Comments on: HVCC – More BS From Fannie and Freddie

By: Curtis

Curtis — Sun, 03 May 2009 18:00:47 +0000

Hi Susan, this is great. I am not a guru, unless “confusion” has one. Here is how I see this, “Home Valuation CODE OF CONDUCT”, these days when we talk about the autombile industry or Banking industry in reality we are saying GOVERNMENT, since they took everything over, so “CODE OF CONDUCT” becomes an “oxymoron” written by morons. Now here is the “golden egg” they have created. My business moldel is 90% Short Sales 10% REOs. This is just my gut feeling and here is how I came up with it. Tax assessments are 20% low and are done by the government. AMCs are a company within a company (lenders company) which is now owned by the government, so the appraisals will be 20% low. This protects the owner of the lender (the government) because they only loan 80% LTV so with this new system they will be doing 60% LTV. Now if they foreclose they can gain instant 20% equity by giving an accurate appraisal. So my short sale offers will have a BPO that is 20% lower than normal and any REO I look at will have to have an appraisal on it after May 1rst, if not then I will take 20% off of my offer, if they take it great, if they don’t, then they can eat it, not me. I see two things here, first all houses have decreased 20% in value as of May 1, I already recieved a letter from Chase that my value on my home has gone down due to their “internal methods of calculation” on my line of credit. The second thing I see is there is going to be an onslaught of houses on the market, just sitting, and I can wait this out Rental houses will become more available than lies out of DC. They have created a situation where Portfolio Loans and Private Money Investors will be the new banking industry. With the great information you have given us here, I will be able to defend my offer and protect my investors….thanks again…curtis

By: Brian

Brian — Fri, 01 May 2009 20:30:37 +0000

It is all about following the flow of motivations with all parties involved. What motivates “skippy” the appraiser? What motivates the seller? What is motivating us? We have to remain fluid and positive in our thinking and be willing to consistantly and honestly challenge our paradigms and financial goals. Steven Covey says it best, “begin with the end in mind”. There is always more than one way (legally) to get there, in whatever financial vehicle we choose. Personally I think real estate is still the best. If it were easy, everyone would be doing it. Thanks Susan for all of the vital information you provide! The only investors who will survive these extreme changes are those who arm themselves with information, adapt and overcome! You help make that happen in a BIG way!
Is it possible to find out which lenders use the same AMCs and focus our activities toward groups of lenders to avoid those additional costs? When one may decline and another may accept?
Any thought on REITs in this environment?

By: Susan Lassiter-Lyons

Susan Lassiter-Lyons — Wed, 29 Apr 2009 16:37:37 +0000

I know, right?! This is for Fannie Freddie loans so all conventional loans. Portfolio lenders don’t have to play these silly reindeer games.

By: Pam

Pam — Wed, 29 Apr 2009 13:43:21 +0000

Hi Susan. This is unbelievable! Does HVCC apply only to freddie and fannie loans? If you get a loan with a local bank will your appraiser have to be employed by an AMC?