About Jefferson County, KY

Beautiful Raintree Meadows ranch with open floor plan and many upgrades. Unique peninisula fireplace with built-in shelves makes this living room stand out. Large deck sets off the backyard.

The Springhurst neighborhood is located in northeastern Jefferson County of Louisville and has 1,116 families. It is conveniently located right off the Gene Snyder Freeway at Brownsboro Road and Hurstbourne Parkway. The area is known for its excellent schools, shopping, and amentities. The Summit shopping center is located in Springhurst as well as the Springhurst Center and Brownsboro Park.

The homes can appeal to a wide variety of homeowners with condos and homes ranging from $150,000 to over $500,000. The subdivision is ideal due to its wide streets and sidewalks, mature trees and spacious yards.

To view homes for sale in Springhurst, go to Homes for Sale in Louisville KY.

This has become a growing question in the real estate community especially for buyers and sellers as the market has seen a large increase in short sale/foreclosure/distressed properties. Before this was such an issue, generally appraisers would not consider one of these types of properties since they were "not comparable" or an outlier from the comparable homes.

Well, with so many of these short sale/foreclosure/distressed properties flooding the market, appraisers have had no choice but to consider them since they are in fact "the market". Unfortunately, this has brought down housing prices and decreased homeowners equity in the same neighborhood because of the neighboring houses declined/lower value.

Last month, the Appraisal Institute issued an article on the subject. In the paper, the Institute explained that:

“Foreclosures and short sales can provide important information for appraisers, who develop valuations based on market data and market forces.”

On whether an appraiser should use distressed properties as comparables, the Institute was very direct (all items in boldwere shown as bold in the original paper):

“An appraiser should not ignore foreclosure sales and short sales if consideration of such sales is necessary to develop a credible value opinion.”

And they explained the possible differences between short sales and foreclosures:

“A short sale … might have involved atypical seller motivations and so might not be an ideal comp…

"A sale of a bank-owned property might have involved typical motivations, so the fact that it was a foreclosed property would not render it ineligible as a comp.”

Some will argue that distressed properties should not be used when appraising non-distressed properties. However, there is no longer any doubt that they will be considered...at least during the current market begins heading north again.

“Respect your efforts, respect yourself. Self-respect leads to self-discipline. When you have both firmly under your belt, that's real power.”

Clint Eastwood

Last week in our blog, we started to talk about how to take advantage of the current low interest rates in Louisville. Getting preapproval for your loan is crucial. Experts recommend that you approach several lenders, including banks, savings and loans, credit unions, and mortgage brokers, to see where you can get the best deal.

Each lender has their own underwriting requirements which determine whether you can even get the loan and for how much. If you go to several lenders for preapproval, you may find some variation in the amount you qualify for as well as whether you qualify at all. In addition, lenders vary not only with their rates, but also with points, closing costs, and types of loans. Any of these costs will affect the amount of your mortgage payment.

Lenders base their lending decision on the documents you provide. You should go to your preapproval sessions armed with your last two pay stubs, W-2s or 1099s to prove your income, income tax returns, and bank statements.

In the past, if you had a good relationship with your local banker, you could discuss life circumstances that may have impacted your credit report. If you lost your job or had a siege of illness that caused you to pay late, your banker might go to bat for you with the underwriting committee, assuming that you're now on track and are paying your bills on time. Relationship may not matter as much these days as loans are automated its, but you may find a lender that is more sympathetic to your past unemployment or other circumstances the computer may flag.

If you work in a profession where your income is variable and you receive 1099s rather than W-2s to document your income, you may have a harder time proving that your income is sufficient and reliable enough to make your mortgage payment. Most lenders look at the last 24 months of your reported income. If you have not reported all your income or if you overstated your expenses, your records may indicate lower income than the lender requires.

You may need to work a little harder to find a lender, as well as be prepared to put more money down if you have mainly 1099s income. (This may seem harsh, but keep in mind that the recent foreclosure crisis was caused in part by lenders issuing mortgages to people without sufficient income to pay them. Having verifiable W-2 income as compared to stated income from a 1099 is no guarantee that things won't change in the future, but lenders regard W-2 income is more stable.)

The more “issues” you have in your credit history or with your income, the more time you need to allow to obtain your preapproval. These days, it is unwise to put a bid on a home unless your financing is assured. Sellers anxious to move their property are less willing to accept financing contingency clauses. If your financing is uncertain, you may lose your dream home to another buyer whose financing is ready to go. Especially if you are going through a government programs such as FHA, be sure to start your search for financing 2 to 3 months before you start your active housing search.

As a Realtor®, I have experience working with different lenders. I will gladly make suggestions of lenders to try based on your situation. Seek and you may find a great loan! My goal is to help place you in a home you can afford in one of the many exciting neighborhoods in the Louisville area. Call me, Jessica Gaines, your Louisville real estate resource.