Friday, July 31
Gordon Park, La Grange, 60525
5 – 10 p.m.
Free!
Celebrate the Park District’s 80th Anniversary with games, moon jumps, pony rides, music & more. Call 708-352-1762 or visit www.pdlg.org for more information.
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Saturday, July 25, 2009
Thursday, July 9, 2009
New home appraisal rules are under fire
By Kenneth R. Harney
July 3, 2009
It's by far the hottest controversy in real estate this summer, and it could directly affect the value of your house –– probably negatively –– by tens of thousands of dollars.
The issue concerns lowballed valuations and the new rules guiding appraisers in both price-depressed and rebounding markets. Consider these snapshots of what's going on:
--In San Diego, Steve Doyle, division president for Brookfield Homes, is trying to close out the final 20 houses of a 120-unit single-family subdivision. Prices range from $340,000 to $350,000. But recently there's been a major hitch: Appraisers assigned by banks are coming in with valuations $60,000 or more below Doyle's selling prices. The appraisers, who Doyle says are unfamiliar with local market trends, inexperienced or both, are using distressed sales -- foreclosures and short sales of existing houses -- as their "comparables." Some of the distressed properties are in poor condition, and all of them offer fewer amenities, according to Doyle.
--In Wilmington, N.C., a loan applicant with a house in excellent condition, and an umblemished payment record, sought to refinance into a 4.75 percent mortgage. She had purchased the property four years ago for $160,000 and made about $20,000 worth of improvements in the interim. Her loan application, according to Paul Skeens, president of Colonial Mortgage Group of Waldorf, Md., was "a slam dunk. Nothing to it." The house was worth $180,000 to $200,000, according to a local realty estimate.
But when an appraiser with little local knowledge was sent in by a bank to value the house, he chose two short-sale properties that had both closed in the mid-$140,000 range, and one inheritance sale around $155,000. The last property was "in horrible condition," said Skeens. "I'd call it dog meat." The deal-paralyzing appraised value that came in for the cream-puff refi: $149,000.
--In the suburbs near Cleveland, Enzo Perfetto, manager of Enzoco Homes, builds custom houses on clients' lots. Recently, according to Perfetto, banks have begun assigning appraisers from far outside the area to value lots as part of mortgage packages on new homes. Some of the comparables they use are foreclosure situations, and that depresses land valuations. A young couple who paid $75,000 for their lot recently had it valued at just $30,000 by an out-of-area appraiser who only looked at online data, according to Perfetto -- discouraging the young couple from proceeding.
"I think the pendulum is swinging way too far in the wrong direction on appraisals," said Perfetto. Bank-assigned appraisers often "don't know the local market and they're going for low numbers to be 'safe.' "
Complaints about lowballed appraisals -- from builders, realty agents, consumers and mortgage companies -- have erupted since May 1, when government-sponsored Fannie Mae and Freddie Mac put their new appraisal rules into effect nationwide. Critics charge the new system is fostering the use of appraisers willing to work for low fees -- sometimes 50 percent below previous standards -- and who are willing to conduct home appraisals far outside their typical areas of activity.
The Fannie-Freddie system -- known as the Home Valuation Code of Conduct -- is complicated by the fact that it is a byproduct of a legal settlement in 2008 between New York Attorney General Andrew Cuomo and the two government-sponsored mortgage investors.
Under the code, appraisers are now routinely assigned by appraisal management companies rather than being selected by local mortgage companies or loan officers. The management companies pocket as much as 40 percent to 50 percent of the appraisal fee paid by the consumer.
Frustration with the new system boiled over and made its way to Capitol Hill late last month. The National Association of Home Builders called for an immediate change in the rules governing the use of foreclosures, short sales and other distress transactions as comparables for appraisals on non-distressed, typical homes, whether new or resale.
Two congressmen -- Travis Childers (D-Miss.) and Gary Miller (R-Calif.) –– have introduced legislation calling for an 18-month moratorium on the appraisal code. In identical letters to James Lockhart, the top regulator of Fannie Mae and Freddie Mac, and Cuomo, the National Association of Realtors also requested a moratorium and complained that the code is raising consumers' costs, distorting property values and killing sales.
Asked for comment, Lockhart said through a spokesperson that his agency is "monitoring" the situation, and considers "the views of market participants important."
Bottom line: Be aware of the issue. It affects your equity, even if you're not currently buying or selling. And watch whether Congress fixes the problem.
Washington Post
July 3, 2009
It's by far the hottest controversy in real estate this summer, and it could directly affect the value of your house –– probably negatively –– by tens of thousands of dollars.
The issue concerns lowballed valuations and the new rules guiding appraisers in both price-depressed and rebounding markets. Consider these snapshots of what's going on:
--In San Diego, Steve Doyle, division president for Brookfield Homes, is trying to close out the final 20 houses of a 120-unit single-family subdivision. Prices range from $340,000 to $350,000. But recently there's been a major hitch: Appraisers assigned by banks are coming in with valuations $60,000 or more below Doyle's selling prices. The appraisers, who Doyle says are unfamiliar with local market trends, inexperienced or both, are using distressed sales -- foreclosures and short sales of existing houses -- as their "comparables." Some of the distressed properties are in poor condition, and all of them offer fewer amenities, according to Doyle.
--In Wilmington, N.C., a loan applicant with a house in excellent condition, and an umblemished payment record, sought to refinance into a 4.75 percent mortgage. She had purchased the property four years ago for $160,000 and made about $20,000 worth of improvements in the interim. Her loan application, according to Paul Skeens, president of Colonial Mortgage Group of Waldorf, Md., was "a slam dunk. Nothing to it." The house was worth $180,000 to $200,000, according to a local realty estimate.
But when an appraiser with little local knowledge was sent in by a bank to value the house, he chose two short-sale properties that had both closed in the mid-$140,000 range, and one inheritance sale around $155,000. The last property was "in horrible condition," said Skeens. "I'd call it dog meat." The deal-paralyzing appraised value that came in for the cream-puff refi: $149,000.
--In the suburbs near Cleveland, Enzo Perfetto, manager of Enzoco Homes, builds custom houses on clients' lots. Recently, according to Perfetto, banks have begun assigning appraisers from far outside the area to value lots as part of mortgage packages on new homes. Some of the comparables they use are foreclosure situations, and that depresses land valuations. A young couple who paid $75,000 for their lot recently had it valued at just $30,000 by an out-of-area appraiser who only looked at online data, according to Perfetto -- discouraging the young couple from proceeding.
"I think the pendulum is swinging way too far in the wrong direction on appraisals," said Perfetto. Bank-assigned appraisers often "don't know the local market and they're going for low numbers to be 'safe.' "
Complaints about lowballed appraisals -- from builders, realty agents, consumers and mortgage companies -- have erupted since May 1, when government-sponsored Fannie Mae and Freddie Mac put their new appraisal rules into effect nationwide. Critics charge the new system is fostering the use of appraisers willing to work for low fees -- sometimes 50 percent below previous standards -- and who are willing to conduct home appraisals far outside their typical areas of activity.
The Fannie-Freddie system -- known as the Home Valuation Code of Conduct -- is complicated by the fact that it is a byproduct of a legal settlement in 2008 between New York Attorney General Andrew Cuomo and the two government-sponsored mortgage investors.
Under the code, appraisers are now routinely assigned by appraisal management companies rather than being selected by local mortgage companies or loan officers. The management companies pocket as much as 40 percent to 50 percent of the appraisal fee paid by the consumer.
Frustration with the new system boiled over and made its way to Capitol Hill late last month. The National Association of Home Builders called for an immediate change in the rules governing the use of foreclosures, short sales and other distress transactions as comparables for appraisals on non-distressed, typical homes, whether new or resale.
Two congressmen -- Travis Childers (D-Miss.) and Gary Miller (R-Calif.) –– have introduced legislation calling for an 18-month moratorium on the appraisal code. In identical letters to James Lockhart, the top regulator of Fannie Mae and Freddie Mac, and Cuomo, the National Association of Realtors also requested a moratorium and complained that the code is raising consumers' costs, distorting property values and killing sales.
Asked for comment, Lockhart said through a spokesperson that his agency is "monitoring" the situation, and considers "the views of market participants important."
Bottom line: Be aware of the issue. It affects your equity, even if you're not currently buying or selling. And watch whether Congress fixes the problem.
Washington Post
Countryside's Concerts in the Park Series Continues!!
Date: Thursday, July 9th
Time: 7 p.m.
Location: Countryside Park, located at 61st Street, ½ block east of Brainard Avenue
Rock out to the songs of Heart in Countryside with Heartless!
Each show Heartless performs features favorites from other classic rock icons including Led Zeppelin, The Who, Bon Jovi, Journey, Janis Joplin and more. Join us as we continue Countryside Live! and enjoy a free concert in the park.
Visit www.gocountryside.net for information on all of our events, or call 708-485-2595. See you there!
Food Vendor: Ledo's: Cheese Pizza ($2.00), Sausage Pizza ($3.00), Cookies ($1.50), Soda/Water ($1.00) Countryside would like to thank Vulcan Materials Company, our presenting sponsor of these special events.
We would also like to thank our additional sponsors, AT&T, Continental Motors Group, Hunt Printing and Graphics, Lyons Township, State Bank of Countryside, and The Doings.
Time: 7 p.m.
Location: Countryside Park, located at 61st Street, ½ block east of Brainard Avenue
Rock out to the songs of Heart in Countryside with Heartless!
Each show Heartless performs features favorites from other classic rock icons including Led Zeppelin, The Who, Bon Jovi, Journey, Janis Joplin and more. Join us as we continue Countryside Live! and enjoy a free concert in the park.
Visit www.gocountryside.net for information on all of our events, or call 708-485-2595. See you there!
Food Vendor: Ledo's: Cheese Pizza ($2.00), Sausage Pizza ($3.00), Cookies ($1.50), Soda/Water ($1.00) Countryside would like to thank Vulcan Materials Company, our presenting sponsor of these special events.
We would also like to thank our additional sponsors, AT&T, Continental Motors Group, Hunt Printing and Graphics, Lyons Township, State Bank of Countryside, and The Doings.
Sunday, July 5, 2009
“Jazz Under the Stars”
Saturday, July 11
La Grange Memorial Hospital Foundation
The Pavilions at Brookfield Zoo
6:30 p.m. – 11:30 p.m.
$150 per person – Sponsorship opportunities available
Relax and bid on fun auction items, enjoy delicious food and dance to live music, all for a good cause. Proceeds benefit the purchase of a wireless patient communication system for the hospital. For information contact Diane Lillwitz at 708-245-2904 or diane.lillwitz@ahss.org.
La Grange Memorial Hospital Foundation
The Pavilions at Brookfield Zoo
6:30 p.m. – 11:30 p.m.
$150 per person – Sponsorship opportunities available
Relax and bid on fun auction items, enjoy delicious food and dance to live music, all for a good cause. Proceeds benefit the purchase of a wireless patient communication system for the hospital. For information contact Diane Lillwitz at 708-245-2904 or diane.lillwitz@ahss.org.
Wednesday, July 1, 2009
The 25th Annual Helping Hand Golf Classic
Monday, July 13
La Grange Country Club, 620 S. Brainard Avenue, La Grange, 60525
9 a.m. Registration & Networking
10:30 a.m. Shotgun Start
Followed by dinner and raffle
$300 per golfer and $1,000 per foursome
Includes continental breakfast, boxed lunches, cocktails, dinner, auction, awards, games and prizes! Grand RAFFLE drawing for $10,000 or chance to win a large screen TV! All proceeds benefit over 500 adults and children with developmental disabilities. For information or registration, visit www.hhrehab.golfreg.com or call 708-352-3580 x. 246.
La Grange Country Club, 620 S. Brainard Avenue, La Grange, 60525
9 a.m. Registration & Networking
10:30 a.m. Shotgun Start
Followed by dinner and raffle
$300 per golfer and $1,000 per foursome
Includes continental breakfast, boxed lunches, cocktails, dinner, auction, awards, games and prizes! Grand RAFFLE drawing for $10,000 or chance to win a large screen TV! All proceeds benefit over 500 adults and children with developmental disabilities. For information or registration, visit www.hhrehab.golfreg.com or call 708-352-3580 x. 246.
“Nice & Easy: Coping with Stress the Holistic Way”
Wednesday, July 8
West Suburban Chamber, 9440 Joliet Road, Suite B, Hodgkins, 60525
6:30 – 8 p.m.
$10 fee – bring a friend for FREE!
Hypnotherapist, Naprapath, Massage Therapist, Naturapath, Energy Medicine Practitioner, Nikken Consultant, and Psychotherapist, will present strategies to support your total well being. For information or registration, please call Wendy Kerr at 708-352-1048.
West Suburban Chamber, 9440 Joliet Road, Suite B, Hodgkins, 60525
6:30 – 8 p.m.
$10 fee – bring a friend for FREE!
Hypnotherapist, Naprapath, Massage Therapist, Naturapath, Energy Medicine Practitioner, Nikken Consultant, and Psychotherapist, will present strategies to support your total well being. For information or registration, please call Wendy Kerr at 708-352-1048.
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