Levi Salmans | Orlando Horse Properties

New appraisal rules aimed at making home appraisals more accurate are raising your cost and delaying your closing.

Appraisal costs are up $100 to $200 because under the new rules a third party, often an appraisal-management company, must serve as a middle man between a mortgage broker and appraiser. Under the new rules the appraisal is not “portable”. Meaning if a buyer chooses to apply to different lenders, each lender will need their appraisal.

There are also concerns about appraisal quality. Some appraisal-management companies decide which individual appraisers to contact based on lowest cost. The lower they can contract the more the appraisal-management’s earns. We are seeing appraisals coming from appraisers as far away as Clearwater and Palm Bay. There isn’t enough emphasis being placed on appraiser familiar with the immediate area.

Borrowers have to show financial hardship to get their lender to agree to a short sale. You do not have to be in default, however you must be able to document why you are unable to make your payments. 

You must owe more than your home is worth. Meaning if your home is sold on the open market the sales price will not cover the debt owed to the lender. In this case the lender must agree to the final sales price. Final sales price is often determined by broker’s price opinion and multiple appraisers. Lenders may also need approval from other parties, such as lien-holders or special assessment lien-holders.

A short sale will result in a blemish on your credit report; however it can be much less damaging than a foreclosure.