How Can I Contest an Appraised Value of a Property?

House sellers depend on appraised value to provide prospective buyers a competent estimate of the home’s value. But a real estate appraisal is simply as great as the judgment and expertise of the individual carrying it out, and also the accuracy of the information he uses. Should you disagree with the evaluation value placed on your home, there are several steps you can take to alter it.

Speak to the appraiser. Give her a call to go over the appraisal and ask for the information that she relied on to reach the suggested appraisal value. Discover whether the”corresponding” sales are accurate, timely and complete. Otherwise, ask the appraiser to consult a better data set and adjust the value as she might see fit.

Speak with your realtor on the possibility of acquiring a second opinion, if you are trying to sell your property. The agent might agree with the evaluation and have great reason for doing this; the agent probably knows the marketplace at least as well as the appraiser. If the agent disagrees with the evaluation, then he is as motivated as you are to get a different opinion.

Ask the bank or other lender to obtain a second appraisal if you are trying to refinance a mortgage loan and the evaluation value has come in lowcost. If the lender refuses, you can make a loan application to a second lender, who will purchase a new evaluation done.

Ask for a certified appraiser to review the appraisal files and provide a disinterested opinion on the job. She’ll charge a fee for this service, but it may be less expensive than ordering an entirely new walk-through evaluation.

Contact your county assessor’s office and request the process of protesting evaluations, if you are contesting an appraisal completed to determine property value for taxation purposes. The bureau will have a deadline for filing these appeals and also a standard form where you’ll give your reasons for believing the evaluated value is too large. You may be asked to attend a hearing on the situation. To get ready for it, you should have a market evaluation done by a real estate specialist and completely document the condition and features of the home.

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Will Bankruptcy Eliminate a Lien on a Home?

When you file for bankruptcy, you’re submitting for relief in the debts you have accumulated. But that only takes care of the debts. Should you take royalties into bankruptcy, they’re treated differently. For instance, you take a lien on your home as collateral in case you default. That is treated differently than if you have other liens against your property. There are ways to get rid of exemptions, however it depends on your situation and the level of equity in your home.

Foreclosure and Liens

There is a gap between taxation and liens in the bankruptcy procedure that is important to understand. If you’re in foreclosure and you go through bankruptcy, the automatic stay you receive puts off the foreclosure until after you’re discharged. When you’re discharged, you’re released from your obligation to pay the debt. But that does not necessarily mean the lien on the home, or some other liens attached to the home, are removed. Thus, even in the event that you eliminate the debt, then you might still lose the home. If there are liens from some other debts attached to the home, your duties depend on the type of lien.

Homes with No Equity

If your home has little to no equity and you go through the Chapter 7 bankruptcy procedure, chances are great that you will get rid of the home, which will get rid of the lien on the property. Additionally, it means there is a good chance you can have some other liens removed, according to bankruptcy adviser Justin Harelik. Too little equity means that your trustee likely would not earn enough money off the sale of the home to repay creditors. If that is the case, Harelik recommends consulting a lawyer that can help you with the procedure for eliminating liens, including filing paperwork with the county tax office and submitting to have the mention of the lien removed in the house’s title.

Homes with Equity

If your home has equity, then there is a chance that your bankruptcy trustee might use the selling of the home to repay any liens or that it might be completely exempt. It is dependent on the level of equity and if you bought the home. If you have purchased the home within 1,215 days of filing for bankruptcy, your exempt equity is limited to $125,000. If you do not fulfill the time qualification, or you have more equity in your home than the limit, you might be forced to sell to repay lenders. You would still receive your exempt amount after the purchase, after your secured creditors are paid.


Bankruptcy trustees have to repay debt in the order of bonded debt, and then unsecured debt. One way a creditor can have their lien considered first is by optimizing the lien. To do so, the creditor must record the lien with the county tax office, even whether it’s a mortgage, or even together with the state’s secretary of state, if it’s personal property. If your creditor has not perfected their lien against you, there is a chance that the trustee could throw the lien out during the bankruptcy procedure, if there is not enough money to pay off the lien.

Tax Liens

Some liens are extremely tricky to remove, which includes liens associated with taxes. Typically, money you owe the government is not dischargeable in a bankruptcy. If you have a tax lien from the property, you’re stuck with it. If you filed Chapter 7 and also you fulfill several criteria, you can have the lien removed. The lien cannot be against your home, can’t be caused by fraudulent activity or tax evasion, cannot be associated with taxes less than two years until you filed, must have been due at least three years ago and have to have been assessed 240 days before you filed.

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Tenancy in Common Pros & Cons

The way by which a few or a group of people takes title to a house can influence their future as much as what type of mortgage they select or what kind of insurance coverage that they choose. Tenancy in common is one of the least restrictive alternatives available. California property laws provide for an assortment of protections for homebuyers and a few rules benefit specific sorts of buyers more than others.

Millionaire Indicator

People do not need to be wed to be tenants in common. They do not even need to occupy the residence. A couple of investors might choose property in common when investing in rental property. One advantage of property in common is that the ownership doesn’t need to be equally divided. A guy who leads 60 percent of the cash up front might choose, together with his partner, to specify a 60 to 40 ratio–reflecting each individual’s individual investment in the house.

Interest and Flexibility

A person might have a minority interest as specified in the tenancy in common deed, but he still has the right to make use of the whole property. The equal usage of unequal interest in a house could be advantageous to some, while a troubling proposal for others. Investors who have no interest in actually residing in a space might find the arrangement comfy. One advantage of property in common is that each individual has the right to deed his own portion, or mortgage it without obtaining the approval from the other tenants in common. The flexibility can be useful for those seeking to get out of an investment, but disadvantageous for everybody seeking stability.


One disadvantage of tenancy in common is that there is no right of survival. Each owner must define the heir for the portion they have. Even when one person decides to create another tenant in common the heir, the house will need to go through probate for assessment and administration. The probate process can take months, and can cost tens of thousands of dollars. The advantage of the arrangement is that each tenant in common can ascertain the respective heirs without the approval of the other parties. When a change in ownership becomes a problem, a single tenant could induce a sale after applying for a”partition action.”

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What Choices Do Homeowners Need to Stop Foreclosure?

It's traumatic to lose a house to foreclosure. Fortunately, homeowners that are trying hard to make their monthly mortgage payments do have choices. The crucial thing is to craft a plan that allows them avoid foreclosure. Waiting too long, until they#039;ve missed a few payments, will only make avoiding foreclosure a more complex procedure.


Homeowners that are trying hard to make their mortgage payments on time may refinance to loans with lower interest rates. This will give homeowners a much lower monthly mortgage payment, one which they may have the ability to afford. To refinance, homeowners should call mortgage lenders to inquire about rates and fees. The target is to acquire the lowest interest rate possible, which will result in the cheapest monthly mortgage payment. Homeowners that drop only 1 point from their rate of interest can save yourself a significant amount of money. Homeowners using a 30-year fixed-rate $170,000 loan at 7% may save more than $112 monthly by assessing that rate to 6 percent.

Loan Modification

The federal government supplies a loan modification application –the Home Affordable Modification Program–which can give homeowners the lower monthly mortgage payments they will need to prevent foreclosure. The program gives banks and lenders financial rewards when they modify the house loans of fighting borrowers. Lenders can lower taxpayers ' monthly obligations by restructuring their loans from 15-year into 30-year fixed-rate loans. They can elect to reduce homeowners' interest rates, or they can forgive a chunk of their loans#039; principal balances. Homeowners that are having difficulty making their obligations, and who already have low rates of interest, have misplaced equity in their homes or otherwise wouldn't qualify for a refinance, should call their creditors and ask for a modification. It's important for homeowners to understand that creditors may still modify their loans even if they aren't engaging in the government's Home Affordable Modification Program.

Short Sale

Homeowners facing foreclosure can always sell their house to prevent losing it. This is sometimes a problem, however, when sellers can't find find buyers fast enough. A sale could be one alternative. Beneath a brief sale, the creditor agrees to allow the homeowners to sell their house for less than what they owe on their mortgage. The creditor then forgives the difference. This gives homeowners the chance to set a lower price, which could allow them to market their residence more quickly. The seller should get written permission from the creditor for a quick sale. If the lender won’t approve a brief sale, the operator will need to look for another choice to prevent foreclosure. Lenders are more likely to approve a brief sale if they think they#039;ll lose less money on it than they will without needing to take more and attempt to market a foreclosed house.

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Refinancing Options for Your Self-Employed

Reducing your mortgage interest levels with a refinance will lower your monthly payments and the general price of your loan. But should you're self-employed you will struggle over others to secure a mortgage and to refinance you. Lenders look for evidence that you are able to afford your mortgage obligations, and it is more difficult for the self-employed to provide this evidence. It’s possible, however. You can raise your chances of finding a lender to refinance your mortgage in case you're innovative in finding ways to demonstrate that you're a good investment.

Maintain good records of your business. Self-employed workers don't have pay stubs or W-2 forms, so you have to build a background in the own accounts. This may show you have a real business that is profitable enough for you to afford the monthly payments. Lenders will generally ask for at least two years' worth of tax returns, accounts data and profit and loss statements. Independent contractors get copies of 1099 tax forms for every payment over $600 they get, and can use these forms as evidence of earnings.

Apply for a low or no-documentation mortgage refinance. These mortgages don’t request assets and your income, and your occupation is not verified. The grab is your creditor will expect a high credit rating to consider you as a potential client. Once popular, low or no-documentation refinances are no more simple o come by, and typically have higher rates of interest, closing costs and insurance rates.

Prepare your paperwork. Learn what lenders typically request before checking your refinance program. Have the paperwork you need in a file. Visit several lenders, hand over your paperwork and request a good-faith quote. The quote will record the conditions of a mortgage and the expenses involved. Request quotations from as many lenders as possible; when possible, make them compete against one another to lower the price of your mortgage.

Improve your credit rating. Lenders use credit scores to assess the chance of your not repaying a mortgage. The greater the score, the safer an investment you are considered and also the more likely you are to qualify for a refinance at lower rates of interest. A credit score of 620 is considered a minimum for lenders to approve your mortgage refinance. In case you have a lower score, there are authorities and charitable organizations that can provide assist. As an example, the Federal Housing Administration provides refinances for borrowers with low credit scores.

Give yourself a boost. One of the advantages of self-employment is that you can be more creative–there's that word again–when deducting expenses from your earnings. The issue is, lenders look at taxable income. So put off in your deductions to boost your reportable income before applying for a refinance.

Maintain a healthy savings account. It will help when your creditor sees you have 12 months or more of mortgage obligations at a reserve account. It reveals your business has liquidity; an important factor for any business.

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What Types of FHA Loans Are There?

Before 1934, the typical down payment on a U.S. home was 50 percent, and the bank expected that the remainder to be repaid in one to five years. In 1934, the government established housing conditions to improve . This is by insuring loans. In essence, the FHA guarantees mortgage lenders which when an FHA-backed loan goes into default, the FHA will cover the loss, giving banks more confidence to loan cash. The FHA backs a variety of loan types.

Traditional Fixed Rate

A traditional mortgage is set for a certain period of time at a particular interest rate that never changes. Having a fixed-rate mortgage, your payments stay the same throughout the life span of the loan, apart from any changes in the expense of homeowner's insurance and property taxes.

Conventional Adjustable Rate

A traditional adjustable-rate mortgage can also be set for a particular quantity of time, however, the rate of interest varies over the life span of the loan, shifting the monthly obligations with every fluctuation. The interest on this type of loan is generally fixed just for the first three to five years.

Jumbo Fixed Rate

Jumbo fixed-rate mortgages are intended for borrowers who want to get a large mortgage. Since the lender takes a larger risk by agreeing with those loans, the rate of interest is usually higher on a jumbo than a traditional fixed-rated loan.


A hybrid is similar to an adjustable-rate mortgage, but the fixed-rate period of time is generally more. While the fixed-rate portion of an adjustable loan often lasts three months to five years, the fixed-rate period of a hybrid may last 10 years.


In order to get into a home they can't really manage, some homeowners choose a balloon mortgage which permits them to make smaller payments on the first day of the mortgage and pay the mortgage in full at a later date. For instance, if a homeowner knew that in 10 years he would have the ability to get a family , he would take a balloon mortgage loan, make the smaller payments until the trust is available, then pay the mortgage in full.


The FHA insures bridge loans, which are loans which help buyers buy a new home before the sale of the existing home. The mortgage payment will be higher since the loan pays for both homes until the present home is sold.

Home Loan Guarantee Program

The mortgage guarantee program makes it possible for veterans to find a home loan with no down payment as well as take out enough cash to generate the new home energy-efficient.


The FHA also backs loans that have been developed for self-employed home buyers who have difficultly revealing proof of a stable income.

Home Equity

A home equity loan allows homeowners to take out a loan according to the present equity in the property.


Similar to a bridge loan, a relocation loan is targeted toward individuals who want a loan to relocate to another home while their existing property is on the market.

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