Q: I understand interest rates are low and I have heard it is a good time to refinance, but I’m having a hard time finding a bank to do a refi on the home I bought in 2007. Why?

A: If you purchased in 2007, you may have a potential appraisal problem due to the increasing number of short sales and forclosures that are now being included in appraisals.

According to the National Association of Realtors, approximately 38 percent of existing home sales in 2009 were distressed sales, and 12 percent were short sales. Foreclosure sales accounted for two out of three distressed sales, and the rest were short sales.

Stan Reinford from Bank of America Home Loans had this to say: continue reading »

Q: In December 2007, I refinanced my single home in Pine Valley, and it appraised for more than $400,000. I plan on selling this spring. Can I use that appraisal to set the price or do I need to get a new one?

A:  Appraisals are usually based on market value, and recent changes in market conditions may alter the appraised value. In Pine Valley, house values have decreased since 2007. If you were to get an appraisal today, I am confident it would not be the same number from two years ago. continue reading »