www.valuation-expert.com and www.charlotte-appraiser.net
The value of real estate in Iredell County, North Carolina has risen dramatically in the past 20 years. Although as demand and supply fluctuates, not every property in Iredell will increase in value at the same rate. The real estate market in Iredell, NC has been appreciating on a linear scale. The major market forces are the population level, the strength of the national, and local economy, and the availability of financing.
Home appraisers in Iredell County, North Carolina examine the four forces that create value. For any real estate or commodity to have value, the four elements that create value must be present. These elements are demand, utility, scarcity, and transferability. The most common type of value that an property appraiser in Iredell County, NC uses is market value. Home appraisers describe market value as "the most probale price which a property should bring in an open and competitive market. The buyer and seller must be motivated, and the sale must have been exposed to the market for a resonable amount of time. Furthermore, the sales must be an "arm's lenght transaction". Other values can also be used, such as, investment value, going concern value, liquadation value, etc.
Property appraisers in Iredell, North Carolina use basic value principles in their appraisal process. The principle of anticipation says that a property's value may be affected by an expectaion of a future event. Such as a residential property turning into a commercail use, or a new highway being built next to a residential subdivision. Appraisals in Iredell must research and anlyaze future uses of other properties.
Real estate appraisers offering appraisals in Iredell, North Carolina must consider the theory or balance. Real estate in Iredell is unique, immovable product. Land will tend to be at its highest value when the four factors of production are in balance, which are land, labor, capital and management. With the appropriate proportion of residential, commerical, and industrail land uses, all properties in Iredell benifit by the ability of the area to attract and keep both residences and business. This might be noted in the appraisal report.
All properties in Iredell are influenced by the economic theory of change. No pysical or econonmic condition remains constant. Natural changes, wear and tear, economic changes, all affect the market value of properties that are located in Iredell County, North Carolina.
Showing posts with label North Carolina. Show all posts
Showing posts with label North Carolina. Show all posts
Tuesday, July 15, 2008
Saturday, May 17, 2008
New FHA Program
www.valuation-expert.com
The Bush administration has unveiled a plan that would expand the FHASecure program to help up to 100,000 more at-risk homeowners by the end of 2008. The program expansion would allow the FHA to insure new mortgages if a lender voluntarily wrote down the mortgage principal to a maximum of either 90 percent or 97 percent of the new value, depending on the borrower's risk profile, according to Federal Housing Administration Commissioner Brian Montgomery.
Montgomery’s comments came at an April 9 House Financial Services Committee hearing, which was held in response to a broader proposal by panel Chairman Barney Frank, D-Mass. Frank’s proposal would have the FHA back from $300 billion to $400 billion in restructured loans for distressed borrowers if lenders were willing to take a substantial loss on the mortgages. Frank estimated that his proposal would reach between 1 million and 2 million borrowers.
The legislation first announced by Frank in March, was divided into two measures: H.R. 5830, the FHA Housing and Homeowner Retention Act, and H.R. 5818, the Neighborhood Stabilization Act of 2008.
H.R. 5818, introduced by Subcommittee on Housing and Community Opportunity Chairwoman Maxine Waters, D-Calif., would provide loans and grants to states and cities to deal with problems associated with large numbers of foreclosures in neighborhoods across the country.
H.R. 5830 would expand the FHA program to help refinance at-risk borrowers into viable mortgages and also requires the Federal Reserve Board to conduct a study on the need for an auction or bulk refinancing mechanism. Specifically, H.R. 5830 would institute a voluntary program that would permit FHA to provide up to $300 billion in new guarantees to help refinance at-risk borrowers into viable mortgages. To be eligible for such monies, existing mortgage holders/investors must accept their losses – taking substantial write-downs sufficient to: (1) establish a 3 percent loan loss reserve for the FHA; (2) pay the origination and closing costs for the new loan up to 2 percent; and (3) bring the loan-to-value ratio on the new FHA-guaranteed loan down to no greater than 90 percent of property’s current appraised value, resulting in a substantial reduction in debt service to the borrower. Accordingly, to qualify mortgage holders would need to accept a substantial write-down, accepting as payment in full no more than 85 percent of the property’s current appraised value.
As for new FHA-insured loans, they would have to be properly underwritten and based on current appraised value of the house and borrower’s documented income (borrowers with higher – but not disqualifying – debt levels would need to make six months of timely payments at the new payment level to qualify for the guarantee).
A committee mark-up session and vote on the two measures was scheduled for April 30 and May 1st. Results were not available at press time, but will be forthcoming in subsequent issues of Appraiser News Online.
The Bush administration has unveiled a plan that would expand the FHASecure program to help up to 100,000 more at-risk homeowners by the end of 2008. The program expansion would allow the FHA to insure new mortgages if a lender voluntarily wrote down the mortgage principal to a maximum of either 90 percent or 97 percent of the new value, depending on the borrower's risk profile, according to Federal Housing Administration Commissioner Brian Montgomery.
Montgomery’s comments came at an April 9 House Financial Services Committee hearing, which was held in response to a broader proposal by panel Chairman Barney Frank, D-Mass. Frank’s proposal would have the FHA back from $300 billion to $400 billion in restructured loans for distressed borrowers if lenders were willing to take a substantial loss on the mortgages. Frank estimated that his proposal would reach between 1 million and 2 million borrowers.
The legislation first announced by Frank in March, was divided into two measures: H.R. 5830, the FHA Housing and Homeowner Retention Act, and H.R. 5818, the Neighborhood Stabilization Act of 2008.
H.R. 5818, introduced by Subcommittee on Housing and Community Opportunity Chairwoman Maxine Waters, D-Calif., would provide loans and grants to states and cities to deal with problems associated with large numbers of foreclosures in neighborhoods across the country.
H.R. 5830 would expand the FHA program to help refinance at-risk borrowers into viable mortgages and also requires the Federal Reserve Board to conduct a study on the need for an auction or bulk refinancing mechanism. Specifically, H.R. 5830 would institute a voluntary program that would permit FHA to provide up to $300 billion in new guarantees to help refinance at-risk borrowers into viable mortgages. To be eligible for such monies, existing mortgage holders/investors must accept their losses – taking substantial write-downs sufficient to: (1) establish a 3 percent loan loss reserve for the FHA; (2) pay the origination and closing costs for the new loan up to 2 percent; and (3) bring the loan-to-value ratio on the new FHA-guaranteed loan down to no greater than 90 percent of property’s current appraised value, resulting in a substantial reduction in debt service to the borrower. Accordingly, to qualify mortgage holders would need to accept a substantial write-down, accepting as payment in full no more than 85 percent of the property’s current appraised value.
As for new FHA-insured loans, they would have to be properly underwritten and based on current appraised value of the house and borrower’s documented income (borrowers with higher – but not disqualifying – debt levels would need to make six months of timely payments at the new payment level to qualify for the guarantee).
A committee mark-up session and vote on the two measures was scheduled for April 30 and May 1st. Results were not available at press time, but will be forthcoming in subsequent issues of Appraiser News Online.
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