Real Estate News And Views

Realestatelicense.com has created this blog to keep you informed on recent real estate news, views, and topics. Real estate is a very dynamic field. Everyday there's something new and exciting happening in the world of real estate. Use this blog to stay on top of current real estate events, news, and views and support your real estate license and career. As a licensed real estate professional, you need to know this information.

Federal Housing Bill Leads to a Higher Standard of Real Estate Appraisals

President George Bush recently signed a comprehensive bill into law in an effort to halt the rising number of home foreclosures. In addition to several large housing-related initiatives, the bill contains provisions that reinforce the importance of competent real estate appraisals to the mortgage lending process.

The part of the bill that pertains to appraisers is the Federal Housing Finance Regulatory Reform Act, H.R. 3221. The act amends the FHA Appraiser Roster requirements by requiring certification by a state or "a nationally-recognized professional appraisal organization" as well as "demonstrate verifiable education in FHA appraisal requirements."

H.R. 3221 is welcomed by the Appraisal Institute, as it promotes the use of highly- qualified real estate appraisers to address today's valuation issues. Bill Garber, Director of Government and External Affairs for the Appraisal Institute, says that, "Our organization believes that quality valuations performed by competent and ethical appraisers are an essential part of government guaranteed loans and we're delighted that Congress has taken steps to ensure the government's lending policies are safeguarded."

Most importantly, the bill prevents other people interested in real estate transactions -- from lenders to bankers -- from trying to influence appraisers. This provision protects appraisers working under the Hope for Homeowners Program and the FHA Appraiser Roster.

The Hope for Homeowners Act came to fruition under H.R. 3221. It is a voluntary program that allows homeowners facing foreclosure to refinance into a more affordable, secure FHA-backed mortgage. It requires that all appraisals done under this program be conducted in accordance to Title XI of FIRREA and performed by an appraiser who meets the competency requirements of the Uniform Standards of Professional Appraisal Practice.

"This is the first step in working to make appraisal standards uniform across the nation," Senator Mel Martinez, R-Fla, said. "This provision strengthens standards for FHA appraisals and ensures the integrity of the new FHA program that offers foreclosure assistance."

Labels: Federal Housing Finance Regulatory Reform Act, Home Foreclosure, Real Estate, Real Estate Appraisers

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Use Care When Buying at a Foreclosure

Have you ever considered purchasing a home at a foreclosure auction? Sure, there are some hot deals for the taking, but do you really know what you're buying? Before making that mortgage commitment, you must do a little investigative work first.

Once you locate a potential home, find out as much as possible about its overall condition and estimated value. Do this by talking with the lender or attorney who is handling the foreclosure, or even better, the owner who is foreclosing. If no one can confirm the home's condition, look for another candidate. Why risk purchasing a home that could be infested with termites, reconstructed without the required permits or resting on a cracked foundation? Additionally, some home owners who are facing foreclosure may strip the house of valuable appliances, hardware and more.

If the condition of your foreclosure of interest gets the thumbs up, your next step is to make sure the property is free of tax or mechanic liens. District websites can typically provide you with tax information. However, your safest course of action is to consult an attorney who can obtain a title search and confirm the foreclosure has no hidden problems that could prevent you from obtaining title to the property.

Even when you do your homework and have the foreclosure investigated for warning signs, there are other factors to consider.

"Buying any property at a foreclosure sale is risky," cautions Benny Kass, a practicing attorney in Washington, DC and a Yahoo! real estate expert. "At the last minute, the delinquent homeowner can file for bankruptcy relief, which would put a stop to the sale."

The moral of the story? Purchasing a home at a foreclosure auction should not be taken lightly, but with great care. Educate yourself before heading to that alluring foreclosure auction and don't allow yourself to be seduced by a property that seems too good to be true.

By Danielle Macklin, Allied Schools,www.realestatelicense.com

Labels: foreclosure, Home Foreclosure, real estate foreclosure

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