The Foresthill Group

A few updates to take notice of:

Thursday, 30 April 2009 00:00

Looking for a great deal...

For me it is like the smell of coffee brewing in the morning and having that first sip. I take a deep breath, relax and I can't wait to start the day and see what is in store. I am not saying it is all roses, let's be realistic, but it is an adventure.

On a daily basis the market is changing; with the Obama Administration pushing the banks to help homeowners, a freeze on foreclosures, private money people focusing on the end home buyer instead of the investor and so much more. But with all that being said there are so many great deals out there. To be a successful real estate investor you must prepare your strategy for what is coming instead of reacting to what has happened. The best way to do that is keeping up with what is going on in the market.

A few updates to take notice of:

On May 1st the rules will change for appraisals.

Have you heard of the Home Valuation Code Of Conduct (HVCC)? The short of it is that the people responsible for originating mortgages can have nothing to do with the appraisal process.

What to expect now:

* Any third party or lender is prohibited from influencing the results.

* Any party can not attempt to influence, expressly or implied, by promising future business, promotions, or increased compensation for an appraiser.

*The lender shall ensure that the borrower is provided a copy of any appraisal report concerning the borrower's subject property promptly upon completion at no additional cost to the borrower, and in any event no less than three days prior to the closing of the loan.

*In underwriting a loan, the lender shall not utilize any appraisal report:
(1) prepared by an appraiser employed by:
(a) the lender;
(b) an affiliate of the lender;
(c) an entity that is owned, in whole or in part, by the lender; or
(d) an entity that owns, in whole or in part, the lender.
(2) prepared by an appraiser
(a) employed,
(b) engaged as an independent contractor, or
(c) otherwise retained by

Want to read the whole document click here.

What does this really mean...appraisers will be pulled from a "blind pool". The concern is that the appraiser may not have the specialty knowledge required to appraise an area, a style of property (for instance a property that is residential and commercial, farms, ranches, etc.) or may be a mediocre appraiser. Many of us feel that this will seriously affect the sellers in this market and can stop some closings.

LET's have a coversation about this. I know this ruling is new but what are your thoughts. Have you seen any difference yet?

A few updates to take notice of:

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