My Blog

We've all heard various reasons and some excuses as to what happened to the real estate and financial market over the past year. There isn't a day that goes by that we don't hear yet another analyst's view of "what really went wrong". More doom and gloom is on the horizon is what "those in the know" would lead us to believe. 

For another, more accurate, in my opinion, viewpoint feel free to view this viewpoint on what
REALLY HAPPEND IN THE FINANCIAL MARKETS that has lead us to this point in the marketplace and how we will work our way out with the intelligent moves our government, at it's best and hard at work to fix what went wrong!

Click here to learn more from Barry Habib who is the CEO of the Mortgage Market GuideSM service: http://www.mortgagesuccesssource.com/go/markmarket/

Thanks for visiting and stop by again!  If you have a question don't hesitate to ask...I'm only a phone call or e-mail away.  Good luck in the new year!

Dan Latimer

Many of my client have called recently to ask me where their property value has landed amidst the recent economic turmoil.  With indications that mortgage rates will soon be favorable for many to refinance, the question arises - do I still have equity in my house?  While having an appraisal completed is absolutely the best choice,  I can and will assist the property owner to perform a quick assessment of their property.
 
Overall the property owner should look at what is on the market in their neighborhood.  While it is important to note the listing prices, it is equally as telling to look at how long the properties have been on the market and how many price reductions have occurred.  They should be reminded that just because the neighbor is asking for a certain amount for their property,  it does not mean they are going to get it. The listings in the neighborhood set the high mark for what their property is reasonably worth and are not a true indication of the owner's home value until these listings actually sell.
 
Though the property owner may have been diligent about paying towards their mortgage "on time, as agreed" others in the neighborhood may have not.  Foreclosure activity does impact property values, even of those properties that are not in threat of foreclosure.  Property owners should be aware that while these foreclosure properties may be "blemished", or outright trashed, potential buyers are still considering them as possible substitutes even with the cost of clean- up and renovation.  Because many foreclosed properties are marketed with the intent to sell quickly and cut losses due to holding costs (without benefit of homeownership) these properties tend to depress values in a neighborhood.
 
Some of my clients have indicated that they are confident in their property value estimate because "I just had an appraisal done six months ago" or "I've just received my property tax assessment from the municipality".  Because the current market remains tremendously volitil, opinions of value made in the past are not necessarily reliable indicators in today's environment.  The large number of properties continuing to come on the market (high supply) and the still tight credit market and rising unemployment (low demand) continues to have an adverse impact on home values in many areas as we will see more properties available for sale then buyers able and willing to buy.  As interest rates fall and credit availability becomes more available, this will have a positive impact and values will stabilize and possibly start to increase. Home values are changing more quickly now than any other time in history. Therefore, previous tax assessments and appraisals have a very short shelf life as to how accurate they are as to the value of the property today.
 
Residential real estate has long been, and is expected to long be, a good investment for shelter and long term economic growth.  But like any commodity, it is subject to the whims and forces of the economy - and will have volatility in its value.  As such, property owners should be advised that like other investments, their home's value will rise and fall with economic changes - and the only certainty that is almost guaranteed is that property values rarely remain static.

Please feel free to call me if you need help assessing the value of your home!

Dan Latimer

Many people have asked me about buying and fixing up foreclosed or bank owner properties and what is involved in the process. My answer, like a broken record, is that; HUD has and we are an authorized and approved lender for a great program, the FHA 203K loan. The 203k loan program is designed for owner occupied properties, which means in layman terms means, that the owner or purchaser, is or intends to live in the property as their primary residence and can include the purchase price or payoff of the current mortgage plus the cost of repairs and upgrades to the loan amount to fix up the house to their tastes, standards or life style needs. Here’s how it works!

FHA 203(K) Renovation Loan

Home Inspection:
The cost of your construction is estimated by an FHA Approved 203(k) consultant (estimator). The cost consultant assists you in determining the scope of repairs and the costs budgeted for the renovation job.

Appraisal:
The appraiser will be given a copy of your "work-write up" to estimate an after improved value for your new or current home. We loan against that improved value thus allowing you to finance the cost of repairs.

Other Eligible Costs:
(THESE COSTS MAY BE FINANCED INTO THE MORTGAGE LOAN)

Eligible Work Items

· Repair/replacement roofs, gutters and downspouts

· Repair/replacement/upgrade of existing HVAC systems

· Repair/replacement/upgrade of plumbing and electrical systems

· Repair/replacement of flooring

· Exterior and interior painting

· Minor remodeling, such as kitchens, which do not

involve structural repairs.

· Weatherization: including storm windows and doors,

insulation, weather stripping, etc.

· Purchase and installation of appliances – including

free-standing ranges, refrigerators, washers/dryers,

dishwashers and microwaves.

· Improvements for accessibility for persons with

disabilities

· Lead based paint stabilization or abatement (HUD

REOs)

· Repair/replace/add exterior decks, patios, porches

· Basement finishing and remodeling, which does not

involve structural repairs.

· Window/door replacements and exterior wall

re-siding

· Septic systems and/or well repair or replacement

Ineligible Work Items

Any items that do not appear on the eligible list of that would:

· Necessitate a “consultant” to develop a

“Specification of Repairs/Work Write-Up”

· Require plans or architectural exhibits;

· Require a plan reviewer

· Require more than six months to complete (HUD

will not grant extensions)

· Result in work not starting within 30 days after loan

closing; or

· Cause the mortgagor to be displaced from the

property after mortgage loan closing.

Structural Alteration and Reconstruction:

Here are a few suggestions to get you started:

FHA 203(k) Renovation Loan

An important tool for community and neighborhood revitalization, the FHA 203(k) loan offers flexible qualifying and low down payments:

In review, the 203(k) loan program offers borrowers the resources to rehabilitate a home that may be in need of repair, either the home that they currently live in, or that special fixer-upper opportunity. One single loan is used to pay for the purchase (or refinance) and the cost of renovating the home.

Made available to certain lenders by the U.S. Department of Housing and Urban Development (HUD), the FHA 203(k) program has already provided many of my buyers, with the funds necessary to buy their first home, or greatly improve a current home. The FHA 203(k) loan is available to borrowers of all income levels, to homeowners who plan to occupy the house, and for homes with one to four units.

Dan Latimer

Sr. Lending Consultant