Leslie Heimer

I have had a number of clients and associates recently involved in the short sale situation. Many timesthey have walked away from their home, as is, with valueables such as furniture, electronics, collectables, etc that are too combersome or perhaps just too emitionally painful to deal with.

It seems as though these items also have value, especially in high end or luxury homes, which is often untapped. Are their liquidation or estate-sales type companies available to handle this time consuming transaction? Does it just get lost in the mix. What about a situation where an employment relocation takes place and the family can only bring their most personal items?

Hoping my AR friends can offer experience and suggestions to better equip me to advise my clients!

SACRAMENTO - Is this what a bottom looks like?

This city was among the first in the nation to fall victim to the real estate collapse. Now it seems to be in the earliest stages of a recovery, a hopeful sign for an economy mired in trouble and anxiety.

Investors and first-time buyers, the traditional harbingers of a housing rebound, are out in force here, competing for bargain-price foreclosures. With sales up 45 percent from last year, the vast backlog of inventory has diminished. Even prices, which have plummeted to levels not seen since the beginning of the decade, show evidence of stabilizing.

Indications of progress are visible in other hard-hit areas, including Las Vegas, parts of Florida and the Inland Empire in southeastern California. Sales in Las Vegas in March, for example, rose 35 percent from last year.

get full story: copy and paste this link to your browser: http://finance.yahoo.com/real-estate/article/107037/Where-Home-Prices-Crashed-Early-Signs-of-a-Rebound

We know you're very busy and important. And not being treated that way by the businesses you support (holding for 30 minutes when calling your telephone company) these are not the customer service standards that are reflective of the friendly, hometown accomodations you will receive at our company.

However, like many real estate related industries, we are trying hard to not lay off employees and stay in the "black" and with a slow down we made a difficult decision to have our call in number, automated. Now, this is not the automation that requires you to push 4 options before you speak to a real person, but just enter your party's extension or speak to an operator. This was quite a tough decision as we have always had a smiling face greet our customers in the reception area and on each phone call. We certainly realize the value of this initial greeting, but the savings was significant. Where do you weigh in? Leave your input in the comment portion and help keep Premier the best mortgage company around!

Appraisers often have a thankless job - many borrowers and even industry professionals often don't quite understand all that their position in our transaction requires. They dont understand:

A) why they want to paid up front for the service, regardless of the potential closing possibility?
B) "Why is the report taking so long? He left my house an hour ago?"
C) "$400.00 for him to spend 10 minutes at my house, is he kidding?"
or, my personal favorite... D) "Please call your appraiser and let him know I have already purchased the soil for the azaleas I am planting this weekend, my home value will definately have increased by Monday!"

Appraisal reports are intensive with ... dah dum... an actual science and true formulated calculations that must follow strict federal guidelines. These licensed individuals are heavily regulated and often provide the absolute most valuable component to the transaction and/or financing process (sorry Realtors, it's not the contract).

New guidelines will require even more of these real estate partners.

As of April 1st all FHA appraisals are required to include a Market Conditions Addendum a.k.a FNMA Form 1004/MC or FHLMC Form 71.

Even more requirements will son be in effect for all FHA appraisals, as per the hud mortgagee letter. Here are a few in lay terms as they pertain to those in Declining Markets.

Appraisals of properties located in declining markets must include at least two comparable sales that closed within 90 days prior to the effective date of the appraisal. <em> In markets where this isn't available than a detailed explanation must be given, and the appraiser is expected to include at least two sales that are as similar as possible, to the subject and has closed 90 days of the effective date of the appraisal, in order to show recent market activity.

Appraiser must insure that active listings and pending sales are "market tested" and have reasonable market exposure, to avoid the use of "over priced" properties as comparables. Reasonable market exposure is determined by typical marketing times, for the specific neighborhood. Adjust active listings to reflect list to sale price ratios for the market.

Include the original list price, any revised list prices, and total days on the market (DOM). Appraiser is also required to provide an explanation for DOM that do not approximate time frames reported in the Neighborhood section of the appraisal reporting form or that do not coincide with the DOM noted in the Market Conditions Addendum.

Yikes... how much do they make again?

Declining Markets have become a dirty word in our office. Is any market in Florida not considered "declining"? With so many home appraisals falling short of their estimated appraised value, it is no wonder that HUD has now adjusted the guideline in reference to <strong>cash out refinances</strong>. While very few homeowner's have significant equity, in their homes (regardless of original downpayment) the new guideline restricts refinances structured with "cash out" to a total Loan-to-Value Ratio to 85%.

<strong>What does this mean?
EXAMPLE</strong>
700-Score Suzie wants to consolidate her credit card and refinance her home. She purchased her home in 2006 for $210,000 with a sizeable down payment. Over the last few years Suzie made additional principal payments, on her mortgage, in hopes to save thousands in interest over the long run.

The current principal balance of her mortgage is $150,000. She would like to pay off 2 high-interest credit cards totaling $7,000 and take advantage of today's low rates. Suzie home appraisal just came back at $180,000. A previous foreclosure just sold down the street for dirt cheap and is now a new comparable in her market. Suzie is no longer eligible for this loan as her Loan-to-Value ratio is greater than 85%.