Appraisal issues •· Coming in low in all price ranges
•· Too long to complete
•· Appraisers and lenders can't communicate which is causing delays in settlement dates
•· Appraisers are coming from outside market areas - in some case close to 100 miles away
•· Maintenance issues are listed as safety issues - in one instance a carpet stain was listed as a potential mold hazard
•· Low appraisals on FHA loans are not being submitted to HUD
•· Why are FHA appraisals good for 6 months when appraisers and lenders are only going back 90 days?
Short sale issues today
•· Banks are inundated with too many cases and not enough "trained" staff to handle processing
•· Short sales are taking longer to complete
•· Some banks are asking defaulting borrowers to repay a portion of their loans through signature loans - no interest - 5 to 8 year terms
•· Some banks are countering ratified contracts with higher prices
•· Be sure to not have home warranties or seller paid termite inspections as these are getting "kicked" out at the last minute
•· Cases are being closed with no notice given to parties for "technical" issues of missing suffixes after a long period of negotiations
•· Still no standard procedure in place to streamline the process - even within same bank
•· Be sure to check listing agent's success with getting short sales approved
Motivate sellers and build your inventory
•· Lack of supply today is an opportunity for sellers today
•· Increased demand
•· Multiple contracts in all price points below $400,000 and above $1,000,000 in certain locations
•· $8,000 tax credit for first time buyers is only in place through the end of November 2009
•· Will HVCC continue to erode home equity - $1.7 Trillion already lost since its implementation
•· Rates are great today but where will they be next year
•· Will short sales turn into foreclosures and reduce prices further?
Now, go sell something!
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