July, 2006

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Bad Appraisals Big Problems

Wednesday, July 26th, 2006

Good Day,

Here is an important article from the Wall Street Journal today regarding your mortgage lender and the appraisers they utilize to value your property and loan you money. Side deals between lenders and appraisers are the mortgage industry’s dirty little secret. While completely unlawful this kind of stuff happens – in metro markets as well as resort markets. Appraisers want the business and sadly they allow themselves to be influenced by the mortgage lenders who want to write inflated loans. Everyone makes money on the transaction and the buyer gets into their dream home at a price they think is fair market value!

Read on. Be aware. Thanks for visiting today,

Channing Boucher
visit my website

Daily Real Estate News  |  July 26, 2006

Bad Appraisals Lead to Big Problems Later

There are concerns that many of the mortgages originated in recent years involved inflated appraisals, leaving homeowners owing more than their property may be worth.

These owners could encounter problems of they seek to refinance adjustable-rate loans to avoid higher monthly payments. Meanwhile, sellers might have to slash their asking prices, and lenders could post substantial losses if borrowers are forced into foreclosure.

Much of the problem stems from conflicts of interest, as appraisers are hired by loan officers and mortgage brokers, and appraisers depend on them for repeat business.

These loan officers and mortgage brokers are compensated only for completed transactions, prompting some to pressure appraisers to achieve a particular valuation that will allow a transaction to go through.

Research indicates that brokers orchestrate 50 percent of mortgages, and they are not governed as strictly as lenders at the state level. Inflated appraisals also result from the inclusion of comparative home sales data in the valuations, as it is virtually impossible for appraisers to know if such things as landscaping and closing-cost assistance are included in new-home prices.

As a result of these concerns, Congress is considering increasing regulation of appraisers.

Source: The Wall Street Journal, Ruth Simon, James R. Hagerty (07/23/06)

Posted in Western Resorts | No Responses »

Year to Date Real Estate Report

Wednesday, July 19th, 2006

Good day,

Here is a current market analysis for the entire Gunnison County real estate market. The bottom line for our market this year? Prices and Volume are UP. Slightly higher interest rates haven’t had that much impact on the market. Buyers are buying into Crested Butte because the market still represents great opportunity for substantial mid and long term value gains.

For the north end our valley including the markets of Crested Butte, Rural Crested Butte, Mt. Crested Butte, Rural Mt. Crested Butte, Irwin and Crested Butte South the following has occurred:

165 listings have sold representing just over $ 101 million in transaction volume. Of these 165 sales, 96 listings were residential properties amounting to $ 67 million in volume. The average sales price of a residential property was $699,000. 

Year to Date 2006 for all of Gunnison County including all other areas the following occurred:

357 listings have sold which represents just over $ 143 million in transaction volume.
213 of these were residential properties amounting to over $ 95 million in volume. The average selling price for residential properties was $450,000.

Thanks for visiting today!

Channing Boucher
Visit Crested-Butte-Real-Estate.com

 

Posted in Crested Butte Market | No Responses »