Comments on: “Don’t let this buyers market pass you by!”

by: www sportsbook

Sun, 17 Feb 2008 08:49:14 +0000

www sportsbook…

Albuquerque:adventures willing …

by: Brian Holden

Mon, 30 Jul 2007 18:26:49 +0000

Anyone facing foreclosure should be aware that there is one very important alternative to avoid the foreclosure and that is the Short Sale. A short sale is a proven way for a homeowner who owes more than the house is worth to avoid a foreclosure and the subsequent credit hit.
I would advise anyone facing foreclosure to discuss their situation with an experienced Realtor. Short sales are not a part of real estate basic training but there are a number of educational seminars a Realtor can take to get up to speed. Lenders will pay a reasonable commission, usually 5%, and even a Loss Mitigation fee of $1,500 to whoever completes the required paperwork, so Realtors have an incentive to get involved in Short Sale situations.
The basic requirements for a Short Sale are a Listing Agreement with a Realtor and a Sales Contract from a Buyer which are submitted to the Lender along with a Hardship letter from the Seller explaining why they cannot continue to pay the mortgage and supporting documents such as tax returns, bank statements, information and photos of the home and the Comps, or comparative home prices supporting the offer. The way mortgages are sold, the lender can be anywhere in the country and certainly not aware of local real estate conditions.
If the package is complete, the Lender will order a BPO, or Broker’s Price Opinion, from an independent Realtor. Ths BPO is the key to the whole process. If it is too high, the Lender will not accept a low offer. Your Realtor can meet with the Agent doing the BPO and offer information supporting the offer, such as the average time on market of comparable homes, recent selling prices and point out any defects in the home. Most Lenders will accept an offer lower than the BPO, but usually not much more than 10% lower, though that will vary depending on the company.
The sales contract should specifically state that the offer is contingent on the Lender accepting the purchase price in full and forgiving the Seller the deficiency on the mortgage. There can be tax consequences but if the Seller is truly in a difficult financial situation they can be avoided - an accountant should certainly be involved in that question.
This does all take time and Lenders are swamped, expect at least 2-3 months before a sale can be finalized, even if the Lender accepts the first offer. If they do not, the price can be negotiated, though it can be difficult to get hold of anyone at the Mortgage Company to talk about it.
I am a Realtor, a Broker Associate in South Florida and am involved in short sales. It is a detailed but fairly straightforward process that can work to benefit Buyer, Seller and even the Lender. The Buyer gets a good price on a home, the Seller gets to avoid the disruption and credit hit of a foreclosure and the Lender avoids the delay and expense of foreclosing on a property they don’t want to own and that would negatively impact their ability to make more loans.
All this information is available on the web site www.ForeclosuresFloridaForeclosures.com Posted by: Brian Holden at July 30, 2007 2:26 PM

by: 0c1c5f7a23d5ba69130ff25492aec623

Sat, 24 Feb 2007 17:32:08 +0000

0c1c5f7a23d5ba69130f…

0c1c5f7a23d5ba69130ff25492aec6230c1c5f7a23d5…

by: CuriousCat

Fri, 26 Jan 2007 06:14:37 +0000

OCAppraiser,

Thanks very much. I appreciate your honest response, very informative and more realistic than what Money Magazine reports. They rank RE Appraiser 8th in their 50 best jobs in the US with $66,216 average pay per annum. Check it out here:
http://money.cnn.com/magazines/moneymag/bestjobs/snapshots/8.html

Your response sounds more realistic.

Thanks again.

by: OC Appraiser

Fri, 26 Jan 2007 04:26:34 +0000

Career/Job prospects are not very good in the near term.
The rules governing appraisal licensure vary by state. If you were in California and were just starting out and wanted to be an honest and ethical appraiser, it would probably take you 3 years just to get your license (you need to find someone honest to train you, and the honest appraisers are pretty slow right now). Also, you might make 15-20k per year for each of those 3 years. So, you better have a spouse who makes good money with benefits. Requirements are changing at the end of this year that require more classroom education and a college degree in some instances. Also, appraiser supervisors are limited to the number of trainees they can have at one time. While these changes and rules may seem rigid and impossible to overcome, it is about time they make it tougher. They are trying to weed out the “get rich quick crooks”, and those that think its easy money. You REALLY gotta want it if you are to spend time getting educated and trained, all the while making virtually no money at all. These are all good things, believe it or not.
A good source of reference for anyone considering the trade is www.appraisersforum.com
Check out the “newbies” section and read through the whole thing. If you still want to be an appraiser after that, then be ready for much sacrifice and very little reward for the first many years. Thats if you want to be an honest and ethical professional appraiser. One who actually knows how to appraise houses and doesnt just fill out the form with the “magic” number. I’ve always said that there are many people out there with appraiser licenses, but very few actual appraisers. Those that actually know what they are doing and are respected by major lenders and professional peers, who practice honesty and integrity day in and day out. Those folks appear to be a dying breed. The rule changes are trying to stop that. That is a good thing for everyone.

by: CuriousCat

Fri, 26 Jan 2007 02:53:46 +0000

socalappraiser, OCappraiser, and DoreenC,

I have learned a lot from your postings. Thanks for sharing.

Now, my question: With the real estate market tanking, what is the career/job prospect for an entry-level RE Appraiser? What does it take for one to start a career as an RE Appraiser?

Thanks very much.

by: socalappraiser

Thu, 25 Jan 2007 10:30:12 +0000

Jeff,

Appraisers are reporters, its that simple. For most of the work we do the value desired is “market value” (the most probable price a property should bring in an open and competitve market between an informed buyer and seller in which neither is under diress).

You said, “the value is what you decide its worth”, and while that may be somewhat true you are usually trying to do it with the bank’s money. That’s where market value comes in. The bank wants to be assured that if you sh*t the bed they can recover most of their dough. When a strong buyer puts down 20%, they are a co-investor. When a straw buyer, scumbag used house salesmen, skell loan officer and cherry picking appraiser meet up for a 0% down purchase, multiplied by thousands you have the bubble we are about to see pop, deflate, etc.

All the whining, crying and fingerpointing will and has started. Those that are caught, tried and convicted need to:

1. be sent to the hardest penitentiary in the system

2. have a documentary made about them so all can see them being purchased and sold as Bubba’s boy toy.

That would clean up the REIC in double time.

As far as the 4 to 7 idiots, they do not make a market and any appraiser with some degree of competence can sniff out shady sales, straw buyer transactions, etc. As this blog has pointed out there is too many appraisers willing to go along to survive. Thanks to liberal licensing with little threat of consequence over 10,000 licenses have been issued in the last 5 years in CA. What used to be a profession where the cream came to the top is now part time work for a lot of individuals that are really qualified to say “can I super size that for you”.

Check out Housing Panic and there is a great summary post of how we got to this point in the Bubble today by the blogger. Its probably 5 or 6 posts down now.

by: jeff

Thu, 25 Jan 2007 07:59:53 +0000

there is no such thing as an independent appraisal. and appraisals are a joke for the most part. i mean, i still see people buying properties which are way overvalued. so if the appraiser takes 4 to 7 comps where 4 to 7 other idiots overpaid, it just shows how many stupid people there are out there. it doesn’t prove the value of the house. the true value is what YOU decide it’s worth. a fool and his money are soon parted. and right not, too many fools are parting with money and their homes.

by: Darnell da Realuhter

Thu, 25 Jan 2007 00:53:07 +0000

Yo Yo,

Youz whacked about real estate nig. Right now iz da PERFECT tyme ta be buyin. Don’t ya recognize uh bottom when ya see one? You gots low rates, prices at rock bottom an’ motivated sellers. This iz it! Take it from me, Darnell da professional realuhter! don’t make me shank ya!

by: socalappraiser

Tue, 23 Jan 2007 20:07:14 +0000

OC,

The guidelines and USPAP as you state them are indeed correct. I do not take offense to any of what you have said and appreciate your knowledge and help. You are preaching to the choir and I try to remind all that we are independent fee appraisers not “free” appraisers. My posts are intended to be truthful and show some real world examples.

Anyway, for me, my violation of USPAP by telling some joker broker that he / she is “nowhere near value” is easier than dealing with complaints the idiots at OREA (state regulators for appraisers) get against me from said upset home debtors for not hitting their value. While none of the complaints had a leg to stand on they were time consuming and unnerving as this is my livelihood. The monkeys at OREA spent all their time telling me about how it was difficult for them to read my reports as they are all in UPPER CASE and no time telling me sorry that they took up my time for what was a baseless, victicrat accusation. Also, when I brought up to OREA about brokers, re agents, appraisal management companies, etc., placing right on their orders “not to proceed with inspection unless estimated value is supported” and this being “contingent work” and a USPAP violation, they replied that they are not the regulatory body for them and could do nothing. Believe me, I do not get too many of these joker appraisal requests anymore as they know who they are dealing with.

While I may be “picking and choosing” as you say in regard to AO 19, there is the fact that all the regulation is there to “ensure the public trust.” I am not acting as an advocate for anyone but myself and my license based upon the real world realities. If I do go out, take the money, & deliver them my opinion of reality, will that stop them from shopping and getting a no fees joker broker that has an appraiser willing to forgo C.O.D. and hit the number? You & I know that it will not. To be fully compliant with USPAP I should just refuse the order but I find it not to try to tell these schmucks that they are whacked.

As Doreen pointed out in her post, I have been having some success with desktop appraisals. At least they indicate to everyone involved the proper comparables that will need to be shown (and explained away or not) in a full appraisal report. They are superior to CMA’s from agents as price per sq ft is not a measure of value in the residential appraisal world and superior to BPO’s as most of these are done to secure a listing opportunity and not provide realistic value.

Well, I actually have a real order to go inspect so keep up the good fight and continued success!