So, a few weeks ago I had a somewhat good experience with an appraiser (detailed in a previous post "the appraisers gift of ignorance"). Today Karma bit me!! See, the whole issue with appraisers is kind of like Realtors. They all talk a big game but most of them don't walk it. I had two appraisers on different transactions all claiming every delay excuse in the world. I was honestly just waiting on all of them to dry their hair (If you understand the joke). The new appraiser rules are not allowing the banks to pick or really even communicate with the actual appraiser. We all should understand why that is a necessity considering the Housing "Hubba Bubba". Now the banks have to call an independent appraisal house (I am calling them the pimps). They call they pick a name out of a hat and send the "chosen one" to the home you are going to buy or sell in order to appraise it. On both occasions the banks ordered the appraisals at least 3 weeks before they were needed. On both occasions neither delivered the complete appraisals in time- siting extreme peril and heartache in their lives as the cause for the delay ( most likely they were just on a boat somewhere on spring break). Since the banks cannot talk to the "chosen ones" I am certain that the information they require in their appraisals will not be complete because proper expectations have not been set. I hate telling a family they cannot move into their new home. The "chosen ones" now have business and for most of them that is a new concept. Either they don't know the area or they have no concern for the impact of their delays. I will "move on" (pun intended) but unfortunately I have four families that not only can't "move on" they cannot - fly back home to start a new chapter, unpack their moving van, install their new flooring, buy their next home, and two of them have to file an extension to file their taxes until the appraisers and lenders get their acts together!
Showing posts with label FHA Appraisals. Show all posts
Showing posts with label FHA Appraisals. Show all posts
Tuesday, April 14, 2009
The Appraiser's gift of Ignorance Part II - KARMA
So, a few weeks ago I had a somewhat good experience with an appraiser (detailed in a previous post "the appraisers gift of ignorance"). Today Karma bit me!! See, the whole issue with appraisers is kind of like Realtors. They all talk a big game but most of them don't walk it. I had two appraisers on different transactions all claiming every delay excuse in the world. I was honestly just waiting on all of them to dry their hair (If you understand the joke). The new appraiser rules are not allowing the banks to pick or really even communicate with the actual appraiser. We all should understand why that is a necessity considering the Housing "Hubba Bubba". Now the banks have to call an independent appraisal house (I am calling them the pimps). They call they pick a name out of a hat and send the "chosen one" to the home you are going to buy or sell in order to appraise it. On both occasions the banks ordered the appraisals at least 3 weeks before they were needed. On both occasions neither delivered the complete appraisals in time- siting extreme peril and heartache in their lives as the cause for the delay ( most likely they were just on a boat somewhere on spring break). Since the banks cannot talk to the "chosen ones" I am certain that the information they require in their appraisals will not be complete because proper expectations have not been set. I hate telling a family they cannot move into their new home. The "chosen ones" now have business and for most of them that is a new concept. Either they don't know the area or they have no concern for the impact of their delays. I will "move on" (pun intended) but unfortunately I have four families that not only can't "move on" they cannot - fly back home to start a new chapter, unpack their moving van, install their new flooring, buy their next home, and two of them have to file an extension to file their taxes until the appraisers and lenders get their acts together!
Friday, March 27, 2009
The Appraiser's gift of ignorance - thanks to the HVCC!
So, one of my clients bought his new home today! That is always a good thing. However, he was presented a 7,500 dollar gift from FHA (indirectly). See, FHA is now requiring that your lender must order the appraisal on your new home from a national appraisal "house". This "house" will select and assign an appraiser to appraise your home. The changes state that rather than going to an appraiser directly, lenders must order a real estate appraisal through a third party, such as an appraisal management company. This is to try and eliminate the Loan Officers from influencing the appraisers valuation results. Well, this appraisal "house" assigned an appraiser from well out of this homes location. The appraiser was not familiar with the community or it's respective values. Therefore he under valued the home (in my opinion) substantially. Because of the new appraised value the Sellers had no other choice than to lower his sale price to match the appraisal results (either that or not sell the home). While working with FHA transactions you only get one chance on an appraisal. You cannot go get another appraisal to override the first (even if you feel it is erroneous) for six months. My client saved $7500 dollars off the sales price and still got his Obama Stimulus Tax Bucks to 'boot! For a more detailed summary of the new FHA Appraisal guidelines I have found a wonderful (and boring) article. CLICK HERE FOR MORE on the new Home Valuation Code of Conduct.
Subscribe to:
Posts (Atom)
