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Appraiser Shortage Rocks Real Estate Sales on Mt. Hood

Sunday, November 20, 2016
by Liz Warren

Getting a mortgage these days is filled with massive amounts of documentation, strict regulations red tape and on top of that a huge shortage of appraisers in the Northwest. The further away from urban centers the more delays you will face! What once was a thirty to forty five day process is now becoming a sixty to ninety day process. Not only is the Mt. Hood area, only one hour from Portland, facing extended closings, if you're in Southern Oregon or at the coast you need to count on a ninety day closing.

I've had three transactions assigned to appraisers coming from the Bend area to get the work done for the loan! Portland's mass influx of new residents has shaken the mortgage process and most appraisers are looking for the short drive near PDX vs. the hour East to service Rhododendron, Welches and Brightwood and Government Camp. It's not just the Northwest though, appraisals are affecting all other areas of the country too. Part of the problem is the amount of education and training it takes to become an appraiser. The bar for entry is too high! Current costs of appraisals on the mountain run $600.00 plus. Many I've seen have reached the $700-$750 range. Add on the expedited appraisal fee and we are talking $900 plus.

The impact of the appraisal issue hits both buyers and sellers.

*Delayed closings are rampant!

*Buyers loose their lock on interest rates. 

*Try to plan a move without knowing when the appraiser will take place.

*Excessive fees to buyers to "expedite" their appraisal.

Here are  few articles I found online that discuss some of the issues and resolutions. Bottom line: if you want your house to close by June 1st and move into your new home by the beginning of summer, I suggest you get under contract by March to get that accomplished which changes the mind set of most buyers and sellers in the process. Currently we don't see any resolution to the problem in the near future so it's best to plan ahead. 

Southern Oregon Appraisal Delays

Only eight appraisers in Clatsop County: Astoria, Oregon

The system is broken: Bend, Oregon

Appraisal fees in Portland


 

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Investment and Vacation Home Buyers 2016 for Mt. Hood

Saturday, April 30, 2016
by Liz Warren

Investment and Vacation Home Buyers

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Distressed Sales Decline in the Mt. Hood Area

Monday, October 26, 2015
by Liz Warren

Take a look at the RMLS statistics for distressed sales over the past quarter in all areas. Bank owned sales are just down to under 6% and short sales at under 2%! So far in 2015 the Mt. Hood real estate market has seen a total of 6 bank owned and zero short sales up to this point. In 2014 that total hit the 18 with 15 bank owned and 3 short sales. The "shadow inventory" of distressed homes is shrinking by the month and heading for historic norms. 

Distressed Real Estate Sales and Listings for Mt. Hood Real Estate

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Septic Smart DEQ Program for Oregon Septics and Cesspools

Sunday, February 15, 2015
by Liz Warren

The DEQ department for the state of Oregon has developed a new program for homes with septic and cesspools called Septic Smart. It’s Septic Smart program is designed to educate buyers and sellers about proper septic care and maintenance.

Along with the DEQ’s new program, Septic Smart, the Oregon Real Estate division now requires a septic addendum within your real estate contract addressing septic and cesspool inspection requirements, if needed. This restricts who can do the septic inspections for a real estate transaction to designated Oregon state certified DEQ inspectors. An up to date list of inspectors can be obtained online at the Septic Smart website.

The Mt. Hood area probably has around 80% of its homes on a septic or cesspool. 

Cabins located in the Mt. Hood National Forest require an upgrade at the time of sale for existing cabins served by cesspools. The septic upgrade process and time frame will be determined by the forest service on leased land cabins with severe restrictions on when and where any work may start or be completed. 

These new DEQ requirements put septics and cesspools as a number one priority in a real estate transaction. There is a program at Clackamas County that provides low income grants and loans for septic repairs and other home repairs listed on their site. 

Expect potential delays in a transaction if septic problems arise from these new requirements. 

 

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Roofs for Troops-Low Cost and Free Homes for Vets

Thursday, October 30, 2014
by Liz Warren

Have you ever heard for Roofs for Troops? This is a program that receives donated homes across the US to rehab in preparation for a Vet to either purchase the home at a huge discount or actually get a home for FREE. It's true. If you know of a Vet who needs a home, tell them about this program and visit the website at http://www.roofsfortroops.org to learn how the program works and how to apply.

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Septic Tanks on Mt. Hood

Sunday, February 9, 2014
by Liz Warren

Septic tank replacement and installation is something we deal with on a regular basis on Mt. Hood. Many of our properties were built in the 1930s and 1940s so the time is coming where a tank replacement or system replacement is coming due. 

Many of our cabins, including forest service cabins on leased lands, are used on a fairly limited basis.  Some owners use their cabins every weekend and others once a month. It’s not unusual at all to find 300 gallon septic tanks used with older septic systems.  

Today’s regulations have changed for septic tanks. DEQ requires new tanks to be at minimum 1000 gallon tanks. Check out the tank that was recently installed at one of my listings at the forest service.

                                   It does look like it’s as big as the outbuilding!

Septic tank on Mt. Hood National Forest
 

If you’re interested in what the current standards  for septic tank replacements are, check out the info Clackamas County is providing for 2014. Don’t forget, if you have a cabin in the Mt. Hood National Forest, your first step will be to contact the forest service and get permission first!

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Portland Metro Area Distressed Property Numbers from RMLS

Tuesday, October 22, 2013
by Liz Warren

Distressed properties for Portland Metro 3rd Quarter

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First Time Home Buyers

Monday, October 21, 2013
by Liz Warren

If you are a first time home buyer or a buyer with minimum down payment pay attention to recent news concerning Fannie Mae. Currently you can get a mortgage with 3% down. Many buyers have applied for a conventional loan with 3% down vs. an FHA loan due to the high upfront PMI (Private Mortgage Insurance) required by FHA.  FHA loans have been losing out to Fannie Mae conventional loans due to PMI.

This November Fannie Mae will be increasing their down payment requirement to 5% instead of 3%. If you get your approval now and close by March 15th you can still get the 3%.

The mortgage insurance on Fannie Mae loans tends to be lower than the FHA insurance but that is dependent upon your credit scores.

So, the bottom line is if you are buying and want to get the best deal for a 3% down payment, you need to act NOW. See your mortgage professional for addition details.

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Mt. Hood Home Buyers

Saturday, October 5, 2013
by Liz Warren

If you're currently in a transaction in the Mt. Hood area, or starting one, and are getting an FHA, VA, USDA or conventional loan, you might be wondering what the current government shut down is doing to your loan and transaction. Read about NAR's summary of the delays for each loan and the impact it will have on your purchase. Which government services are having an impact on your loan?  The IRS and social security divisions are needed for many types of loans so this "might" cause delays. USDA loans are dead in the water. Current processing times for USDA are already three weeks out so this could cause even more of these loans to have long delayed closings!

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CPFB-Consumer Protectoin Financial Bureau Lacks Transparency

Tuesday, August 6, 2013
by Liz Warren

The CPFB was created after the Wall Street implosion to help protect consumers from financial transactions including mortgages. In the process, strict mortgage qualifications were developed so loans that would be packaged were solid (no liar loans) and these loans were called Qualified Mortgages. If a qualified mortgage failed it would give the right to the consumer to sue the lender in the event of foreclosure.  These rules for qualified mortgages were written by the CPFB.

After the Qualified Mortgage package was passed in January 2013, the director of CPFB, Raj Date, left to "spend more time with his family" and several months later created an investment advisory company called Fenway Summer LLC to make loans to people who did not qualify for the "qualified mortgage". He also hired many former CPFB employees setting his company up to make billions in future loans.

The CPFB didn't raise any alarms at what happened in their own backyard. Read the letter from the Committee of Oversight on Government Reform and the Committee on Financial Services sent out July 31st. to the current chair of the department.

Look for further news on this story in the next several months.

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Displaying blog entries 301-310 of 434

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