The Impact of Rising Prices on Home Appraisals

The fact that residential home prices are increasing substantially in most regions of the country is music to the ears of homeowners. However, if you are in the process of selling your home, make sure you realize the major challenge a hot real estate market creates. 

Each house must be sold twice; once to a buyer and a second time to an appraiser who represents the bank that will grant the purchaser a mortgage to buy the home (unless it is an “all cash” purchase). In a real market with escalating prices, the second sale may be the more difficult. And a recent survey by Quicken Loans reveals that the gap between what a homeowner believes is the value of their home compared to an appraiser is widening.

This could lead to an increase in the percentage of real estate transactions being challenged by a ‘short’ appraisal (where the appraiser value is less than the contracted price of the home).

Bottom Line

Whether you are a buyer or a seller, you must be prepared for this possibility as it may result in a renegotiation of the price of the home. 

Getting a Mortgage...

Have you ever heard someone say I’m getting a mortgage?  This is not correct.

When financing the purchase of a home, the Lender gives you a note (promise to repay) and you give the Lender a Mortgage which puts your home up as collateral against the note.

This is why you can get a big loan for 4%, a smaller loan to buy a car at 6% but credit cards are often around 10% with much smaller limits because the credit cards are considered un-secured debt.

To learn more, please click here to visit our website. We are experienced REALTORs based out of Carmel, Indiana. Our team is dedicated to helping our clients Sell their House or Buy a new Home.

What is a Lender?

Most people refer to getting a mortgage with their bank.  
Of course banks can lend money to buy a home but in this capacity they are a lender.  Banks are where we have checking and savings accounts and get credit cards.  Most of the time, the Lender is facilitating the transaction and is in essence “Servicing” the loan for an underlying investor such as Freddie Mac or Fannie Mae.  Some Lenders keep the loan in-house like Credit Unions.

Please call Fred Krawczyk & Associates, We areexperienced REALTORs based out of Carmel, Indiana. Our team is dedicated tohelping our clients Sell their House or Buy a new Home.

Bank Owned Properties In Indianapolis

These consist of REO (Real Estate Owned), HUD or VA Owned properties.

When a foreclosure house goes to the Lender at Sheriff Sale, the Lender will perfect the title (strip off any liens against the property) then list it for sale.

If the loan was a conventional loan it will be an REO property and if the original loan was an FHA or VA (Veteran Affairs) insured loan, it will be listed as a HUD or VA Owned property respectively.

If you live in Indianapolis Indiana and are looking to buy or sell a home please call Fred Krawczyk and Associates at 317-294-4425. If you are facing foreclosure, we can help.

What is a Sheriff Sale?

A sheriff sale is a court ordered event after the lender is awarded a Foreclosure Judgment.

The Lender’s law firm will file a praecipe for sheriff sale after which the property has to be publically advertised for sale for at least 30 days prior.

Generally speaking, most houses go to the Lender at Sheriff sale because no one bids or bids high enough.

If you live in Indianapolis Indiana and are looking to buy or sell a home please call Fred Krawczyk and Associates at 317-294-4425. If you are facing foreclosure, we can help. 

Foreclosure

I often hear people say, “my house is going to foreclosure”.

 Foreclosure is a process, not an event.  When you are unable to make your loan payments, usually after 3 or more missed payments, the lender will hire a local law firm to file a Foreclosure Law Suit against the owner (more accurately the Borrower).

The foreclosure process takes at least 6 months ending with a foreclosure judgment if you don’t do something like a loan modification, short sale or deed in lieu of foreclosure.

If you are looking to buy or sell a home in Indianapolis - please visit us at http://indyhouses.net/

Home Ownership

Most people don’t realize this but when you get a loan to purchase a home in Indiana you actually get the deed to your home after the closing.

Once it is recorded at the county court house, it is mailed to you 30-60 days later unlike financing a car where the bank holds the vehicle title until the loan is paid off.

This is also why a bank can repossess a vehicle but have to file a foreclosure law suit to get possession of the home.

If you live in Indianapolis Indiana and are looking to buy or sell a home please call Fred Krawczyk and Associates at 317-294-4425. If you are facing foreclosure, we can help.