Ray Henson, Realtor (eXp Realty of California, Inc. (lic. #01878277))

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Rainmaker
914,708
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

Hmm, sounds like the banks may be setting themselves up for a 'HIT.'

Highly unlikely.

So, where's the money coming from? We know the banks are NOT benevolent and kind.  They are getting 'backdoor' money.

Apr 15, 2020 08:41 AM
Ambassador
5,697,571
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

Could be dangerous, I am seeing a few investors putting their portfolios up for sale right now, now sure as to how close to value these are though.

Apr 15, 2020 08:13 AM
Rainmaker
612,606
Eve Alexander
Buyers Broker of Florida - Tampa, FL
Exclusively Representing ONLY Tampa Home Buyers

Crazy...then what?

Sounds like a perfect storm.

 

Eve

Apr 15, 2020 08:32 AM
Rainmaker
6,965,243
Roy Kelley
Retired - Gaithersburg, MD

We will have to go with the flow. Times have changed.

Apr 15, 2020 08:07 AM
Rainmaker
1,000,918
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

Lenders, like so many of us and some many people in general, are being forced to be creative. Yet, I fear that loans that are purchased or guaranteed by government entities may have restrictions and requirements that may stifle such out-of-the-box creativity.

Apr 15, 2020 08:44 AM
Rainmaker
1,048,469
Doug Dawes
Keller Williams Realty Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

And I wonder what they would do if they issued a loan then the appraisal comes in low (of course they were approving most sales prior to Covid)

Apr 15, 2020 11:31 AM
Rainer
135,204
Jerrill Ewing
N & J Lake Properties, LLC - Eatonton, GA
Builder

values can change a lot in 120 days as we all remember so I think it's a huge risk.

Apr 15, 2020 09:55 AM
Rainmaker
2,052,856
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

Why bother with the appraisal then? Will title be held until the appraisal takes place. It doesn't make sense to me Raymond Henson, SRES, GRI 

Apr 15, 2020 08:47 AM
Rainmaker
1,424,800
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

What happens if it closes escrow, the loan funds and 100 days later the market dips down and the home doesn't appraise?  Will they magically use the comps from when it would have normally been appraised?  Will the buyer be hit with an additional fee?  Will the banks take one for the team?  LOL!

Apr 15, 2020 04:48 PM
Rainmaker
2,051,130
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Seems odd to do it after a property closes  

Apr 15, 2020 11:28 AM
Rainmaker
4,277,234
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Boy I be worry if this will be a problem down the road again.

 

Apr 15, 2020 10:05 AM
Rainmaker
1,759,239
Lyn Sims
Schaumburg, IL
Real Estate Agent Retired

I am thinking the banks don't know what they are doing. They are not even doing FHA loans I understand or loans over 1M. No investors to get rid of them too.

Good luck finding a portfolio lender.

Apr 15, 2020 09:58 AM
Ambassador
3,145,360
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

Crazy times indeed. 

Apr 16, 2020 08:47 AM
Rainmaker
4,508,482
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Some banks understand portfolio lending! Some do not! Wisdom to know the difference is essential.

Apr 16, 2020 05:15 AM
Rainmaker
1,346,364
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

Any help in closing deals works for me. New Normal.

Apr 15, 2020 08:33 PM
Rainmaker
687,623
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Group Valencia & Aliso Viejo

Are they nut?  This is ridiculous.  What good is an appraisal after escrow closes?  This just leads to lawsuits and incarcerations.

Apr 15, 2020 12:43 PM
Rainmaker
517,615
Ray Henson
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

I think the devil will be in the details and if the banks decide to utilize the the 120 day period.  I just saw a note from a real estate friend that Wells has stopped all interior inspections for the time being.  I have purchased exterior only appraisals.  They have issues that could be just about as bad as no appraisal at all.  New age, new procedures.  I am trying to be optimistic that this is more a bump in the road rather than a long term roadblock.

Apr 15, 2020 01:02 PM