Green Real Estate Appraiser

High Closing Fees? Maybe Kickbacks are to Blame

Posted on June 6, 2013 | Leave a comment

Advice to homebuyers from CAARE

• Always shop for title insurance and settlement service alternatives to the in-house deals you’re offered.

• Ask your realty agent to help you shop beyond the affiliation network. Agents have a duty to help you get the best deals and best service, and they often know where they are. If you find better prices from unaffiliated vendors, don’t let anybody pressure you to go with the in-house, preferred provider. It’s your legal right to choose.

A settlement between the federal Consumer Financial Protection Bureau and a Texas homebuilder is drawing renewed attention to a controversial issue that was prominent during the years preceding the housing bubble: kickbacks in home real estate transactions.

Have questions about the appraisal process? Contact the appraisers at www.scappraisals.com

Put another way, do you know where your money is really going when you pay thousands of dollars in loan fees and closing charges? Is your realty broker or builder getting an extra piece of the action through side deals with lenders or title agencies — all at your expense through higher charges?

The CFPB’s allegations in its case against Dallas-based Paul Taylor Homes illustrate how these arrangements can work: According to the settlement, the builder created partnerships with two lenders — one a bank, the other a mortgage company. In reality, however, according to the CFPB, “both entities were shams” designed to funnel kickbacks to Taylor for referrals of home purchasers needing mortgages.

Though the partnership entities had names — Stratford Mortgage Services and PTH Mortgage — and appeared to be the funding sources for the loans, they in fact were shells with no separate employees, office space or real substance, the CFPB alleged. They did not advertise their mortgage businesses to the general public, instead servicing only Taylor purchasers.

Property Spotlight – Grain Bin Home

Posted on June 5, 2013 | Leave a comment

Unconventional houses can take many forms — think cob, straw bale and underground homes — and now we can add grain bin homes to the list of inexpensive alternative-living options. Snatching up used grain bins is one way of turning the cylindrical, metal structures — traditionally used to store grain — into homes. (For more on grain bin houses, read How to Build a Grain Bin House.) But now, a new kind of grain bin house is becoming more widely available.

How would this home be valued? Contact the appraisers at www.scappraisals.com for your value questions.

Sukup Manufacturing, a family-owned company in Sheffield, Iowa, manufactures agricultural products, including grain bins. In 2010, the business began planning the production of grain bin homes in response to the 2010 Haiti earthquake. In partnership with Global Compassion Network and Iowa residents, Sukup created an emergency shelter from a grain bin, which it called the Safe T Home. In February 2012, shipments of Safe T Homes were sent to Les Cayes, Haiti, where Sukup employees and Haiti residents worked together to erect the structures, forming the “Village of Hope.” Safe T Homes are now also available in the United States. Prices start at $5,700 for nonprofits that intend to use the homes for humanitarian efforts (contact your local dealer to find prices for your area).

The Safe T Home is made of steel and offers 254 square feet of interior living space. An inexperienced team can build one in just a few hours. With a solid steel door and latched screens in front of the windows, the Safe T Home offers security and strength — the round, fireproof structures can withstand high winds and earthquakes. Ballast boxes along the sides of the grain bin can be filled with soil to anchor the structure to the ground and provide space for a garden. Homes can come with an optional water-harvesting system capable of collecting 16 gallons of water from less than half an inch of rain.

Disclaimer: for information and entertainment purposes only.

Tips on selecting the “right” mortgage lender

Posted on June 4, 2013 | Leave a comment

Whether you are a first-time buyer or seasoned veteran, obtaining a home loan today is more difficult than ever.

The level of lender scrutiny and the maze of loan programs has never been more complex or illogical. The key to navigating this “Kafkaesque” process is selecting the right mortgage loan officer. But before you open up your personal information vault, do your own due diligence.

Contact the appraisers at www.scappraisals.com for your appraisal questions.

There is one Web site that makes the loan officer investigative process relatively easy. The National Mortgage Licensing System & Registry (NMLS) maintains a site providing consumer access to the administrative and license information for state regulated mortgage lenders in all 50 states and the District. The NMLS Consumer Access site can be searched free of charge at www.nmls
consumeraccess.org .

With a few mouse clicks you can obtain a treasure trove of information about your proposed mortgage lender. Before revealing any personal financial data, you should confirm that your loan originator is licensed. In fact, in the Washington area, Keller Shinholser, senior loan officer for Apex Home Loans in Rockville, advises that you work with a loan officer that is licensed in all three local jurisdictions. “If you start working with a loan officer only licensed in the District, and you later decide to buy a home in Virginia, you may have to start the loan approval process all over again,” she said.

Disclaimer: for information and entertainment purposes only

High Closing Fees? Maybe Kickbacks are to Blame

Advice to homebuyers from CAARE

Property Spotlight – Grain Bin Home

Tips on selecting the “right” mortgage lender

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