THE REALTOR WHO WEARS MANY HATS

10 Questions You and Your Buyers Must Ask Before Purchasing A Condominium Unit

Judy Boyle MBA CDPE CRP (RE/MAX Signature Properties) — Sun, 28 Mar 2010 08:16:18 -0700

Via Richard Vetstein (Vetstein Law Group, P.C., TitleHub Closing Services LLC):

Buying a condominium unit can be more involved than buying a single family home. This is because you have to worry about both the unit itself and the condominium project as a whole.

10 Questions You Must Ask Before Purchasing A Condominium Unit

To borrow from a famous phrase, not all condominiums are created equally. Some condominiums are very well run; some are quite poorly run and underfunded. Buyers interested in purchasing a condominium unit must do their homework: not only about the condition of the individual unit they are interested in purchasing, but on the financial health and governance of the condominium as a whole. Remember, you are buying into the entire project as much as you are the unit, and your decision will impact your daily living and your ability to re-sell.

Here are the 10 questions buyers should ask when deciding to purchase a condominium unit:

What is the monthly condominium fee and what does it pay for? The monthly condominium fee can range quite dramatically from condominium to condominium. The fee is a by-product of the number of units, the annual expenses to maintain the common area, whether the condo is professionally managed or self-managed, the age and condition of the project, and other variables such as litigation. For budgeting and financing you need to know the monthly fee and exactly what you are getting for it.

What are the condominium rules & regulations? Condominium rules can prohibit pets, your ability to rent out the unit, and perform renovations. Make sure you carefully review the rules and regulations before buying. Needless to say, the buyer's attorney should review and approval all condominium documents, including the master deed, declaration of trust/by-laws, covenants, unit deed and floor plans to ensure compliance with state condominium laws as well as Fannie Mae and FHA guidelines, as necessary.

How much money is in the capital reserve account and how much is funded annually? The capital reserve fund is like an insurance policy for the inevitable capital repairs every building requires. As a general rule, the fund should contain at least 10% of the annual revenue budget, and in the case of older projects, even more. If the capital reserve account is poorly funded, there is a higher risk of a special assessment. Get a copy of the last 2 years budget, the current reserve account funding level and any capital reserve study.

Are there any contemplated or pending special assessments? Special assessments are one time fees for capital improvements payable by every unit owner. Some special assessments can run in the thousands, others like the Boston Harbor Towers $75 Million renovation project, in the millions. You need to be aware if you are buying a special assessment along with your unit. It's a good idea to ask for the last 2 years of condominium meeting minutes to check what's been going on with the condomininium.

Is there a professional management company or is the association self-managed? A professional management company, while an added cost, can add great value to a condominium with well run governance and management of common areas.

Is the condominium involved in any pending legal actions? Legal disputes between owners, with developers or with the association can signal trouble and a poorly run organization. Legal action equals attorneys’ fees which are payable out of the condominium budget and could result in a special assessment. In most states, you can run a search of the condominium association in the court database to check if they've been involved in recent lawsuits.

How many units are owner occupied? A large percentage of renters can create unwanted noise and neighbor issues. It can also raise re-sale and financing issues with the new Fannie Mae and FHA condominium regulations which limit owner-occupancy rates.

What is the condominium fee delinquency rate? Again, a signal of financial trouble, and Fannie Mae and FHA want to see the rate at 15% or less.

Do unit owners have exclusive easements or right to use certain common areas such as porches, decks, storage spaces and parking spaces? Condominiums differ as to how they structure the “ownership” of certain amenities such as roof decks, porches, storage spaces and parking spaces. Sometimes, they are truly “deeded” with the unit, so the unit owner has sole responsibility for maintenance and repairs. Sometimes, they are common areas in which the unit owner has the exclusive right to use, but the maintenance and repair is left with the association. Review the Master Deed and Unit Deed on this one.

What Does The Master Insurance Policy Cover? The condominium should have up to $1M or more in coverage under their master condominium policy. For buyer's own protection, they should always buy an individual HO-6 policy covering the interior and contents of the unit, because the master policy and condo by-laws may not cover all damage to their personal possessions and interior damage in case of a roof leak, water pipe burst or other problem arising from a common area element. Ask for a copy of the master insurance policy and don't forget to check the fine print of the by-laws. Sometimes, there's language that would hurt a unit owner in case of a common area casualty. Condominiums over 20 units should also have fidelity insurance to protect against embezzlement.

Often a standard condominium questionarre will answer all or most of these questions. If not, be prepared to generate this list and incorporate it into your Offer to Purchase or Purchase and Sale Agreement, as the case may be in your home state. Do not have your buyer put earnest money down until satisfactory answers are received. Good luck and happy condo hunting to you and your buyers!

Is Everybody Using vPike????

Judy Boyle MBA CDPE CRP (RE/MAX Signature Properties) — Wed, 27 Jan 2010 18:59:09 -0800

Okay, this is so totally cool!!!!! While it doesn't replace "drive-by's", it really is the next best thing!

Go ahead, take a test drive down "The Pike". http://www.vpike.com

Disclaimer: I am in no way affiliated with Google or its affiliates. While I have used vpike.com myself without any negative incident, I cannot assure that it won't affect your computer.

Have You Even LOOKED At Your Resume Or Profile Lately? I will...for FREE!

Judy Boyle MBA CDPE CRP (RE/MAX Signature Properties) — Sun, 03 Jan 2010 09:07:10 -0800

Happy New Year to One and All!

As we are all sitting here with our laptops in place, perusing the internet in search of creative ways to jump start our businesses for 2010, one of the most obvious tools is often overlooked: OUR PROFESSIONAL RESUMES AND PROFILES that are posted on the NET for the WHOLE WORLD TO SEE!

Go ahead....take a look. I'll wait.

Is your resume free to typos? Are the apostrophes in the right place? More importantly, did you put an apostrophe where there shouldn't be one?

Are you paranoid right now????? You should be!

The reality is most of us are incapable of proofreading our own work!!!! We see what our brains tell us to see and it can really hurt us in the long run!

From KnowThis.com: "Marketing consists of the strategies and tactics used to identify, create and maintain satisfying relationships with customers that result in value for both the customer and the marketer."

You all know how to market yourselves with your education and experience. Are you diminishing your VALUE if you make careless mistakes in the way you market yourself?

If you are concerned, I can help. For a limited time, I will review your resume and/or profiles for FREE. I will not be looking at CONTENT, but simple grammatical, spelling, and punctuation errors.

All I am looking for in return is a testimonial so I can jumpstart this business for myself...build credibility so to speak! That's what we are all trying to do, right?

Feel free to send me your resumes and/or website links and give it a try. You have nothing to lose, but everything to gain! GUARANTEED RESULTS AND SATISFACTION GUARANTEED!!!!

My only concern right now is whether there are any TYPOS in this post!

Listing Your Home for Short Sale, Part 6: Patience and Cooperation

Judy Boyle MBA CDPE CRP (RE/MAX Signature Properties) — Tue, 25 Aug 2009 10:06:00 -0700

Thanks to Chris Ann Cleland for this informative post!

Via Chris Ann Cleland, GRI (Long & Foster):

Listing your home for short sale is not as complicated as you think. This is the final installment in a series. If you've missed the prior installments, you can link to them here:

Listing Your Home for Short Sale, Part 1: Do You Qualify?

Listing Your Home for Sale Sale, Part 2: Choosing Your Listing Agent

Listing Your Home for Short Sale, Part 3: Collecting Your Financial Information

Listing Your Home for Short Sale, Part 4: The Hardship Letter

Listing Your Home for Short Sale, Part 5: The Authorization Letter

So you've got your Listing Agent, have them authorized to talk to your mortgage holder(s). You've gathered all your financial information and hardship letter and sent them to the mortgage holder(s) too. This is where patience and cooperation come in.

First you must wait for a buyer to write an offer on your home. If you've hired a good Listing Agent, your home will priced right and that won't take too long. Once you've got the offer that is acceptable to you, you'll sign it and make it a contract. From there, your Listing Agent will send the contract to the mortgage holder(s) for approval. Next.....

HURRY UP AND WAIT

I find that weekly phone calls to the mortgage holder(s) get me very little information that makes a seller or buyer feel like there is progress being made. Calling more frequently does not make it go any faster. Your patience as a seller during thes long periods of no information is appreciated.

After the contract is given to the bank, the bank scans the document into their internal databases. This process alone can take two or three days.

Next a negotiator will need to be assigned. Depending on the bank, it may be immediate, may take a month.

Once that negotiator is assigned, they will order an appraisal or a BPO (Broker Price Opinion). Just getting the BPO or appraisal ordered adn back in the mortgage holder(s) system can take two weeks. This is an important part of the process because getting a value on the property will tell the negotiator if the contract needs to countered with a higher sales price.

Once the negotiator has determined whether or not the contract needs a counter offer or is fine the way it is, the contract is then given to the investors on the loan to determine whether or not they will accept the loss and approve the short sale. This can take days or months. All depends on the investor.

And while all of this is going on, there will be periodic requests for updated financial information, or requests to resend information you've already sent. Cooperate with your Listing Agent and mortgage holder(s) and don't argue. Cooperation is the key to success.

So while all of this is going on in the background, and you are about to give up, one day the phone will ring with the news you've been waiting for. Your Listing Agent will be on the other end of the phone telling you that the short sale has been approved or why it has not been approved. In my business as a Listing Agent, nine times out of ten, I'm giving good news to my Short Sale sellers.

Short sales are certainly more complicated than regular resales, but they aren't impossible when you are prepared and you hire a good Short Sale Listing Agent.

Part 2 - WHAT THE LENDERS WON'T TELL YOU ABOUT YOUR SHORT SALE!

Judy Boyle MBA CDPE CRP (RE/MAX Signature Properties) — Sun, 23 Aug 2009 06:48:27 -0700

This a "Re-Blog" of another Active Rain Blog (thank you Felix Santiago). I feel it offers some good insightful points, although I do not necessarily share all of Felix's opinions. This is provided for thought-provoking only and should not be considered "The Final Word"!

Via FELIX SANTIAGO (CAPTIVA FINANCIAL GROUP, LLC):

     My last post opened up a flood of comments! I also received numerous calls and emails from many of you. Therefore, I am expanding on the subject with this second part.

     Now, I know some of my comments are going to get readers all riled up. Some lenders and their representatives have been secretly reading Active Rain and this post.

     Please note that I do not sugarcoat the short sale process. Our firm represents the homeowner in the negotiation process and therefore has their best interest in mind. This process should be treated as a business decision and not a personal one. The lender certainly has no personal attachment to your client or the property.

5) Prepare Your Clients for the Long Haul! I ask all my new short sale clients, "are you in a hurry?" If they are, our firm is not a good fit for them. Please note that there is a difference between working quickly and efficiently and being in a hurry. The lenders are in no hurry to process your short sale file. Plus, if the homeowner is basically living for free in the home, what hurry is there to move out and start paying rent? The process provides them a good opportunity to stabilize themselves financially. And always remind them: A HOUSE DOES NOT A HOME MAKE! Home is your family and friends, not brick and mortar. Home will go wherever they go. The lender, on the other hand, will take every opportunity to attach an emotional response to that building, even if it is unsalable collateral. Don't let your clients fall in to that trap.

6) Every Lender Has Issues! As I mentioned in Part 1 of this post, never assume that the lenders have their short sale process down to a science. It's a work in progress for them. This is still their worst nightmare and they are just hoping it will go away when they wake up. They still think this housing mess will end tomorrow.   Their loss mitigation staff is a temporary solution to the problem and there is a heavy turnover of employees along with a huge backlog of files. The same underwriter that approved your loan was offered a job as a so-called "negotiator." And, he/she is still working with the same mentality... "the bank is in control!" Unfortunately, you have to let them believe that. REMEMBER, YOU HAVE THE BUYERS FOR THEIR HUGE MESS!

7) Make a Buck Not a Friend! We've all heard the saying, "the squeaky wheel gets the oil." With the current state of the loss mitigation industry you need to be as squeaky as possible. You need to be noticed; otherwise, your short sale file will be delayed time and time again. One of the worst culprits right now is Countrywide/Bank of America (and that's a whole other post or two). They are a real mess and overwhelmed with files. Turn-time on newly received faxes is taking at least ten days, and that's assuming they find your fax. Send your fax two or three times if necessary! Yes, that may only add to the backlog of faxes, but if it means they will find YOUR fax and YOUR file nearly two weeks later you've accomplished your goal. If you are calling and don't like the answer or attitude of the short sale representative, hang up and call again! Trust me, the answer will change every time you phone.

8) The BPO Is EVERYTHING...For Now! It amazes me that lenders depend on a half-assed appraisal called the BPO (Broker Price Opinion) to make their biggest investment decision on your file. To put it bluntly, your BPO can be sabotaged by any green-eyed, angry broker with an attitude. Always be sure to meet with the evaluator at the property if at all possible. And, be sure he/she receives a copy of your contract. The lender certainly didn't provide them a copy. You already have a good idea for what the property should sell. Be sure you convey your thoughts and opinion to that person. Remember, the BPO is simply a range in value. The negotiator or bank representative will usually try to trap you with the highest value in the range. Let them know that you will NOT pay the top of the price range.

9) Tough Love...Credit Means NOTHING! I'm still amazed how many borrowers ask me how badly their credit will be impacted by a short sale. The answer...SIGNIFICANTLY! Your short sale client should not be worried about how his/her credit will be impacted by their current financial and housing situation. It should be the last thing on their minds. I'm astounded that there is always some expert trying to put foreclosure vs short sale into tidy perspective for someone that is finding themselves in the worst financial crisis of their lives. There is really no difference. A 450 score or a 500 score is still a lousy score. For the most part your client must be in a foreclosure status with the lender before they will even consider a short sale. And, whoever tells you different is flat out lying. Credit reporting agencies and the lenders that use them have been telling us for years that our credit rating is the most important thing in our lives. They've spent millions of dollars on campaigns to remind us of that. This has simply been a scare tactic and it has worked magnificently...until now. I've seen clients scrape and borrow money, or completely eat away at all their retirement savings just to keep up with a worthless investment property. All because they fear how it will affect their credit rating, even at the expense of really important matters like food, utilities, and medical necessities. Your credit will always bounce back. Plus, the lenders will need all those who are suffering from this crisis back into the fold in a few years when they are ready to really lend again and we are ready to borrow.

Be sure to read Part 1 of the Post: http://activerain.com/blogsview/1171787/what-the-lenders-won-t-tell-you-about-your-short-sale-

My next post... "SHORT SALE HORROR STORIES!" I hope you'll share your short sale nightmares, too. And, I won't shy away from naming lenders. Stay tuned!

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We offer the LOWEST TRANSACTIONAL FUNDING FEES for all your FLORIDA SHORT SALE DOUBLE CLOSINGS & FLIPS!! Plus, our knowledgeable title partners understand your needs and process.

VERY SIMPLE: 1.75% per transaction or $1,850 minimum! Both closings must take place with our preferred title partners.

Contact Me: (561) 337-5789

WHAT THE LENDERS WON'T TELL YOU ABOUT YOUR SHORT SALE!

Judy Boyle MBA CDPE CRP (RE/MAX Signature Properties) — Sun, 23 Aug 2009 06:47:47 -0700

Via FELIX SANTIAGO (CAPTIVA FINANCIAL GROUP, LLC):

     Not a day goes by that I don't hear the same question from an agent, "Why would the bank do that to my short sale?" It's really quite simple...BECAUSE THEY CAN!

     I could write a book about everything the lenders won't tell you about the short sale process. However, it would be worthless the moment it is published. The business changes every day, every hour, every minute. The lenders, investors, collections agencies, government agencies and everyone involved in this mess are still trying to figure out what happened, let alone what is happening right now.

   ANYONE THAT TELLS YOU THEY KNOW THE SECRETS OF DOING SHORT SALES, RUN FROM THEM AS FAST AS YOU CAN! AND HERE ARE THE REASONS WHY...

1) The lenders still are not sure that what they are doing is right FOR THEM. They are constantly changing their short sale and loss mitigation process to figure out what will make the most return on the loss. It will change at the whim of those assigned to review the pipeline disaster that is their loss mitigation. And, time and time again, the changes usually are not for the best. They only further complicate the process. The banks are in the business to lend money. The whole loss mitigation and short sale business is still a blur to them. Think about how absurd this business is...they will forgive $300,000 on the property without blinking, but will kill a short sale for the remaining $5,000.

2) The property is ONLY A WIDGET! The lender will never see or visit the home. The only one that cares about how the home looks is the homeowner. The lenders and their investors DO NOT CARE ABOUT THE FEELINGS OF THE BORROWERS/HOMEOWNERS. They have NO emotional attachment to the property. However, they want to assure that the borrower absolutely HAS an emotional attachment. Remember, those lovely photos in the appraisal are only seen by an underwriter that initially approved the loan. The actual lender does not care for photos and will never see them. THE PROPERTY IS SIMPLY A WIDGET.

3) Lenders and investors make secret deals for billions of dollars every day behind your back! Many agents remain shortsighted on the housing industry, alltogether. They only want to see and believe that their real estate transaction is the only way the lender can move the property. In fact, this is not by any means the principal manner of unloading their inventory. REO's, performing and non-performing notes account for the majority of their swaps. However, those sales are never recorded in public records. Most of them are sold for pennies on the dollar.

4) The housing crisis is NOWHERE NEAR A BOTTOM! The biggest reason for this is the tremendous amount of inventory. And I'm not simply talking about the inventory in the lender's hands. I'm talking about inventory yet to be taken back. There are millions of homeowners living in their homes for free. I have clients going on 2 and 3 years without a mortgage payment. The lenders and their investors are simply overwhelmed by this crisis and they would rather see someone in the property taking care of it. Once they foreclose, they are responsible for all the bills on the house. Only 30% of the lender inventory is even available for sale. Nearly three times the current inventory is pending foreclosure. And unless everyone behind on their payments gets back to work and starts paying their mortgage, the crisis will not be going away any time soon.

Be sure to read Part 2: http://activerain.com/blogsview/1183207/what-the-lenders-won-t-tell-you-about-your-short-sale-part-2

****************

We offer the LOWEST TRANSACTIONAL FUNDING FEES for all your FLORIDA SHORT SALE DOUBLE CLOSINGS & FLIPS!! Plus, our knowledgable Title staff understands your needs and process.

VERY SIMPLE: 1.75% per transaction or $1,850 minimum!

Contact Me: (561) 337-5789

What Kind of Camera Do YOU Use?

Judy Boyle MBA CDPE CRP (RE/MAX Signature Properties) — Tue, 28 Jul 2009 10:03:26 -0700

I am in the market for a new digital camera and would welcome recommendations from those who have used a camera that matches my four most important criteria:

1.) Excellent clarity...none of this FUZZY business. My primary uses will be photographing the interior and exterior of homes.....And, of course, my kids' sporting events!

2.) Capability to take panoramic or wide angle photos...built in "stitching" capabilities preferred.

3.) Easy to Use...."Point & Shoot" preferred.

4.) Under $500.

Thanks a million...since there are a MILLION to choose from.

Major Announcement in MA Re $8000 First Time Home Buyer Credit!!!

Judy Boyle MBA CDPE CRP (RE/MAX Signature Properties) — Thu, 16 Jul 2009 07:16:37 -0700

At a press conference yesterday at the State House, MAR President Gary Rogers joined Governor Patrick, Lt. Governor Murray and MassHousing Chairman Dirrane announce Masshousing's new loan program that allows first-time home buyers to "monetize" the $8,000 Federal homebuyer tax credit for downpayments and closing costs.
(From left) Worcester homeowner Thomas Gusha, Governor Patrick, MAR President Gary D. Rogers and Lt. Governor Murray speak with reporters about the new MassHousing program.

"MAR is very proud to have been a resource for the Patrick/Murray administration and MassHousing in the creation of this new program," said MAR President Gary Rogers. Massachusetts now joins a small but growing number of states that have developed a unique way to allow buyers to access the credit at a time when it can be most helpful in the home buying process. In fact, a study just released by the National Association of REALTORS found that 82% of would-be home buyers believe that saving enough for a downpayment is still their biggest obstacle to home ownership.

Almost immediately after the $8,000 tax credit was signed by the President, MAR began working with MassHousing to explore ways that the credit could be used for a downpayment. "We are very pleased that the Patrick/Murray administration and MassHosuing have been able to make this happen," said MAR CEO Rob Authier who had numerous discussions with MassHousing on the creation of the loan program. "We think it will help many people become homeowners in the Bay State."

For more information on this loan program go to www.MARealtor.com or the Homebuyer Tax Credit Loan Program page at www.MassHousing.com.

How the New MassHousing Program Works

1. Homebuyers who are using a MassHousing loan to purchase their first home apply for the loan program through their lender

2. The loan is used to cover closing costs or as part of the downpayment

3. In 2010, the homebuyer claims the $8,000 tax credit on their 2009 federal tax return

4. The homebuyer then repays the MassHousing tax credit loan

* No interest is charged if the loan is repaid by June 1, 2010

* Otherwise, the loan is amortized over the next 10 years, at the same interest rate as the first mortgage

FHA Property Guidelines Are Not Understood by Many Mortgage Originators!

Judy Boyle MBA CDPE CRP (RE/MAX Signature Properties) — Wed, 01 Jul 2009 09:02:03 -0700

This is a great post for me as I have had a couple of deals die before presentation of the offer, due to the fact that the listing agent states the house will not qualify for an FHA loan. Thanks to James for the great post!

Via James Graner (Residential Services: http://appraisalmo.com):

I receive FHA appraisal orders from many different people and many different mortgage companies across the country. I know many times these Mortgage Professionals tell me they telephone interview a perspective borrower about their home and after I leave the home it is obvious they have no idea what questions to ask before ordering the FHA appraisal.

I am sometimes told "The house does not sound to be in the best condition," or a similar line. On many occasions the home is just slightly dated and meets all FHa conditions, the originator worried for no real reason and might have scared their borrower away with his/her concerns about the FHA Appraisal. Other occasions, I come to a home with a statement of slight concern and the roof if leaking, the windows are rotted, peeling interior paint, electrical systems not completely functioning, etc...

Allright, I have identified the problem, now I would like to share a solution. FHA Appraisers used to have to use a checklist supplied by HUD for evaluating whether a home meets FHA property standards. These FHA checklists were included in the FHA appraisal. HUD no longer requires or desires these valuation condition forms (VC sheets.) Now FHA appraisers are held to a standard of reporting the same items of concern within the apraisal report, without using the VC sheets. Well at least the VC sheet made appraisers appear more like the messenger instead of a ruthless and unpredictable home inspector.

Here are some of the items that HUD requires each home to be checked, before providing FHA mortgage insurance on a property.

Any termite infestation is not acceptable to HUD.

Attics and crawl spaces are required to be checked by the appraiser. A "Head & Shoulder" inspection is required for all FHA appraisals. Sometimes attic access is blocked by a closet filled with things. Appraiser has no responsibility for moving personal items and would be at risk by moving and taking responsibility for such items. Stored things get broken when moved or are discovered broken, I have not talked to a FHA appraiser that is willing to move stuff to access a crawl space or an attic entry (closet scuttle.) We can condition the appraisal to have these items cleared and return. We just are not in the moving business.

Roofs must have an estimated two year remaining life. Snow covered roofs require revisit to the home or a roofing inspection. Flat top roofs no longer require an automatic roofing certification. Exterior surfaces cannot be unprotected. Painted surfaces require attention if there is an issue of wear on the home or surface due to maintenance.

Electrical and plumbing systems must be fully operational. Checking a"Representive sample" of electrical systems is part of the observation. Each home must have a hot water source and must be operating at the time of observation. Furnace or certral heating system must be able to be turned on and heard operate by the FHA appraiser. Summer observations still need the system checked. Climates not requiring a heating system do not need furnace check. Southern tip of Florida, Hawaii, etc..

Safety: Window, doors, steps & handrails, reverse feature for automatic garage doors and general safety concerns are part of the FHA appraisal observation. Homes built before 1978 cannot have any cracking, peeling, or otherwise defective interior paint surface.

RURAL CONCERNS: Onsite wells and sanitary septic systems do not necessarily require testing, however underwriters usually ask for these tests. Check with your underwriters if this is a concern. The FHA Appraisal Report must state distance of well from sanitary system and comment of availablity of public sewers. Roads to home must be able to traveled in all weather. (We know flooding, ice and heavy snow are not the fault of the road.)

Outside of the Property: Here are some concerns outside of homeowner's control. Sink Holes, slush pits, improvements (home) within fall distance of towers, excessive hazardous noises (includes street traffic & airport travel paths,) Soil contamination is a concern from environmental concerns.

In general the appraiser must look for any safety of occupants, structural condition, or soundness concern of the improvements of the home. The FHA Appraisers know this as HUD's three S's. Please understand there are more things in the FHA protocol that I did not mention here. I tried to gather the most frequent concerns that I know of.

James S. Graner
Real Estate Appraiser
ph (636)916-4325
cell (314)277-3336
fax (636)949-2637
Website http://appraisalmo.com

FHA Appraisal Changes To Potentially Hurt Market Even More -- Ouch!

Judy Boyle MBA CDPE CRP (RE/MAX Signature Properties) — Wed, 01 Jul 2009 08:42:04 -0700

This is a great blog that I will be referring back to myself!

Via Khash Saghafi Mortgage Loan Officer Cleveland Ohio Mortgages (Cardinal Banc&Mortgage Corporation):

Well, just as the President and ALL of our beloved politicians go onto television and tell everyone that they are going to force banks to start lending and helping homeowners and our economy get back on track during this time of crisis, I guess someone forgot to mention all of this to the Secretary of HUD while coming up with this little present for homebuyers / homeowners:

This is a brief summary from Mortgagee Letter 2009-09 which takes effect April 1st, 2009 -- HOLD ONTO YOUR HATS EVERYONE!!!!:

Here are the 10 things your appraiser must do or provide for all FHA appraisals done after April 1st, 2009:

1. The Market Conditions Addendum (Fannie Form 1004MC/Freddie Form 71)

2. At least 2 comparable sales within 90 days of appraisal date

3. A minimum of 2 active listings or pending sales in addition to the 3 closed comparables

4. Bracketed listings using both dwelling size and sales price when possible

5. Adjust active listings to reflect the List To Sales Price Ratio

6. Adjust pending sales to reflect contract sales price when possible

7. Include original list price and any revised list prices

8. Reconciliation of adjusted values of active or pending sales with adjusted values of closed comparable sales

9. Absorption Rate Analysis

10. Known or reported sales concessions on active and pending sales This update includes an often stated warning that..."Direct Endorsement Lenders are reminded that if the appraiser they selected provides a poor or fraudulent appraisal that leads FHA to insure a mortgage at an inflated amount, the lender is held responsible equally with the appraiser for the integrity, accuracy and thoroughness of an appraisal submitted to FHA." If the above appraisal guidelines look foreign to you, that's okay, because this update is intended for Appraisers and Underwriters. I sent this to you so you can take the following actions below to make yourself an FHA resource in your market.

If you have any questions on this, please feel free to contact me at 1-440-838-5291 for additional reasons why this is really, really bad for everyone.

Avoiding Foreclosure...Affordable Housing....Loan Modification... OH MY

Judy Boyle MBA CDPE CRP (RE/MAX Signature Properties) — Sun, 28 Jun 2009 18:47:41 -0700

Making Home Affordable Website Answers Consumer Questions

Uncle Sam gets an A+ for the new website released last week to promote the details of President Obama's Making Home Affordable Program. Now it is very easy to see if you qualify for the programs just by going to the website at www.MakingHomeAffordable.gov and exploring the handy interactive self-assessment tools, calculators, and lists of helpful resources.

The website prominently notes that the program is free to participants. As noted right here in this blog, foreclosure scams are big business these days. There is no need to pay any money to anyone to see if you qualify and get help. If you don't qualify, the website points you to free resources to help you find alternatives. (The Making Home Affordable program aims to help two groups of homeowners who are making a good faith effort to stay in their homes:

Borrowers who want to refinance but are unable to because the value of their home has fallen.
Borrowers who cannot make their mortgage payments because their interest rate has increased or their income has fallen.

TAX CREDIT LINK:

http://www.federalhousingtaxcredit.com/2009/index.html

BUY WORCESTER NOW PROGRAM:

www.buyworcesternow.com

Yes, We Know It's Being Sold AS IS But We Still Want The Bank To Remove the Lead!

Judy Boyle MBA CDPE CRP (RE/MAX Signature Properties) — Fri, 01 May 2009 13:27:21 -0700

Just taking a survey because I searched through Active Rain and didn't see the answer to my question regarding Real Estate Owned (REO) properties:

Does anyone have any success stories in which the bank agreed to make repairs? My specific question deals with the likely presence of lead paint in a house built in 1890. The buyers have a two-year-old and another one on the way. The house has been on the market for over one year and the buyers are wondering if the bank would consider bringing the home into compliance if lead paint is detected.

I have advised them that it is not likely but that you never know until you try. Again, I would just like to open up the floor for any success stories. Thank you.

Distressed Properties are NOT Black Holes!

Judy Boyle MBA CDPE CRP (RE/MAX Signature Properties) — Wed, 29 Apr 2009 09:46:33 -0700