HUD REO Appraisals

March 10, 2010

The U.S. Department of Housing and Urban Development (HUD) just revised appraisal guidelines for REO properties they own. All appraisals done to establish the listing price with an effective date on or after April 1, 2010 will now be valid for only 120 days. This update is a change from the current 6 month period.

The rule regarding second appraisals to support a higher purchase price has also been modified. HUD now says that when a buyer is using FHA financing to purchase a HUD REO property, the appraisal that was used to determine the list price will remain effective when obtaining the FHA mortgage. A second appraisal can’t be ordered just to support a higher purchase price. It can only be ordered to support a higher sales price if there are material deficiencies with the current appraisal, or if the current appraisal won’t be valid on the date of contract ratification.

How healthy is your lender?

12.18.2009

The FDIC expects more banks to fail in 2010, increasing the operating budget 35% to $4 billion dollars. Over 1,600 new staff members will also be added to the payroll. 133 banks have already failed this year, and there’s no evidence to suggest the 134th is far away.

Read the full article →

FHA Appraisal Ordering Changes

12.05.2009

A majority of loans today are FHA loans, so the Department of Housing and Urban Development (HUD) is taking steps to ensure the program doesn’t fall victim to the bad economy.

Read the full article →

Early Christmas For Some FHA Borrowers

12.04.2009

The Federal Housing Administration repealed the second appraisal requirement for loans exceeding $417,000 in declining markets, and for cash-out refinances. The two appraisal mandate initially went into effect on April 1, 2008 and was strongly opposed by the National Association of Realtors.

Read the full article →

External & Functional Obsolescence

11.14.2009

Many properties can exhibit some form of obsolescence – either functional, external or both. Don’t know what that it means? You’re not alone. Real estate classes often dart past these terms because real life situations that occur nationwide are difficult to cite. Yet as an appraiser I encounter homes with one or more of the following examples every week.

Read the full article →

← Previous Entries