April Solomon/ Realtor/GRI

Having qualified conventional buyers with 20%-25% down instead of the customary FHA or VA buyers. Finding yourself and your buyers caught in appraisal hell. Your buyers have chosen the home of their dreams and have made offers that both the sellers and buyers have agreed upon, then when the appraisal is performed only to find out that you are $15,000-$25,000 different. So you think that maybe switching lenders will be the answer. Wrong, all of the lenders are using the same pool of appraisers to perform the appraisals so there will be NO difference or significant difference in the appraisals. Now you find yourself dealing with two aggravated parties the seller who thinks the property is worth more and the buyer who has just spent $595.00 on a appraisal to find out that the seller is not willing to come down.

I understand that there are problems in the appraisal land that transcend weak housing markets, debt ridden borrowers and that are causing home buyers and would-be re-financers to miss out on low rates and dream homes. This game is not fun. I have found myself in this game more than I like. "There's been a pendulum swing in appraisals comparable to the one we've seen in mortgage credit, from foolishly lax to overly restrictive."

I myself have experienced many canceled contracts due to low appraisals. In my area we are now selling homes for what they sold for brand new in 1978. If this trend continues where will we find ourselves selling at, will it be post depression levels of the 1920's? Just when Realtors think their particular market is stabilizing they only find out the exact opposite.

With One and a half million more foreclosures due to hit the Florida market this year, where will the "Sunshine State" land? Not looking to "Sunny" from my perspective or the perspective of many sellers.

Now lenders are playing defense. Many of them including GMAC, Wells Fargo are regularly asking for three appraisals and require a "loan to value reduction" for properties located in a declining market. With so many neighborhoods with foreclosures or short sales and not enough solid data. They are appraising the market that is so volatile and different from anything we've ever seen. "If your an appraiser and one-third of the neighborhood is foreclosures, and another one-third is short sales, and another one-third is regular, how do you even determine what is "fair market value?"

Brokers and Realtors contend that appraisers should mark up the value of homes when comparing them to foreclosures and short sales, because many of these homes are distressed properties in disrepair or are so complicated to buy that they command unrealistically low prices.

Now to even complicate matters worse we now have a "New Rule". The world of home appraisals changed on May 1, 2009, when Fannie Mae and Freddie Mac adopted the Home Valuation Code of Conduct. These new rules prohibit lenders from hand-picking appraisers. To comply with these new rules, many lenders have started using appraisal management companies that afford them the arm's length relationship with the appraiser. These appraisal management companies hand out assignments to their participating appraisers on a random basis, and they get a significant slice of the appraiser's fee, cutting the amount that actually goes to the on-the-ground appraiser.

So in the meantime, all you can do is tell your buyers to peer carefully over the shoulders of those appraisers. It is important to look at the comparable sales that were used. If you don't feel they are reflective of the market, make the lender aware of that and be more involved in the process.

If an appraisal comes in too low, the borrowers can appeal and pay for another appraisal. They may not get what they want, but at least they'll know they tried.

The SHIP has SUNK!

Housing Update April 20, 2010 for Pasco County, Florida (Pasco County Community Development)

Since 1993, the State of Florida has funded the State Housing Initiatives Partnership (SHIP) program. This program has helped thousands of families become homeowner's, fix homes, save families from foreclosure, and pay taxes and insurance for the elderly in Pasco County. The budget about to be approved for the Legislature has NO funding for SHIP. Most of the documentary stamps collected for housing have been re-allocated to other programs, and what was left was given to the State for down payment assistance for it's own bond program. Because of the loss of SHIP the following programs have been terminated:

• Foreclosure Prevention
• Tax and Insurance Payment Program
• Housing Replacement Program
• Pasco Fix!

We have been adding an additional $10,000 to recipents of the Florida Homebuyer Opportunity Program (FHOP). That will end May 1, 2010. We also have a $3,000 in down payment assistance to everyone. That will end also.

The U.S. Treasury Department announced new guidelines this week designed to make short sales go more smoothly.

Scheduled to launch in April 2010, the Home Affordable Foreclosure Alternatives Program (HAFA) will offer up to $3,500 in incentive payments to qualified borrowers, servicers, and investors who complete short sale transactions for properties with loans on the verge of foreclosure.

HAFA allows the borrower to receive pre-approved short sale terms before the property is listed and frees them from future liability for the debt. Also, servicers utilizing the program are prohibited from requiring a reduction in the real estate commission agreed to in the listing agreement.

To qualify under these new guidelines:

• The property must be the home owner's principal residence.
• The home owner must be delinquent on the mortgage or close to defaulting.
• The loan must have been made before Jan. 1, 2009, and be for less than $729,750.
• The borrower's total monthly mortgage payment must exceed 31 percent of their before-tax income.

The following incentives will apply:

• The borrowers will receive $1,500 from the government for relocation expenses.
• The mortgage-servicing companies will receive a $1,000 from the government to cover administration and processing costs.
• Investors who hold the first mortgage will receive up to $1,000 from the government for allowing the second-mortgage holders to receive up to $3,000 of the sales proceeds in exchange for releasing their liens.

In total, each transaction under HAFA will cost the Tresury up to $3,500 in incentive payments.

Borrowers who complete a short sale under the program must be "fully released" from future liability for the debt, according to the guidelines.

Good News for Homebuyers coming to or already living in Pasco County.....Pasco County is releasing $1 Million in Assistance.

Pasco County will release $1 Million in homebuyer assistance as a Thanksgiving gift to it's citizens. The funds will be allocated as follows;

$500,000.00 will be available to purchasers of brand new homes. The maximum sales price is $240,000.00, and limited to families that earn less than 80% of the median income (currently $47,350.00 for a family of 4). Maximum assistance is $15,000.00

$200,000.00 will be available as additional assistance to first time homebuyers accessing funds through the Florida Homebuyer Opportunity Program. Right now, homebuyers can obtain $8,000.00 to help them purchase a home. Pasco County will provide an additional $10,000.00 in downpayment assistance to those applicants. These funds will be available to families earning less than 120% of the median income ($71,040.00 for a family of 4).

$300,000.00 will be available to all other homebuyers. Pasco County will lend $3,000.00 to homebuyers for downpayment assistance and closing costs. These funds will be available to families earning less than 120% of the median income ($71,040.00 for a family of 4).

This assistance will not be available to applicants purchasing homes through the Neighborhood Stabilization Program.

Funds will be available December 7, 2009.

If you would like more information on this program, please contact April Solomon/Realtor/GRI with I Net Realty Group Inc. at (727) 862-2900 or (727) 809-0475. Cerified Agent in this program and other Pasco County Homebuyer Programs.

The Anclote Key Lighthouse sits on the southern tip of Anclote Key, off the coast of Tarpon Springs, Florida at the mouth of the Anclote River. Tarpon Springs is a historical little town that depends on tourism for it's economy. Tarpon Springs is well known for it's sponges which are found at the bottom of the Anclote River. Walking through the shops and getting a taste of Greek Culture is a must see.

In the midst of all this lies a little island called Anclote Key. The word Anclote is a spanish word meaning Anchor. The island is 180 acres and 4 miles long and not even a mile in width. Much of the 180 acres is marshy and damp which makes it hard to travel around unless you walk along the sand beaches.

Construction of this lighthouse began in June 1887. The lighthouse was completed and first lit on September 15, 1887. The first lens in the tower was a third order Fresnel Lens lighted by a kerosene lamp. The oil house was not built until 1894. The lighthouse structure can be defined as a square pyramid with a cylindrical stairway in the middle with a gallery on top where the light is. Cast iron was the principle building material as it only rusts on the surface and it slower rusting than normal iron or steel. The tower is painted a reddish brown color and the top of the lighthouse gallery is painted black. Tension rods or struts were used to hold the four main supports together.

In 2002 a restoration and stabilization was started once again the light will shine out over the surroundings. This lighthouse is not open to the public.