Valuable information from today’s training

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!