Michelle Murphy Jopp

Has anyone heard of a homeowner who has been successful at actually getting a loan modification? It seems that the hoops are unrealistic for these homeowners to actually satisfy the mortgage company requirements. Some of these people should put there home on the market and try for a short sale. By prolonging the inevitable is this pouring salt in the wound? Do we know how this will affect their credit??

I am also seeing internet companies trying to make money on these homeowner's suffering? How can we stop these predators? This is a blemish on our industry.

I think now is the time to be realistic, if you are so upside down that you will never see your home value coming back in the life you will be in your home, SELL!!!SELL!!SELL!!!

After working with a nice young couple, we found a home to write a PA on. Yes, they said they could afford more than they actually could, but this was cleared up during pre approval. After settling on a price, we had issues with the appraisal. The appraisal came in $5,000 too low, on a $220k sales price, on an FHA appraisal. I raised Hell and after 2 appraisals, the underwriter would not budge. Because the Buyer's back up home was handled by a different Realtor ( family purchase) we already were pushing the closing date out 2 weeks. The Seller's had moved out of the home and were furious. I negotiated a reduction in sales price from, he didn't "feel" that it was the right thing. The deal was dead. The FHA appraisal stays with the home for 6 months, the Listing Realtor had to go Conventional. The home was sold for $217,000. After 1 month , the home was on the market again with another Broker and sold for $230,000. I lost my commission. The home , in this market, flipped within 2 months and for $15,000 more than the FHA appraisal, that I fought, tooth and nail against.

Is the system broken ?? What are your thoughts??

As I sit in an Open House, waiting for an unrepresented client, I am wondering what new fangled tricks can I use to get more business. I am not trying to always reinvent the wheel, but I do like to think about how to make the wheels better, faster, stronger. I am looking for cool "spinner" ideas. Luckily, I have a lap top and air card and am never really out of things to do. I talk about things other than the home, I try to be personable and engaging. I always have facts and flyers about the area and house. I preview homes in the area. I have school information. I ask open ended questions...

Just wondering if I am forgetting something......Any advice would be welcomed.

Here we are, Sept 2009. The $8,000 tax credit may end November 30. Let's pretend it does, and that NAR doesn't get the date extended. When things do stabilize and home prices ever so slightly creep up, the interest rates will go up. Home prices vary so much per neighborhood, that homeowners can't really know what is happening with home prices, but interest rates, that is much clearer to them. As interest rates rise, what do you think will happen to people's psyche? Will they do the math??? Or will they just see that they can get more for their home and be more apt to sell and buy something else. It will be interesting to see how motivated people are. The coffee talk may change..Or maybe we will just hear the same song ,"There is no difference if I sell high ,because I will buy high, and vice versa". If this is really what happens then why would you ever move at all? I know!! You have lifestyle changes, marriages, new children, divorces, deaths, relocations,... All the reasons people move year in year out...

It is a good time to buy NOW. If I can help you buy or sell, please contact me.

www.michellejopp.edinarealty.com

July 30th is the drop dead date for the change from old practices to new. What Hera Hoepa is really saying is, let's do business, the way we should have in the beginning. Tell people who are buying a home exactly what they will be paying for the duration of their loan and tell them clearly and timely, so they will fully understand their major decision to buy a home.

The bottom line is: It may take longer for our buyers to successfully close on a home, which will effect the Seller and the next buy and the next Seller etc...

The onus will be on the Realtors to insure those appraisals will come in at PA, or above. This means the Listing Realtor needs to continuously do current comps and price correctly. The Appraisers who now cannot communicate with the financial concerns, will have to be very good at their knowledge of the area and fully understand the current comps.

Communication is always the answer. Managing expectations and being the expert will benefit your clients.