The Problem With Appraisals

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Are Appraisers Too Conservative?

“This market is really challenging to interpret, and I think it’s important for both REALTORS® and appraisers to be humble about that,” advises Ryan Lundquist, a Sacramento certified residential appraiser whose blog (www.SacramentoAppraisalBlog. com) offers opinions, tips and information about appraisal practices and issues.

“Appraisers face a lot of the blame, but real estate agents also know when they are playing a game and working a strategy,” Lundquist says. For example, buyers and agents sometimes submit unrealistically high offers just to have a “horse” in the race. “It’s unfair to blame the appraiser when the buyer offered $20,000 higher than anything else on the market. At the same time, if there are 10 or 20 offers at list price and above, that definitely says something, and appraisers really need to pay attention to that, because supply and demand are an important consideration for the market. Theoretically, it should move things up.”

Read More California Real Estate – September 2012 : The Problem With Appraisals.

Don’t ignore the lender

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The first step to stop foreclosure is answering the calls and letters the lender sends you. Often lenders are open to offer solutions and they do not want to start a foreclosure.

One of the most common mistakes that people who are facing foreclosure make is to ignore any communication, written or verbal from the lender. It is essential to have determination when you are facing foreclosure. Do not feel ashamed to be in this situation. There are many people who are going through the same thing. The fact that you’re not replying to the communications the lender sends you doesn’t mean that the problem doesn’t exist.

The good news is that there are many ways to delay the foreclosure process so you buy time to sort things out. What is going to happen if you do not answer the letters/phone calls from the lender? Perhaps that in the time you decide to call, it’s already too late and you cannot delay or stop the foreclosure. The first step is to call the lender and ask if you can extend the due date for payments.  Also you can explain them the financial situation you’re going through. Lenders usually are willing to offer you a repayment plan so you can catch up on your payments. They are willing to help you more than you can imagine. Lenders do not want to face the cumbersome procedure of foreclosure.

The main thing is to prevent the lender to submit a Notice of Default. If the lender has already sent you that notice, is almost impossible to stop the foreclosure. For all these reasons, call your lender right away before they even call you, you would be saving your home and your credit history so important to your financial future.

And what do you lose with a phone call? The “no” you already have it before you even call.

 

The loss of equity is not a reason for short sale

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Lenders do not consider that because your home is currently worth less than when purchased; they have to modify the loan payment of your home. This is not a reason for a short sale.

Some reasons why lenders may accept to modify the loan are:

- You lost your job,
- You had a reduction in income,
- Your business failed,
- Forced job relocation by employer,
- You are getting divorced or separated,
- You got sick and you have large medical bills that will make it impossible to pay the loan,
- Your wife / or another member of your family has died or
- Natural disaster has occurred.