When a disaster is declared, it is not uncommon for investors (banks / mortgage lenders) to require that EVERY SINGLE HOUSE in the affected area with a PENDING LOAN be reinspected by an appraiser for damage prior to final approval of funding. As a result of the large area affected by Hurricane Sandy / Cyclone Sandy, even areas that did not see widespread disaster / damage will likely still require an inspection of the property.
If your lender informs you that your property must be reinspected, they are acting on investor, or insurer requests. As a result, the appraisers will be working diligently to reinspect the property, prepare the appraisal report and submit the final copy to the lender in order to close your loan as timely as possible. There may be additional charges for these reinspection, which is expected for the cost of conducting business. If so, ask your lenders what they can do to help with the charges (the appraisers need to be compensated for their time and other expenses of conducting the requested inspections, which is only fair).
If you were about to close on your loan within the next few days, follow up with your lender to see if your loan (closing date) will be affected. Sellers should be prepared to be flexible and assist with the reinspection and accommodating the appraisers for access (if required). Agents, set up possible back up plans for immediate closings that may be delayed. The appraiser will do their very best to get things turned as quickly as possible.
This is not unprecedented - it happens any time there is a blizzard, flood, tornado, earthquake, etc. You are not alone. It is necessary for the bank / lender to verify that their investment / asset is still functional and habitable. Both parties have a lot of money at stake.
The vast majority of homes are just fine, and this will be evident to the lender in due time. Good Luck!
Tuesday, October 30, 2012 3:41:59 PM
A study conducted by the Federal Reserve Bank of New York concluded with the prediction that the U.S homeownership rate will continue to drop over the next few years. In a staff report, entitled "The Homeownership Gap," Federal Reserve economists Andrew Haughwout, Richard Peach and Joseph Tracy noted that the homeownership rate in this country reached an all-time high of 69% in the third quarter of 2006 and dropped 1.7% over the next three years to 67.3%, which was the lowest it had been since the second quarter of 2000. The report stated that increasing unemployment and foreclosures, combined with decreasing housing prices have led to this rate decline. The economists also noted the higher percentage of negative-equity households, where more is owed on the mortgage than the home is worth. This trend will lead to less "household mobility," due to the fact that people in this situation "need to delay a move during the period they are rebuilding their savings." They site Census reports to point out that "the number of households moving is at its lowest point since 1962." "The current severe house price cycle, combined with borrowers who had little or no equity at origination of their mortgages, has led to a dramatic rise in homeowners with negative equity," the report said in its conclusion. "This situation is likely to put downward pressure on future homeownership rates, and has potentially important implications for the maintenance of the housing stock, the stability of neighborhoods, and future household saving behavior."
What does this survey say for the current state of the US economy and the housing market? Where is our country headed? What do you think?
If you feel that your home has been over assessed, you can use a professional appraisal to help prove your taxes. Most areas base your property's value on an ad valorem assessment. Every local taxing authority has a different policy and time of year for you to appeal your property taxes. Having a professional residential real estate appraisal can help to prove that your home is being over assessed. Although we cannot guarantee that your taxes will be reduced, we can give you an accurate estimated value of your property. You can then take the professional appraisal to your local assessing department. Call us today to determine the discuss your personal appraisal at (215) 444-9887, or check us out on the web at www.IrelandApprAssoc.com
Below is an example of How Much Money You Could Save by Appealing your taxes:
Taxable Value Millage Rate Taxes Per Year
$400,000 x 25 = $10,000
Tax Assessment Lowered to...
$300,000 x 25 = $7,500
That equates to a savings of $2,500 for the year.
If you live in your home for the next 10 years you will have a total savings of $25,000! That savings more than justifies the cost of an appraisal, even if you stay in your home for just one year.
Call us today to order your appraisal at (215) 444-9887.