Items Tagged with 'Bill Waltenbaugh'

ARTICLES

  • Appraising: Perspective

    I once had a compliance inspection that had to be completed while my parents were visiting. Wanting to get the inspection out of the way, I scheduled the appointment for as early as possible. To take advantage of the time my parents were in town, I asked my father to accompany me on the inspection. When we arrived at the property it was too dark to take photos, so we parked at the end of a long driveway and waited for the sun to come up. Several years earlier my dad had a heart valve replaced. Now, I don’t know
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  • Appraising: How to Calculate Remaining Economic Life

    There’s never any lack of confusion when it comes to the topic of estimating Remaining Economic Life (REL). For the most part, this confusion centers on the misunderstanding that REL is reflective of the number of years a physical structure is expected to last. Just think about it: From a mortgage perspective, this concern is reasonable. Who wants to make a 30-year mortgage on a residential property if the physical structure isn’t expected to last more than 20 years? From an appraiser’s perspective, the REL is part of a simple calculation used to estimate depreciation for the cost approach. The
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  • Appraising: Better Safe Than Sorry

    What does FHA require with regard to smoke alarms in owner-occupied homes? Should there be one in each bedroom or should there be one in the hallway just outside of each of the bedrooms? Is one required to also be in the kitchen? Does it matter where the home is? If so, please assume the question applies to a home located in California. Let me start by saying, despite rules and regulations, smoke alarms are one of the best safety devices you can buy and install to protect yourself, your family and your home. Think about it; smoke alarms are
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  • Appraising: Safe, Sound and Secure

    Q: I have a reverse mortgage borrower who has been advised her home will be sold in a sheriff's sale due to nonpayment of real estate taxes. She has no mortgage on a $400,000 house that needs extensive repair work, probably including a new roof. She is also a hoarder and the home is totally filled with her things. Are there any special provisions or circumstances in an FHA appraisal that would allow her home to “pass” the appraisal and qualify for a reverse mortgage?A: With very little exception, FHA appraisals completed for reverse mortgages are no different than an
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  • Appraising: The Impact of Short Sales and Foreclosures

    Q: What kind of impact, if any, do short sales and foreclosures in the area have on the value of a home?A: This is a great question and one that has certainly become more relevant over the past several years. Not too long ago, during the mortgage boom years, the inventory of foreclosures and the availability of short sales were few and far between. As such, under normal circumstances, considering these sales in the market approach was unnecessary. Most of these “distressed” properties were “rough around the edges” and wouldn’t normally be considered a reasonable alternative by the typical residential
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  • Appraising: When Repairs are Needed

    Q: Why have appraisers become so picky about repair items such as minor peeling paint on structures and even fences? A: To be honest, I was a little confused when I first read your question. The way it’s phrased makes it sound like something recently changed; that appraisers are now singling out more repair items than they did in the past. A lot of things have changed, but the way concerns like peeling paint are reported isn't one of them. Before I go any further, I need to clarify a few things. Conditioning an appraisal and making the value subject to repair
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  • Appraising: The Difference Is in the Details

    Q: We have a home we own outright that has a protested tax appraisal decreased to $227,000, although similar homes on the block are appraised for $240,000-plus. For planning purposes, can we expect an appraisal for a reverse mortgage coming up with a similar figure? A: In general terms, the answer is no. There are too many unknowns to confidently rely on this information for planning purposes. That said, it wouldn’t surprise me if an appraisal for your reverse mortgage produced a similar result. Now that I got my political answer out of the way, let me get to the specifics.
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