Are you in the place of "what happened" when it comes to your home, its value, and equity? Have you recently applied for a simple re-finance or buyers loan and been refused, even though you have no troubles financially? If so, you're not alone. While value is always relative, understanding the current market valuation process and how the lenders and the government work in today's real manor market can help you decipher what's going on. The following article penetrates through what happened and why you got turned down for a loan estate appraisals New York.
As the market realigns, property valuations have plummeted. Some of you may even be "upside down" on your mortgages. Do you buy? Do you sell? Do you ride out the tsunami? This series will go through all the major questions that we normally encounter in determining the value of the property. What are the drivers? What are the inhibitors? What you need to know to get the best value.
The banks couldn't refinance everybody because they had no real money or solvency when compared with the debt of the loans. No money = no credit. No credit meant everything that used revolving credit to finance itself such as credit cards, small business, large retail businesses and home owners/buyers found they high and dry.
Residential real estate appraisers are licensed by their respective states and have different levels of license levels based on the value of the loan for the property. They have to take classes and pass certification tests to gain and maintain their license status. They are also usually bounded by the county because of the way Multiple Listing Services (MLS) keep and sell their records. So a good appraiser knows their geography and what to look for.
Foreclosures: Some high-risk loans that have adjusted have gone into foreclosure. The other shoe, are the ones that will adjust over the next 24 months. As foreclosures escalate, home sales will increase - this does not indicate market conditions are improving, just that some buyers are picking up properties that banks and individuals are dumping on the market.
Consider an appraisal that estimates a value below the sale price of a home to be like a traffic ticket and the appraiser to be a policeman. Under ideal circumstances, a traffic cop does not write a single speeding ticket because people are driving within the speed limit. Human nature being what it is, it's a sure bet that if everyone knew that the local authorities had decided to remove the cops from the roads, a large percentage of drivers would speed up, accidents, injuries and fatalities would increase, and that sooner or later the police would be back.
Essentially, the top of the food chain (banks) got billions for bailouts and bonuses and at the bottom end, small business, fee-based independent appraisers got higher costs, reduced fees bewildering regulations and reduced business. It is estimated that tens of thousands of consumers have already been denied their opportunity to enjoy historically low rates. This is a classic example of the Law of Good Intentions - something is done in the right spirit that sadly backfires.
The person/company who owns the evaluation is the person who commissioned it. So if you are looking for a house loan, your loan company "owns" the assessment, not you because they are the commissioning agent. Even if you pay the appraiser, it makes no difference - you did not set up the transaction. Why is this important? The appraiser can't legally give you a copy of "your" assessment - it's not yours.
As the market realigns, property valuations have plummeted. Some of you may even be "upside down" on your mortgages. Do you buy? Do you sell? Do you ride out the tsunami? This series will go through all the major questions that we normally encounter in determining the value of the property. What are the drivers? What are the inhibitors? What you need to know to get the best value.
The banks couldn't refinance everybody because they had no real money or solvency when compared with the debt of the loans. No money = no credit. No credit meant everything that used revolving credit to finance itself such as credit cards, small business, large retail businesses and home owners/buyers found they high and dry.
Residential real estate appraisers are licensed by their respective states and have different levels of license levels based on the value of the loan for the property. They have to take classes and pass certification tests to gain and maintain their license status. They are also usually bounded by the county because of the way Multiple Listing Services (MLS) keep and sell their records. So a good appraiser knows their geography and what to look for.
Foreclosures: Some high-risk loans that have adjusted have gone into foreclosure. The other shoe, are the ones that will adjust over the next 24 months. As foreclosures escalate, home sales will increase - this does not indicate market conditions are improving, just that some buyers are picking up properties that banks and individuals are dumping on the market.
Consider an appraisal that estimates a value below the sale price of a home to be like a traffic ticket and the appraiser to be a policeman. Under ideal circumstances, a traffic cop does not write a single speeding ticket because people are driving within the speed limit. Human nature being what it is, it's a sure bet that if everyone knew that the local authorities had decided to remove the cops from the roads, a large percentage of drivers would speed up, accidents, injuries and fatalities would increase, and that sooner or later the police would be back.
Essentially, the top of the food chain (banks) got billions for bailouts and bonuses and at the bottom end, small business, fee-based independent appraisers got higher costs, reduced fees bewildering regulations and reduced business. It is estimated that tens of thousands of consumers have already been denied their opportunity to enjoy historically low rates. This is a classic example of the Law of Good Intentions - something is done in the right spirit that sadly backfires.
The person/company who owns the evaluation is the person who commissioned it. So if you are looking for a house loan, your loan company "owns" the assessment, not you because they are the commissioning agent. Even if you pay the appraiser, it makes no difference - you did not set up the transaction. Why is this important? The appraiser can't legally give you a copy of "your" assessment - it's not yours.
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