Loan Modification FAIL!!!
Out of a million people that wanted to request assistance and that did – when 1/4 of those fail to live up to their end of the bargain, is that a failure?
Maybe for those 250,000 people it is. What about for the program itself? The fact it helped 3/4 of a million people, does that equate to the program being a resounding success?
The needs of the one…
I suppose if something can help even a single person, in that person’s eyes, that is a success.
While we may not agree, we aren’t that person.
Have a read of the latest article having to do with HAMP, which is a loan modification program by the Government.
Prices are exceeding Appraised Value
This is something that is occurring as of late. In the Santa Clarita Valley cities, we are watching as properties list prices are not able to meet the appraised values.
Meaning, unless the buyer has stated that they would pay the difference in cash, the deal does not go through or the seller reduces their price.
Sellers have choices…
As a real estate seller, when it comes to your list price, you should know the choices you have.
You can put your home on the market for more money than the last several sold for. However, that is going to create an appraisal issue.
You can also set the stage with your Realtor to have any buyers offer to pay the difference on your home between your list price and the appraised value.
Different Lending programs mean…
Some types of lending will allow this, some won’t.
You will also want to make sure that you know the lending types, when it comes to appraisal. In some cases, for the next 6 months, the amount is saved by recording the amount and by assigning a case number to your home.
Those would be VA and FHA. When these types of loans are used for the purchasing of residential real estate, they have an FHA/VA case number assigned to the property.
How long does the appraisal report stand for?
Meaning, the appraisal reports sticks to that specific home for the next 6 months.
If the buyer cannot inject cash to pay the difference if there is a lower than list price appraisal, then no other FHA/VA buyer will have it appraise for more due to the established appraised value holding for 6 months.
That does not hurt a seller when it comes to a 20% down conventional buyer? They won’t see the FHA/VA appraisal report, typically.
Get good advice and make sure you are hiring the BEST Santa Clarita real estate agent you can find…