Monday, June 29, 2009

Another Blow to the Real Estate Market

Now a new challenge has emerged to slow down real estate again, this new law appraisal law for Fannie Mae and Freddie Mac backed properties. This law no longer allows a lender or mortgage broker to order an appraisal from the company of there choice. They have to go through Appraisal Management Companies with no choice in the appraisal company. Many problems have occurred higher appraisal fees to consumer because of middle man fees. Lower fees to appraisers which means the quality of the appraisal is suffering and appraisers going out of business. Appraisers not familiar with areas of the property and values are off. Delays in the transaction if another appraisal is order, and additional expense to buyer. Not to mention if there are delays on the buyers side in foreclosed property the buyer is charged from $100-300 for each day delayed from closing. Here is a very detailed article from Orlando Sentinel and here is a video worth watching.