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All Encompassing Mortgage and Real Estate Thread


UTPhil2006

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2 hours ago, Neonmoon said:

An appraiser just fucked me. He didn’t even use proper lube. 

Hey us too. Ordered the appraisal 12/1 or so. Port A. Accepts request. Asks for a rush fee for 7 day turnaround for 12/15. Pay it. 12/12 comes around or so wants 400 more for 12/29. Nah not how this works. Honor original commitment. Drops the deal entirely. New AMC can’t find anyone before 1/30 for $1100 or 1/16 for $900. Closing date has been scheduled for 1/6 since mid November. Finally found a guy that for $1650 can get it done by 1/5. I swear to god if it doesn’t hit value (1MM+) I’m gonna lose my shit. 

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26 minutes ago, UTPhil2006 said:

Hey us too. Ordered the appraisal 12/1 or so. Port A. Accepts request. Asks for a rush fee for 7 day turnaround for 12/15. Pay it. 12/12 comes around or so wants 400 more for 12/29. Nah not how this works. Honor original commitment. Drops the deal entirely. New AMC can’t find anyone before 1/30 for $1100 or 1/16 for $900. Closing date has been scheduled for 1/6 since mid November. Finally found a guy that for $1650 can get it done by 1/5. I swear to god if it doesn’t hit value (1MM+) I’m gonna lose my shit. 

It’s just absolutely incredible to me that those guys get away with not honoring their commitments. It’s my least favorite thing in the industry. 
I just got an appraisal back for $295k on a $299k contract. Sure, whatever dude, you are so good at your job that you can tell the difference between 299 and 295. Whatever. 

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on the CRE side, I thought appraisers were incompetent frauds...but on residential...they take it a whole new level.  And they're not even doing it to make extra cash.  That would almost be understandable.  They're actually just flat-out stupid and lazy.  I didn't realize you could just pick up single-family appraisal licenses with a daytime drug addiction. 

For shits 'n giggles, did one of those well-known nationally branded HELOC quote sites.  Almost a week later, all I get are calls/emails about wanting to re-fi my mortgage.  told every single last one of these fucking idiots that I am not looking to re-fi, I am looking at a new HELOC.  Well they all tell me that they dont' do HELOCS.  Then I have to tell them they're paying for the wrong kinda leads and should file a class action lawsuit with Wulaw as their attorney.  But in the end, it's same bullshit as usual...the industry can't get out of its own way and I'd rather do business with you cats.  

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15 hours ago, UTPhil2006 said:

Hey us too. Ordered the appraisal 12/1 or so. Port A. Accepts request. Asks for a rush fee for 7 day turnaround for 12/15. Pay it. 12/12 comes around or so wants 400 more for 12/29. Nah not how this works. Honor original commitment. Drops the deal entirely. New AMC can’t find anyone before 1/30 for $1100 or 1/16 for $900. Closing date has been scheduled for 1/6 since mid November. Finally found a guy that for $1650 can get it done by 1/5. I swear to god if it doesn’t hit value (1MM+) I’m gonna lose my shit. 

Well shit. This is worse than mine. You got proper fucked.

Mine added a $1,000 dollar “complexity fee” and an additional 25 days past contract closing date. I found a guy that could do it before closing date, and they ruled the guy ineligible for me trying to “influence” the process. 

.

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51 minutes ago, Neonmoon said:

Well shit. This is worse than mine. You got proper fucked.

Mine added a $1,000 dollar “complexity fee” and an additional 25 days past contract closing date. I found a guy that could do it before closing date, and they ruled the guy ineligible for me trying to “influence” the process. 

.

Yep they need to get this shit reigned in quickly. 

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19 hours ago, UTPhil2006 said:

Hey us too. Ordered the appraisal 12/1 or so. Port A. Accepts request. Asks for a rush fee for 7 day turnaround for 12/15. Pay it. 12/12 comes around or so wants 400 more for 12/29. Nah not how this works. Honor original commitment. Drops the deal entirely. New AMC can’t find anyone before 1/30 for $1100 or 1/16 for $900. Closing date has been scheduled for 1/6 since mid November. Finally found a guy that for $1650 can get it done by 1/5. I swear to god if it doesn’t hit value (1MM+) I’m gonna lose my shit. 

Can I assume that the original appraiser refunded the initial and rush fees?

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4 hours ago, Pato del Muerto said:

You guys need to stop offering rush premiums, or paying when the appraiser demands them. They do it because they can. 
 

they probably feel justified considering their fee as compared to what the realtors, title company, and mortgage lender/broker charge. 

If it weren't for realtors and mortgage lender/brokers, they wouldn't have a fucking job.   Evert time I do a deal, an appraiser gets to feed his family for a couple of weeks.  The cocksuckers need to remember that they are a tiny part in a much bigger machine. 

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22 hours ago, UTPhil2006 said:

Hey us too. Ordered the appraisal 12/1 or so. Port A. Accepts request. Asks for a rush fee for 7 day turnaround for 12/15. Pay it. 12/12 comes around or so wants 400 more for 12/29. Nah not how this works. Honor original commitment. Drops the deal entirely. New AMC can’t find anyone before 1/30 for $1100 or 1/16 for $900. Closing date has been scheduled for 1/6 since mid November. Finally found a guy that for $1650 can get it done by 1/5. I swear to god if it doesn’t hit value (1MM+) I’m gonna lose my shit. 

Literal shacks are selling for 400k down here. If the property is more than 2500 sq ft and in good shape it will make it no problem.

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29 minutes ago, CooterBrown said:

A 1900 sq ft house down the street in Allandale just sold for 1.1M cash. More than 200K over list. The owner bought it for 550K 3 years ago.

this is WAY pertinent to my interests lol 🤔

i assume it was at least recently renovated, everything all sparkling and new and shiny?? 

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this is WAY pertinent to my interests lol 
i assume it was at least recently renovated, everything all sparkling and new and shiny?? 

It was nicely remodeled. I’d guess it’s a tear down though. Guess I’ll find out soon. The offer was accepted Monday and they closed Wednesday. They have to be out by next Thursday.
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4 hours ago, CooterBrown said:


It was nicely remodeled. I’d guess it’s a tear down though. Guess I’ll find out soon. The offer was accepted Monday and they closed Wednesday. They have to be out by next Thursday.

Lot value of $1M+ in Allandale? Just a regular lot?

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Lot value of $1M+ in Allandale? Just a regular lot?

Just the way it sold for cash and closed in a couple of days made me think tear down. I’m probably wrong though. I don’t have any info about the buyer.

There was a new construction on Pegram (IIRC) that never listed and sold for over $2.4M. I just know that because a friend put in an offer of $2.4 for her client and they lost the bid.
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17 hours ago, ShaggyBevo RIP said:

I asked a few days ago about appraising a vacant lot as executor of estate. A couple days later, I got quoted $1750 for the house next door.  That's got to be around $500/hr including driving to and from.

Call our guy Sammy Pruitt and reference Thad Lindsay 512-779-4706 

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I will use whoever you suggest and give you the referral.  But I need to know they can appraise accurately given that so few of the comps in my immediate HOA and the adjacent one are not trading on the MLS.  This is not hyperbole, this is HOA reporting (because our HOA repo's 1% of the home sale fee in lieu of charging dues while you live here) accurately that all-cash/off-MLS sales of homes account for 75% of the sales in the last 36 months.  You can't get a realistic grip on what homes are valued at per square foot if you're looking at the small handful that are going the traditional route.  I realize there are many other factors in an appraisal, but I can't get an accurate value for a lender without them looking at a bigger picture.  And the HOA itself can report these prices accurately because they go into closing and take their pound of flesh.  

I know I'm still pissed at our last appraisal who did no fucking work, found one fucking house on the MLS to comp ours against in the previous rolling 12 months, and we've had a fucked up LTV rate since then.  But that 2015, our comps were about 1/3rd off MLS, now we're pushing 80% off of MLS.  If somebody can't do a little more homework and at least pull private sale prices from our HOA management company (who already has a pre-generated report, you just have to ask for it and pay like $150 for processing)...then how do they justify their existence?  

There's already a few condo towers in downtown Austin who you not only have to kick back a portion of your sale, you can't sell your unit on the MLS because for developer reasons.  How can an appraiser be brought in if some owner wants a HELOC or 2nd mortgage if the comps are literally none for privacy reasons?   /rant

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1 hour ago, Lobo said:

If somebody can't do a little more homework and at least pull private sale prices from our HOA management company (who already has a pre-generated report, you just have to ask for it and pay like $150 for processing)...then how do they justify their existence?  

No appraiser is going to do “do a little more homework” and pay “$150 for processing”. They don’t have to justify their existence, they are required on most loans. 

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The $150 is rolled into closing costs, doesn't come from the appraiser.  Saying that my HOA management company has all the data good to go, somebody just pays $100-$150 in their costs (that is to say, me).  The little more homework involves them opening up an excel sheet from Beck & Co. with full auditing and notarization and importing no more than a dozen lines of off-MLS sales data.  If they want to tack on an extra $250 for actually doing their job and getting a truer macro picture of valuations in the submarket...kudos to them...let's bake it into the cake.  Otherwise, it's light fraud, IMO.  

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1 hour ago, Lobo said:

The $150 is rolled into closing costs, doesn't come from the appraiser.  Saying that my HOA management company has all the data good to go, somebody just pays $100-$150 in their costs (that is to say, me).  The little more homework involves them opening up an excel sheet from Beck & Co. with full auditing and notarization and importing no more than a dozen lines of off-MLS sales data.  If they want to tack on an extra $250 for actually doing their job and getting a truer macro picture of valuations in the submarket...kudos to them...let's bake it into the cake.  Otherwise, it's light fraud, IMO.  

You should of asked you lender to request a Reconsideration of Value and supplied the data to the appraiser. You can use private sales or non MLS sales on an appraisal, even if supplied by a party with a financial interest in the transaction, such as buyer, lender, or real estate agent. The appraiser is required to verify the data through another disinterested source. 

Quote

Data and verification source(s) for each comparable sale must be reported on the appraisal report form. Examples of data sources include, but are not limited to, a multiple listing service, deed records, tax records, realtors, builders, appraisers, appraiser’s files, and other third party sources and vendors. The appraiser must state the specific data source (such as tax records or deed records), and refrain from using broad categories, such as “public records.” Data source(s) must be reliable sources for the area where the subject property is located.

Examples of verification sources include, but are not limited to, the buyer, seller, listing agent, selling agent, and closing documents in certain situations. Regardless of the source(s) used, there must be sufficient data to understand the conditions of sale, existence of financing concessions, physical characteristics of the subject property, and whether it was an arms-length transaction.

It is acceptable to obtain comparable sales data from parties that have a financial interest in either the sale or financing of the subject property; however, the appraiser must verify the data with a party that does not have a financial interest in the subject transaction. For example, if the real estate agent of the subject property has provided comparable sales data, that information must be verified through another disinterested source.

 

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On 12/26/2021 at 2:04 PM, CooterBrown said:

A 1900 sq ft house down the street in Allandale just sold for 1.1M cash. More than 200K over list. The owner bought it for 550K 3 years ago.

Damn. At one time I thought I would be upgrading to a new house. Now it looks like a remodel is my only option.

That is some serious appreciation... i'm seeing things in my neighborhood going for 50% more per sqft than 3-4 years ago but not double. 

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9 hours ago, ZB'Tejas said:

Damn. At one time I thought I would be upgrading to a new house. Now it looks like a remodel is my only option.

That is some serious appreciation... i'm seeing things in my neighborhood going for 50% more per sqft than 3-4 years ago but not double. 

I just got an appraisal for a HELOC to do a remodel. Bought the house in July 2020. Appraisal came back at 78% more than I paid for it 17 months ago. I was pleasantly surprised but want to lock it in a safe and make sure TCAD never finds out. 

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12 hours ago, hornian said:

I just got an appraisal for a HELOC to do a remodel. Bought the house in July 2020. Appraisal came back at 78% more than I paid for it 17 months ago. I was pleasantly surprised but want to lock it in a safe and make sure TCAD never finds out. 

I got a letter from Wilco a few months after closing saying something to the effect of hey we noticed a change of title on this property- if it was a sale please tell us the sales price.”  
 

i guess sales price isn’t part of the doc package that gets filed at the county?  Anyway I laughed and filed it in the appropriate location. 

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20 minutes ago, Pato del Muerto said:

I got a letter from Wilco a few months after closing saying something to the effect of hey we noticed a change of title on this property- if it was a sale please tell us the sales price.”  
 

i guess sales price isn’t part of the doc package that gets filed at the county?  Anyway I laughed and filed it in the appropriate location. 

shoulda given them a price 20% below the latest WCAD appraisal.

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15 hours ago, hornian said:

I just got an appraisal for a HELOC to do a remodel. Bought the house in July 2020. Appraisal came back at 78% more than I paid for it 17 months ago. I was pleasantly surprised but want to lock it in a safe and make sure TCAD never finds out. 

Jesus Christ.  As you know, I'm around the corner . . . maybe I should sell and retire.

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On 12/24/2021 at 2:36 PM, justhookit said:

Literal shacks are selling for 400k down here. If the property is more than 2500 sq ft and in good shape it will make it no problem.

Yep. Coworker just got 1.9 for house and 2 lots. And it wasn’t some big place. 
 

eta: over 100% appreciation in 3 years. Not a bad gig if you can get it. 

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Timber!!!!!!! Look out below. 
after last week the MBS getting better by 10 basis points (a whole lot of nothing) today it opens up down 47.  Zero idea why beyond some technical stuff. 
10 year treasury up 10 basis points which- in that world- is a big move. 
What would this 50 basis point move in the mortgage backed security market mean to a borrower? An extra 1/8 of a point in interest.

Happy New Year! 

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10 year treasury up a smooth 11.5% on the last 10 days, most of which had Xmas and New Years involved. That’s a fairly big move that’s not great for rates. Was joking with my ops manager that the big brains in the market were predicting 3.5-3.75% interest rates by the end of the year and the market said- fuck it- let’s see if we can get there by the end of the month. 
Still looking at cheap money historically. 

For those in Austin and some other area with explosive price growth maybe this slows the rate of appreciation down a little (but with all the cash bids in the market I can’t even say that’s super likely- when searching for silver linings). 

What you should know/think about mortgage wise in 2022:

1) If you own a home now and are paying mortgage insurance (either bc you have an FHA loan and it never goes away or because you paid less than 20% as a down payment) now is a good time to revisit and see if this appreciation and marketplace could have gotten you out of PMI and saved your some money. 


2) If you’ve owned your home for some time you’ve probably now got a bunch of equity in it. Having a bunch of equity in your home isn’t a bad thing per se. But- if you aren’t invested- if you aren’t working on your retirement or if you have lots of debt at higher rates that you are paying this is probably not your best financial situation to be in. If you didn’t set out or wouldn’t set out to make your financial life the way it is right now look at changing things up and reallocating to something that makes more sense (debt free other than the house, kids college taken care of and retirement chugging along- basic Dave Ramsey type shit). There’s still plays out there that can make sense. 
 

3) if you are looking to buy you’ve never been able to borrow more money fairly easily (650k ish conventional- 450k ish FHA) and although the last couple years you have been able to borrow a little cheaper than today, it’s still, based upon historical standards, ridiculously cheap to borrow money right now. 
 

4) there’s been pretty good value recently in 15 year mortgage vs 30. Like 3/4-1 full point in value. Parity is 1/2 a point in interest differential. 30 year is favored when that spread is less than 1/2 a point. When it opens up to a full point if you can do a 15 you should consider doing a 15. 
Eg:  A 30 year at 3% and 15 year at 2.5% that’s neutral environment. 
30 year at 3% and 15 year at 2.51% or more that is a bias toward the 30. 
30 year at 3 and 15 year at 2.49% or less that’s a bias toward 15 year. The higher the spread the more it makes sense to consider 15.

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2 hours ago, Wulaw Horn said:

4) there’s been pretty good value recently in 15 year mortgage vs 30. Like 3/4-1 full point in value. Parity is 1/2 a point in interest differential. 30 year is favored when that spread is less than 1/2 a point. When it opens up to a full point if you can do a 15 you should consider doing a 15. 
Eg:  A 30 year at 3% and 15 year at 2.5% that’s neutral environment. 
30 year at 3% and 15 year at 2.51% or more that is a bias toward the 30. 
30 year at 3 and 15 year at 2.49% or less that’s a bias toward 15 year. The higher the spread the more it makes sense to consider 15.

Ignoring the fact that people are in general loathe to actually act on "optional" financial decisions, there is still the alternative to consider:  go with the 30 year but make an extra principal payment each year.  That tends to bring the difference down to negligible while preserving flexibility.

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1 minute ago, jimmyjazz said:

Ignoring the fact that people are in general loathe to actually act on "optional" financial decisions, there is still the alternative to consider:  go with the 30 year but make an extra principal payment each year.  That tends to bring the difference down to negligible while preserving flexibility.

Sure you could do that. But you would pay an extra 1% interest for that pleasure. 

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3 minutes ago, Wulaw Horn said:

Sure you could do that. But you would pay an extra 1% interest for that pleasure. 

Uh . . . what?  Paying down the principal at a more rapid rate reduces the total interest paid on the loan.  The net effect is essentially the same as going with a 15 year note over a 30 year note, obviously subject to the details associated with available interest rates.

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7 minutes ago, jimmyjazz said:

Uh . . . what?  Paying down the principal at a more rapid rate reduces the total interest paid on the loan.  The net effect is essentially the same as going with a 15 year note over a 30 year note, obviously subject to the details associated with available interest rates.

No- what I am saying is that you would get about a point less in interest rate right now going with a 15 instead of a 30 year term.  Not that there’s a penalty for paying extra on a 30… 

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