Smart buyers know that there are numerous ways to purchase foreclosed real estate in Myrtle Beach. Each option differs greatly in how you’ll get the best deal. Buying a foreclosure on the courthouse steps is radically different from using a Myrtle Beach Realtor to help get you the best deal on a foreclosure listing in our MLS.

What many people don’t know is that there is an increasing number of Myrtle Beach real estate listings right now that are being advertised to the public as foreclosures – but they aren’t really foreclosures.

Well… let me rephrase. The property WAS foreclosed on. But the seller purchased the property as a foreclosure and is trying to sell it to you – obviously at a higher price. The property might still be a good deal – but not nearly as good a deal as when he bought it!

How can you avoid this?

That’s easy. Almost all lenders will list their foreclosed properties with a real estate company on the MLS. And South Carolina real estate law says that the real estate company must identify itself in all advertising. So… if you see a foreclosure listing that doesn’t include the name of a real estate company… walk away.

Once you’ve verified that the property is listed with a real estate company, should you call them? Not necessarily! Always remember Real Estate Rule Number Two: Who’s Got Your Back? (Real Estate Rule Number One is Location! Location! Location!)

Real Estate Rule Number is is very important, especially with foreclosures. Many buyers are shocked at the scope of paperwork thrown at them by banks and other entities like Fannie Mae and Freddie Mac. A qualified foreclosure specialist can help navigate through the quagmire of foreclosures and help you find the best deal – and then help you negotiate with the lender for an even better deal! This will give you an edge over other foreclosure buyers. And an edge is exactly what you need.

In my next blog post, we’ll talk about more strategies to increase your edge over other buyers.

The Myrtle Beach real estate market may appear to be at the bottom of a hole, but Builder magazine (the trade journal of the home building industry) expects our market to dig its way out this year and begin its climb back to the top.

Builder magazine ranked Myrtle Beach among the top 20 “healthiest housing markets for 2010,” highlighting the area’s continued influx of new residents and a recent increase in building permits. Myrtle Beach’s appeal and the pent up demand to move to the area persists despite the tough economic times, according to Fred Coyne, President of the Horry-Georgetown Home Builders Association.

We’ve seen many local builders, including Chicora, Centex, DRHorton and Lennar all ratchet up construction activity during the first two months of 2010 in anticipation of the rebound. They’re competing with short sales and foreclosures, but they’ve done a great job of narrowing the gap.

You can read the article here or search Myrtle Beach homes, condos and land here.

Direct Air (they used to call themselves Myrtle Beach Direct Air) announced this morning that they are celebrating their fourth anniversary of service by giving us 50% off ticket sales from now through March 7. Go to VisitDirectAir.com to see where they fly, and call our office for the promo code to get this great deal.

50% off real estate and 50% off flights to snap up the real estate. Yep, 2010 is gonna be a great year!

If you want to know the real reason why real estate is so screwed up right now, and why people can’t get loans, and why borrowers who have been trying to negotiate with their mortgage holder are getting nowhere, you MUST watch this short video. It is guaranteed to get your blood boiling.

Last fall, auditors told FHA that their capital reserves (mandated by Congress) were well below the minimums required. FHA promised to take steps to build up these reserves, and the the changes that are about to be implemented aren’t pretty. These changes include higher FHA mortgage insurance premiums, significantly higher downpayment requirements for some borrowers, and a reduction in seller concessions.

Currently, FHA loans incur a 1.75% premium, paid at closing, for mortgage insurance. On a $200,000 home, with a $193,000 mortgage, FHA borrowers pay about $3,377 up front for mortgage insurance. This premium is going to increase to 2.25%, which will add $965 in closing costs to this loan. Not yet on the table is an increase to FHA’s annual insurance premium, which is built into borrowers’ monthly payments. But experts expect FHA to ask for an increase in these premiums as well.

All FHA loans currently require a minimum 3.5% downpayment, but borrowers with credit scores below 580 will now be required to cough up a minimum 10% downpayment at closing. The silver lining here is that industry analysts expected FHA to raise the downpayment requirement on all loans from the current 3.5% to a minimum 5%, but FHA chose to not do so.

Finally, the amount a seller can contribute to cover the buyer’s closing costs and fees (“seller concessions”) will be reduced from 6% to 3% of the loan amount.

We’ve been saying for months that the banks need to get out of their own way and make more good loans to good, creditworthy buyers. Now FHA is tossing out roadblocks of their own. Let’s hope that this is the last.