New FHA Program

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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.

Market Value; Appraiser Charlotte North Carolina

Market value definitions in the USA

In the US, appraisals are performed to a certain standard of value (e.g. -- foreclosure value, fair market value, distressed sale value, investment value).

The most commonly used definition of value is Market Value.While USPAP does not define Market Value, it provides general guidance for how Market Value should be defined:
...a type of value, stated as an opinion, that presumes the transfer of a property (i.e., a right of ownership or a bundle of such rights), as of a certain date, under specific conditions set forth in the definition of the term identified by the appraiser as applicable in an appraisal.

Thus, the definition of value used in an appraisal analysis and report is a set of assumptions about the market in which the subject property may transact. It becomes the basis for selecting comparable data for use in the analysis. These assumptions will vary from definition to definition but generally fall into three categories:

The relationship, knowledge, and motivation of the parties (i.e., seller and buyer);

The terms of sale (e.g., cash, cash equivalent, or other terms); and
The conditions of sale (e.g., exposure in a competitive market for a reasonable time prior to sale).

In the US, the most common definition of Market Value is the one promulgated for use in Federally regulated residential mortgage financing:

The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) both parties are well informed or well advised, and each acting in what he or she considers his or her own best interest; (3) a reasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U. S. dollars or in terms of financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.[3}]
or example, adjustments must be made to the comparables sales prices for special or creative financing or sales concessions. No adjustments are necessary for those costs which are normally paid by sellers as a result of tradition or law in a market area; these costs are readily identifiable since the seller pays these costs in virtually all sales transactions. Special or creative financing adjustments can be made to the comparable property by comparisons to financing terms offered by a third party institutional lender that is not already involved in the property or transaction. Any adjustment should not be calculated on a mechanical dollar for dollar cost of the financing or concession but the dollar amount of any adjustment should approximate the market’s reaction to the financing or concessions based on the appraiser’s judgment.

Valuation Experts is a real estate appraisal firm located in Charlotte, NC.

Real Estate Appraiser Tools Charlotte, North Carolina

Real Estate Appraiser Tools for Charlotte, North Carolina
I would like to share some of my favorite Websites for researching, pulling comps, etc. for Charlotte, North Carolina.
Tax Card Information Mecklenburg County Search for properties, upcoming subdivisions, aerial views, PID #,
Zoning Information.
Online Deed Lookup Great tool to see if that pending property on MLS is closed.
Comparable Search with photos Meck Co. Pull/find comps, Do a market analysis
Flood Zone Search
Zoning Descriptions
Area Planning
GIS Page This page hasit all! From property info, schools, environment, etc.
Online Permit Check Check to see if that addition has a permit, and to find the PID #, and OCC.
Charlotte Statistics
Info on Flood Zones and Community Flood Zones Variuos neighborhoods fall into this category. If the cost of repair or construction is greater than 50% of the value of the structure, then the entire building must be elevated above the projected flood level or otherwise modified to meet current flood code.
Economic and Statistics
Free Building Cost Estimator
Search local codes, and ordinances for any municipility
Economic Development Charlotte
Free Home Value Tool
Free Home Value Tool
Free Home Value Tool
Housing Statistics
You can gather more information at my website www.valuation-expert.com

How to Choose a Real Estate Appraiser

How to choose a real estate appraiser

Because the process of appraising a piece of real estate is usually done at the location of the property, most appraisers will be able to meet their clients at their homes or offices in order to discuss their services. Although some real estate appraisers may have offices where they do research on a property and customers can come and discuss their needs, most interactions with a real estate appraiser will happen at the location of the property. When meeting with a real estate appraiser to discuss your needs and their services, take note of how helpful they are in answering your questions regarding the appraisal process and the services you will receive for your payment. Real estate appraisers may offer a variety of different features associated with their services, so you should find out before hand exactly what you will receive in regards to your appraisal. Some real estate appraisers will offer digital signatures and color photographs along with their final report, as well as computer generated floor plans, replacement cost reports, and email and electronic delivery of appraisal reports and related documents. Depending on your specific appraisal needs, you should find out exactly what services a real estate appraiser offers before deciding to hire them. Because getting an accurate and detailed appraisal is an important part in determining the market value of your property, choosing an experienced and independant real estate appraiser is an important decision.

Valuation Experts is a real estate appraisal firm located in Charlotte, North Carolina
www.valuation-expert.com