Fannie Mae is offering buyers up to 3.5% back in closing cost assistance. Now is the perfect time to buy a home. Intereste rates are at an all time low. There are plenty of homes to choose from on the market. Whether your a first time homebuyer or looking to upgrade there is no reason to wait any longer. What we know is that interest rates are low right now!!!!
With the elections coming up we don't know what the interest rates or housing market will look like in a couple of months. The conditions are ripe. The tools and resources are available. It is just a matter of picking out the home you want.
Thursday, September 30, 2010
Wednesday, September 29, 2010
Open House Sunday, October 3rd, 2:00-4:00pm
4410 Dalny Street Dallas, TX 75214-2304 
$319,900
3 Beds
2 Baths
1,907 Square Feet
MLS#: 11442469
Open House · Sunday, October 3rd, 2:00- 4:00 pm
Hosted By:
Israel Varela
Realtor®
6441 E Mockingbird Ln
Dallas, TX 75214
Voice: 214-572-1566
Fax: 214-572-0641
MOTIVATED SELLER! From the front entry with marble floors to the backyard with a board-on-board privacy fence, this house has it all. Granite countertops in the kitchen, updated master bath with Travertine tile, hardwood floors, plantation shutters, large living areas, and an awesome floor plan. Popular neighborhood with Exemplary Elementary school and walking distance to dining and shopping. Well maintained with recent mechanical and plumbing updates.
*Note: All room dimensions, including square footage data, are approximate and must be verified by the buyer.
The information contained herein is furnished by the owner to the best of his/her knowledge, but is subject to verification by the purchaser, and agent assumes no responsibility for the correctness thereof. The sale offering is made subject to errors, omissions, change of price, prior sale, or withdrawal without notice. In accordance with the Law, this property is offered without respect to race, color, creed, national origin, sex, familial status or disability. This is not intended to solicit property currently listed.
Listing Agent: Chris Gonzales
Wednesday, September 22, 2010
Open House Sunday Sept. 26 4pm-6pm
Open House · Sunday, September 26 , 4:00- 6:00 pm 
9204 Hermosa Drive Dallas, TX 75218
$229,000
2 Baths / 3 Bedrooms / 1,563 SqFt / MLS#: 11469302
2 Baths / 3 Bedrooms / 1,563 SqFt / MLS#: 11469302
Coveted Casa Linda Austin stone cottage on over third of acre landscaped lot w-towering trees. Numerous Dilbeck-ian architectural details give a cozy charm-chimney, light fixtures, hardware, original hardwood floors, WBFP, classic floor to ceiling windows, arches, crown moldings, period tile, & big updated kitchen w eat-in alcove. Master bedroom addition could make a great family room if desired. Big attic has extra insulation & lots of storage.
Hosted By:
Israel Varela
Realtor®
6441 E Mockingbird Ln
Dallas, TX 75214
Voice: 214-572-1566
Fax: 214-572-0641
*Note: All room dimensions, including square footage data, are approximate and must be verified by the buyer.
The information contained herein is furnished by the owner to the best of his/her knowledge, but is subject to verification by the purchaser, and agent assumes no responsibility for the correctness thereof. The sale offering is made subject to errors, omissions, change of price, prior sale, or withdrawal without notice. In accordance with the Law, this property is offered without respect to race, color, creed, national origin, sex, familial status or disability. This is not intended to solicit property currently listed.
The information contained herein is furnished by the owner to the best of his/her knowledge, but is subject to verification by the purchaser, and agent assumes no responsibility for the correctness thereof. The sale offering is made subject to errors, omissions, change of price, prior sale, or withdrawal without notice. In accordance with the Law, this property is offered without respect to race, color, creed, national origin, sex, familial status or disability. This is not intended to solicit property currently listed.
Listing Agent: Terri M. Raith - Ebby Halliday Realtors
National Flood Insurance Program
The Senate last night passed, by unanimous consent, legislation extending the current National Flood Insurance Program until Sept. 30, 2011.
Officials of three industry trade associations lauded the decision and urged the House to also act promptly.
Without House action, the program expires at the end of the current fiscal year, Sept. 30.
S. 3814, the “Flood Insurance Extension Act of 2010,” was sponsored by Sen. David Vitter, R-La.
“Now that the Senate has acted, it's incumbent upon the House to pass the extension before they break for the mid-term election,” said Blain Rethmeier, a spokesman for the American Insurance Association. “We have every expectation that will happen and look forward to the program being in place for one year.”
Monday, September 20, 2010
Appliance Maintenance: Water Heaters
By: Douglas Trattner Published: August 20, 2010
Keep your water heater running efficiently and reliably with this simple maintenance routine.
Depending on a homeowner's water quality, a hot water heater can be expected to last eight to 12 years, says Frank Czeronka, a licensed master plumber and Mr. Rooter franchise owner. Completing the following routine maintenance schedule, however, can greatly extend the unit's lifespan.
Here's a list of maintenance tips to keep your water heater running efficiently and reliably:
* Always adjust the thermostat to 120 degrees to avoid the risk of scalding.
* Always maintain 2 feet of clearance around the appliance unless the manual specifically states otherwise.
* Annually, flush the heater to remove the sediment and debris in the bottom of the tank. Hook up a garden hose to the drain valve and run until the water is clear. This also makes the unit operate more quietly.
* Annually, test the temperature-pressure relief valve by quickly discharging it two or three times. Following the testing, keep an eye out for small leaks from the valve.
* Every three to five years, examine the sacrificial anode rod by loosening the hex head screw and removing it. If more than six inches of the core steel wire is exposed, replace the rod for abut $20.
* Insulate older units with a fiberglass jacket to improve efficiency, being careful to avoid contact with the flue. Newer units already are optimized for peak energy efficiency.
* When leaving town, adjust the thermostat on gas heaters to "Vacation" setting, which maintains the pilot light without heating the water.
Reprinted from HouseLogic (houselogic.com) with permission of the NATIONAL ASSOCIATION OF REALTORS (R).
Copyright 2010. All rights reserved.
Keep your water heater running efficiently and reliably with this simple maintenance routine.
Depending on a homeowner's water quality, a hot water heater can be expected to last eight to 12 years, says Frank Czeronka, a licensed master plumber and Mr. Rooter franchise owner. Completing the following routine maintenance schedule, however, can greatly extend the unit's lifespan.
Here's a list of maintenance tips to keep your water heater running efficiently and reliably:
* Always adjust the thermostat to 120 degrees to avoid the risk of scalding.
* Always maintain 2 feet of clearance around the appliance unless the manual specifically states otherwise.
* Annually, flush the heater to remove the sediment and debris in the bottom of the tank. Hook up a garden hose to the drain valve and run until the water is clear. This also makes the unit operate more quietly.
* Annually, test the temperature-pressure relief valve by quickly discharging it two or three times. Following the testing, keep an eye out for small leaks from the valve.
* Every three to five years, examine the sacrificial anode rod by loosening the hex head screw and removing it. If more than six inches of the core steel wire is exposed, replace the rod for abut $20.
* Insulate older units with a fiberglass jacket to improve efficiency, being careful to avoid contact with the flue. Newer units already are optimized for peak energy efficiency.
* When leaving town, adjust the thermostat on gas heaters to "Vacation" setting, which maintains the pilot light without heating the water.
Reprinted from HouseLogic (houselogic.com) with permission of the NATIONAL ASSOCIATION OF REALTORS (R).
Copyright 2010. All rights reserved.
Wednesday, September 15, 2010
Saturday, September 11, 2010
Minimum Credit Scores Announced for FHA Mortgages
In a release by the Department of Housing and Urban Development new credit score and loan-to-value LTV ratio requirements have been introduced. These changes will be effective for cases after October 4, 2010.
Now is the time to buy. With interest rates at record lows, and a surplus of inventory buyers can have the house of their choosing. The first step to home ownership is to contact a mortgage lender to see where you stand credit wise and how much of a loan you may qualify for. Once you find out how much house you can afford then you can shop the market for homes that fall within your specified criteria.
I can help you through this process. Contact Me Today!
- Borrowers with a minimum decision credit score at or above 580 are eligible for maximum financing.
- Borrowers with a minimum decision credit score between 500 and 579 are limited to 90 percent LTV.
- Borrowers with a minimum decision credit score of less than 500 are not eligible for FHA-insured mortgage financing.
- Borrowers with a non-traditional credit history or insufficient credit are eligible for maximum financing but must meet the underwriting guidance in HUD 4155.1 4.C.3.
- Borrowers using 203(h), Mortgage Insurance for Disaster Victims, are eligible for 100 percent financing and no down payment is required, provided that the borrowers have a minimum credit score of 500 (borrowers with decision credit scores below 500 are not eligible for FHA financing).
Now is the time to buy. With interest rates at record lows, and a surplus of inventory buyers can have the house of their choosing. The first step to home ownership is to contact a mortgage lender to see where you stand credit wise and how much of a loan you may qualify for. Once you find out how much house you can afford then you can shop the market for homes that fall within your specified criteria.
I can help you through this process. Contact Me Today!
FHFA Establishes New Housing Goals for Fannie Mae and Freddie Mac
On September 2, 2010, the Federal Housing Finance Agency (FHFA) announced it would soon publish in the Federal Register new housing goals for Fannie Mae and Freddie Mac for 2010 and 2011. The final rule includes three goals for mortgages used to purchase single-family, owner-occupied homes: (1) 27 percent for low-income families, (2) 8 percent for very low-income families, and (3) a percentage to be set annually for families in areas with lower-income populations, areas high concentrations of minority residents, and federally-declared disaster areas. There is also a 21 percent goal for mortgages used to refinance mortgages for single family, owner-occupied homes for low-income families. The rule also includes multifamily mortgage goals for each enterprise and requires them to report on the acquisition of mortgages involving low-income units in 5- to 50-unit multifamily properties. The enterprises may not meet goals by purchasing private-label mortgage backed securities. FHFA emphasizes that the enterprises should not "undertake economically adverse or high-risk activities" to achieve the goals, or use the conservatorship as an excuse for missing goals.
Friday, September 10, 2010
8 Easy Ways to Seal Air Leaks Around the House
For what the typical family wastes every year on air leaks--about $350--you can plug energy-robbing gaps, start saving money, and enjoy a more comfortable home.
A typical family spends about a third of its annual heating and cooling budget-roughly $350-on air that leaks into or out of the house through unintended gaps and cracks. With the money you waste in just one year, you can plug many of those leaks yourself. It's among the most cost-effective things you can do to conserve energy and increase comfort, according to Energy Star. Start in the attic, since that's where you'll find some of the biggest energy drains. Then tackle the basement, to prevent cold air that enters there from being sucked into upstairs rooms. Finally, seal air leaks in the rest of the house. Here are eight places to start.
1. INSULATE AROUND RECESSED LIGHTS
Most recessed lights have vents that open into the attic, a direct route for heated or cooled air to escape. When you consider that many homes have 30 or 40 of these fixtures, it's easy to see why researchers at the Pennsylvania Housing Research/Resource Center pinpointed them as a leading cause of household air leaks. Lights labeled ICAT, for "insulation contact and air tight," are already sealed; look for the label next to the bulb. If you don't see it, assume yours leaks. An airtight baffle ($8-$30 at the home center) is a quick fix. Remove the bulb, push the baffle up into the housing, then replace the bulb.
2. PLUG OPEN STUD CAVITIES
Most of your house probably has an inner skin of drywall or plaster between living space and unheated areas. But builders in the past often skipped this cover behind knee walls (partial-height walls where the roof angles down into the top floor), above dropped ceilings or soffits, and above angled ceilings over stairs.
Up in the attic, you may need to push insulation away to see if the stud cavities are open. If they are, seal them with unfaced fiberglass insulation ($1.30 a square foot) stuffed into plastic garbage bags; the bag is key to blocking air flow. Close large gaps with scraps of drywall or pieces of reflective foil insulation ($2 a square foot). Once you've covered the openings, smooth the insulation back into place. To see these repairs in action, consult Energy Star's DIY guide to air sealing(http://www.energystar.gov/ia/partners/publications/pubdocs/DIY_Guide_May_2008.pdf).
3. CLOSE GAPS AROUND FLUES AND CHIMNEYS
Building codes require that wood framing be kept at least one inch from metal flues and two inches from brick chimneys. But that creates gaps where air can flow through. Cover the gaps with aluminum flashing ($12) cut to fit and sealed into place with high-temperature silicone caulk ($20). To keep insulation away from the hot flue pipe, form a barrier by wrapping a cylinder of flashing around the flue, leaving a one-inch space in between. To maintain the spacing, cut and bend a series of inch-deep tabs in the cylinder's top and bottom edges.
4. WEATHERSTRIP THE ATTIC ACCESS DOOR
A quarter-inch gap around pull-down attic stairs or an attic hatch lets through the same amount of air as a bedroom heating duct. Seal it by caulking between the stair frame and the rough opening, or by installing foam weatherstripping around the perimeter of the hatch opening. Or you can buy a pre-insulated hatch cover kit, such as the Energy Guardian from ESS Energy Products ($150).
5. SQUIRT FOAM IN THE MEDIUM-SIZE GAPS
Once the biggest attic gaps are plugged, move on to the medium-size ones. Low-expansion polyurethane foam in a can is great for plugging openings 1/4-inch to three inches wide, such as those around plumbing pipes and vents. A standard 12-ounce can ($5) is good for 250 feet of bead about half an inch thick. The plastic straw applicator seals shut within two hours of the first use, so to get the most mileage out of a can, squirt a lubricant such as WD-40 onto a pipe cleaner and stuff that into the applicator tube between uses.
6. CAULK THE SKINNY GAPS
Caulk makes the best gap-filler for openings less than 1/4-inch wide, such as those cut around electrical boxes. Silicone costs the most ($8 a tube) but works better next to nonporous materials, such as metal flashing, or where there are temperature extremes, as in attics. Acrylic latex caulk ($2 a tube) is less messy to work with and cleans up with water.
7. PLUG GAPS IN THE BASEMENT
Gaps low on a foundation wall matter if you're trying to fix a wet basement, but only those above the outside soil level let air in. Seal those with the same materials you'd use in an attic: caulk for gaps up to 1/4-inch wide and spray foam for wider ones. Use high-temperature caulk around vent pipes that get hot, such as those for the furnace or water heater. Shoot foam around wider holes for wires, pipes, and ducts that pass through basement walls to the outside.
In most older houses with basements, air seeps in where the house framing sits on the foundation. Spread a bead of caulk between the foundation and the sill plate (the wood immediately above the foundation), and along the top and bottom edges of the rim joist (the piece that sits atop the sill plate).
8. TIGHTEN UP AROUND WINDOWS AND DOORS
In the main living areas of your home, the most significant drafts tend to occur around windows and doors. If you have old windows, caulking and adding new weatherstripping goes a long way toward tightening them up. Bronze weatherstripping ($12 for 17 feet) lasts for decades but is time-consuming to install, while some self-stick plastic types are easy to put on but don't last very long. Adhesive-backed EPDM rubber ($8 for 10 feet) is a good compromise, rated to last at least 10 years. Nifty gadgets called pulley seals ($9 a pair) block air from streaming though the holes where cords disappear into the frames.
Weatherstripping also works wonders on doors. If a draft comes in at the bottom, install a new door sweep ($9).
BEFORE WORKING IN THE ATTIC, TAKE SOME PRECAUTIONS
Try to do attic work on a cool day. Wear protective gear: disposable clothes, gloves, and a double-elastic mask or half-face respirator. Bring along a droplight with a fluorescent bulb, plus at least two pieces of plywood big enough to span two or three joists to support you as you work. To save trips up and down a ladder, try to move up all of the materials you need before you get started. One warning: If you find vermiculite insulation, hold off until you've had it checked for asbestos; your health department or air-quality agency can recommend a lab.
Reprinted from HouseLogic (houselogic.com) with permission of the NATIONAL ASSOCIATION OF REALTORS (R).
Copyright 2010. All rights reserved.
A typical family spends about a third of its annual heating and cooling budget-roughly $350-on air that leaks into or out of the house through unintended gaps and cracks. With the money you waste in just one year, you can plug many of those leaks yourself. It's among the most cost-effective things you can do to conserve energy and increase comfort, according to Energy Star. Start in the attic, since that's where you'll find some of the biggest energy drains. Then tackle the basement, to prevent cold air that enters there from being sucked into upstairs rooms. Finally, seal air leaks in the rest of the house. Here are eight places to start.
1. INSULATE AROUND RECESSED LIGHTS
Most recessed lights have vents that open into the attic, a direct route for heated or cooled air to escape. When you consider that many homes have 30 or 40 of these fixtures, it's easy to see why researchers at the Pennsylvania Housing Research/Resource Center pinpointed them as a leading cause of household air leaks. Lights labeled ICAT, for "insulation contact and air tight," are already sealed; look for the label next to the bulb. If you don't see it, assume yours leaks. An airtight baffle ($8-$30 at the home center) is a quick fix. Remove the bulb, push the baffle up into the housing, then replace the bulb.
2. PLUG OPEN STUD CAVITIES
Most of your house probably has an inner skin of drywall or plaster between living space and unheated areas. But builders in the past often skipped this cover behind knee walls (partial-height walls where the roof angles down into the top floor), above dropped ceilings or soffits, and above angled ceilings over stairs.
Up in the attic, you may need to push insulation away to see if the stud cavities are open. If they are, seal them with unfaced fiberglass insulation ($1.30 a square foot) stuffed into plastic garbage bags; the bag is key to blocking air flow. Close large gaps with scraps of drywall or pieces of reflective foil insulation ($2 a square foot). Once you've covered the openings, smooth the insulation back into place. To see these repairs in action, consult Energy Star's DIY guide to air sealing(http://www.energystar.gov/ia/partners/publications/pubdocs/DIY_Guide_May_2008.pdf).
3. CLOSE GAPS AROUND FLUES AND CHIMNEYS
Building codes require that wood framing be kept at least one inch from metal flues and two inches from brick chimneys. But that creates gaps where air can flow through. Cover the gaps with aluminum flashing ($12) cut to fit and sealed into place with high-temperature silicone caulk ($20). To keep insulation away from the hot flue pipe, form a barrier by wrapping a cylinder of flashing around the flue, leaving a one-inch space in between. To maintain the spacing, cut and bend a series of inch-deep tabs in the cylinder's top and bottom edges.
4. WEATHERSTRIP THE ATTIC ACCESS DOOR
A quarter-inch gap around pull-down attic stairs or an attic hatch lets through the same amount of air as a bedroom heating duct. Seal it by caulking between the stair frame and the rough opening, or by installing foam weatherstripping around the perimeter of the hatch opening. Or you can buy a pre-insulated hatch cover kit, such as the Energy Guardian from ESS Energy Products ($150).
5. SQUIRT FOAM IN THE MEDIUM-SIZE GAPS
Once the biggest attic gaps are plugged, move on to the medium-size ones. Low-expansion polyurethane foam in a can is great for plugging openings 1/4-inch to three inches wide, such as those around plumbing pipes and vents. A standard 12-ounce can ($5) is good for 250 feet of bead about half an inch thick. The plastic straw applicator seals shut within two hours of the first use, so to get the most mileage out of a can, squirt a lubricant such as WD-40 onto a pipe cleaner and stuff that into the applicator tube between uses.
6. CAULK THE SKINNY GAPS
Caulk makes the best gap-filler for openings less than 1/4-inch wide, such as those cut around electrical boxes. Silicone costs the most ($8 a tube) but works better next to nonporous materials, such as metal flashing, or where there are temperature extremes, as in attics. Acrylic latex caulk ($2 a tube) is less messy to work with and cleans up with water.
7. PLUG GAPS IN THE BASEMENT
Gaps low on a foundation wall matter if you're trying to fix a wet basement, but only those above the outside soil level let air in. Seal those with the same materials you'd use in an attic: caulk for gaps up to 1/4-inch wide and spray foam for wider ones. Use high-temperature caulk around vent pipes that get hot, such as those for the furnace or water heater. Shoot foam around wider holes for wires, pipes, and ducts that pass through basement walls to the outside.
In most older houses with basements, air seeps in where the house framing sits on the foundation. Spread a bead of caulk between the foundation and the sill plate (the wood immediately above the foundation), and along the top and bottom edges of the rim joist (the piece that sits atop the sill plate).
8. TIGHTEN UP AROUND WINDOWS AND DOORS
In the main living areas of your home, the most significant drafts tend to occur around windows and doors. If you have old windows, caulking and adding new weatherstripping goes a long way toward tightening them up. Bronze weatherstripping ($12 for 17 feet) lasts for decades but is time-consuming to install, while some self-stick plastic types are easy to put on but don't last very long. Adhesive-backed EPDM rubber ($8 for 10 feet) is a good compromise, rated to last at least 10 years. Nifty gadgets called pulley seals ($9 a pair) block air from streaming though the holes where cords disappear into the frames.
Weatherstripping also works wonders on doors. If a draft comes in at the bottom, install a new door sweep ($9).
BEFORE WORKING IN THE ATTIC, TAKE SOME PRECAUTIONS
Try to do attic work on a cool day. Wear protective gear: disposable clothes, gloves, and a double-elastic mask or half-face respirator. Bring along a droplight with a fluorescent bulb, plus at least two pieces of plywood big enough to span two or three joists to support you as you work. To save trips up and down a ladder, try to move up all of the materials you need before you get started. One warning: If you find vermiculite insulation, hold off until you've had it checked for asbestos; your health department or air-quality agency can recommend a lab.
Reprinted from HouseLogic (houselogic.com) with permission of the NATIONAL ASSOCIATION OF REALTORS (R).
Copyright 2010. All rights reserved.
Thursday, September 9, 2010
7 Smart Strategies for Kitchen Remodeling
Keep the same footprint, add storage, and design adequate lighting so you preserve value and keep costs on track.
If you're contemplating a kitchen remodel, you're also weighing a considerable investment. But a significant portion of the upfront costs may be recovered by the value the project brings to your home. Kitchen remodels in the $50,000 range recouped 76% of the initial project cost at the home's resale, according to recent data from Remodeling Magazine's Cost vs. Value Report. To make sure you maximize your return, consider these seven smart kitchen remodeling strategies.
1. ESTABLISH YOUR PRIORITIES
Simple enough? Not so fast. The National Kitchen and Bath Association(http://www.nkba.org) (NKBA) recommends spending at least six months planning before beginning the work. That way, you can thoroughly evaluate your priorities and won't be tempted to change your mind during construction. Contractors often have clauses in their contracts that specify additional costs for amendments to original plans. Planning points to consider include:
* Avoid traffic jams. A walkway through the kitchen should be at least 36 inches wide, according to the NKBA. Work aisles for one cook should be a minimum of 42 inches wide and at least 48 inches wide for households with multiple cooks.
* Consider children. Avoid sharp, square corners on countertops, and make sure microwave ovens are installed at the heights recommended by the NKBA-3 inches below the shoulder of the principle user but not more than 54 inches from the floor.
* Access to the outside. If you want to easily reach entertaining areas, such as a deck or a patio, factor a new exterior door into your plans.
Because planning a kitchen is complex, consider hiring a professional designer. A pro can help make style decisions and foresee potential problems, so you can avoid costly mistakes. In addition, a pro makes sure contractors and installers are sequenced properly so that workflow is cost-effective. Expect fees around $50 to $150 per hour, or 5% to 15% of the total cost of the project.
2. KEEP THE SAME FOOTPRINT
No matter the size and scope of your planned kitchen, you can save major expense by not rearranging walls, and by locating any new plumbing fixtures near existing plumbing pipes. Not only will you save on demolition and reconstruction, you'll greatly reduce the amount of dust and debris your project generates.
3. MATCH APPLIANCES TO YOUR SKILL LEVEL
A six-burner commercial-grade range and luxury-brand refrigerator might make eye-catching centerpieces, but be sure they fit your lifestyle, says Molly Erin McCabe, owner of A Kitchen That Works design firm in Bainbridge Island, Wash. "It's probably the part of a kitchen project where people tend to overspend the most."
The high price is only worth the investment if you're an exceptional cook. Otherwise, save thousands with trusted brands that receive high marks at consumer review websites, like www.ePinions.com(http://www.ePinions.com) and www.amazon.com(http://www.amazon.com), and resources such as Consumer Reports(http://www.consumerreports.org).
4. CREATE A WELL-DESIGNED LIGHTING SCHEME
Some guidelines:
* Install task lighting, such as recessed or track lights, over sinks and food prep areas; assign at least two fixtures per task to eliminate shadows. Under-cabinet lights illuminate clean-up and are great for reading cookbooks. Pendant lights over counters bring the light source close to work surfaces.
* Ambient lighting includes flush-mounted ceiling fixtures, wall sconces, and track lights. Consider dimmer switches with ambient lighting to control intensity and mood.
5. FOCUS ON DURABILITY
"People are putting more emphasis on functionality and durability in the kitchen," says McCabe. That may mean resisting bargain prices and focusing on products that combine low-maintenance with long warranty periods. "Solid-surface countertops [Corian, Silestone] are a perfect example," adds McCabe. "They may cost a little more, but they're going to look as good in 10 years as they did the day they were installed."
If you're not planning to stay in your house that long, products with substantial warranties can become a selling point. "Individual upgrades don't necessarily give you a 100% return," says Frank Gregoire, a real estate appraiser in St. Petersburg, Fla. "But they can give you an edge when it comes time to market your home for sale" if other for-sale homes have similar features.
6. ADD STORAGE, NOT SPACE
To add storage without bumping out walls:
* Specify upper cabinets that reach the ceiling. They may cost a bit more, but you'll gain valuable storage space. In addition, you won't have to worry about dusting the tops.
* Hang it up. Install small shelving units on unused wall areas, and add narrow spice racks and shelves on the insides of cabinet doors. Use a ceiling-mounted pot rack to keep bulkier pots and pans from cluttering cabinets. Add hooks to the backs of closet doors for aprons, brooms, and mops.
7. COMMUNICATE EFFECTIVELY-AND OFTEN
Having a good rapport(http://www.houselogic.com/articles/getting-best-work-contractor/) with your project manager or construction team is essential for staying on budget. "Poor communication is a leading cause of kitchen projects going sour," says McCabe. To keep the sweetness in your project:
* Drop by the project during work hours as often as possible. Your presence assures subcontractors and other workers of your commitment to getting good results.
* Establish a communication routine. Hang a message board on-site where you and the project manager can leave each other daily communiques. Give your email address and cell phone number to subs and team leaders.
* Set house rules. Be clear about smoking, boom box noise levels, which bathroom is available, and where workers should park their vehicles.
Consumers spend more money on kitchen remodeling than any other home improvement project, according to the Home Improvement Research Institute(http://www.hiri.org), and with good reason. They're the hub of home life, and a source of pride. With a little strategizing, you can ensure your new kitchen gives you years of satisfaction.
John Riha has written six books on home improvement and hundreds of articles on home-related topics. He's been a residential builder, the editorial director of the Black & Decker Home Improvement Library, and the executive editor of Better Homes and Gardens magazine. His standard 1968 suburban house has been an ongoing source of maintenance experience.
Reprinted from HouseLogic (houselogic.com) with permission of the NATIONAL ASSOCIATION OF REALTORS (R).
Copyright 2010. All rights reserved.
If you're contemplating a kitchen remodel, you're also weighing a considerable investment. But a significant portion of the upfront costs may be recovered by the value the project brings to your home. Kitchen remodels in the $50,000 range recouped 76% of the initial project cost at the home's resale, according to recent data from Remodeling Magazine's Cost vs. Value Report. To make sure you maximize your return, consider these seven smart kitchen remodeling strategies.
1. ESTABLISH YOUR PRIORITIES
Simple enough? Not so fast. The National Kitchen and Bath Association(http://www.nkba.org) (NKBA) recommends spending at least six months planning before beginning the work. That way, you can thoroughly evaluate your priorities and won't be tempted to change your mind during construction. Contractors often have clauses in their contracts that specify additional costs for amendments to original plans. Planning points to consider include:
* Avoid traffic jams. A walkway through the kitchen should be at least 36 inches wide, according to the NKBA. Work aisles for one cook should be a minimum of 42 inches wide and at least 48 inches wide for households with multiple cooks.
* Consider children. Avoid sharp, square corners on countertops, and make sure microwave ovens are installed at the heights recommended by the NKBA-3 inches below the shoulder of the principle user but not more than 54 inches from the floor.
* Access to the outside. If you want to easily reach entertaining areas, such as a deck or a patio, factor a new exterior door into your plans.
Because planning a kitchen is complex, consider hiring a professional designer. A pro can help make style decisions and foresee potential problems, so you can avoid costly mistakes. In addition, a pro makes sure contractors and installers are sequenced properly so that workflow is cost-effective. Expect fees around $50 to $150 per hour, or 5% to 15% of the total cost of the project.
2. KEEP THE SAME FOOTPRINT
No matter the size and scope of your planned kitchen, you can save major expense by not rearranging walls, and by locating any new plumbing fixtures near existing plumbing pipes. Not only will you save on demolition and reconstruction, you'll greatly reduce the amount of dust and debris your project generates.
3. MATCH APPLIANCES TO YOUR SKILL LEVEL
A six-burner commercial-grade range and luxury-brand refrigerator might make eye-catching centerpieces, but be sure they fit your lifestyle, says Molly Erin McCabe, owner of A Kitchen That Works design firm in Bainbridge Island, Wash. "It's probably the part of a kitchen project where people tend to overspend the most."
The high price is only worth the investment if you're an exceptional cook. Otherwise, save thousands with trusted brands that receive high marks at consumer review websites, like www.ePinions.com(http://www.ePinions.com) and www.amazon.com(http://www.amazon.com), and resources such as Consumer Reports(http://www.consumerreports.org).
4. CREATE A WELL-DESIGNED LIGHTING SCHEME
Some guidelines:
* Install task lighting, such as recessed or track lights, over sinks and food prep areas; assign at least two fixtures per task to eliminate shadows. Under-cabinet lights illuminate clean-up and are great for reading cookbooks. Pendant lights over counters bring the light source close to work surfaces.
* Ambient lighting includes flush-mounted ceiling fixtures, wall sconces, and track lights. Consider dimmer switches with ambient lighting to control intensity and mood.
5. FOCUS ON DURABILITY
"People are putting more emphasis on functionality and durability in the kitchen," says McCabe. That may mean resisting bargain prices and focusing on products that combine low-maintenance with long warranty periods. "Solid-surface countertops [Corian, Silestone] are a perfect example," adds McCabe. "They may cost a little more, but they're going to look as good in 10 years as they did the day they were installed."
If you're not planning to stay in your house that long, products with substantial warranties can become a selling point. "Individual upgrades don't necessarily give you a 100% return," says Frank Gregoire, a real estate appraiser in St. Petersburg, Fla. "But they can give you an edge when it comes time to market your home for sale" if other for-sale homes have similar features.
6. ADD STORAGE, NOT SPACE
To add storage without bumping out walls:
* Specify upper cabinets that reach the ceiling. They may cost a bit more, but you'll gain valuable storage space. In addition, you won't have to worry about dusting the tops.
* Hang it up. Install small shelving units on unused wall areas, and add narrow spice racks and shelves on the insides of cabinet doors. Use a ceiling-mounted pot rack to keep bulkier pots and pans from cluttering cabinets. Add hooks to the backs of closet doors for aprons, brooms, and mops.
7. COMMUNICATE EFFECTIVELY-AND OFTEN
Having a good rapport(http://www.houselogic.com/articles/getting-best-work-contractor/) with your project manager or construction team is essential for staying on budget. "Poor communication is a leading cause of kitchen projects going sour," says McCabe. To keep the sweetness in your project:
* Drop by the project during work hours as often as possible. Your presence assures subcontractors and other workers of your commitment to getting good results.
* Establish a communication routine. Hang a message board on-site where you and the project manager can leave each other daily communiques. Give your email address and cell phone number to subs and team leaders.
* Set house rules. Be clear about smoking, boom box noise levels, which bathroom is available, and where workers should park their vehicles.
Consumers spend more money on kitchen remodeling than any other home improvement project, according to the Home Improvement Research Institute(http://www.hiri.org), and with good reason. They're the hub of home life, and a source of pride. With a little strategizing, you can ensure your new kitchen gives you years of satisfaction.
John Riha has written six books on home improvement and hundreds of articles on home-related topics. He's been a residential builder, the editorial director of the Black & Decker Home Improvement Library, and the executive editor of Better Homes and Gardens magazine. His standard 1968 suburban house has been an ongoing source of maintenance experience.
Reprinted from HouseLogic (houselogic.com) with permission of the NATIONAL ASSOCIATION OF REALTORS (R).
Copyright 2010. All rights reserved.
Wednesday, September 8, 2010
Facing Foreclosure: What to Do Right Now
Article From Houselogic.com
By: Jerry DeMuth
If you're facing foreclosure, don't panic: Take steps right now to save your home or at least lessen the blow of its loss.
A record high 2.8 million properties were hit with foreclosure notices(http://www.realtytrac.com/contentmanagement/pressrelease.aspx?channelid=9&accnt=0&itemid=8333) in 2009. That's the bad news. The good news: About two-thirds of notices don't result in actual foreclosures, says Doug Robinson of NeighborWorks, a nonprofit group that offers foreclosure counseling.
Many homeowners find alternatives to foreclosure by negotiating with lenders, often with the help of foreclosure counselors. If you're facing foreclosure, call your lender right now to determine your options, which can include loan modification, forbearance, or a short sale.
FORECLOSURE PROCESS TAKES TIME
The entire foreclosure process(http://portal.hud.gov/portal/page/portal/HUD/topics/avoiding_foreclosure/foreclosureprocess) can take anywhere from two to 12 months, depending on how fast your lender acts and where you live. Some states allow a nonjudicial process that's speedier, while others require time-consuming judicial proceedings.
Once you miss at least one mortgage payment, the steps leading up to an actual foreclosure sale can include demand letters, notices of default, a recorded notice of foreclosure, publication of the debt, and the scheduling of a foreclosure auction. Even when an auction is scheduled, however, it may never occur, or it may occur but a qualified buyer doesn't materialize.
Bottom line: Foreclosure can be a long slog, which gives you enough time to come up with an alternative. Meantime, if your goal is to salvage your home, think about keeping up with payments for homeowners insurance and property taxes. Otherwise, you could compound your problems by getting hit with an uncovered casualty loss or liability suit, or tax liens.
READ THE FINE PRINT
Start by reviewing all correspondence you've received from your lender. The letters--and phone calls--probably began once you were 30 days past due. Also review your mortgage documents, which should outline what steps your lender can take. For instance, is there a "power of sale" clause that authorizes the sale of your home to pay off a mortgage after you miss payments?
Determine the specific foreclosure laws(http://www.foreclosurelaw.org) for your state. What's the timeline? Do you have "right of redemption," essentially a grace period in which you can reverse a foreclosure? Are deficiency judgments that hold you responsible for the difference between what your home sells for and your loan's outstanding balance allowed? Get answers.
PICK UP THE PHONE
Don't give up because you missed a mortgage payment or two and received a notice of default. Foreclosure isn't a foregone conclusion, but it's heading in that direction if you don't call your lender. Dial the number on your mortgage statement, and ask for the Loss Mitigation Department. You might stay on hold for a while, but don't hang up. Once you do get someone on the line, take notes and record names.
The next call should be to a foreclosure avoidance counselor(http://www.hud.gov/offices/hsg/sfh/hcc/fc/) approved by the U.S. Department of Housing and Urban Development. One of these counselors can, free of charge, explain your state's foreclosure laws, discuss alternatives to foreclosure, help you organize financial documents, and even represent you in negotiations with your lender. Be wary of unsolicited offers of help, since foreclosure rescue scams(http://www.houselogic.com/articles/avoid-foreclosure-rescue-scams/) are common.
Be sure to let your lender know that you're working with a counselor. Not only does it demonstrate your resolve, but according to NeighborWorks, homeowners who receive foreclosure counseling are 1.6 times more likely to avoid losing their homes than those who don't. Homeowners who receive loan modifications with the help of a counselor also reduce monthly mortgage payments(http://www.nw.org/newsroom/pressReleases/2009/netNews111809.asp) by $454 more than homeowners who receive a modification without the aid of a counselor.
LENDER ALTERNATIVES TO FORECLOSURE
Hope Now(http://www.hopenow.com), an alliance of mortgage companies and housing counselors, can aid homeowners facing foreclosure. A self-assessment tool will give you an idea whether you might be eligible for help from your lender, and there are direct links to HUD-approved counseling agencies and lenders' foreclosure-prevention programs.
There are alternatives to foreclosure that your lender might accept. The most attractive option that'll allow you to keep your home is a loan modification that reduces your monthly payment. A modification can entail lowering the interest rate, changing a loan from an adjustable rate to a fixed rate, extending the term of a loan, or eliminating past-due balances. Another option, forbearance, can temporarily suspend payments, though the amount will likely be tacked on to the end of the loan.
If you're unable to make even reduced payments, and assuming a conventional sale isn't possible, then it may be best to turn your home over to your lender before a foreclosure is completed. A completed foreclosure can decimate a credit score, which will make it hard not only to purchase another home someday, but also to rent a home in the immediate future.
Your lender can approve a short sale, in which the proceeds are less than what's still owed on your mortgage. A deed-in-lieu of foreclosure, which amounts to handing over your keys to your lender, is another possibility. The earlier you begin talks with your lender, the more likelihood of success.
EXPLORE GOVERNMENT PROGRAMS
The federal government's Making Home Affordable(http://www.makinghomeaffordable.gov/) program offers two options: loan modification(http://www.houselogic.com/articles/making-home-affordable-modification-option/) and refinancing(http://www.houselogic.com/articles/making-home-affordable-refinance-option/). A self-assessment will indicate which option might be right for you, but you need to apply for the program through your lender. A Making Home Affordable loan modification requires a three-month trial period before it can become permanent.
Fannie Mae and Freddie Mac have their own foreclosure-prevention programs as well. Check to determine if either Fannie(http://www.fanniemae.com/loanlookup) or Freddie(http://www.freddiemac.com/mymortgage) owns your mortgage. Present this information to your lender and your counselor. Fannie and Freddie also have rental programs under which former owners can remain in recently foreclosed homes on a month-to-month basis.
The federal Home Affordable Foreclosure Alternatives(https://www.hmpadmin.com/portal/programs/foreclosure_alternatives.html) program, which takes full effect in April 2010, offers lenders financial incentives to approve short sales and deeds-in-lieu of foreclosure. It also provides $3,000 in relocation assistance to borrowers. Again, talk to your lender and counselor.
Jerry DeMuth has written about mortgages and other financial issues for more than two decades for trade publications, major newspapers, and consumer magazines. His writing has received four awards and has been included in eight non-fiction books.
Reprinted from HouseLogic (houselogic.com) with permission of the NATIONAL ASSOCIATION OF REALTORS (R).
Copyright 2010. All rights reserved.
By: Jerry DeMuth
If you're facing foreclosure, don't panic: Take steps right now to save your home or at least lessen the blow of its loss.
A record high 2.8 million properties were hit with foreclosure notices(http://www.realtytrac.com/contentmanagement/pressrelease.aspx?channelid=9&accnt=0&itemid=8333) in 2009. That's the bad news. The good news: About two-thirds of notices don't result in actual foreclosures, says Doug Robinson of NeighborWorks, a nonprofit group that offers foreclosure counseling.
Many homeowners find alternatives to foreclosure by negotiating with lenders, often with the help of foreclosure counselors. If you're facing foreclosure, call your lender right now to determine your options, which can include loan modification, forbearance, or a short sale.
FORECLOSURE PROCESS TAKES TIME
The entire foreclosure process(http://portal.hud.gov/portal/page/portal/HUD/topics/avoiding_foreclosure/foreclosureprocess) can take anywhere from two to 12 months, depending on how fast your lender acts and where you live. Some states allow a nonjudicial process that's speedier, while others require time-consuming judicial proceedings.
Once you miss at least one mortgage payment, the steps leading up to an actual foreclosure sale can include demand letters, notices of default, a recorded notice of foreclosure, publication of the debt, and the scheduling of a foreclosure auction. Even when an auction is scheduled, however, it may never occur, or it may occur but a qualified buyer doesn't materialize.
Bottom line: Foreclosure can be a long slog, which gives you enough time to come up with an alternative. Meantime, if your goal is to salvage your home, think about keeping up with payments for homeowners insurance and property taxes. Otherwise, you could compound your problems by getting hit with an uncovered casualty loss or liability suit, or tax liens.
READ THE FINE PRINT
Start by reviewing all correspondence you've received from your lender. The letters--and phone calls--probably began once you were 30 days past due. Also review your mortgage documents, which should outline what steps your lender can take. For instance, is there a "power of sale" clause that authorizes the sale of your home to pay off a mortgage after you miss payments?
Determine the specific foreclosure laws(http://www.foreclosurelaw.org) for your state. What's the timeline? Do you have "right of redemption," essentially a grace period in which you can reverse a foreclosure? Are deficiency judgments that hold you responsible for the difference between what your home sells for and your loan's outstanding balance allowed? Get answers.
PICK UP THE PHONE
Don't give up because you missed a mortgage payment or two and received a notice of default. Foreclosure isn't a foregone conclusion, but it's heading in that direction if you don't call your lender. Dial the number on your mortgage statement, and ask for the Loss Mitigation Department. You might stay on hold for a while, but don't hang up. Once you do get someone on the line, take notes and record names.
The next call should be to a foreclosure avoidance counselor(http://www.hud.gov/offices/hsg/sfh/hcc/fc/) approved by the U.S. Department of Housing and Urban Development. One of these counselors can, free of charge, explain your state's foreclosure laws, discuss alternatives to foreclosure, help you organize financial documents, and even represent you in negotiations with your lender. Be wary of unsolicited offers of help, since foreclosure rescue scams(http://www.houselogic.com/articles/avoid-foreclosure-rescue-scams/) are common.
Be sure to let your lender know that you're working with a counselor. Not only does it demonstrate your resolve, but according to NeighborWorks, homeowners who receive foreclosure counseling are 1.6 times more likely to avoid losing their homes than those who don't. Homeowners who receive loan modifications with the help of a counselor also reduce monthly mortgage payments(http://www.nw.org/newsroom/pressReleases/2009/netNews111809.asp) by $454 more than homeowners who receive a modification without the aid of a counselor.
LENDER ALTERNATIVES TO FORECLOSURE
Hope Now(http://www.hopenow.com), an alliance of mortgage companies and housing counselors, can aid homeowners facing foreclosure. A self-assessment tool will give you an idea whether you might be eligible for help from your lender, and there are direct links to HUD-approved counseling agencies and lenders' foreclosure-prevention programs.
There are alternatives to foreclosure that your lender might accept. The most attractive option that'll allow you to keep your home is a loan modification that reduces your monthly payment. A modification can entail lowering the interest rate, changing a loan from an adjustable rate to a fixed rate, extending the term of a loan, or eliminating past-due balances. Another option, forbearance, can temporarily suspend payments, though the amount will likely be tacked on to the end of the loan.
If you're unable to make even reduced payments, and assuming a conventional sale isn't possible, then it may be best to turn your home over to your lender before a foreclosure is completed. A completed foreclosure can decimate a credit score, which will make it hard not only to purchase another home someday, but also to rent a home in the immediate future.
Your lender can approve a short sale, in which the proceeds are less than what's still owed on your mortgage. A deed-in-lieu of foreclosure, which amounts to handing over your keys to your lender, is another possibility. The earlier you begin talks with your lender, the more likelihood of success.
EXPLORE GOVERNMENT PROGRAMS
The federal government's Making Home Affordable(http://www.makinghomeaffordable.gov/) program offers two options: loan modification(http://www.houselogic.com/articles/making-home-affordable-modification-option/) and refinancing(http://www.houselogic.com/articles/making-home-affordable-refinance-option/). A self-assessment will indicate which option might be right for you, but you need to apply for the program through your lender. A Making Home Affordable loan modification requires a three-month trial period before it can become permanent.
Fannie Mae and Freddie Mac have their own foreclosure-prevention programs as well. Check to determine if either Fannie(http://www.fanniemae.com/loanlookup) or Freddie(http://www.freddiemac.com/mymortgage) owns your mortgage. Present this information to your lender and your counselor. Fannie and Freddie also have rental programs under which former owners can remain in recently foreclosed homes on a month-to-month basis.
The federal Home Affordable Foreclosure Alternatives(https://www.hmpadmin.com/portal/programs/foreclosure_alternatives.html) program, which takes full effect in April 2010, offers lenders financial incentives to approve short sales and deeds-in-lieu of foreclosure. It also provides $3,000 in relocation assistance to borrowers. Again, talk to your lender and counselor.
Jerry DeMuth has written about mortgages and other financial issues for more than two decades for trade publications, major newspapers, and consumer magazines. His writing has received four awards and has been included in eight non-fiction books.
Reprinted from HouseLogic (houselogic.com) with permission of the NATIONAL ASSOCIATION OF REALTORS (R).
Copyright 2010. All rights reserved.
Tuesday, September 7, 2010
Open House · Sunday, September 12 , 1:00- 3:00 pm
9838 County Cork Drive Dallas, TX 75218
$214,000
2 Bedrooms
2 Baths
1,650 SqFt
MLS#: 11444860
Open House · Sunday, September 12 , 1:00- 3:00 pm
Hosted By:
Israel Varela
Realtor®
6441 E Mockingbird Ln
Dallas, TX 75214
Voice: 214-572-1566
Fax: 214-572-0641
This is an incredible opportunity to own a cute mid century home in a great neighborhood. Lake Park Estates is known for its winding streets, trees and direct access to White Rock Lake. There are plenty of updates including refinished wood floors, vinyl windows, board on board fence, electrical and more! A versatile floor plan includes formal living and dining room, second living area, office or breakfast area. Other features include cute open kitchen with pantry, original built ins as well as custom built entertainment center; plenty of closet space, full size laundry closet, landscaped backyard with full sprinkler system and detached 2 car garage. Exemplary Hexter Elementary!
Property Details
Type: Residential
Style: Traditional
Year Built: 1952
Housing Type: Single Detached
Stories: 1
Garage: Detached
# of Spaces: 2
Foundation Pier & Beam
Roof: Composition
Exterior: Brick
Heating / Cooling: Central Air-Elec, Central Heat-Gas
Fence: Wood
Location & Schools
Mapsco: 0038E
City: DALLAS
State: TX
Subdivision: Lake Park Estates
School District: Dallas Isd
Elementary: Hexter
Middle School: Hill
High School: Adams
Measurements
Lot Size: Less Than .5 Acre (Not Zero)
Acres: 0.19
Living Room 1: 16 x 13
Living Room 2: 16 x 11
Living Room 3: 17 x 9
Dining Room: 13 x 10
Kitchen: 16 x 11
Study: 17 x 9
Break: 11 x 9
Master Bedroom: 12 x 12
Master Bed Level: 1
Bedroom 2: 12 x 12
Other Essential Features
Other Rooms:
Library/Study
Lot Features:
Interior Lot, Some Trees, Lrg. Backyard Grass
This Property Presented By:
Kelly Nolan
(214)728-7301
kellynolan@ebby.com
*Note: All room dimensions, including square footage data, are approximate and must be verified by the buyer.
The information contained herein is furnished by the owner to the best of his/her knowledge, but is subject to verification by the purchaser, and agent assumes no responsibility for the correctness thereof. The sale offering is made subject to errors, omissions, change of price, prior sale, or withdrawal without notice. In accordance with the Law, this property is offered without respect to race, color, creed, national origin, sex, familial status or disability. This is not intended to solicit property currently listed.
Thursday, September 2, 2010
Santa Fe Trail Bridge Installed Over Garland Road At White Rock Lake
The Sante Fe Trail bridge was installed over Garland Rd at the spillway at White Rock Lake. This daunting task took two days to complete as the bridge was built offsite in two section. The first section was put in place on Tuesday night and the second section was put in place on Wednesday night. The project is expected to be completed by the end of the year connecting the Santa Fe Trail with the White Rock Trail. The pedestrian trail is welcome with open arms by the many people who cycle, jog, and walk White Rock Lake on any given day. With scenic views their is much enjoyment to be had by the many exercising activities around White Rock Lake.
Wednesday, September 1, 2010
Fannie Mae Places Ban on 'Appraisal Cutting'
By: Carrie Bay
Fannie Mae is implementing a new policy this week regarding home appraisals. Effective Wednesday, September 1, lenders that sell loans to the GSE will be prohibited from making changes to appraisers’ valuations – a practice that has become more widespread and is commonly referred to as “appraisal cutting.”
Fannie Mae says through recent post-purchase reviews of loan files, cases were identified where the lender had reduced the opinion of market value in the appraisal report based upon underwriter judgment, automated valuation models, or other methodology. The practice has prompted the GSE to place a ban on so-called appraisal cutting.
In an updated policy guide, Fannie says the lender is responsible for ensuring that appraisal reports are complete and that any changes to the report are made by the appraiser who originally completed the assessment.
If the lender has concerns with any aspect of the appraisal that result in questions about the reliability of the opinion of market value, Fannie Mae is directing the lender to first attempt to resolve its concerns with the appraiser directly
by identifying the deficiencies found and providing justification for requesting correction of the deficiencies the lender believes make the report unreliable.
If the lender is unable to resolve its concerns with the appraiser, the lender must obtain a second appraisal prior to making a final underwriting decision on the loan.
“Any request for a change in the opinion of market value must be based on material and substantive issues and must not be made solely on the basis that the opinion of market value as indicated in the appraisal report does not support the proposed loan amount,” according to Fannie’s new policy.
The GSE adds, “Lenders must pay particular attention and institute extra due diligence for those loans in which the appraised value is believed to be excessive or where the value of the property has experienced significant appreciation in a short time period since the prior sale.”
Fannie also states that lenders must only use appraisers who “have the requisite knowledge to perform a professional quality appraisal for the specific geographical location and particular property types.”
The Uniform Standards of Professional Appraisal Practice (USPAP) allows an appraiser who does not have such knowledge and experience to accept an appraisal assignment by providing procedures with which the appraiser can complete the assignment, but Fannie Mae says it does not allow the USPAP flexibility.
In a “new policy guide”: issued in late June, the GSE also outlined a number of other requirements surrounding appraisals, including situations in which an appraiser should choose to use either a foreclosure sale or a short sale as a comparable property, and excessive sales concessions which can artificially inflate the sales price of a property.
Fannie Mae is implementing a new policy this week regarding home appraisals. Effective Wednesday, September 1, lenders that sell loans to the GSE will be prohibited from making changes to appraisers’ valuations – a practice that has become more widespread and is commonly referred to as “appraisal cutting.”
Fannie Mae says through recent post-purchase reviews of loan files, cases were identified where the lender had reduced the opinion of market value in the appraisal report based upon underwriter judgment, automated valuation models, or other methodology. The practice has prompted the GSE to place a ban on so-called appraisal cutting.
In an updated policy guide, Fannie says the lender is responsible for ensuring that appraisal reports are complete and that any changes to the report are made by the appraiser who originally completed the assessment.
If the lender has concerns with any aspect of the appraisal that result in questions about the reliability of the opinion of market value, Fannie Mae is directing the lender to first attempt to resolve its concerns with the appraiser directly
by identifying the deficiencies found and providing justification for requesting correction of the deficiencies the lender believes make the report unreliable.
If the lender is unable to resolve its concerns with the appraiser, the lender must obtain a second appraisal prior to making a final underwriting decision on the loan.
“Any request for a change in the opinion of market value must be based on material and substantive issues and must not be made solely on the basis that the opinion of market value as indicated in the appraisal report does not support the proposed loan amount,” according to Fannie’s new policy.
The GSE adds, “Lenders must pay particular attention and institute extra due diligence for those loans in which the appraised value is believed to be excessive or where the value of the property has experienced significant appreciation in a short time period since the prior sale.”
Fannie also states that lenders must only use appraisers who “have the requisite knowledge to perform a professional quality appraisal for the specific geographical location and particular property types.”
The Uniform Standards of Professional Appraisal Practice (USPAP) allows an appraiser who does not have such knowledge and experience to accept an appraisal assignment by providing procedures with which the appraiser can complete the assignment, but Fannie Mae says it does not allow the USPAP flexibility.
In a “new policy guide”: issued in late June, the GSE also outlined a number of other requirements surrounding appraisals, including situations in which an appraiser should choose to use either a foreclosure sale or a short sale as a comparable property, and excessive sales concessions which can artificially inflate the sales price of a property.
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