Update from Dare County---- Video and pictures below

• Update #6  from Bobby Outten for Dare County Emergency Management.  Since this report Colington Road closed at 3pm and 158 closed at 2 in KH, also 4 wheel drive area is not passable. 
  http://youtu.be/QLaOPoogTgMBobby Outten with update
  Dare County Emergency Management advises everyone to prepare for soundside flooding throughout Dare County –
  Roanoke Island – Manteo
  • Prepare for inundation of 4 to 6 feet above ground.  Causeway and downtown Manteo will have flooding over town docks.  Highest impacts will be seen after sunset.
  Northern Portions – Including Municipalities
  • Prepare for inundation along soundside areas of 4 to 6 feet.  Water intrusion in lower floors of low lying buildings is possible.  Move high value items to higher ground, including vehicles and boats.
  Mainland Dare County –
  • Manns Harbor and Stumpy Point should expect inundation of 4 to 6 feet above ground with flooding of low lying structures.  Vehicles and boats should be relocated to higher ground.
  Hatteras Island –
  • Soundside flooding will continue through the evening with 4 to 6 feet in the Rodanthe, Waves, and Salvo Villages.
  Dare County Emergency Management advises everyone to stay indoors.  If travel is necessary, use caution and be alert for dangerous flooded conditions with water and sand overwash on all roads throughout Dare County.
  NC Highway 12 south of Oregon Inlet remains closed due to sand and water on the roadway.  NCDOT will continue working to clear the road, assess damage and make repairs to reopen it as quickly as possible.
  Cape Hatteras Electric Cooperative reports that Hatteras Village is without power and service is not expected to be restored until later today.
  NCDOT has suspended ferry service between Hatteras Village and Ocracoke.  Operations will return to normal as soon as winds diminish and conditions are safe.  NCDOT road information is available by calling 511 or online at www.ncdot.gov/travel
  Visitors should consult with their accommodations provider before traveling to the area.
  All County offices have closed for the day, including one-stop early voting in Kill Devil Hills, Manteo, and Buxton.
  Dare County Public Works has cancelled garbage collection for Tuesday, October 30.
  National Park Service – 
  All National Park Service facilities on the Outer Banks will remain closed through Tuesday, October 30, 2012.
  Town of Duck –
  The Town of Duck declared a State of Emergency effective at noon (1200 hours) on Sunday, October 28, 2012.  At this time, no restrictions have been implemented.  The Town of Duck is advising those who must drive to be careful as high winds can cause debris on the roadway.  As conditions warrant, updates will be posted on the Town’s website at www.townofduck.com.
  Regular trash collection for both residential and commercial properties will NOT be picked up on Monday, October 29, 2012.
  Residential regular trash WILL be picked up on Tuesday, October 30, 2012. Residential regular trash containers should be curbside before 5:30 a.m. on Tuesday, October 30, 2012. Commercial regular trash collection will resume on Wednesday, October 31, 2012 as regularly scheduled.
  Recycling pick up is cancelled for this week. Recycling will be picked up on Monday, November 5, 2012.
  Town of Kill Devil Hills –
  
  
  The following road closures have been implemented in Kill Devil Hills:
  • NC 12/Virginia Dare Trail from East Landing Drive north to Kitty Hawk
  • All cross-roads between NC 12/Virginia Dare Trail and US 158/Croatan Highway from Sportsman Drive north to Kitty Hawk
  Residential refuse collection by the Town of Kill Devil Hills, and the collection of recyclables
  by Outer Banks Hauling:
  • Is canceled for Monday, October 29, 2012
  • Is rescheduled for the West side of US 158 on Tuesday, October 30, 2012; and
  • Is rescheduled for the East side of US 158 on Wednesday, October 31, 2012
  Kill Devil Hills Administrative Offices closed at 12:00 noon today and will reopen to conduct the business of the Town on Tuesday, October 29, 2012 at 8:00 a.m.
  Town of Kitty Hawk
  Kitty Hawk Police report that ocean water is covering Highway 158 between milepost 4 and 4.5.  This saltwater can be very damaging to your vehicle and motorists are being asked not to drive through it.
  Town of Nags Head –
  South Old Oregon Inlet Road remains impassable from the 9300 block south to the town line with the National Park Service.
  Reminder – Outer Banks Hauling will be collecting recyclables on Wednesday and NOT Tuesday as usual this week.
  Other Storm Related Information –
  If electrical power is lost, local service providers can be reached at the following numbers:
  • Cape Hatteras Electric Cooperative, Outage Reporting Number:  866-511-9862
  • Dominion Power:  1-866-DOM-HELP (366-4357)
  • Tideland EMC:  252-943-3046
  The next scheduled update will be available at 5:30 p.m. on Monday, October 29.  The Dare County Emergency Operations Center will be operating throughout the storm and may be reached at 252-475-5655

  

  KH Beach Road

  
  

  

  MP 4.5 

  
  

  

  Kitty Hawk Beach Road near Wilkinson

  
  

  

  Nags Head Pier

  

  Duck Oceanfront home in Carolina Dunes

  

  Picture By Julie Dreelin

         Kitty Hawk Beach Road

Carolina Dunes in Duck

THIS WEEK- September 22nd - September 30th 2012

This has been an extremely busy week for the VanderMyde Real Estate Group. We wrote 5 offers on properties ranging from $189k to $700k from Manteo to Corolla. Buyers are taking advantage of low interest rates and the great values. Most of the buyers with the exception of two, were investors only looking at  CASH FLOW. 

We have also listed two rental homes  in Ocean Sands, 749 Sand Dollar Court $549,000 (Section N) and 518 Sandbucket Arch (Section C) $1,149,000.Both are easy walks to the beach and Sandbucket Arch has beautiful horizon ocean views.

749 Sand Dollar Court

518 Sandbucket Arch

ALERT- Debt Relief Act of 2007 is about to expire 12/31.. Thanks for posting Leesa!

Homeowner Tax Fairness Act | Carson | Short Sale| Leesa Hammond

• Posted by Leesa Hammond on September 12, 2012 at 8:23pm
• View Blog

Homeowner Tax Fairness Act | Carson | Short Sale| Leesa Hammond

Since 2007, homeowners whose banks have forgiven unpaid mortgage loan debt after a short sale, principal reduction or foreclosure have not had to count that money as income on their tax returns.

It’s meant savings of thousands of dollars on the so-called “phantom income” depending on the amount of debt canceled and a person’s tax bracket.

But the Mortgage Forgiveness Debt Relief Act of 2007 will expire Dec. 31.

With only a few months left before the scheduled expiration, accountants and Realtors are urging homeowners considering a short sale to put their properties on the market now so they can sell before year’s end.

A short sale is where the lender agrees to sell a property for less than what the homeowner owes on the mortgage. Although banks are getting better at processing short sales, finalizing a contract can still take months.

“People are unaware that they could get a huge whack from this,” said real estate attorney Clifford Hertz of Broad and Cassel in West Pam Beach about the tax break expiration. “If they know what’s coming, they can make the right business decision.”

That’s just what Palm Beach Gardens homeowner Jeff Shingledecker did.

He put his home up for a short sale in April after researching the best exit strategy from his underwater mortgage. One day later of listing the home, he had a full price offer of $105,000 and is currently under contract.

Nevertheless, a successful sale will still leave him with $118,000 in unpaid mortgage debt, the money is taxable income.  Considering Shingledecker’s tax bracket, he would owe approximately $29,500 in taxes on that cancel debt. Under the the debt relief act, he won't owe anything.

“This make's the most sense,” Shingledecker said about his short sale decision. "I looked at all the options and assuming everything goes as planned this is the best route". 

During the first quarter of this year, 6,649 short sales were completed in Palm Beach, Broward and Miami-Dade counties, according to the market research company RealtyTrac. That was once a nearly 55% percent increase from the similar time in 2011.

Statewide, 15,949 brief sales have been carried out within the first quarter of the 12 months, an 18 % build up from the similar time in 2011.

However, everyone can’t benefit of the debt relief act. It covers forgiven debt on most main residences up to $2 million, or $1 million if married but filing separately. The act does not apply to second position loans where the money was used for non-household expenses.

If a debt is $600 or above is forgiven, the lender has to send the homeowner tax for 1099C by February of the following year. The tax form must indicate the debt forgiven as well as the fair market value of any property process through foreclosure or short sale. The homeowner must report the forgiven debit of tax form 982.

There are other tax rules that can affect how homeowner’s different tax benefit from the debt forgiveness act, but any relief for a homeowner right now is helpful, stated Realtor Jared Dalto.

“Let’s face it, they didn't have the cash to pay the mortgage in the first place so what makes the IRS think a homeowner can pay taxes on $200,000?” said Dalto, a short sale specialist with the Palm Beach Group at Seawinds Realty.

Josh Angell, an investment adviser with Moore Ellrich and Neal P.A. in Palm Beach Gardens, stated depending on how so much debt is forgiven, a homeowner could be in a higher tax bracket.  Which means they’d not only owe on the forgiven debt but a higher rate.  “It’s a very scary thing to think about when people are financially destitute,” stated Jon Maddux, CEO of YouWalkAway.com, a company that advises homeowners on short sales and strategic defaults. “It can put people in a situation where they will most likely have to file bankruptcy. They’d be insolvent”. 

In March, a bill was introduced in the U.S. House of Representatives to extend the Mortgage Debt Relief Act through the end of 2015.  

Sponsored by Rep. Jim McDermott, D-Wash., the “Homeowners Tax Fairness Act,” may exclude from taxable income cash received for wrongful foreclosure through the $25 billion attorneys general settlement.

The settlement is expected to offer homeowners between $1,500 and $2,000 if they were wrongfully foreclosured.

Jupiter resident Michael Schoenewolff, who hopes to benefit from the debit relief act this year, said he believes Congress will vote to extend the tax break.

Schoenewolff has a short sale contract on his home that would leave him with $95,000 in forgiven debt.

“The average person can’t handle another $100,000 income to be taxed”, he said. “I think they have to vote to extend it in order to allow the housing market and economy to recover”.

Who’s impacted?

Homeowners selling their homes through a short sale or who are in foreclosure may have the unpaid mortgage balance forgiven by their bank.  If that is the case, the debit would be considered taxable income. The Mortgage Forgiveness Debit Relief Act excludes that income from being taxed through December 31, 2012. 

What’s happening?

The debt relief act is scheduled to expire at the end of this year. If no extension is granted, homeowners should pay taxes on any unpaid balance forgiven by a lender after short sale, modification or foreclosure. 

What’s next?

A bill called the “owners Tax fairness Act” was once filed in March that will extend the tax debt forgiveness software via 2015. It requires congressional approval.

mrsleesa@gmail.com

Leesa Hammond

Century 21 Amber

(310) 853-2998

Outer Banks Board of Realtors June Statistics

                 Distressed Sales are down YTD from last year. 

  June Residential sales are up YTD, Prices are up in some town ships including Hatteras Island, Nags Head, Kill Devil Hills, Colington, and Kitty Hawk. 


For more information on statistics in your town please email or call us at hvandermyde@gmail.com or 252-202-2375.

CNN MONEY- FHA mortgages being foreclosed on at high rates!

Closer to a bailout? FHA's mortgage delinquencies soar

By Tami Luhby @CNNMoney July 9, 2012: 12:38 PM ET

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Delinquencies and foreclosures of FHA-backed mortgages are soaring, putting further strain on the housing agency's finances and making a taxpayer bailout more likely.

NEW YORK (CNNMoney) -- The mortgage market appears to finally be stabilizing -- as long as you ignore loans backed by the Federal Housing Administration.

Increasingly, FHA-insured loans are falling into foreclosure or serious delinquency, moving in the opposite direction of loans guaranteed by Fannie Mae and Freddie Mac or those held by banks, which are all showing signs of improvement.

And taxpayers could ultimately be on the hook for FHA's growing number of troubled mortgages. The agency's finances are already on shaky ground, and additional losses from loans going sour could prompt the need for a federal bailout, experts said.

"We can't escape this one," said Joseph Gyourko, a real estate professor at the University of Pennsylvania's Wharton School. "This is an arm of the U.S. government."

The share of government-guaranteed loans, a majority of which are backed by FHA, that were 90 days or more delinquent soared nearly 27% during the year ending March 31. Foreclosures jumped nearly 17%, according to a report published recently by federal regulators.

At the same time, bank loans saw a dramatic improvement, with delinquencies shrinking by 39% and foreclosures declining by nearly 10%. Fannie and Freddie's portfolio also improved as delinquencies dropped by nearly 15% and foreclosures slid by more than 6%, the quarterly report issued by the Office of the Comptroller of the Currency said.

FHA has also had a tougher time successfully modifying loans. More than 48% of government-guaranteed mortgages re-defaulted 12 months after modification, compared to 36.2% of loans overall, the report said.

FHA's risky borrowers: FHA doesn't make loans, but it backstops lenders if borrowers stop paying. With this guarantee in place, banks are more likely to offer mortgages to borrowers with lower credit scores or incomes.

FHA-backed loans made up more than 29% of the market for home purchases in the first quarter of 2012, according to Inside Mortgage Finance, an industry publication.

Housing experts have been warning for years that many FHA-insured loans are not sustainable, especially in these troubled times. That's particularly concerning because FHA's share of the market has swelled in recent years as lenders pulled back on providing mortgages that weren't backed by the government.

One of the main critiques of FHA loans is that they require very low downpayments -- a minimum of 3.5%. In an environment where home prices are declining, borrowers can quickly slip underwater and owe more than their property is worth.

See also: Debt forgiveness preventing foreclosures

"These are very risky loans," said Ed Pinto, resident fellow at the American Enterprise Institute, a conservative think tank. And loans made in the past three years are "moving into the beginning of the peak delinquency period and they are very big books of business."

Unless the economy improves significantly over the next few years, FHA will experience even more delinquencies, said Guy Cecala, publisher of Inside Mortgage Finance.

Little room for failure: The dramatic jump in delinquencies comes despite the agency's efforts to improve the quality of the loans it insures.

Over the past several years, soaring defaults have been eating away atFHA's emergency reserves, which cover losses on the mortgages it insures. In fiscal 2009, the reserve fund dropped to 0.53% of FHA's insurance guarantees, well below the 2% ratio mandated by Congress. By late last year, it had fallen to 0.24%.

FHA pledged to shore up its standards and its finances in 2009. The agency has since increased its insurance premiums, established minimum credit scores for borrowers, required larger downpayments from those with credit scores below 580 and banned sellers from assisting borrowers with the downpayment. It also created an office of risk management and cracked down on lenders with questionable underwriting processes.

Despite the emergency fund's diminishing reserves, FHA maintains that its efforts are working. The loans insured starting in 2009 are much higher quality and should lower delinquency levels over time, an FHA official said.

"We expect the new books will continue with their better performance, primarily because of the steps that were put in place," he said. "And we are benefiting from having more high-credit borrowers."

See also: Foreclosure whistleblowers win $46.5 million

Still, FHA watchers warn that the agency doesn't have much of a cushion against these rising delinquencies and foreclosures. And if the losses grow too great, the agency could need a taxpayer-funded bailout.

The FHA says that its reserves should be restored by 2014 barring a second recession, but outside experts aren't so sure.

"They are doing very badly ... there's no two ways about it," said Andrew Caplin, a New York University economics professor who has studied the agency. "Over the next five years, there won't be enough of an economic recovery to fix FHA's finances. Not a chance." 

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First Published: July 9, 2012: 5:11 AM ET