But there is a new wrinkle. This time its open ended. No expiration date. Talk about inflationary. This is something new for the Federal Reserve
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Ca entered into an agreement with the top 5 banks to give more loan mods in return for end robo signing investigations. The banks are:
1. Bank of America
Read more on Are banks doing more loan mods?…
As if it was not bad enough that the mls is rigged, the appraisal system is also. We have been hearing for a long time that deals are falling through because of low appraisals. Now the consumer protection bureau wants to get involved. They want it to be law that you see:
1. all houses used
2.what kind of license the appraiser had
3. how much of your fee actually went to the appraiser
4.Is the appraiser local
5. Did they use a computer or actually saw the house
Its important to know this . The NAR reported that 33% of all appraisals were a problem. Because the appraisers are receiving such a small part of the fee, you get inexperienced appraisers who don’t the area and tend to count distressed sales as part of the comps.
In addition, many think the banks are purposely doing this to keep appraisals low so they can keep the loan low to protect themselves.
I am getting my sign and going out on Torrance Blvd to join the activists. Sometimes i wonder if it matters who wins the election.
New federal law is making it mandatory that banks shorten the time that they take to give you an answer to a short sale.(of course, i wonder what the penalty is) Laws are great if they have teeth. Otherwise, it’s just so much hot air.
Read more on Short sale time line decreasing…
Every time you make an offer to a bank, be prepared to close. There is no assignment regardless of what some “guru” tells you. You can do a double close but it is risky and complicated. Your deposit is at risk unless you have someone who is willing to put up the deposit in the 2nd escrow before the inspection contingency expires. YOU CAN NOT ADD ANOTHER NAME TO THE CONTRACT OR CHANGE IT IN ANY WAY.
Read more on Flipping is dead…