For the past 3 months their has been an increase in equity deterioration for California homeowners. One of the problems that I have seen causing this situation is investors that purchased the properties at a lower price are dumping these properties for less than the market price. When someone wants to take a loan out in the immediate area the banks want to see what the homes have been selling for.
The banks get this information from appraisers who get some of their information from the MLS (Multiple Listing Service). When the appraiser looks on the MLS and sees that a comparable home has been soon within the immediate area for less, he notes it in his/her appraisal. The bank will only lend based on the findings of the appraisers report.
Investors dumping homes has really affected homeowners that would like to either sale or refinance their properties. Due to the instability in the market the banks have become very strict with the acceptance of value from reputable appraisers. This is called a Desk Review. This is when the bank reviews the appraisals and counter offers the value of the property. The Bank wants to protect their position, so the value that they come up with is far below what your average appraiser would come up with. Until, the real estate market becomes more stable a lot of home owners will be impacted by these practices.
If you would like to see where the value of your home is give Gary Martin a call at (909)717-2013
1 comment:
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