VOTE!

My kids and I will be on the corner of 41 and Bee Ridge today to support Bill Furst for Sarasota County Property Appraiser! To learn more about Bill, visit: http://www.furstforfairness.com/.


Remember to get out and VOTE! It's your right as a US citizen. Don't take it for granted.

Me? Couldn't Be. Then Who?

The following three articles are all from the Sarasota Herald Tribune although much the same can be found nationwide as such arguments of who's to blame for our "housing crisis" occur everywhere from the beach's snack shop to the Senate. I found the presence of these three highlighted on the SHT's website noteworthy, especially considering I've yet to read an article from the SHT about the great deals now available for first-time homebuyers and wage-earning workers. I know, I know (you don't need to remind me) that scary stories sell better than warm-fuzzy ones even when true. Last on the list is a letter from the President of the Florida Bankers Association offers a solution to the mortgage problem written in response to this article: http://www.miamiherald.com/multimedia/news/mortgage/probe.html.


"Appraisers Felt Lender Pressure" by Harold Bubil:
http://www.heraldtribune.com/article/20080809/COLUMNIST/808090312/2132/realestate&title=Appraisers_felt_lender_pressure


"Placing Blame For The Collapse" by Harold Bubil:
http://www.heraldtribune.com/article/20080726/COLUMNIST/807260309/2132/realestate&title=Placing_blame_for_the_collapse


"Bankers Blaming Mortgage 'Originators' For Market Mess" by Harold Bubil:
http://www.heraldtribune.com/article/20080722/BLOG12/596498198/2369/BLOG12&title=Bankers_blaming_mortgage__originators__for_market_mess

"We Must Protect Florida's Mortgage Industry" by Florida Bankers Association President and CEO Alex Sanchez

Upon reading recent news stories produced by an investigative team of the Miami Herald, I-like many others-was alarmed, disappointed and outraged. The stories revealed some startling statistics and heartbreaking stories related to mortgage fraud in our state. Some of what the newspaper found included:

• One in three brokers who committed fraud were allowed to continue working in the industry without any monitoring.
• More than 80 brokers who were caught stealing from clients by siphoning funds from escrow accounts and issuing excessive fees were allowed to continue working in the industry.
• Tools that could have been used to protect consumers, such as suspensions and revoking licenses, were used rarely, if ever.
• The number of licenses revoked by regulators declined each of the past eight years as Florida's mortgage fraud rate rose to the unenviable position of number one in the nation.

This news about these fly by night mortgage lenders is a stark contrast to the safety and soundness of the FDIC insured banking industry. Banks are highly regulated by the Federal Reserve Bank of the United States, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Office of Thrift Supervision and the State Banking Department.

An FDIC insured bank is highly scrutinized. Some of our banks are examined year-round and all others are examined every 12 to 18 months, which includes carefully screening and checking loan portfolios, bank procedures, bank practices and monitoring to ensure that our customers' money is safe and therefore sound. All of the banks operating in the state of Florida are highly regulated by state and federal agencies that monitor transactions, audit files and require numerous monthly, quarterly and annual reports.

In the 75 year history of the FDIC, no customer has ever lost one cent when their monies were in an FDIC insured bank savings account. The record speaks for itself. No one else can make that claim!

At times, bankers may have to tell customers things they don't want to hear such as "you can't afford this loan." But at the end of the day, I think people would rather hear that than "we're sorry, but your mortgage broker is in jail and all your money is gone."

Here-today-gone-tomorrow mortgage originators were in the practice of doing whatever needed to be done to close the loan. As we now see, some unscrupulous individuals working in the mortgage industry were willing to lie, cheat or steal just to seal the deal.

To the contrary, bankers want to build relationships with customers so that not just your mortgage is with the institution, but also perhaps savings and checking accounts, retirement accounts and more. When looking for a home or business loan, there is no better place to go than an FDIC insured bank.

Banks, which are well capitalized (meaning they have required rainy day funds) conduct a series of examinations to determine the credibility of a loan before its issuance, including verification of income, requiring a solid deposit and performing substantial credit checks. According to recent news articles, others peddled mortgages "that required no money down and minuscule payments for the first few years." Some even forged records like tax forms, account balances and income statements.

The Florida real estate market indeed has its challenges with flippers, fraud and foreclosures. We need to restrict the ability of criminals to work in Florida's mortgage industry from handling one of the most important-and often largest-financial purchases of a person's life: the purchase of a home. For this reason, there is just one group who should be entrusted with handling your vital financial transactions, an FDIC- insured bank.

Alex Sanchez is president and chief executive officer of the Florida Bankers Association (FBA). Established in 1888, the FBA is one of Florida's oldest trade associations and has a membership of nearly 400 financial institutions of various sizes; nearly 96 percent of banks operating in Florida are members.

How To Fight The Tax Assessor

2008 Trim notices are mailed this month for both Sarasota and Manatee Counties. You have 25 days to file a petition with the Value Adjustment Board. Try it! You could save some money....

Here's an article from the SHT about someone who did it and won: http://www.heraldtribune.com/article/20080810/ARTICLE/808100304/2107&title=How_to_fight_the_tax_assessor.

Once the form is filed, you'll need to prepare info for your hearing date. PLEASE call or email me for help during this part of the process as I can collect verifiable data on values in your neighborhood to help prove why your home should be valued for less and save you money!

Countrywide Short Sale Basics & Details

I just received this info from Pam Voorhees, an awesome Countrywide home loan consultant. It's super informative for anyone involved or thinking of getting involved in a short sale regardless of the bank holding the mortgage note(s).

One out of every four homeowners has a Countrywide Home Loan. With the growing number of short sale requests, we have established a support team to handle inquiries and status calls from borrowers or their agents.

Short Sale Process Example

Customer and/or authorized real estate agent contacts Short Sale Support Team at 1-866-880-1232 to request information on the process and documents needed for the short sale program.

• The customer and/or agent faxes signed purchase contract, listing agreement and Preliminary HUD-1 to dedicated short sale fax at 1-888-491-4947.
• The Short Sale Support Team contacts the customer and/or agent within 48 hours of receiving the fax.
• An appraisal is also ordered within 48 hours of receiving the faxed offer.
• The appraisal vendor contacts the customer and/or the agent to schedule the appraisal within five days of the offer.

Each potential short sale is reviewed on a case-by-case basis. Customers with accounts whose payments are completely up-to-date and current will not be considered unless there is an imminent default or hardship. Additional borrower information may be required, including:

• An explanation of hardship
• A copy of the most recent month's income verification or last three months of profit and loss statements, if self-employed.
• A copy of the most recent month's bank statement.
• A copy of the most recent year's income tax return.

The decisioning time varies based on the ability to obtain access to the property for an appraisal and on the financial situation of a particular customer.

The Short Sale Decisioning and Timeframe

A typical short sale decision can take 30-60 days from the date the offer is received. Several factors contribute to this timeframe:

• Day 1: Receive a legitimate offer (This includes the listing agreement, copy of MLS, preliminary HUD-1, hardship letter and a signed purchase contract).
• Day 2-15: Order appraisal (Timeframe to obtain the appraisal is approximately 10 days).
• Day 15-25: Analyze (Obtain necessary financial documentation from the borrower to determine hardship and ability to contribute to the loss, dependent upon input from the borrower).
• Day 25-30: Negotiate delegated decisions (Be advised that non-delegated decisions will take an additional 30-60 days. Many investors such as Fannie or Freddie and insurers such as FHA, VA, or Mortgage Insurance companies, do not delegate the short sale decision and require their explicit approval. If there are any subordinate liens, then there must be a negotiation with them to accept a reduced payoff amount to release their lien).
• Day 30-35: Approve or decline.
• Day 35-80: Receive successful approval of the offer and close.

All timelines noted herein may vary based on the volume of short sale activity, thoroughness of packages and the particulars of the specific transactions. They are meant to be utilized as guidelines and as a means to set appropriate and approximate expectations.

Countrywide's analysis of a potential short sale will include the owner's ability to participate in the loss, the purchase price, the current value of the home obtained by Countrywide and the short sale loss as compared to foreclosure/REO loss.

For more information, call or email me or Pam (941) 586-8079 Pam_Voorhees@Countrywide.com.

Sarasota County Seeks Applicants For Value Adjustment Board

Just received this notice and thought someone out there might be interested:

The Sarasota County commissioners are seeking applicants to serve as the citizen representatives to the Value Adjustment Board.

The Value Adjustment Board (VAB) hears appeals from property owners challenging assessments of their property for taxation purposes by the Property Appraiser. The five members of the VAB currently include three county commissioners and two school board members. After Sept. 1, the membership structure will change to include two county commissioners, one school board member and two residents.

Any resident who owns a homesteaded property in Sarasota County is eligible for appointment so long as they are not a member or employee of any taxing authority. Any person representing a property owner in an administrative or judicial review of property taxes is also ineligible for membership on the VAB.

Commissioners will consider appointments to the new advisory committee at their Aug. 26 meeting.

The deadline for applications is 5 p.m. Monday, Aug. 18. To apply, click on Advisory Boards and Councils located under the County A-Z link. An advisory board application form is available with instructions for completion. Mail applications to the Clerk to the Value Adjustment Board, P.O. Box 8, Sarasota, FL 34230, or hand-deliver them to Board Records, Second Floor, County Administration Center, 1660 Ringling Blvd., Sarasota.

For more information about the VAB, call the Sarasota County Call Center at 941-861-5000 and ask for the Board Records office.

Sarasota County Tax Appraiser?

Friday I attended the Sarasota Association of Realtors Quarterly Luncheon which presented a forum for both county tax appraisers to debate their qualifications and ability to affect a positive change for Sarasota County. Other county candidates (for school board, commissioner etc) were also invited to “meet and greet” the Realtors in attendance. I’m glad I came, but not only because the food and company was fabulous, because I was glad to be introduced to and learn more about so many folks who make or will make importance decisions on behalf our county and folks.

My main motivation for attending, however, was to find out what sort of freewill is allowed in the role of county tax appraiser otherwise I didn’t really understand how a change in person will make a difference in our purses and wallets. Before the luncheon, I assumed it was a position of management, accounting and networking, with the latter being the only viable way to impact change by involvement with state politics. Indeed, my assumption was partially correct except for the candidates interpret the impact of state laws and regulations for our county. Jim Todora claims these to be the law of the land to be adhered without exception and is very knowledgeable as to their specifications and even exact language, some of which he drafted. Bill Furst claims there is room for interpretation and it is the role of the tax appraiser to infer from these “guidelines” for the greatest benefit of the county and folks represented; and deal with any ramifications later. I honor and respect both approaches and generally meander through life with a bit of both, but as far as for this position I suppose I need to do a bit more research.

Which candidate will I support? Both are incredibly qualified though in different respects. Furst, a former Realtor and broker manager, has experience with the many varied aspects of real estate and Todora obviously has been our tax appraiser for the past twelve years. To learn more about each candidate, visit their websites: www.jimtodora.com and www.furstforfairness.com.

To learn more about exemptions for your property, the appraisal process and the recorded details of your home or commercial property, visit the Sarasota County Property Appraiser’s official website: www.sarasotaproperty.net.

Solution To Low Appraisals

Do you own research if the appraisal comes in too low

Much to their chagrin, many buyers, sellers and owners are finding out that, in today's down market, their homes aren't worth what they thought. At least, not in the eyes of the professionals hired to tell lenders what the places could fetch on the open market if borrowers failed to make their payments.

In a perfect world, the value of a property is what a ready, willing and able buyer will pay for it. But the housing market is imperfect at best. For one thing, values rise and fall with the tides, maybe not on a daily basis but over a period of several months. For another, market forces do not act as freely as they should. For example, buyers sometimes will pay whatever the seller asks just to get their hands on a house they've come to love, whether or not the price has any basis in reality. And in a few instances, buyers and sellers intentionally conspire to inflate the agreed-upon price to defraud the lender and line their pockets to the tune of thousands of dollars.

Consequently, an appraiser, a trained valuation expert who can give the property the once over and give the lender his or her opinion of its true worth, is needed. But the art of appraising is just that, an art, not an exact science. And even though those who practice it hold the fate of sellers, buyers and refinancers in their hands, they are not gods. Indeed, they are fallible, just like everyone else. If you honestly believe yours has made a mistake, you can appeal his finding to your lender.

Start by finding out whether yours is a full-blown appraisal or an electronic one. More and more lenders use automated valuations, particularly in the home-equity sector, to speed up the process and cut costs. But they are notoriously inaccurate. AVMs, or automated valuation models, are good enough to give lenders an overview of local housing values, especially when they are lending only 75 percent of what the house is really worth. But they just won't do it on a house-by-house basis, when lenders are putting up 95 percent or more of the home's value.

Whether you are seeking a home-equity loan or a primary mortgage, if your lender is relying on an AVM, ask to have your place valued by a human being who actually looks at your specific house, compares it to others in the neighborhood, checks out the community and does all the things an appraiser is supposed to do. In most cases, lenders will bow to your wishes, especially if you are willing to write the check to cover the several hundred dollars a full appraisal will cost. If a real, live appraiser is responsible for a valuation you think has come in too low, your appeal becomes a little more problematic -- if only because you are dealing with human beings who, unlike machines, have feelings. So to keep your appeal from becoming an exercise in futility, do it with as much finesse as possible. "When a lender reassigns the appraiser to take another look at a house," a real-estate broker whose name is long forgotten once told me, "it's like telling him he screwed up the first time. How many people are going to admit that?"

Of course, you can always ask for a second opinion from another appraiser. But you'll have to pay the freight a second time, too. Moreover, to stand any chance of winning your point, the second valuation must be more than 5 percent higher than the first. In the appraisal game, anything less is considered an acceptable difference. Besides, even if the second appraisal is far above the first, it's the lender, not you, who gets to pick the appraisal on which the loan is based.

While this may seem as if the cards are stacked, you can even the playing field by suggesting, firmly but nicely, that the appraiser assigned by the lender erred and requesting, again nicely, that he be asked to take a second look. And you can grease the wheel a bit further by doing some of the appraisal spadework on your own. It may take time and effort, but it could pay off in the long run.Your job is to search out "comparables" the appraiser may have missed the first time around.

A comparable is a property of the same size and style in the same location and with the same features as the one being appraised. To determine a fair-market value for the subject property, an appraiser looks for recent sales of several comparable properties. Normally, however, they limit their search for "comps" to the multiple-listing service (MLS) operated by the local real-estate association. And when they do that, they may not be looking at the entire market. Even though enough sales pass through the typical MLS that an appraiser should have little trouble finding comparables, not every deal goes through the system. Independent brokers who are not MLS members make many of them, and some are made without the help of an agent, MLS member or not. Then, too, some MLS members don't put all their listings into the system. As a result, half of all transactions in some major markets occur outside the MLS. Your job is to find them. And to do that, you'll have to comb the land records at the local courthouse. Remember, though, that you are not just looking for sales in the same general neighborhood. You want at least two, but preferably three, of the same style -- ranch to ranch, for example, not ranch to two-story Colonial -- size and features. Also, sales should be no more than six months old, and the more recent the better.

If your search bears no fruit, turn your attention to the comps cited by the appraiser. Sometimes they are not really comparable. While the appraiser is required to go inside the subject property and measure every room, he does not have to do the same with the comps upon which he bases his valuation. He may have been inside one or even two, if he has appraised those properties in the past. But more often than not, his knowledge of them is based entirely on their description in the multiple-listing system or the public-land records. Often, those narratives are far from accurate. Sometimes, they're incomplete; other times, they're nothing more than blatant advertisements. A "large, wooded lot" may have but one tree, for example. And wallboard is hardly a fair comparison to your lovely wood-paneled rec room with its wet bar and fireplace.

The trick here is to find as many differences as possible in your favor, differences the appraiser may not have known about or failed to consider. In other words, try to find gray, fuzzy, undefined, superficial values where the appraiser can say you are right and he is wrong. One item often overlooked is the age of the comparable house; another is the size of the lot; and a third is room sizes. Of course, this kind of detective work requires that you visit comparable properties with pad, pencil, tape measure and a sharp eye for detail. It also helps that they have cooperative occupants who will let you snoop around. But if you tell them what you're about, they should be more than willing to cooperate.

Most appraisers are aware of their shortcomings so that if your pilgrimage turns up major differences, they should be willing to re-evaluate their original valuation."We're not arbitrary," says one expert who claims he has no problems changing his opinion based on new findings. "We're open-minded within reason. After all, we're only as good as the data that's available to us."

Lew Sichelman has been covering real estate for more than 30 years. He is a regular contributor to numerous shelter magazines and housing publications. Sarasota Herald Tribune.