda Ketner
Republicans: Henry Brown Jr.
2nd District:
Democrats: Rob Miller
Republicans: Joe Wilson
3rd District:
Democrats: Jane Dyer
Republicans: J. Gresham Barrett
4th District:
Democrats: Paul Corden
Republicans: Bob Inglis
Green: Faye Walters
5th District:
Democrats: John Spratt Jr.
Republicans: Albert Spencer
Constitution Party: Frank Waggoner
6th District:
Democrats: James Clyburn
Republicans: Nancy Harrelson
State Senate
1st District:
Democrats: No Candidate
Republicans: Thomas Alexander
Constitution Party: Polly Nicolay
2nd District:
Democrats: No Candidate
Republicans: Larry Martin
3rd District:
Democrats: Marshall Meadors
Republicans: Kevin Bryant
4th District:
Democrats: Leonardo Ortiz
Republicans: Billy O'Dell
5th District:
Democrats: No Candidate
Republicans: Phil Shoopman
6th District:
Democrats: No Candidate
Republicans: Mike Fair
7th District:
Democrats: Ralph Anderson
Republicans: Roan Garcia-Quintana
Constitution Party: John Langville
8th District:
Democrats: No Candidate
Republicans: David Thomas
9th District:
Democrats: No Candidate
Republicans: Danny Verdin
10th District:
Democrats: Floyd Nicholson
Republicans: Dee Compton
11th District:
Democrats: Glenn Reese
Republicans: Mike Gardner
12th District:
Democrats: No Candidate
Republicans: Lee Bright
14th District:
Democrats: No Candidate
Republicans: Harvey Peeler Jr.
15th District:
Democrats: No Candidate
Republicans: Robert Hayes Jr.
16th District:
Democrats: Mandy Norrell
Republicans: Mick Mulvaney
18th District:
Democrats: Michael Ellisor
Republicans: Ronnie Cromer
19th District:
Democrats: John Scott
Republicans: No Candidate
United Citizens Party: Chris Nelums
20th District:
Democrats: No Candidate
Republicans: John Courson
Green: Harvey Elwood
21st District:
Democrats: Darrell Jackson
Republicans: No Candidate
22nd District:
Democrats: Joel Lourie
Republicans: No Candidate
23rd District:
Democrats: No Candidate
Republicans: Jake Knotts
24th District:
Democrats: No Candidate
Republicans: W. Ryberg
25th District:
Democrats: Greg Anderson
Republicans: Shane Massey
26th District:
Democrats: Nikki Setzler
Republicans: Margaret Gamble
27th District:
Democrats: Vincent Sheheen
Republicans: No Candidate
28th District:
Democrats: Dick Elliott
Republicans: William McKown
29th District:
Democrats: Gerald Malloy
Republicans: No Candidate
30th District:
Democrats: Kent Williams
Republicans: No Candidate
31st District:
Democrats: No Candidate
Republicans: Hugh Leatherman Sr.
32nd District:
Democrats: Yancey McGill
Republicans: No Candidate
33rd District:
Democrats: Jara Uzenda
Republicans: Luke Rankin
34th District:
Democrats: No Candidate
Republicans: Raymond Cleary
35th District:
Democrats: Phil Leventis
Republicans: Karen Michalik
36th District:
Democrats: John Land III
Republicans: No Candidate
37th District:
Democrats: No Candidate
Republicans: Larry Grooms
38th District:
Democrats: No Candidate
Republicans: Mike Rose
39th District:
Democrats: John Matthews Jr.
Republicans: No Candidate
40th District:
Democrats: C. Bradley Hutto
Republicans: John Strickland
41st District:
Democrats: No Candidate
Republicans: Glenn McConnell
42nd District:
Democrats: Robert Ford
Republicans: Scotty Sheriff
43rd District:
Democrats: No Candidate
Republicans: Chip Campsen
44th District:
Democrats: No Candidate
Republicans: Paul Campbell Jr.
45th District:
Democrats: Clementa Pinckney
Republicans: No Candidate
46th District:
Democrats: Kent Fletcher
Republicans: Tom Davis
State House of Representatives
Click here to see State House of Representatives Candidates for SC
Governor and Statewide Races
No races this year.
Statewide Ballot Measures
Amendment 1 - Amend Section 33- Article III of the Constitution
This amendment deletes the section of the Constitution which says an unmarried woman must be fourteen years old or older in order to consent to sexual intercourse. Deleting this section would allow the state legislature to set the age of consent. Currently- the state legislature has the age of consent set at sixteen for most cases.
Amendment 2 - Amend Section 16- Article X of the Constitution
"Post-employment benefits" are benefits- mainly health insurance- provided to eligible state government and school district retirees. To comply with a change in accounting standards- the state has created trust funds to pay for these post-employment benefits. This amendment relates to how the money in these trust funds may be invested.
Amendment 3 - Amend Section 16- Article X of the Constitution
This amendment is the same as Amendment 2 except it applies to local governments' post-employment benefits (instead of the state government's post-employment benefits).
Democrat: Barack Obama
Republican: John McCain
Independent: Ralph Nader
Libertarian: Bob Barr
Green: Cynthia McKinney
Constitution Party: Chuck Baldwin
U.S. Senate
Democrats: Bob Conley
Republicans: Lindsey Graham
U.S. House of Representatives
1st District:
Democrats: Linda Ketner
Republicans: Henry Brown Jr.
2nd District:
Democrats: Rob Miller
Republicans: Joe Wilson
3rd District:
Democrats: Jane Dyer
Republicans: J. Gresham Barrett
4th District:
Democrats: Paul Corden
Republicans: Bob Inglis
Green: Faye Walters
5th District:
Democrats: John Spratt Jr.
Republicans: Albert Spencer
Constitution Party: Frank Waggoner
6th District:
Democrats: James Clyburn
Republicans: Nancy Harrelson
State Senate
1st District:
Democrats: No Candidate
Republicans: Thomas Alexander
Constitution Party: Polly Nicolay
2nd District:
Democrats: No Candidate
Republicans: Larry Martin
3rd District:
Democrats: Marshall Meadors
Republicans: Kevin Bryant
4th District:
Democrats: Leonardo Ortiz
Republicans: Billy O'Dell
5th District:
Democrats: No Candidate
Republicans: Phil Shoopman
6th District:
Democrats: No Candidate
Republicans: Mike Fair
7th District:
Democrats: Ralph Anderson
Republicans: Roan Garcia-Quintana
Constitution Party: John Langville
8th District:
Democrats: No Candidate
Republicans: David Thomas
9th District:
Democrats: No Candidate
Republicans: Danny Verdin
10th District:
Democrats: Floyd Nicholson
Republicans: Dee Compton
11th District:
Democrats: Glenn Reese
Republicans: Mike Gardner
12th District:
Democrats: No Candidate
Republicans: Lee Bright
14th District:
Democrats: No Candidate
Republicans: Harvey Peeler Jr.
15th District:
Democrats: No Candidate
Republicans: Robert Hayes Jr.
16th District:
Democrats: Mandy Norrell
Republicans: Mick Mulvaney
18th District:
Democrats: Michael Ellisor
Republicans: Ronnie Cromer
19th District:
Democrats: John Scott
Republicans: No Candidate
United Citizens Party: Chris Nelums
20th District:
Democrats: No Candidate
Republicans: John Courson
Green: Harvey Elwood
21st District:
Democrats: Darrell Jackson
Republicans: No Candidate
22nd District:
Democrats: Joel Lourie
Republicans: No Candidate
23rd District:
Democrats: No Candidate
Republicans: Jake Knotts
24th District:
Democrats: No Candidate
Republicans: W. Ryberg
25th District:
Democrats: Greg Anderson
Republicans: Shane Massey
26th District:
Democrats: Nikki Setzler
Republicans: Margaret Gamble
27th District:
Democrats: Vincent Sheheen
Republicans: No Candidate
28th District:
Democrats: Dick Elliott
Republicans: William McKown
29th District:
Democrats: Gerald Malloy
Republicans: No Candidate
30th District:
Democrats: Kent Williams
Republicans: No Candidate
31st District:
Democrats: No Candidate
Republicans: Hugh Leatherman Sr.
32nd District:
Democrats: Yancey McGill
Republicans: No Candidate
33rd District:
Democrats: Jara Uzenda
Republicans: Luke Rankin
34th District:
Democrats: No Candidate
Republicans: Raymond Cleary
35th District:
Democrats: Phil Leventis
Republicans: Karen Michalik
36th District:
Democrats: John Land III
Republicans: No Candidate
37th District:
Democrats: No Candidate
Republicans: Larry Grooms
38th District:
Democrats: No Candidate
Republicans: Mike Rose
39th District:
Democrats: John Matthews Jr.
Republicans: No Candidate
40th District:
Democrats: C. Bradley Hutto
Republicans: John Strickland
41st District:
Democrats: No Candidate
Republicans: Glenn McConnell
42nd District:
Democrats: Robert Ford
Republicans: Scotty Sheriff
43rd District:
Democrats: No Candidate
Republicans: Chip Campsen
44th District:
Democrats: No Candidate
Republicans: Paul Campbell Jr.
45th District:
Democrats: Clementa Pinckney
Republicans: No Candidate
46th District:
Democrats: Kent Fletcher
Republicans: Tom Davis
State House of Representatives
Click here to see State House of Representatives Candidates for SC
Governor and Statewide Races
No races this year.
Statewide Ballot Measures
Amendment 1 - Amend Section 33- Article III of the Constitution
This amendment deletes the section of the Constitution which says an unmarried woman must be fourteen years old or older in order to consent to sexual intercourse. Deleting this section would allow the state legislature to set the age of consent. Currently- the state legislature has the age of consent set at sixteen for most cases.
Amendment 2 - Amend Section 16- Article X of the Constitution
"Post-employment benefits" are benefits- mainly health insurance- provided to eligible state government and school district retirees. To comply with a change in accounting standards- the state has created trust funds to pay for these post-employment benefits. This amendment relates to how the money in these trust funds may be invested.
Amendment 3 - Amend Section 16- Article X of the Constitution
This amendment is the same as Amendment 2 except it applies to local governments' post-employment benefits (instead of the state government's post-employment benefits).
Saturday, October 18, 2008
Zillow.com cutting its work force by 25%
The Real-estate Web site Zillow.com says it will be cutting its work force by 25% to cut expenses and gird against the ailing U.S. economy.
A Zillow spokeswoman says the company plans to lay off the employees Tuesday, with most of the cuts in Seattle, where the company is based. She says about 75% of the employees will remain after the cuts.
Chief Executive Rich Barton says the company has "sizable cash reserves" but determined the cuts were needed to help it weather the economic downturn.
Zillow, launched in 2006, hosts real estate listings and helps visitors find competitive mortgage rates, among other features. Its revenues come from online ad sales.
A Zillow spokeswoman says the company plans to lay off the employees Tuesday, with most of the cuts in Seattle, where the company is based. She says about 75% of the employees will remain after the cuts.
Chief Executive Rich Barton says the company has "sizable cash reserves" but determined the cuts were needed to help it weather the economic downturn.
Zillow, launched in 2006, hosts real estate listings and helps visitors find competitive mortgage rates, among other features. Its revenues come from online ad sales.
Friday, October 17, 2008
Canadians searching for hot deals on US properties
With the sub-prime housing crisis casting a dark a shadow over the United States, many Canadians are searching for hot deals on American properties.
But is it the right time to invest in U.S. real estate? And just because you can bargain shop, can you really afford all that goes with owning foreign property?
These are the top questions TD Waterhouse senior vice-president Patricia Lovett-Reid has been getting.
Before investing your dollars into a U.S. property get the complete answers to these tough questions:
1. Getting a fix on prices: Quoting the U.S. National Association of Realtors, Lovett-Reid says housing prices have declined an average eight per cent from a year ago with a current median price of about $200,000. But, she stresses, the situation varies from state to state.
2. Ready to negotiate: Negotiating the tangled web of American real estate investment isn't easy. Unlike investing in Canada, she says purchasing property south of the border can be risky and confusing.
It's important to map out the cost structure in U.S. dollars, especially considering the loonie will likely depreciate against the U.S. dollar over the next year.
"When we look at where the dollar is now, we expect it to depreciate closer to the 95-cent level in 2008 -- and 92-cent level in 2009. So that can have an impact."
3. Research plus: She also suggests doing considerable research on available opportunities and vacationing in the location to make sure it's the right property. Lovett-Reid advises people to ask themselves a few questions:
-- Why do I plan to buy this real estate?
-- Is this an portfolio investment or is it going to be for personal use?
-- Will this help you fulfil your goal expectations -- because right now there is a tendency to buy on impulse.
4. Cool off: People currently searching must give themselves a cooling-off period to evaluate the reasons they are tempted to buy the property.
The extra cost of upkeep, security, utilities, and other expenses -- whether the property is occupied or not -- must also be calculated into the overall cost.
Because emotions can come into play, she says it's important to note "there is no real rush" to buy because the U.S. has yet to bounce back from the sub-prime meltdown.
5. Waiting may be best: "It still may pay you to wait even though we are in a very depressed market," she says. If people were planning to move down soon, then the timing to buy is good.
6. Cash buyers: because getting mortgages can be difficult, given the massive number of foreclosures and defaults on loans in the past year.
"I think if everyone is expecting to come down here and find gold, it's not going to happen," says Kafin.
"It's like the stock market, there's no guarantees. But if you work with a company that's knowledgeable and serious about what they are doing and they understand the economics of the market, then you are really going to be OK."
7. Forget about financing?: Make sure you use a Realtor like www.843Realtor.com that can get you to a croos border banker and help make you financing a breeze.
8. High cost of insurance: High insurance premiums can further complicate a property purchase, with issues revolving around "acts of nature" that affect homes and condos located in hurricane-prone zones such as Florida -- or Texas properties that are suspectible to flooding, and earthquakes and mud slides in California.
9. Disaster insurance: So to ensure they are properly protected, homeowners augment their coverage by purchasing supplemental in- surance from agencies such as Florida Citizens Insurance, which deal specifically with high-risk properties. Instead Canadians should look at Myrtle Beach South Carolina with a low hurricane imact zone.
Many variables will determine the ultimate cost, including the type of property, the location, the neighbourhood, and previous claims such as water damage, which can result in higher premiums.
10. Protection against thieves, fire: In essence, Worters says, buyers should have four different policies.
In addition to the regular homeowner's insurance coverage that covers theft and fire and buying the high-risk packages from Florida Citizens, which covers wind damage, the owner would also have to buy flood insurance, available through the federal government because the other two polices are "limited."
11. Downside of no insurance: Those who skimp on such insurance, or don't know about it, can end up like some of the victims in Louisiana in August 2005, she adds.
Condo and co-op buyers will typically have a master policy which pays for the structure of the building.
But, she stresses, the owner must make sure they have enough insurance to cover the cost to rebuild that condo, and therefore may need to purchases extra policies for full protection.
12. Consulting tax specialists: She also suggests having a tax specialist who knows how to deal on both sides of the border, to optimize your tax filing. "The list goes on of what you have to do here," says Lovett-Reid.
Financial advisers in Canada will help clients crunch numbers, and see whether purchasing property in the U.S. is affordable to them.
"Ask the tough questions of the people you are going to be working with," says Lovett-Reid. "But almost more importantly, ask them of yourself."
Call Toll Free 888-935-8862 and ask a Myrtle Beach Real Estate Company www.843Realtor.com
But is it the right time to invest in U.S. real estate? And just because you can bargain shop, can you really afford all that goes with owning foreign property?
These are the top questions TD Waterhouse senior vice-president Patricia Lovett-Reid has been getting.
Before investing your dollars into a U.S. property get the complete answers to these tough questions:
1. Getting a fix on prices: Quoting the U.S. National Association of Realtors, Lovett-Reid says housing prices have declined an average eight per cent from a year ago with a current median price of about $200,000. But, she stresses, the situation varies from state to state.
2. Ready to negotiate: Negotiating the tangled web of American real estate investment isn't easy. Unlike investing in Canada, she says purchasing property south of the border can be risky and confusing.
It's important to map out the cost structure in U.S. dollars, especially considering the loonie will likely depreciate against the U.S. dollar over the next year.
"When we look at where the dollar is now, we expect it to depreciate closer to the 95-cent level in 2008 -- and 92-cent level in 2009. So that can have an impact."
3. Research plus: She also suggests doing considerable research on available opportunities and vacationing in the location to make sure it's the right property. Lovett-Reid advises people to ask themselves a few questions:
-- Why do I plan to buy this real estate?
-- Is this an portfolio investment or is it going to be for personal use?
-- Will this help you fulfil your goal expectations -- because right now there is a tendency to buy on impulse.
4. Cool off: People currently searching must give themselves a cooling-off period to evaluate the reasons they are tempted to buy the property.
The extra cost of upkeep, security, utilities, and other expenses -- whether the property is occupied or not -- must also be calculated into the overall cost.
Because emotions can come into play, she says it's important to note "there is no real rush" to buy because the U.S. has yet to bounce back from the sub-prime meltdown.
5. Waiting may be best: "It still may pay you to wait even though we are in a very depressed market," she says. If people were planning to move down soon, then the timing to buy is good.
6. Cash buyers: because getting mortgages can be difficult, given the massive number of foreclosures and defaults on loans in the past year.
"I think if everyone is expecting to come down here and find gold, it's not going to happen," says Kafin.
"It's like the stock market, there's no guarantees. But if you work with a company that's knowledgeable and serious about what they are doing and they understand the economics of the market, then you are really going to be OK."
7. Forget about financing?: Make sure you use a Realtor like www.843Realtor.com that can get you to a croos border banker and help make you financing a breeze.
8. High cost of insurance: High insurance premiums can further complicate a property purchase, with issues revolving around "acts of nature" that affect homes and condos located in hurricane-prone zones such as Florida -- or Texas properties that are suspectible to flooding, and earthquakes and mud slides in California.
9. Disaster insurance: So to ensure they are properly protected, homeowners augment their coverage by purchasing supplemental in- surance from agencies such as Florida Citizens Insurance, which deal specifically with high-risk properties. Instead Canadians should look at Myrtle Beach South Carolina with a low hurricane imact zone.
Many variables will determine the ultimate cost, including the type of property, the location, the neighbourhood, and previous claims such as water damage, which can result in higher premiums.
10. Protection against thieves, fire: In essence, Worters says, buyers should have four different policies.
In addition to the regular homeowner's insurance coverage that covers theft and fire and buying the high-risk packages from Florida Citizens, which covers wind damage, the owner would also have to buy flood insurance, available through the federal government because the other two polices are "limited."
11. Downside of no insurance: Those who skimp on such insurance, or don't know about it, can end up like some of the victims in Louisiana in August 2005, she adds.
Condo and co-op buyers will typically have a master policy which pays for the structure of the building.
But, she stresses, the owner must make sure they have enough insurance to cover the cost to rebuild that condo, and therefore may need to purchases extra policies for full protection.
12. Consulting tax specialists: She also suggests having a tax specialist who knows how to deal on both sides of the border, to optimize your tax filing. "The list goes on of what you have to do here," says Lovett-Reid.
Financial advisers in Canada will help clients crunch numbers, and see whether purchasing property in the U.S. is affordable to them.
"Ask the tough questions of the people you are going to be working with," says Lovett-Reid. "But almost more importantly, ask them of yourself."
Call Toll Free 888-935-8862 and ask a Myrtle Beach Real Estate Company www.843Realtor.com
Thursday, October 16, 2008
County schools penny tax bail out
Residents in Horry County will soon vote in the upcoming election on whether to approve a local sales tax proposed by the Horry County School District.
On Wednesday night, the Myrtle Beach Area Chamber of Commerce hosted a forum for people to learn more about the penny tax. Turnout was low since many residents were not aware of the time and place for the meeting. Only one man showed up to hear what chamber officials, as well as district officials, had to say about the new proposal.
The biggest selling point, and what most call an advantage, is that the penny tax would cut Horry County residents' property taxes. The district says property taxes would decrease to 10 mills from the current 28 mills by 2010.
"This is what we need," said the lone attendee, Tom Pegram.
It seems the Chamber failed to address the major concerns that many resident have about the penny tax. Many residents see this penny tax much like the recent penny road tax failures and are skeptical about its success. Residents are concerned the tax will be used to help developers that have failed to plan the new development Carolina Station. Carolina Station will be a new large development laking the School system to handle the increase in population. The County has failed to demand developers to cure this problem prior to approval of the construction. This area of the County has been given a free ride from becoming its own special tax district to handle the new schools system requirements. That leaves all residents of the county to pay for the new school additions for a region of the county that most resident will never see. It is these concerns that have many residents ready to defeat a tax that they feel will never help the overcrowding issues that need to be addressed. The County continues to create new problems and throws out emergency plans to "bail out" continued failures from the improper and inadequate planning from the County.
The chief construction officer for Horry County schools, says without the penny tax, much-needed expansion and upkeep in schools would continue to be funded through property taxes.
The new "penny" would generate as much as $1 billion over its 15-year lifetime. Rodelsperger said as much as 60% of the generated revenue would be paid for by non-residents.
The projected $1 billion tax would be divided up in the following manner; 80 percent would go to Horry County schools. The remaining 20% would be split between Coastal Carolina University and Horry-Georgetown Technical College, with the larger majority going to CCU.
For more information on the penny tax, visit http://www.horrycountyschools.net/UserFiles/Servers/Server_743372/File/About%20Us/penny_flyer2008_RGB.pdf
On Wednesday night, the Myrtle Beach Area Chamber of Commerce hosted a forum for people to learn more about the penny tax. Turnout was low since many residents were not aware of the time and place for the meeting. Only one man showed up to hear what chamber officials, as well as district officials, had to say about the new proposal.
The biggest selling point, and what most call an advantage, is that the penny tax would cut Horry County residents' property taxes. The district says property taxes would decrease to 10 mills from the current 28 mills by 2010.
"This is what we need," said the lone attendee, Tom Pegram.
It seems the Chamber failed to address the major concerns that many resident have about the penny tax. Many residents see this penny tax much like the recent penny road tax failures and are skeptical about its success. Residents are concerned the tax will be used to help developers that have failed to plan the new development Carolina Station. Carolina Station will be a new large development laking the School system to handle the increase in population. The County has failed to demand developers to cure this problem prior to approval of the construction. This area of the County has been given a free ride from becoming its own special tax district to handle the new schools system requirements. That leaves all residents of the county to pay for the new school additions for a region of the county that most resident will never see. It is these concerns that have many residents ready to defeat a tax that they feel will never help the overcrowding issues that need to be addressed. The County continues to create new problems and throws out emergency plans to "bail out" continued failures from the improper and inadequate planning from the County.
The chief construction officer for Horry County schools, says without the penny tax, much-needed expansion and upkeep in schools would continue to be funded through property taxes.
The new "penny" would generate as much as $1 billion over its 15-year lifetime. Rodelsperger said as much as 60% of the generated revenue would be paid for by non-residents.
The projected $1 billion tax would be divided up in the following manner; 80 percent would go to Horry County schools. The remaining 20% would be split between Coastal Carolina University and Horry-Georgetown Technical College, with the larger majority going to CCU.
For more information on the penny tax, visit http://www.horrycountyschools.net/UserFiles/Servers/Server_743372/File/About%20Us/penny_flyer2008_RGB.pdf
real estate business truly is amazing
The real estate business truly is amazing. No matter how long you’ve been involved in it, the same simple truths seem to present themselves year to year, and by default, we are bound to make some of the same old mistakes from time to time. Maybe the most significant of these truths is the importance of qualifying and listening to your clients.
Here are a few embarrassingly recent stories about my mistakes in not listening to and evaluating my client’s plan. Hopefully they will help to illustrate this lesson and prevent other agents from following suit.
Recently, a personal client called and inquired about the prospect of listing their home for sale. Any real estate agent knows the excitement a call like this can bring, especially when the subject property is of considerable value. Fellow real estate agents also can relate to the excitement-induced mental lapse that can occur from these special events causing ones brain to temporarily disengage from gear.
Being that this client would be one of our favorite sell/buy clients (both sell and buy a home with us), the dollar signs were already beginning to permeate the brain before the conversation had really even started. Experience has taught me that this point should be the most critical in sizing up the ability, need, and desire of my prospect and this situation would prove no different.
It turns out that my client had a fantastic, albeit unrealistic, plan to sell his home at top of the market pricing, buy a home of almost similar specifications at today’s discount prices, and use the difference to fund his retirement! I knew from the beginning that it just isn’t realistic to conduct such a win-win-win orchestration but was too excited, and maybe a little too scared, to confront him. We all know how this turns out so there really is no point in rehashing the details.
The point is that had I listened better and had the confidence to point out the faulty plan without insulting its creator, I would have saved lots of time, money, energy, and spirit. As it is now, all we have to show for our efforts is an uncomfortable relationship in need of some mending.
Very shortly thereafter, a new client phoned about the prospect of buying one of my listings after I listed and sold her house. Great! Another sell/buy client and a chance to sell this “well seasoned” listing! In my excitement, I prepared all the listing paperwork, the purchase agreement, and spent considerable time agonizing over a comprehensive market analysis.
Only then did I really sit down with the prospect and go over their plan of action. When all the smoke had cleared, another overly ambitious plan was all that remained and the details revealed that this person wanted to trade up houses without putting down any cash, increasing their monthly payment, or sacrificing any amenities. I’m still working on how to have my cake and eat it too so this clients dilemma will have to take second priority.
Needless to say, as real estate agents, our role is incredibly complex as it relates to the skills, experience, and knowledge that it takes to be successful. Possibly the most important role we can play is that of coach. We should listen, not pretend to listen or fake interest, but really listen to our clients and their ideas. We guide our clients, not sugar coat and posture up a poorly developed plan destined to fail, but compassionately hit them right between the eyes (figuratively of course) when their plans are doomed for failure.
Take some time right up front to go over your clients plan with a degree of skepticism before even setting up a home search or preparing that CMA. In the end, the solid buyers and sellers, or rather, buyer and sellers with solid plans, will reveal themselves and the rest will at least leave with an understanding of your professionalism and respect for their time.
Of course, many will leave you and go elsewhere to find somebody saying what they want to hear, but this is ok, let your fiercest competitor try to work the plan of these clients and you just concentrate on working yours!
Here are a few embarrassingly recent stories about my mistakes in not listening to and evaluating my client’s plan. Hopefully they will help to illustrate this lesson and prevent other agents from following suit.
Recently, a personal client called and inquired about the prospect of listing their home for sale. Any real estate agent knows the excitement a call like this can bring, especially when the subject property is of considerable value. Fellow real estate agents also can relate to the excitement-induced mental lapse that can occur from these special events causing ones brain to temporarily disengage from gear.
Being that this client would be one of our favorite sell/buy clients (both sell and buy a home with us), the dollar signs were already beginning to permeate the brain before the conversation had really even started. Experience has taught me that this point should be the most critical in sizing up the ability, need, and desire of my prospect and this situation would prove no different.
It turns out that my client had a fantastic, albeit unrealistic, plan to sell his home at top of the market pricing, buy a home of almost similar specifications at today’s discount prices, and use the difference to fund his retirement! I knew from the beginning that it just isn’t realistic to conduct such a win-win-win orchestration but was too excited, and maybe a little too scared, to confront him. We all know how this turns out so there really is no point in rehashing the details.
The point is that had I listened better and had the confidence to point out the faulty plan without insulting its creator, I would have saved lots of time, money, energy, and spirit. As it is now, all we have to show for our efforts is an uncomfortable relationship in need of some mending.
Very shortly thereafter, a new client phoned about the prospect of buying one of my listings after I listed and sold her house. Great! Another sell/buy client and a chance to sell this “well seasoned” listing! In my excitement, I prepared all the listing paperwork, the purchase agreement, and spent considerable time agonizing over a comprehensive market analysis.
Only then did I really sit down with the prospect and go over their plan of action. When all the smoke had cleared, another overly ambitious plan was all that remained and the details revealed that this person wanted to trade up houses without putting down any cash, increasing their monthly payment, or sacrificing any amenities. I’m still working on how to have my cake and eat it too so this clients dilemma will have to take second priority.
Needless to say, as real estate agents, our role is incredibly complex as it relates to the skills, experience, and knowledge that it takes to be successful. Possibly the most important role we can play is that of coach. We should listen, not pretend to listen or fake interest, but really listen to our clients and their ideas. We guide our clients, not sugar coat and posture up a poorly developed plan destined to fail, but compassionately hit them right between the eyes (figuratively of course) when their plans are doomed for failure.
Take some time right up front to go over your clients plan with a degree of skepticism before even setting up a home search or preparing that CMA. In the end, the solid buyers and sellers, or rather, buyer and sellers with solid plans, will reveal themselves and the rest will at least leave with an understanding of your professionalism and respect for their time.
Of course, many will leave you and go elsewhere to find somebody saying what they want to hear, but this is ok, let your fiercest competitor try to work the plan of these clients and you just concentrate on working yours!
Wednesday, October 15, 2008
Next Myrtle Beach biker meeting October 22 at 5:00 p.m
Many bikers packed county council chambers for another meeting to deal with the recent movement to curb bike ally,s in the County. Six people of the who people who spoke during public input were three in favored of the rallies and three opposed the rallies.
Horry County Council hasn't taken a stand either way when it comes to the rallies. They've are trying to explore ways to deal with the congestion, noise, and unruly behavior.
The commitee first met a couple of weeks ago and asked county staff, including department heads from public safety, zoning and code enforcement, to come up with recommendations for the committee to consider.
In the staff's briefing memorandum they wrote in their conclusion,
"Staff proposes reconfiguring the temporary vending overlays to limit vending east of the Waccamaw River and to encourage vending in the western portion of the county. Staff also proposed amending the Noise Ordinance to require a special event permit for all outdoor entertainment, contests and shows."
First, on the issue of altering vending operations, the staff recommended, among other things to:
Limit vending locations east of the Waterway to shopping malls/centers ...."
Limit the number of permits issued east of the Waterway to 50 permits north of Hwy 501 and 50 permits south of Hwy 501
Increase permit price to $1500
The number of total permits issued would drop to 400, and the duration of the permits would be reduced to eight days, down from ten days
To further help congestion, staff proposed several traffic management options, including utilizing traffic barricades in the following areas:
US 17 Business in the Murrells Inlet area
US 17 Business in the area around the Harley-Davidson Dealership
US 17 in the Restaurant Row area
Highway 9 in the vicinity of HB Spokes
In all cases, the barricades would be used to prevent traffic from turning left from both directions. They would also prevent pedestrian traffic from crossing from one side of the road to the other.
County staff also suggested the council could amend the noise ordinance special event permit section to "prohibit commercial outdoor entertainment and other activities including, but not limited to, all contests, stunt shows, burn-out pits, motorcycle/car washes and concerts unless the issuance of a special event permit has been approved by the public safety committee."
The staff pointed out that the amendment would not only target the rallies but also events like the Blue Crab Festival, car shows, etc.
If someone does apply for a special events permit, they might be required to receive endorsement of certain county agencies and also provide beefed up security, better lighting and medical personnel.
After the recommendations were explained, many of the bikers in attendance seemed pleased.
The committee and members of the public offered input to the ideas, and the staff will take those, tweak the plans and present any updated suggestions at the committee's next meeting which is scheduled for October 22 at 5:00 p.m.
Horry County Council hasn't taken a stand either way when it comes to the rallies. They've are trying to explore ways to deal with the congestion, noise, and unruly behavior.
The commitee first met a couple of weeks ago and asked county staff, including department heads from public safety, zoning and code enforcement, to come up with recommendations for the committee to consider.
In the staff's briefing memorandum they wrote in their conclusion,
"Staff proposes reconfiguring the temporary vending overlays to limit vending east of the Waccamaw River and to encourage vending in the western portion of the county. Staff also proposed amending the Noise Ordinance to require a special event permit for all outdoor entertainment, contests and shows."
First, on the issue of altering vending operations, the staff recommended, among other things to:
Limit vending locations east of the Waterway to shopping malls/centers ...."
Limit the number of permits issued east of the Waterway to 50 permits north of Hwy 501 and 50 permits south of Hwy 501
Increase permit price to $1500
The number of total permits issued would drop to 400, and the duration of the permits would be reduced to eight days, down from ten days
To further help congestion, staff proposed several traffic management options, including utilizing traffic barricades in the following areas:
US 17 Business in the Murrells Inlet area
US 17 Business in the area around the Harley-Davidson Dealership
US 17 in the Restaurant Row area
Highway 9 in the vicinity of HB Spokes
In all cases, the barricades would be used to prevent traffic from turning left from both directions. They would also prevent pedestrian traffic from crossing from one side of the road to the other.
County staff also suggested the council could amend the noise ordinance special event permit section to "prohibit commercial outdoor entertainment and other activities including, but not limited to, all contests, stunt shows, burn-out pits, motorcycle/car washes and concerts unless the issuance of a special event permit has been approved by the public safety committee."
The staff pointed out that the amendment would not only target the rallies but also events like the Blue Crab Festival, car shows, etc.
If someone does apply for a special events permit, they might be required to receive endorsement of certain county agencies and also provide beefed up security, better lighting and medical personnel.
After the recommendations were explained, many of the bikers in attendance seemed pleased.
The committee and members of the public offered input to the ideas, and the staff will take those, tweak the plans and present any updated suggestions at the committee's next meeting which is scheduled for October 22 at 5:00 p.m.
When will the bottom of the real estate market
The U.S. economy is under going the worst economic chaos since the Great Depression as a result of the growing global financial crisis. And now it seems to be the #1 question everybody in America is asking: When will the bottom of the real estate market occur?
By now just about everyone realizes that the depressed housing market sent America into its financial mess. The foreclosure epidemic has topped 3-million foreclosures nationwide.
Housing Predictor correctly forecast America's real estate depression, the foreclosure epidemic and the mortgage crisis and now forecasts the bottom of the nation's real estate market. The bottoms of real estate markets don't happen all at once like financial markets do, but usually take many months and even sometimes years to undergo.
As government leaders from around the World met in Washington D.C., Housing Predictor researchers gathered more data from hundreds of independent sources across the nation to search for the answer on when America's housing markets might stabilize. The White House and other branches of the Federal government are in emergency management mode in order to find a solution to the economic crisis.
As the White House finalizes its plan with the Treasury, Housing Predictor delves into the crisis and issues its forecast for the bottom of the housing market, and perhaps even more importantly reviews when things might be looking up in real estate. Housing Predictor forecasts more than 250 local housing markets in all 50 states, and keeps visitors up to date on changing market conditions and real estate news.
Most local housing markets throughout the nation are still working through their downturns and won't see falling prices flatten until at least sometime in 2009. Last April Housing Predictor forecast the increase in home sales as a result of lower prices and the epidemic of foreclosure properties listed for sale. Sales picked-up in late summer and are forecast to increase more with additional interest rate cuts by the Fed.
By now just about everyone realizes that the depressed housing market sent America into its financial mess. The foreclosure epidemic has topped 3-million foreclosures nationwide.
Housing Predictor correctly forecast America's real estate depression, the foreclosure epidemic and the mortgage crisis and now forecasts the bottom of the nation's real estate market. The bottoms of real estate markets don't happen all at once like financial markets do, but usually take many months and even sometimes years to undergo.
As government leaders from around the World met in Washington D.C., Housing Predictor researchers gathered more data from hundreds of independent sources across the nation to search for the answer on when America's housing markets might stabilize. The White House and other branches of the Federal government are in emergency management mode in order to find a solution to the economic crisis.
As the White House finalizes its plan with the Treasury, Housing Predictor delves into the crisis and issues its forecast for the bottom of the housing market, and perhaps even more importantly reviews when things might be looking up in real estate. Housing Predictor forecasts more than 250 local housing markets in all 50 states, and keeps visitors up to date on changing market conditions and real estate news.
Most local housing markets throughout the nation are still working through their downturns and won't see falling prices flatten until at least sometime in 2009. Last April Housing Predictor forecast the increase in home sales as a result of lower prices and the epidemic of foreclosure properties listed for sale. Sales picked-up in late summer and are forecast to increase more with additional interest rate cuts by the Fed.
$300 billion to keep Americans in their homes
John McCain has hinted that he plans to reveal his economic package soon in an effort to keep pace and perhaps counterbalance the Barack Obama economic proposal. There's one thing that struck me as odd, in this era of evaporating jobs and oncoming Depression. The McCain proposal hints at calls for using $300 billion of the $700 billion financial bailout package to keep Americans in their homes, stop declining housing values, and stabilize the financial markets.
Indeed the decline in real estate has devastated the financial markets and they've already gotten their bailouts in order to keep the credit markets primed with cash to avoid another freeze-up.
But in an era as we've been in the past ten years where, as Ross Perot so bluntly called it, "the great sucking sound" of disappearing jobs has gone from background din to deafening alarm. And McCain has no plan to change that any time soon.
Devaluation of real estate is inevitable. This is a hard pill that America is going to be force-fed, but is nevertheless necessary if we wish to survive in the "flat earth" economy. It's not the only thing that must devalue in price and cost, but it's one of the most critical.
As we've noticed rather clearly, especially during the George W. Bush era where added tax incentives accelerated the pace, business is in love with cheap labor - the cheaper, the better. It initially started with manufacturing and labor-oriented jobs, but has expanded to accounting, computer programming and even financial and service-industry jobs. Everyone wants a bargain, and no one loves it more than business executives and Wall Street investors. Cheaper costs mean more profit.
One of the primary reasons jobs fly overseas is due to this new awareness of a plethora of cheap labor. Even if it doesn't produce as Americans would, or end up as good quality as what we may do domestically, the cost differential more than makes up for it. It's also helped keep what jobs below the executive level that are left in the U.S. more bargain-priced than ever - even in the face of rampant cost-increases in everything.
Yet even with our fixed incomes for most of America, the bottom line is still more attractive by going cheaper and going overseas. We in America cannot compete with that due to our overly high cost of living. While a $9 an hour job in India, Indonesia or China may provide a very attractive standard of living and draw an incented workforce, in America it guarantees the individual will be part of a burgeoning working underclass with shrinking living standards and increased difficulties competing with other countries in this flat-earth economic paradigm.
Housing prices, as with food or utilities are one of those indispensable mandatory costs for the global workforce, no matter which country you live in. It doesn't take a rocket scientist to determine that American real estate is vastly higher than the very countries we now must duel with over diminishing work.
One exacerbating problem during this time of disappearing jobs was that many Americans turned to individual investing - flipping real estate - in the midst of Bush's "Economic Recovery." They made a handsome profit, providing cushion for the economic and employment uncertainty for a time. But like all pyramid schemes, it reached its saturation point. In the wake of this, we've experienced for some time a pricing over-escalation and a painful correction on real estate based on typical American standards and prices.
But once this reaches what were the pricing norms ten or fifteen years ago, the question begs: will there be jobs sufficient and plentiful enough to renew a housing boom? The answer to that will be no.
Until we in America reach cost levels similar to those of China, India or other third-world countries we are now mandated to compete with for jobs, America will face three choices. Either accept job insecurity (which will go where the wages and wage-earner costs are cheapest), acquiesce to a constant stagflated period where wages will be sub-par to bring us to what we've been accustomed to over the past decades, or give up on the globalizing workforce and retain jobs in America with the attendant cost increases. Corporations giving up profit are as likely as crack-heads giving up crack. We will have to look to one of the first two options.
Either American living standards must continue eroding at a shocking pace, or the costs of these living standards must come down accordingly in order to give American workers a chance to compete for jobs.
As things stand, McCain wants to artificially continue propping up real estate prices. This guarantees American jobs with livable American-level wages will never be able to compete with flat-earth, globalized workforces. For American wages to remain the same or deflate, and for jobs to stop evaporating before our eyes, costs must come down. And not just for housing prices, but for all essentials.
Indeed the decline in real estate has devastated the financial markets and they've already gotten their bailouts in order to keep the credit markets primed with cash to avoid another freeze-up.
But in an era as we've been in the past ten years where, as Ross Perot so bluntly called it, "the great sucking sound" of disappearing jobs has gone from background din to deafening alarm. And McCain has no plan to change that any time soon.
Devaluation of real estate is inevitable. This is a hard pill that America is going to be force-fed, but is nevertheless necessary if we wish to survive in the "flat earth" economy. It's not the only thing that must devalue in price and cost, but it's one of the most critical.
As we've noticed rather clearly, especially during the George W. Bush era where added tax incentives accelerated the pace, business is in love with cheap labor - the cheaper, the better. It initially started with manufacturing and labor-oriented jobs, but has expanded to accounting, computer programming and even financial and service-industry jobs. Everyone wants a bargain, and no one loves it more than business executives and Wall Street investors. Cheaper costs mean more profit.
One of the primary reasons jobs fly overseas is due to this new awareness of a plethora of cheap labor. Even if it doesn't produce as Americans would, or end up as good quality as what we may do domestically, the cost differential more than makes up for it. It's also helped keep what jobs below the executive level that are left in the U.S. more bargain-priced than ever - even in the face of rampant cost-increases in everything.
Yet even with our fixed incomes for most of America, the bottom line is still more attractive by going cheaper and going overseas. We in America cannot compete with that due to our overly high cost of living. While a $9 an hour job in India, Indonesia or China may provide a very attractive standard of living and draw an incented workforce, in America it guarantees the individual will be part of a burgeoning working underclass with shrinking living standards and increased difficulties competing with other countries in this flat-earth economic paradigm.
Housing prices, as with food or utilities are one of those indispensable mandatory costs for the global workforce, no matter which country you live in. It doesn't take a rocket scientist to determine that American real estate is vastly higher than the very countries we now must duel with over diminishing work.
One exacerbating problem during this time of disappearing jobs was that many Americans turned to individual investing - flipping real estate - in the midst of Bush's "Economic Recovery." They made a handsome profit, providing cushion for the economic and employment uncertainty for a time. But like all pyramid schemes, it reached its saturation point. In the wake of this, we've experienced for some time a pricing over-escalation and a painful correction on real estate based on typical American standards and prices.
But once this reaches what were the pricing norms ten or fifteen years ago, the question begs: will there be jobs sufficient and plentiful enough to renew a housing boom? The answer to that will be no.
Until we in America reach cost levels similar to those of China, India or other third-world countries we are now mandated to compete with for jobs, America will face three choices. Either accept job insecurity (which will go where the wages and wage-earner costs are cheapest), acquiesce to a constant stagflated period where wages will be sub-par to bring us to what we've been accustomed to over the past decades, or give up on the globalizing workforce and retain jobs in America with the attendant cost increases. Corporations giving up profit are as likely as crack-heads giving up crack. We will have to look to one of the first two options.
Either American living standards must continue eroding at a shocking pace, or the costs of these living standards must come down accordingly in order to give American workers a chance to compete for jobs.
As things stand, McCain wants to artificially continue propping up real estate prices. This guarantees American jobs with livable American-level wages will never be able to compete with flat-earth, globalized workforces. For American wages to remain the same or deflate, and for jobs to stop evaporating before our eyes, costs must come down. And not just for housing prices, but for all essentials.
Monday, October 13, 2008
Myrtle Beach renourishment program has begun.
The machines are in place and the pipes are being laid to start the Myrtle Beach section of the beach renourishment program.
The Army Corps of Engineers has finally started on the Myrtle Beach phase.
Over the next few days, workers will pump sand from the ocean floor onto the beaches.
Work crews started in the north end of the Grand Strand a few weeks ago and have been slowly moving south.
Myrtle Beach residents and business owners are glad the renourishment project has started after the Sea Turtle's eggs have hatched from the local beaches and the tourist season ended.
The Army Corps of Engineers has finally started on the Myrtle Beach phase.
Over the next few days, workers will pump sand from the ocean floor onto the beaches.
Work crews started in the north end of the Grand Strand a few weeks ago and have been slowly moving south.
Myrtle Beach residents and business owners are glad the renourishment project has started after the Sea Turtle's eggs have hatched from the local beaches and the tourist season ended.
Thursday, October 9, 2008
credit markets lending again
The credit markets might not be quite as squeezed as they have been recently, thanks to the Federal Reserve's interest rate cut. But they're hardly back to normal.
In two signs of continued strain, a key bank-to-bank lending rate rose Thursday and the amount of commercial paper in the market fell for the fourth straight week to 15 percent below the level before the investment bank Lehman Brothers Holdings Inc. filed for bankruptcy.
While lending doesn't appear to be in the same seized-up state as last week, the year-end could prove a difficult time for funding as banks and other institutions try to get their books in order, said Kim Rupert, managing director of global fixed income analysis at Action Economics.
"It looks like the central bank's actions are starting to help marginally improve confidence enough where safe haven isn't the only thing on investors' minds," Rupert said. "But it's only one small step so far. It's going to be a very jagged type of improvement. There's still a lot of factors that are going to keep anxiety at elevated levels."
The London Interbank Offered Rate, or Libor, for three-month dollar loans rose to 4.75 percent from 4.52 percent on Wednesday. Just a month ago, three-month Libor was at 2.81 percent.
That stubbornly high Libor is just one of the reasons that the stock market has been tumbling. When banks are loath to lend, a weak economy has a hard time bouncing back. The Dow Jones industrial average sank nearly 679 points on Thursday to the lowest level in five years.
Libor's sharp jump over the past month is worrisome because consumer loans such as adjustable-rate mortgages are tied to Libor — meaning that those mortgages could become harder to pay. Citigroup analysts recently predicted that continued stress in Libor will result in a 10 percent jump in defaults for outstanding non-delinquent adjustable-rate mortgages when they reset.
Libor for overnight dollar loans slipped to 5.09 percent Thursday from 5.38 percent, but still remains extremely high — especially compared to the target Fed funds rate, a key overnight lending rate that the Federal Reserve slashed Wednesday by a half-point to 1.5 percent.
Meanwhile, commercial paper outstanding dropped for the fourth straight week. Commercial paper is a type of debt companies sell to get short-term cash, often so that they can maintain their inventories and payrolls. The Fed said commercial paper outstanding fell by $56.4 billion to a seasonally-adjusted $1.55 trillion in the week ended Oct. 8 — that's down from $1.82 billion on Sept. 10, and down 30 percent from the peak of $2.2 trillion in the summer of 2007.
As companies have a harder time getting financing, businesses and municipalities have been taking action to try to adapt. Connecticut's governor is requesting that banks statewide to contribute at least $1 million each to a lending pool for small businesses. And Apollo Management LP is offering a $540 million capital infusion to its affiliate Hexion Specialty Chemicals to help Hexion close its takeover of Huntsman Corp; Hexion said it doubted that Deutsche Bank AG and Credit Suisse Group AG would provide financing.
Automakers and dealers have been especially hard hit by the double-whammy of a slow economy and squeezed credit. Standard & Poor's Ratings Services on Thursday put General Motors Corp. and its 49 percent-owned finance affiliate GMAC LLC on negative credit watch. It also put Ford Motor Co. on negative credit watch. That means there is a 50 percent chance that S&P will lower the ratings on these companies in the next three months; S&P said that while their liquidity is adequate now, deteriorating conditions could challenge their liquidity in 2009.
There were a few promising signs that the stranglehold on the credit markets is starting to loosen, at least in some areas.
One was that the recent drop in commercial paper was smaller than the $94.9 billion decline in the previous week, and the $61 billion decrease in the week ended Sept. 24. And last week's decline occurred in financial companies' commercial paper and asset-backed commercial paper — commercial paper issued by non-financial companies edged higher overall.
"We're still seeing a lot of investments in overnights and very short maturities," said Alex Roever, a fixed-income analyst with JPMorgan. "The really strong financial and non-financial names — top tier corporations — are seeing stronger interest in one-month, two-month, three-month paper. It's definitely better than where it was a week or so ago."
Moreover, following the Fed's Tuesday decision to buy commercial paper and Wednesday's move to slash the key interest rate, the rates on certain overnight commercial paper fell by 1.15 percentage points on Thursday to 2.35 percent, noted Miller Tabak & Co. analyst Tony Crescenzi.
And IBM Corp. was able to sell $3.9 billion in longer-term bonds on the market Thursday after posting better-than-expected profits.
But investors are still anxious. The yield on the three-month Treasury bill initially edged up on Thursday, but then slipped to 0.58 percent from 0.63 percent late Wednesday. That suggests that demand for T-bills, regarded by investors as the safest assets around, remains high. The discount rate was also 0.58 percent.
Longer-term Treasury yields were mixed after the stock market's plunge.
In late trading, the 2-year Treasury note rose 1/32 to 100 28/32 and yielded 1.55 percent, down from 1.56 percent late Wednesday. The 10-year note fell 28/32 to 101 30/32 and yielded 3.76 percent, up from 3.65 percent. The 30-year bond fell 1 25/32 to 106 31/32 and yielded 4.09 percent, up from 4.05 percent.
In two signs of continued strain, a key bank-to-bank lending rate rose Thursday and the amount of commercial paper in the market fell for the fourth straight week to 15 percent below the level before the investment bank Lehman Brothers Holdings Inc. filed for bankruptcy.
While lending doesn't appear to be in the same seized-up state as last week, the year-end could prove a difficult time for funding as banks and other institutions try to get their books in order, said Kim Rupert, managing director of global fixed income analysis at Action Economics.
"It looks like the central bank's actions are starting to help marginally improve confidence enough where safe haven isn't the only thing on investors' minds," Rupert said. "But it's only one small step so far. It's going to be a very jagged type of improvement. There's still a lot of factors that are going to keep anxiety at elevated levels."
The London Interbank Offered Rate, or Libor, for three-month dollar loans rose to 4.75 percent from 4.52 percent on Wednesday. Just a month ago, three-month Libor was at 2.81 percent.
That stubbornly high Libor is just one of the reasons that the stock market has been tumbling. When banks are loath to lend, a weak economy has a hard time bouncing back. The Dow Jones industrial average sank nearly 679 points on Thursday to the lowest level in five years.
Libor's sharp jump over the past month is worrisome because consumer loans such as adjustable-rate mortgages are tied to Libor — meaning that those mortgages could become harder to pay. Citigroup analysts recently predicted that continued stress in Libor will result in a 10 percent jump in defaults for outstanding non-delinquent adjustable-rate mortgages when they reset.
Libor for overnight dollar loans slipped to 5.09 percent Thursday from 5.38 percent, but still remains extremely high — especially compared to the target Fed funds rate, a key overnight lending rate that the Federal Reserve slashed Wednesday by a half-point to 1.5 percent.
Meanwhile, commercial paper outstanding dropped for the fourth straight week. Commercial paper is a type of debt companies sell to get short-term cash, often so that they can maintain their inventories and payrolls. The Fed said commercial paper outstanding fell by $56.4 billion to a seasonally-adjusted $1.55 trillion in the week ended Oct. 8 — that's down from $1.82 billion on Sept. 10, and down 30 percent from the peak of $2.2 trillion in the summer of 2007.
As companies have a harder time getting financing, businesses and municipalities have been taking action to try to adapt. Connecticut's governor is requesting that banks statewide to contribute at least $1 million each to a lending pool for small businesses. And Apollo Management LP is offering a $540 million capital infusion to its affiliate Hexion Specialty Chemicals to help Hexion close its takeover of Huntsman Corp; Hexion said it doubted that Deutsche Bank AG and Credit Suisse Group AG would provide financing.
Automakers and dealers have been especially hard hit by the double-whammy of a slow economy and squeezed credit. Standard & Poor's Ratings Services on Thursday put General Motors Corp. and its 49 percent-owned finance affiliate GMAC LLC on negative credit watch. It also put Ford Motor Co. on negative credit watch. That means there is a 50 percent chance that S&P will lower the ratings on these companies in the next three months; S&P said that while their liquidity is adequate now, deteriorating conditions could challenge their liquidity in 2009.
There were a few promising signs that the stranglehold on the credit markets is starting to loosen, at least in some areas.
One was that the recent drop in commercial paper was smaller than the $94.9 billion decline in the previous week, and the $61 billion decrease in the week ended Sept. 24. And last week's decline occurred in financial companies' commercial paper and asset-backed commercial paper — commercial paper issued by non-financial companies edged higher overall.
"We're still seeing a lot of investments in overnights and very short maturities," said Alex Roever, a fixed-income analyst with JPMorgan. "The really strong financial and non-financial names — top tier corporations — are seeing stronger interest in one-month, two-month, three-month paper. It's definitely better than where it was a week or so ago."
Moreover, following the Fed's Tuesday decision to buy commercial paper and Wednesday's move to slash the key interest rate, the rates on certain overnight commercial paper fell by 1.15 percentage points on Thursday to 2.35 percent, noted Miller Tabak & Co. analyst Tony Crescenzi.
And IBM Corp. was able to sell $3.9 billion in longer-term bonds on the market Thursday after posting better-than-expected profits.
But investors are still anxious. The yield on the three-month Treasury bill initially edged up on Thursday, but then slipped to 0.58 percent from 0.63 percent late Wednesday. That suggests that demand for T-bills, regarded by investors as the safest assets around, remains high. The discount rate was also 0.58 percent.
Longer-term Treasury yields were mixed after the stock market's plunge.
In late trading, the 2-year Treasury note rose 1/32 to 100 28/32 and yielded 1.55 percent, down from 1.56 percent late Wednesday. The 10-year note fell 28/32 to 101 30/32 and yielded 3.76 percent, up from 3.65 percent. The 30-year bond fell 1 25/32 to 106 31/32 and yielded 4.09 percent, up from 4.05 percent.
Wednesday, October 8, 2008
Federal Reserve cuts rates
Federal Reserve cuts in the federal funds rate have an unpredictable impact on long-term mortgage rates. So it's impossible to know for sure when -- or even if -- rates will fall as a result of the Fed's emergency rate cut.
How soon could it affect you?
Impossible to know
Fixed-rate mortgages usually do not change in response to cuts in the federal funds rate. However, adjustable-rate mortgages may be more sensitive to Federal Reserve rate decisions, especially if the spread between the federal funds rate and the London Interbank Offered Rate -- more commonly known as LIBOR -- narrows.
Depending on the exact nature of their mortgage, some people with ARMs may see their rate adjust downward the next time the mortgage resets.
How soon could it affect you?
Impossible to know
Fixed-rate mortgages usually do not change in response to cuts in the federal funds rate. However, adjustable-rate mortgages may be more sensitive to Federal Reserve rate decisions, especially if the spread between the federal funds rate and the London Interbank Offered Rate -- more commonly known as LIBOR -- narrows.
Depending on the exact nature of their mortgage, some people with ARMs may see their rate adjust downward the next time the mortgage resets.
Tuesday, October 7, 2008
buying billions of dollars in bad mortgages
The $700-billion financial industry bailout that became law Friday could make a recession shallower, and potentially even shorter, but it won’t stop the economic and housing downturns in their tracks, according to economists and other experts.
And homeowners, consumers and job seekers who are in financial trouble won’t see a quick fix to their own problems, either, the experts said.
The economic package, which President George W. Bush signed into law less than two hours after the U.S. House of Representatives passed it, authorizes the federal government to buy billions of dollars in bad mortgages and other debt, taking the troubled loans off the books of financial firms.
Supporters say the taxpayer-funded bailout will free up credit markets and allow banks to lend again. Eventually, they hope, the government will resell the assets.
The bill’s passage and signing came five days after the House rejected the bailout, leading to a week of financial market turmoil. Since then, the bill was sweetened with $110 billion in tax breaks and added spending and an increase in deposit insurance limits.
The bailout also contains provisions to help stem the foreclosure crisis, a critical step before the housing market-and perhaps the nation’s economy as a whole-can rebound. But foreclosure experts say neither the bailout nor programs already in existence will do enough, and they urge a completely different approach to helping those at risk of losing their homes.
“We still don’t see enough specifics in this bill to be sure neighborhoods will benefit from this instead of Wall Street,” said Alan Fisher, executive director of the California Reinvestment Coalition, a group of community-based organizations that lately has focused on preventing foreclosures. “Why not say, ‘Stop right now, don’t foreclose on any more people, let’s find a way to solve these problems.’ “
Foreclosed houses typically drive down neighborhood property values, making it more likely that owners of nearby homes will end up owing more on their mortgages than their homes are worth. Some of those people will stop making mortgage and property tax payments, continuing the downward spiral.
For the nation’s economy, the importance of stopping the spiral is “enormous,” said Tim Canova, professor of international economic law at the Chapman University School of Law, in Orange, California. “If you don’t take care of the bottom of the pyramid, it’ll be like quicksand, pulling down the top.”
The Emergency Economic Stabilization Act approved by Congress last week and signed by President Bush on Friday contains broad language requiring the Treasury Department to develop a plan to “mitigate” foreclosures. It also requires federal agencies to encourage mortgage companies to modify the loans of borrowers in danger of foreclosure.
That step comes on top of the Housing and Economic Recovery Act, passed by Congress in July, which created the Hope for Homeowners program, a government-insured refinancing option for strapped homeowners whose homes are worth less than they owe their lenders. The July legislation also included a tax credit for first-time home buyers, and money for governments to implement foreclosure-mitigation efforts of their own.
But these moves have not convinced critics that enough is being done to prevent foreclosures.
About two weeks ago, Fisher’s organization sent a letter to congressional leaders, imploring them, “Do not spend $700 billion on the wrong people.” Instead, the group urged Congress to impose a six-month freeze on new foreclosures and reform the bankruptcy code to allow more people to avoid foreclosure.
They are not alone.
San Jose bankruptcy attorney Ike Shulman, who is also the legislative chair for the National Association of Consumer Bankruptcy Attorneys, also urged changes to bankruptcy law, arguing that judges should be allowed to reduce the amount of debt bankruptcy filers owe on mortgages for their primary residences.
“Whatever arrangement the (bailout) bill makes for the Treasury to buy or take over servicing the loans, it does not empower the agency to do a restructuring that would reduce the amount on the loan,” he said. Instead, the government will encourage mortgage companies on a voluntary basis to either modify loans for borrowers in danger of foreclosure, or refinance their loans under the Hope for Homeowners plan.
Bankruptcy court judges already have the power to reduce debts owed on vacation homes, cars or boats, and structure repayment plans based on the lower amount. Shulman said allowing the same treatment for mortgages on primary residences would help many people avoid foreclosure.
“All the noise that’s being made about ‘They want to help homeowners,’ and they missed the best opportunity to do so,” Shulman said, referring to Congress. A provision echoing the bankruptcy attorneys’ proposal failed to make it into the final version of the bailout bill, despite the support of many legislators.
A spokesman for the Federal Housing Administration said it was too early to assess whether the bailout would help the housing market.
But the Help for Homeowners program, which went into effect Wednesday, should help as many as 400,000 “underwater” homeowners, said Bill Glavin, special assistant to the FHA commissioner. Under the program, some borrowers who owe more on their mortgages than their homes are now worth can refinance, with their lenders’ cooperation, into smaller loans, helping many homeowners avoid foreclosure, Glavin said.
What’s more, even as the bill passed, the U.S. Labor Department announced the nation lost 159,000 jobs in September, and an increasing number of economists suggested the nation might already be in recession, or is likely headed that way-bailout or no bailout.
“It can’t keep us from having a recession; it’ll just keep it from becoming much worse,” University of Maryland business professor Peter Morici said.
And investors weren’t calmed by the bailout, as the Dow Jones industrial average dropped 157 points Friday.
“Everything was a wild swing,” said trader Bob McConnell, of Brooklyn, after the market closed Friday, who suggested the bailout wouldn’t work right away. “Every day will be a surprise.”
Even if the bailout gives consumers a bit of psychological relief, that won’t translate into new spending or even more confidence, experts said.
The Treasury Department is going to hire asset management firms, along with lawyers, bankers and others. It won’t be easy to value the troubled mortgages, but experts said an announcement of auctions and pricing plans could come within a few weeks.
As that happens, credit should begin to loosen a bit, economists said. As banks lend to each other again, they’ll also open their purse-strings to other businesses, and, eventually, to consumers seeking mortgages and car loans. Lenders may also be able to help homeowners in foreclosure, experts said.
“It provides confidence that a lot of these companies having real issues are going to be around tomorrow and the next day and next week and next month and next year,” added economist Joel Naroff, who heads Naroff Economic Advisors in Pennsylvania. “But it’s going to take a while for the financial institutions to get healthy again and while this is going to help, it doesn’t mean conditions are going to turn on a dime.”
What’s more, the bailout cannot solve the housing market’s broader troubles-or, for that matter, the economic downturn, said New York University economics professor Lawrence White.
“I think unfortunately we’ve still got a little more of a distance to go in housing,” said White, who suggested the bottom could come by late spring. White noted that other sectors, such as commercial real estate and credit card lending, could still see their own trouble, too.
Nonetheless, experts universally agreed that the bailout was necessary to at least start the process of finding the bottom-and a way out.
“This isn’t a quick fix and it doesn’t make us whole,” said Jonathan Miller, an appraiser with Miller Samuel in Manhattan. “What it does do is start moving the glacier in the right direction.”
And homeowners, consumers and job seekers who are in financial trouble won’t see a quick fix to their own problems, either, the experts said.
The economic package, which President George W. Bush signed into law less than two hours after the U.S. House of Representatives passed it, authorizes the federal government to buy billions of dollars in bad mortgages and other debt, taking the troubled loans off the books of financial firms.
Supporters say the taxpayer-funded bailout will free up credit markets and allow banks to lend again. Eventually, they hope, the government will resell the assets.
The bill’s passage and signing came five days after the House rejected the bailout, leading to a week of financial market turmoil. Since then, the bill was sweetened with $110 billion in tax breaks and added spending and an increase in deposit insurance limits.
The bailout also contains provisions to help stem the foreclosure crisis, a critical step before the housing market-and perhaps the nation’s economy as a whole-can rebound. But foreclosure experts say neither the bailout nor programs already in existence will do enough, and they urge a completely different approach to helping those at risk of losing their homes.
“We still don’t see enough specifics in this bill to be sure neighborhoods will benefit from this instead of Wall Street,” said Alan Fisher, executive director of the California Reinvestment Coalition, a group of community-based organizations that lately has focused on preventing foreclosures. “Why not say, ‘Stop right now, don’t foreclose on any more people, let’s find a way to solve these problems.’ “
Foreclosed houses typically drive down neighborhood property values, making it more likely that owners of nearby homes will end up owing more on their mortgages than their homes are worth. Some of those people will stop making mortgage and property tax payments, continuing the downward spiral.
For the nation’s economy, the importance of stopping the spiral is “enormous,” said Tim Canova, professor of international economic law at the Chapman University School of Law, in Orange, California. “If you don’t take care of the bottom of the pyramid, it’ll be like quicksand, pulling down the top.”
The Emergency Economic Stabilization Act approved by Congress last week and signed by President Bush on Friday contains broad language requiring the Treasury Department to develop a plan to “mitigate” foreclosures. It also requires federal agencies to encourage mortgage companies to modify the loans of borrowers in danger of foreclosure.
That step comes on top of the Housing and Economic Recovery Act, passed by Congress in July, which created the Hope for Homeowners program, a government-insured refinancing option for strapped homeowners whose homes are worth less than they owe their lenders. The July legislation also included a tax credit for first-time home buyers, and money for governments to implement foreclosure-mitigation efforts of their own.
But these moves have not convinced critics that enough is being done to prevent foreclosures.
About two weeks ago, Fisher’s organization sent a letter to congressional leaders, imploring them, “Do not spend $700 billion on the wrong people.” Instead, the group urged Congress to impose a six-month freeze on new foreclosures and reform the bankruptcy code to allow more people to avoid foreclosure.
They are not alone.
San Jose bankruptcy attorney Ike Shulman, who is also the legislative chair for the National Association of Consumer Bankruptcy Attorneys, also urged changes to bankruptcy law, arguing that judges should be allowed to reduce the amount of debt bankruptcy filers owe on mortgages for their primary residences.
“Whatever arrangement the (bailout) bill makes for the Treasury to buy or take over servicing the loans, it does not empower the agency to do a restructuring that would reduce the amount on the loan,” he said. Instead, the government will encourage mortgage companies on a voluntary basis to either modify loans for borrowers in danger of foreclosure, or refinance their loans under the Hope for Homeowners plan.
Bankruptcy court judges already have the power to reduce debts owed on vacation homes, cars or boats, and structure repayment plans based on the lower amount. Shulman said allowing the same treatment for mortgages on primary residences would help many people avoid foreclosure.
“All the noise that’s being made about ‘They want to help homeowners,’ and they missed the best opportunity to do so,” Shulman said, referring to Congress. A provision echoing the bankruptcy attorneys’ proposal failed to make it into the final version of the bailout bill, despite the support of many legislators.
A spokesman for the Federal Housing Administration said it was too early to assess whether the bailout would help the housing market.
But the Help for Homeowners program, which went into effect Wednesday, should help as many as 400,000 “underwater” homeowners, said Bill Glavin, special assistant to the FHA commissioner. Under the program, some borrowers who owe more on their mortgages than their homes are now worth can refinance, with their lenders’ cooperation, into smaller loans, helping many homeowners avoid foreclosure, Glavin said.
What’s more, even as the bill passed, the U.S. Labor Department announced the nation lost 159,000 jobs in September, and an increasing number of economists suggested the nation might already be in recession, or is likely headed that way-bailout or no bailout.
“It can’t keep us from having a recession; it’ll just keep it from becoming much worse,” University of Maryland business professor Peter Morici said.
And investors weren’t calmed by the bailout, as the Dow Jones industrial average dropped 157 points Friday.
“Everything was a wild swing,” said trader Bob McConnell, of Brooklyn, after the market closed Friday, who suggested the bailout wouldn’t work right away. “Every day will be a surprise.”
Even if the bailout gives consumers a bit of psychological relief, that won’t translate into new spending or even more confidence, experts said.
The Treasury Department is going to hire asset management firms, along with lawyers, bankers and others. It won’t be easy to value the troubled mortgages, but experts said an announcement of auctions and pricing plans could come within a few weeks.
As that happens, credit should begin to loosen a bit, economists said. As banks lend to each other again, they’ll also open their purse-strings to other businesses, and, eventually, to consumers seeking mortgages and car loans. Lenders may also be able to help homeowners in foreclosure, experts said.
“It provides confidence that a lot of these companies having real issues are going to be around tomorrow and the next day and next week and next month and next year,” added economist Joel Naroff, who heads Naroff Economic Advisors in Pennsylvania. “But it’s going to take a while for the financial institutions to get healthy again and while this is going to help, it doesn’t mean conditions are going to turn on a dime.”
What’s more, the bailout cannot solve the housing market’s broader troubles-or, for that matter, the economic downturn, said New York University economics professor Lawrence White.
“I think unfortunately we’ve still got a little more of a distance to go in housing,” said White, who suggested the bottom could come by late spring. White noted that other sectors, such as commercial real estate and credit card lending, could still see their own trouble, too.
Nonetheless, experts universally agreed that the bailout was necessary to at least start the process of finding the bottom-and a way out.
“This isn’t a quick fix and it doesn’t make us whole,” said Jonathan Miller, an appraiser with Miller Samuel in Manhattan. “What it does do is start moving the glacier in the right direction.”
Monday, October 6, 2008
Biker ordinances is doing it's job
As the 2008 Fall Bike Rally came to an end Sunday, many bikers said it would be their last trip to the Grand Strand, after the city of Myrtle Beach passed 15 ordinances aimed at ridding all bike rallies from the city limits.
Vendors said the new ordinances, only three of which were being enforced this week, have hampered turnout.
Some vendors felt the business was dead compared to the years before while others said they might come back, they would avoid Myrtle Beach and boycott any businesses within the city limits.
Official attendance numbers should be out later this week.
Local residents will review the impact the new ordinances had and how they can be better enforced during the spring rallies.
Vendors said the new ordinances, only three of which were being enforced this week, have hampered turnout.
Some vendors felt the business was dead compared to the years before while others said they might come back, they would avoid Myrtle Beach and boycott any businesses within the city limits.
Official attendance numbers should be out later this week.
Local residents will review the impact the new ordinances had and how they can be better enforced during the spring rallies.
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