Douglas 1948 site built home redcued - HUD property.
REALTOR.org recently published an article on home inspections. The article brings up a number of points a buyer may not consider.
10 Questions to Ask Home Inspectors
Before you make your final buying or selling decision, you should have the home inspected by a professional. An inspection can alert you to potential problems with a property and allow you to make an informed decision. Ask these questions to prospective home inspectors:
100 questions and answers for 1st time home buyers available at this HUD site.
On August 13 we posted a notice regarding Taylor, Bean & Whitaker closing. Here is more information on the closing and links for additional information regarding the servicing of existing loans by Bank of America. TBW financed a number of properties in Cochise County.
Latest on the Suspension of Taylor, Bean & Whitaker
Last week the US Department of Housing and Urban Development (HUD) suspended Taylor, Bean & Whitaker preventing the company from originating and underwriting FHA-insured mortgages. Additionally, Ginnie Mae defaulted and took over TBW’s mortgage backed securities program. Finally, TBW’s wholly owned appraisal management company was shut down.
FHA said “FHA and Ginnie Mae are imposing these actions because TBW failed to submit a required annual financial report and misrepresented that there were no unresolved issues with its independent auditor even though the auditor ceased its financial examination after discovering certain irregular transactions that raised concerns of fraud.”
FHA has released a series of FAQs for consumers and industry partners. Ginnie Mae created this document for consumers concerned about their loans with TBW.
According to a report by the Appraisal Institute TBW “was the 12th largest U.S. mortgage lender in the first six months of 2009, and the third largest lender of FHA loans in June. FHA agents raided its office along with the Florida offices of Colonial BancGroup Inc., for which Taylor Bean had depended on for short-term “warehouse” loans. Federal agents executed the raids after negotiations of a proposed deal that would have given Taylor Bean control over Colonial — which would then qualify the struggling bank for $536 million in federal bailout funds — collapsed.”
Source: National Association of Realtors Blog titled ”Appraisal Insight.” Posted on August 13, 2009.
Copyright National Association of REALTORS®, Reprinted from REALTOR.org with permission.”
Earlier this year one of the suggestions by the administration to help homeowners was to refinance. With low interest rates, a refinance could significantly reduce mortgage payments and make more money available to the homeowner. Following is a letter written by a client to his senator in Washington D.C.:
I attempted to refinance my home. I have a manufactured home, site built guesthouse and barn on 5 acres in Arizona. I worked with a local bank on a refinance. Had I been successful, I could have lowered my monthly payment by $300. Cash I could have used to stimulate the economy with additional spending.
Our credit scores are between 800 and 811. We have an excellent credit history as well as adequate resources. With the refinance we were asking for no cash out, just enough to pay off the current mortgage and cover refinance charges.
When the appraisal was done, the results were lower than expected but still resulted in a loan to value ratio of 77%.
However, living in a rural area with few sales (driven by the stability of the neighborhood and the reluctance of people to sell due to home prices) the appraiser had a difficult time finding comparable sales. One was 10 miles away. One sold 9 months ago. None of the comps had a guest house. Because of the size of the adjustments to arrive at a “comparable sale” the appraiser had to make large adjustments as a percentage of the comparables’ sales price.
My loan was rejected because the adjustment percentage exceeded Fannie and Freddie guidelines.
I spoke with the VP of Real Estate Lending at the bank. He wanted us as borrowers considering our credit record, assets and amount being borrowed. But by exceeding Freddie and Fannie guidelines, the loan was not saleable in the secondary market and the loan could not be made.
I suspect I am not the only one in this situation. Perhaps more emphasis should be placed on the credit worthiness of the borrowers and not on an arbitrary guideline from Fannie and Freddie, especially in this market environment. Is it perhaps time to review these guidelines?
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