What is the next glitch in the changing home sale market for Chicago and the Suburban Market?
What also affects those property owners who want to refinance their property or do a mortgage modification?
Its the Appraisal....
Since May 1, home appraisals must be ordered at arm's length, often through a national management company. Gone are the days when a mortgage broker or lender could hire a familiar appraiser to close a deal. Now, communication between the appraiser and real estate agents is discouraged.
The new rules were proposed by New York Attorney General Andrew Cuomo, who pushed for the standards after spending more than a year investigating industry appraisal practices. They govern only loans that will be sold to Fannie Mae and Freddie Mac, government-run mortgage companies that buy most of the nation's home loans, and not loans guaranteed by the FHA or VA.
One problem, real estate agents and mortgage brokers say, is that the management companies assign appraisers who don't know the area and lose experienced appraisers by taking a large percentage of the fees.
Another common complaint: appraisers value properties on the low end to appease lenders, which are scrutinizing appraisals now after suffering large loan losses in recent years
Appraisals are coming in very low right now. .. To make matters worse it's no longer OK for the lender's loan officer to actually talk to their own appraiser about the values of these properties. It's a knee jerk reaction to the mortgage meltdown. Whatever the appraiser says, goes... even if they don't have the foggiest notion of values in a given area.
So what is a person to do?
Request a second appraisal. This time around make sure to have recent sales from your Realtor to provide to the appraiser. Recent sales are preferably less than 120 days old from the closed date. Also, give the appraiser a list of property highlights and improvements.
Finally, let your voice be heard by calling your elected officials!
Need Recent SOLD comparables? Call or email us for the most recent data in your neighborhood. (for Chicago and surrounding Counties)
To search pre-foreclosure & foreclosures go to www.Hyblhometeam.com
If you are a 1st time homebuyer, ask us for a free package on the $8,000 Buyer Credit!
Want to know your property value? Call or email me...
Dana Hybl
REALTY EXECUTIVES Prestige
www.danahybl.com
danahybl@realtyexecutives.com
630-975-9001
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