Mecklenburg County www.valuation-expert.com
www.charlotte-appraiser.net
The value of real estate in Mecklenburg County, North Carolina has risen dramatically in the past 20 years. Although as demand and supply fluctuates, not every property in Mecklenburg will increase in value at the same rate. The real estate market in Mecklenburg, 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.
FHA Home appraisers in Mecklenburg 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 Mecklenburg County, NC uses is market value. Home appraisers describe market value as "the most probable 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 reasonable amount of time. Furthermore, the sales must be an "arm's length transaction". Other values can also be used, such as, investment value, going concern value, liquidation value, etc.
FHA Property appraisers in Mecklenburg County, 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 expectation of a future event. Such as a residential property turning into a commercial use, or a new highway being built next to a residential subdivision. Appraisers in Mecklenburg must research and analyze future uses of other properties.
Real estate appraisers offering appraisals in Mecklenburg, North Carolina must consider the theory or balance. Real estate in Mecklenburg 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, commercial, and industrial land uses, all properties in Mecklenburg benefit by the ability of the area to attract and keep both residences and business.
All properties in Mecklenburg County NC are influenced by the economic theory of change. No physical or economic condition remains constant. Natural changes, wear and tear, economic changes, all affect the market value of properties that are located in Mecklenburg County, North Carolina. Copyright 2007-2008. Valuation Experts, Inc. All rights reserved. Waxhaw NC, Indian Trail NC, Charlotte NC, Weddington NC, Matthews NC, Huntersville NC, Marvin NC. Make sure your appraiser is local, and experienced, and beware of those middle man management appraisal firms.
Sunday, August 3, 2008
Wednesday, July 16, 2008
FHA Appraiser Program Charlotte, North Carolina
www.charlotte-appraiser.net
FHA/HUD News:
As you know, in response to the housing crisis, FHA has expanded its mission to help more Americans facing foreclosure refinance into safer, more affordable mortgages. In late August 2007, President Bush introduced a new product called FHASecure for homeowners who were unable to make their mortgage payments after their interest rate reset. Since then, more than 260,000 families have refinanced with FHA. Hundreds of thousands more will refinance with FHA by the end of the year.
Starting on July 14th, FHASecure will begin to provide additional assistance to subprime borrowers with adjustable rate mortgages, and help to restore liquidity and stability to the markets. It will assist families who have missed up to three monthly mortgage payments over the previous 12 months or have experienced temporary economic hardship, such as loss of overtime or medical needs, as well as those who were affected by payment shock. The expansion will also encourage lenders to voluntarily write down outstanding subprime mortgage principal.
We estimate this plan will help an additional 100,000 families refinance into more affordable FHA-insured loans by the end of the year.
The combination of all efforts under FHASecure will help a total of 500,000 families by year's end. Our monthly refinancings this fiscal year are already more than five times the level of 2006. It is clear people are coming to us as their solution for the future.
As part of this expansion, we are instituting a fairer, more flexible premium pricing structure at FHA. Like any other insurance company, FHA will begin pricing the insurance premiums for these borrowers according to their credit risk. This will eliminate a pricing inequity that treats applicants with a low risk of default the same as those with a high risk of default.
Risk-based pricing will benefit many borrowers, especially lower-income American families. In FHA's portfolio, families with the lower incomes actually have higher FICO scores. These are hard-working American families who live within their means and pay their bills on time. Pricing mechanisms should reflect that fact.
The bill currently moving through the Senate would place a moratorium on risk-based pricing. That would be a big mistake. FHA will have to increase premiums across the board on all borrowers or, alternatively, seek taxpayer funds in October to cover potential losses, or cut back on the program at the very time we are an island of hope for hundreds of thousands of Americans.
In addition to a possible moratorium on risk-based pricing, Congress may require FHA to accept mortgage insurance loans with seller-funded down payment assistance. The option for FHA not to insure such mortgages would be removed. This would not only be costly for FHA but could be expensive for taxpayers, too. Even if FHA raised premiums to a max of 2.25 percent upfront for all borrowers across the board, it would still need to seek an appropriation to cover the losses caused this practice.
We have issued a regulation to address seller-funded down payments. We are in a comment period right now, and I intend to look hard at those comments. Therefore, I do not want to discuss this matter in great detail. The comments are important to us and we will look at them carefully. But the reason for our efforts to regulate in this area is that FHA-backed mortgages with seller-funded down payments go into foreclosure at three times the rate of FHA's remaining portfolio. Because of a lack of equity, losses on these seller-funded down payment mortgages are significantly greater. We remain solvent and in good shape today. But no insurance company can continue to absorb losses of this magnitude.
At the end of the day, I hope reason will prevail. FHA is more important to the mortgage market now than it has been for many years. FHA's volume and market share continue to grow every month. I hope final legislation from Congress would put forward actions that can keep FHA solvent, self-financing, and responsibly able to help homeowners. Taxpayers should not have to absorb preventable, foreseeable losses.
We are looking for the Congress to pass responsible legislation that will help FHA continue to provide stability for the housing market and provide government-backed mortgages for low-and-moderate income families.
Thank you.
This letter is provided via RSS feed from www.valuation-expert.com
FHA/HUD News:
As you know, in response to the housing crisis, FHA has expanded its mission to help more Americans facing foreclosure refinance into safer, more affordable mortgages. In late August 2007, President Bush introduced a new product called FHASecure for homeowners who were unable to make their mortgage payments after their interest rate reset. Since then, more than 260,000 families have refinanced with FHA. Hundreds of thousands more will refinance with FHA by the end of the year.
Starting on July 14th, FHASecure will begin to provide additional assistance to subprime borrowers with adjustable rate mortgages, and help to restore liquidity and stability to the markets. It will assist families who have missed up to three monthly mortgage payments over the previous 12 months or have experienced temporary economic hardship, such as loss of overtime or medical needs, as well as those who were affected by payment shock. The expansion will also encourage lenders to voluntarily write down outstanding subprime mortgage principal.
We estimate this plan will help an additional 100,000 families refinance into more affordable FHA-insured loans by the end of the year.
The combination of all efforts under FHASecure will help a total of 500,000 families by year's end. Our monthly refinancings this fiscal year are already more than five times the level of 2006. It is clear people are coming to us as their solution for the future.
As part of this expansion, we are instituting a fairer, more flexible premium pricing structure at FHA. Like any other insurance company, FHA will begin pricing the insurance premiums for these borrowers according to their credit risk. This will eliminate a pricing inequity that treats applicants with a low risk of default the same as those with a high risk of default.
Risk-based pricing will benefit many borrowers, especially lower-income American families. In FHA's portfolio, families with the lower incomes actually have higher FICO scores. These are hard-working American families who live within their means and pay their bills on time. Pricing mechanisms should reflect that fact.
The bill currently moving through the Senate would place a moratorium on risk-based pricing. That would be a big mistake. FHA will have to increase premiums across the board on all borrowers or, alternatively, seek taxpayer funds in October to cover potential losses, or cut back on the program at the very time we are an island of hope for hundreds of thousands of Americans.
In addition to a possible moratorium on risk-based pricing, Congress may require FHA to accept mortgage insurance loans with seller-funded down payment assistance. The option for FHA not to insure such mortgages would be removed. This would not only be costly for FHA but could be expensive for taxpayers, too. Even if FHA raised premiums to a max of 2.25 percent upfront for all borrowers across the board, it would still need to seek an appropriation to cover the losses caused this practice.
We have issued a regulation to address seller-funded down payments. We are in a comment period right now, and I intend to look hard at those comments. Therefore, I do not want to discuss this matter in great detail. The comments are important to us and we will look at them carefully. But the reason for our efforts to regulate in this area is that FHA-backed mortgages with seller-funded down payments go into foreclosure at three times the rate of FHA's remaining portfolio. Because of a lack of equity, losses on these seller-funded down payment mortgages are significantly greater. We remain solvent and in good shape today. But no insurance company can continue to absorb losses of this magnitude.
At the end of the day, I hope reason will prevail. FHA is more important to the mortgage market now than it has been for many years. FHA's volume and market share continue to grow every month. I hope final legislation from Congress would put forward actions that can keep FHA solvent, self-financing, and responsibly able to help homeowners. Taxpayers should not have to absorb preventable, foreseeable losses.
We are looking for the Congress to pass responsible legislation that will help FHA continue to provide stability for the housing market and provide government-backed mortgages for low-and-moderate income families.
Thank you.
This letter is provided via RSS feed from www.valuation-expert.com
Tuesday, July 15, 2008
Home, Property Appraiser Iredell County, North Carolina
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.
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.
Monday, July 14, 2008
Property Appraisers Union County, North Carolina
For a local, professional appraiser in Union County, Waxhaw, Indian Trail, Weddington, Monroe, Matthews, North Carolina, visit www.charlotte-appraiser.net or www.valuation-expert.com
Valuation Experts is your local home appraiser. Oftentimes rural areas that suddenly experience population growth spurts will see extraordinary increases in UNION, North Carolina house values. On the other hand, areas that seem to stagnate when it comes to growth don't see home values rise all that much unless the area is a highly-desirable area, such as Weddington, Waxhaw, Marvin, Indian Trail, North Carolina. And even further down the spectrum you see areas that are splendid where NC house values are strong. The best way to find out the accurate truth is to order an real estate home appraisal from Valuation Experts.
How can you determine UNION, North Carolina Property Values? By hiring a local property appraiser who has extensice experiance appraising UNION, North Carolina Properties. Because of this, the appraiser's job holds great importance to anyone who seeks to buy or sell a home in Union County, as they are the ones who through extensive research determine UNION, North Carolina property value.
Home value is very important in UNION, North Carolina as homes values could be deprecaiting. There is nothing more encouraging than knowing the actual property value of your UNION, North Carolina home. Get your Home Value form a home appraiser who knows UNION County, NC well. Home value is determined by critically examining all of the available data related to a particular home. Many UNION, North Carolina Realtors now have the ability to post all of the listings in the Carolina MLS on their own public websites. Most Multiple Listing Services also upload their inventory to national sites. These numbers can be misleading in a declining market.
A property coupled with an home appraisal equates to UNION County, North Carolina home value. This is accomplished by taking recently sold sales, and active and pending listings of the UNION, County NC home and comparing it to an median set of standards, which are dictated by the NC home values in the area. In its simplest form the home is compared to one House and to another house and from there an estimated home value is determined. Although this is a brief summary at best, it does help to illustrate the principles of home evaluation. Get appraisers in UNION, NC www.valuation-expert.com or www.charlotte-appraiser.net.
Valuation Experts is your local home appraiser. Oftentimes rural areas that suddenly experience population growth spurts will see extraordinary increases in UNION, North Carolina house values. On the other hand, areas that seem to stagnate when it comes to growth don't see home values rise all that much unless the area is a highly-desirable area, such as Weddington, Waxhaw, Marvin, Indian Trail, North Carolina. And even further down the spectrum you see areas that are splendid where NC house values are strong. The best way to find out the accurate truth is to order an real estate home appraisal from Valuation Experts.
How can you determine UNION, North Carolina Property Values? By hiring a local property appraiser who has extensice experiance appraising UNION, North Carolina Properties. Because of this, the appraiser's job holds great importance to anyone who seeks to buy or sell a home in Union County, as they are the ones who through extensive research determine UNION, North Carolina property value.
Home value is very important in UNION, North Carolina as homes values could be deprecaiting. There is nothing more encouraging than knowing the actual property value of your UNION, North Carolina home. Get your Home Value form a home appraiser who knows UNION County, NC well. Home value is determined by critically examining all of the available data related to a particular home. Many UNION, North Carolina Realtors now have the ability to post all of the listings in the Carolina MLS on their own public websites. Most Multiple Listing Services also upload their inventory to national sites. These numbers can be misleading in a declining market.
A property coupled with an home appraisal equates to UNION County, North Carolina home value. This is accomplished by taking recently sold sales, and active and pending listings of the UNION, County NC home and comparing it to an median set of standards, which are dictated by the NC home values in the area. In its simplest form the home is compared to one House and to another house and from there an estimated home value is determined. Although this is a brief summary at best, it does help to illustrate the principles of home evaluation. Get appraisers in UNION, NC www.valuation-expert.com or www.charlotte-appraiser.net.
Sunday, July 13, 2008
Home Appraisers Charlotte, Indian Trail, Weddington, Waxhaw, NC
http://www.valuation-expert.com/Charlotte.html
www.valuation-expert.com
www.charlotte-appraiser.net
Home appraisers in CHARLOTTE, North Carolina examine the site of of the property that is being appraised. The purpose of the site analysis of properties that are located in CHARLOTTE is to identify the various site characteristics that affect the marketability of homes prices in CHARLOTTE.
Some of the site analysis that property appraisers in CHARLOTTE identify are:
- appraisers determine the desirability and the utility of sites in CHARLOTTE, NC.
- in real estate appraisal reports, one should find any external or functional problems with a site
that is located in CHARLOTTE, NC
- appraisers also examine supply and demand for sites in CHARLOTTE, NC
- home appraisers in CHARLOTTE, NC should appraise the current situation and have knowledge of the various trends that could affect the valuation of sites in CHARLOTTE, North Carolina.
The principal of change is fundamental to appraising homes in CHARLOTTE, North Carolina, and to properly analyze a site. Value is created and modified in CHARLOTTE, North Carolina by economic, social, and governmental changes that occur outside sites that are located in CHARLOTTE, NC. Property appraisers should evaluate the direction of these trends and determine their effect, if any, on the market values in CHARLOTTE, North Carolina.
Property appraisers in CHARLOTTE, NC observe and report on economic trends. The home appraiser must give consideration to, and include in the value analysis, the economic trends of CHARLOTTE, North Carolina, including:
- price and wage levels, the purchasing power of CHARLOTTE home buyer's
- employment characteristics of CHARLOTTE, North Carolina
- home appraisers must examine the current supply and demand for residential dwellings
- Charlotte tax levels, population changes
The CHARLOTTE home appraiser will consider three approaches to value. The most common approach used to value residential properties in CHARLOTTE, North Carolina is the sales comparison approach. Property appraisers in CHARLOTTE, NC use the sales comparison approach to value as an analysis of comparable sales, contract offerings, and current and expired listings of properties located in CHARLOTTE, NC. Real estate appraisers in CHARLOTTE, North Carolina, analysis of the properties that are most similar to the subject property, and takes into account all factors that have an effect on value, and recognizing that a well-informed or well-advised purchaser will pay no more for a property than the price they would pay for a similar property in CHARLOTTE, NC of equal desirability and without undue delay.
www.valuation-expert.com
www.charlotte-appraiser.net
Home appraisers in CHARLOTTE, North Carolina examine the site of of the property that is being appraised. The purpose of the site analysis of properties that are located in CHARLOTTE is to identify the various site characteristics that affect the marketability of homes prices in CHARLOTTE.
Some of the site analysis that property appraisers in CHARLOTTE identify are:
- appraisers determine the desirability and the utility of sites in CHARLOTTE, NC.
- in real estate appraisal reports, one should find any external or functional problems with a site
that is located in CHARLOTTE, NC
- appraisers also examine supply and demand for sites in CHARLOTTE, NC
- home appraisers in CHARLOTTE, NC should appraise the current situation and have knowledge of the various trends that could affect the valuation of sites in CHARLOTTE, North Carolina.
The principal of change is fundamental to appraising homes in CHARLOTTE, North Carolina, and to properly analyze a site. Value is created and modified in CHARLOTTE, North Carolina by economic, social, and governmental changes that occur outside sites that are located in CHARLOTTE, NC. Property appraisers should evaluate the direction of these trends and determine their effect, if any, on the market values in CHARLOTTE, North Carolina.
Property appraisers in CHARLOTTE, NC observe and report on economic trends. The home appraiser must give consideration to, and include in the value analysis, the economic trends of CHARLOTTE, North Carolina, including:
- price and wage levels, the purchasing power of CHARLOTTE home buyer's
- employment characteristics of CHARLOTTE, North Carolina
- home appraisers must examine the current supply and demand for residential dwellings
- Charlotte tax levels, population changes
The CHARLOTTE home appraiser will consider three approaches to value. The most common approach used to value residential properties in CHARLOTTE, North Carolina is the sales comparison approach. Property appraisers in CHARLOTTE, NC use the sales comparison approach to value as an analysis of comparable sales, contract offerings, and current and expired listings of properties located in CHARLOTTE, NC. Real estate appraisers in CHARLOTTE, North Carolina, analysis of the properties that are most similar to the subject property, and takes into account all factors that have an effect on value, and recognizing that a well-informed or well-advised purchaser will pay no more for a property than the price they would pay for a similar property in CHARLOTTE, NC of equal desirability and without undue delay.
Friday, June 20, 2008
Home Appraiser Charlotte, NC
Home Appraiser Charlotte, Mecklenburg, Union, North Carolina
www.valuation-expert.com or www.charlotte-appraiser.net
Property Appraisals Monroe, Huntersville, Mooresville, Pineville, Waxhaw, Indian Trail, Matthews, Weddington, Marvin, NC
Provided by Valuation Experts via RSS feed
FHA REACHING OUT TO 675,000 AT-RISK HOMEOWNERS IN SECOND PHASE OF DIRECT MAIL CAMPAIGN
Hundreds of thousands of homeowners urged to consider safer, more affordable FHA-backed mortgages
WASHINGTON - This week, HUD's Federal Housing Administration (FHA) is mailing hundreds of thousands of letters to homeowners at risk of losing their homes through foreclosure and urging them to consider a safer, more affordable alternative to the high-cost mortgages they are currently paying. The first round of 280,000 letters was mailed in February. FHA's public awareness campaign will continue through September, ultimately reaching 850,000 distressed homeowners.
"This letter might be the most important piece of mail many of these families will receive all year," said HUD Secretary Steve Preston. "This information could not only help save their current home, it could help provide them with long term financial security. This outreach campaign will ensure families are aware of the safe mortgage alternative offered by FHA."
Letters are being sent to homeowners who have already faced or are experiencing the first reset of their adjustable rate mortgages. Through the end of the year, FHA can insure home loans valued between $271,050 and $729,750. Normally these loan limits are set between $200,160 and $362,790 but were expanded through President Bush's Economic Stimulus Package. Bipartisan FHA Modernization legislation awaiting final action by the Senate and House of Representatives would permanently increase the loan limits to an acceptable level.
FHA-insured loans are backed by the full faith and credit of the government, which typically allows lenders to offer mortgage products at a lower, more affordable interest rate. More than 90 percent of FHA-backed mortgages are 30-year, fixed rate products. FHA also provides a one-of-a-kind loss mitigation program that helps protect borrowers against foreclosure. Finally, FHASecure, which allows borrowers who are current and delinquent on their loans to refinance with the FHA, is saving tens of thousands of families on average $400 a month compared to their exotic subprime loans.
Below is a copy of the letter being sent to homeowners.
-----
Dear Homeowner,
Do you need help with your mortgage?
Your area is experiencing a disturbing home foreclosure rate that has accelerated in recent months. News reports cite the damaging effects of "sub prime loans" as a major factor in the unsettled market. By focusing on education and safe mortgage alternatives, though, the Federal Housing Administration (FHA) of the United States Department of Housing and Urban Development (HUD) is working diligently to address this unacceptable foreclosure trend.
Over the past few months, FHA has worked with mortgage loan servicers to identify solutions for the crisis facing current homeowners. Your current mortgage does not have to be FHA insured for you to benefit from our help. If you are facing financial difficulties due to a recent or imminent mortgage reset, or other housing-related difficulty, I urge you to contact us at 1 (800) CALL-FHA or to visit www.fha.gov. There you will have the opportunity to learn about foreclosure prevention, legal rights, and credit counseling, among other topics.
Many homeowners may also be able to take advantage of our recently announced FHASecure program. This new program allows eligible homeowners to refinance into a secure, fixed-rate FHA loan even if they are in default.
Additionally, a new partnership between mortgage companies and non-profit housing counselors called HOPE NOW is available to you. Their mission is simple: reach out to homeowners who may be having difficulty paying their mortgages. For more information or to see if your mortgage company is a member of this caring coalition please go to www.hopenow.com.
Again, please contact us at 1 (800) CALL-FHA (800-225-5342) or go to www.fha.gov. As part of the federal government, the Federal Housing Administration wants to help you protect and preserve the American dream - your home.
Sincerely,
Brian D. Montgomery
Assistant Secretary for Housing
Federal Housing Commissioner
###
HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development, and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov. For more information about FHA products, please visit www.fha.gov.
www.valuation-expert.com or www.charlotte-appraiser.net
Property Appraisals Monroe, Huntersville, Mooresville, Pineville, Waxhaw, Indian Trail, Matthews, Weddington, Marvin, NC
Provided by Valuation Experts via RSS feed
FHA REACHING OUT TO 675,000 AT-RISK HOMEOWNERS IN SECOND PHASE OF DIRECT MAIL CAMPAIGN
Hundreds of thousands of homeowners urged to consider safer, more affordable FHA-backed mortgages
WASHINGTON - This week, HUD's Federal Housing Administration (FHA) is mailing hundreds of thousands of letters to homeowners at risk of losing their homes through foreclosure and urging them to consider a safer, more affordable alternative to the high-cost mortgages they are currently paying. The first round of 280,000 letters was mailed in February. FHA's public awareness campaign will continue through September, ultimately reaching 850,000 distressed homeowners.
"This letter might be the most important piece of mail many of these families will receive all year," said HUD Secretary Steve Preston. "This information could not only help save their current home, it could help provide them with long term financial security. This outreach campaign will ensure families are aware of the safe mortgage alternative offered by FHA."
Letters are being sent to homeowners who have already faced or are experiencing the first reset of their adjustable rate mortgages. Through the end of the year, FHA can insure home loans valued between $271,050 and $729,750. Normally these loan limits are set between $200,160 and $362,790 but were expanded through President Bush's Economic Stimulus Package. Bipartisan FHA Modernization legislation awaiting final action by the Senate and House of Representatives would permanently increase the loan limits to an acceptable level.
FHA-insured loans are backed by the full faith and credit of the government, which typically allows lenders to offer mortgage products at a lower, more affordable interest rate. More than 90 percent of FHA-backed mortgages are 30-year, fixed rate products. FHA also provides a one-of-a-kind loss mitigation program that helps protect borrowers against foreclosure. Finally, FHASecure, which allows borrowers who are current and delinquent on their loans to refinance with the FHA, is saving tens of thousands of families on average $400 a month compared to their exotic subprime loans.
Below is a copy of the letter being sent to homeowners.
-----
Dear Homeowner,
Do you need help with your mortgage?
Your area is experiencing a disturbing home foreclosure rate that has accelerated in recent months. News reports cite the damaging effects of "sub prime loans" as a major factor in the unsettled market. By focusing on education and safe mortgage alternatives, though, the Federal Housing Administration (FHA) of the United States Department of Housing and Urban Development (HUD) is working diligently to address this unacceptable foreclosure trend.
Over the past few months, FHA has worked with mortgage loan servicers to identify solutions for the crisis facing current homeowners. Your current mortgage does not have to be FHA insured for you to benefit from our help. If you are facing financial difficulties due to a recent or imminent mortgage reset, or other housing-related difficulty, I urge you to contact us at 1 (800) CALL-FHA or to visit www.fha.gov. There you will have the opportunity to learn about foreclosure prevention, legal rights, and credit counseling, among other topics.
Many homeowners may also be able to take advantage of our recently announced FHASecure program. This new program allows eligible homeowners to refinance into a secure, fixed-rate FHA loan even if they are in default.
Additionally, a new partnership between mortgage companies and non-profit housing counselors called HOPE NOW is available to you. Their mission is simple: reach out to homeowners who may be having difficulty paying their mortgages. For more information or to see if your mortgage company is a member of this caring coalition please go to www.hopenow.com.
Again, please contact us at 1 (800) CALL-FHA (800-225-5342) or go to www.fha.gov. As part of the federal government, the Federal Housing Administration wants to help you protect and preserve the American dream - your home.
Sincerely,
Brian D. Montgomery
Assistant Secretary for Housing
Federal Housing Commissioner
###
HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development, and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov. For more information about FHA products, please visit www.fha.gov.
Tuesday, June 10, 2008
FHA OFFICALS SEEK TO BAN SELLER ASSISTED DOWN PAYMENTS
THE WALL STREET JOURNAL via RSS feed
Federal housing officials are trying again to ban seller-assisted down payments on federally insured mortgages, amid concerns about mounting losses tied to these loans.
The Federal Housing Administration has reopened a public-comment period on a proposed rule on such assistance, which the agency says leads to higher-than-normal foreclosure rates.
Under the seller-funding practice, a third party -- typically a charity -- provides the down payment for the buyer and is then reimbursed by the home seller, often a home builder. This can help home sellers close deals with buyers who can't come up with down payments on their own.
FHA Commissioner Brian Montgomery said Monday that the government-backed loans made to borrowers who receive down-payment assistance go into foreclosure at three times the rate of loans in which borrowers pay for their own down payment. Loans with seller-assisted down payments make up about 35% of the FHA's loan portfolio, up from only 5% in 2001.
After a recent evaluation, the FHA estimates it will incur an additional $4.6 billion in unanticipated long-term losses, primarily due to loans involving seller-funded down-payment gifts.
"We are concerned about this business, because the substantial losses affect FHA's bottom line and FHA's ability to serve American citizens who need access to prime-rate home loans," Mr. Montgomery said during a speech at the National Press Club.
FHA-insured mortgages, which require down payments, have become more popular amid the shrinking of the subprime-mortgage market.
Last year, a federal judge in the District of Columbia, issued a preliminary injunction against an earlier ban on seller-assisted down-payment gifts proposed by the Department of Housing and Urban Development. The judge ruled that HUD "failed to provide a rational basis in support" of the ban.
HUD spokesman Brian Sullivan said in an interview that the agency, "lost on a technicality. The court gave us a good road map for how to get it done."
Since the 1970s, HUD has permitted buyers to use gifts from family members, employers or charities for down payments.
"We have tried to work cooperatively with HUD to try and ensure that working families have access to homeownership through this model," says Scott Syphax, chief executive of Nehemiah Corp. of America, one of the nation's largest down-payment-gifting groups. "HUD has shut us down every step of the way."
For example, Mr. Syphax says HUD officials have refused to consider Nehemiah's suggestions that they scrutinize appraisals in an effort to prevent sellers from inflating home prices by including gift costs. Mr. Sullivan declined to comment on that criticism. "We are allowing the public-comment period as the appropriate forum for them to express any reservation they have about our rule," Mr. Sullivan says.
Mr. Syphax says his group would oppose the latest effort to ban the down-payment gifts. "We will use all legal means at our disposal in order to protect this portal to homeownership for the families who are underserved in an ever-worsening credit market." he says.
For an experienced FHA property appraiser in Charlotte, Mecklenburg, Union, NC, visit out website at www.valuation-expert.com or www.charlotte-appraiser.net
Federal housing officials are trying again to ban seller-assisted down payments on federally insured mortgages, amid concerns about mounting losses tied to these loans.
The Federal Housing Administration has reopened a public-comment period on a proposed rule on such assistance, which the agency says leads to higher-than-normal foreclosure rates.
Under the seller-funding practice, a third party -- typically a charity -- provides the down payment for the buyer and is then reimbursed by the home seller, often a home builder. This can help home sellers close deals with buyers who can't come up with down payments on their own.
FHA Commissioner Brian Montgomery said Monday that the government-backed loans made to borrowers who receive down-payment assistance go into foreclosure at three times the rate of loans in which borrowers pay for their own down payment. Loans with seller-assisted down payments make up about 35% of the FHA's loan portfolio, up from only 5% in 2001.
After a recent evaluation, the FHA estimates it will incur an additional $4.6 billion in unanticipated long-term losses, primarily due to loans involving seller-funded down-payment gifts.
"We are concerned about this business, because the substantial losses affect FHA's bottom line and FHA's ability to serve American citizens who need access to prime-rate home loans," Mr. Montgomery said during a speech at the National Press Club.
FHA-insured mortgages, which require down payments, have become more popular amid the shrinking of the subprime-mortgage market.
Last year, a federal judge in the District of Columbia, issued a preliminary injunction against an earlier ban on seller-assisted down-payment gifts proposed by the Department of Housing and Urban Development. The judge ruled that HUD "failed to provide a rational basis in support" of the ban.
HUD spokesman Brian Sullivan said in an interview that the agency, "lost on a technicality. The court gave us a good road map for how to get it done."
Since the 1970s, HUD has permitted buyers to use gifts from family members, employers or charities for down payments.
"We have tried to work cooperatively with HUD to try and ensure that working families have access to homeownership through this model," says Scott Syphax, chief executive of Nehemiah Corp. of America, one of the nation's largest down-payment-gifting groups. "HUD has shut us down every step of the way."
For example, Mr. Syphax says HUD officials have refused to consider Nehemiah's suggestions that they scrutinize appraisals in an effort to prevent sellers from inflating home prices by including gift costs. Mr. Sullivan declined to comment on that criticism. "We are allowing the public-comment period as the appropriate forum for them to express any reservation they have about our rule," Mr. Sullivan says.
Mr. Syphax says his group would oppose the latest effort to ban the down-payment gifts. "We will use all legal means at our disposal in order to protect this portal to homeownership for the families who are underserved in an ever-worsening credit market." he says.
For an experienced FHA property appraiser in Charlotte, Mecklenburg, Union, NC, visit out website at www.valuation-expert.com or www.charlotte-appraiser.net
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