Indian Harbour Beach, FL (PressExposure) May 22, 2009 -- Now that new appraisal guidelines for FHA-approved loans came into effect on April 1st, 2009, real estate analysts have predicted new adjustments in housing prices. The new Market Conditions Addendum, or Form 1004C, shifts the basis of appraisal from market value to the median value of surrounding homes. According to agents at DMO Direct Funding (www.dmodirectfunding.com) this is likely to drive interest in seller-held mortgage notes and deeds of trust in select neighborhoods.
Seller-held mortgage notes allow the property seller to fund some or all of the buyerâs mortgage. The seller manages the note instead of a bank or other financial institution. The borrower makes loan payments directly to the seller under a set of mutually agreed-upon terms. DMO Direct Funding believes that neighborhoods with high foreclosure rates may drive sellers to seller-held notes.
âConsider a situation where foreclosures and bank sales have driven median neighborhood values down far below any reasonable amount for appraisal purposesâ said DMO Direct Funding head Doris OâHalloran. âThe new formâs checks and balances can only do so much. If the recommended appraisal is too low, homeowners must either turn to seller funding or wait for their neighborhoods to recover. By setting their own prices along with an attractive payment structure, sellers managing their own notes can stay competitive but still get a reasonable price for their home.â
Even though gradual repayment is a basic fact of seller-funding, mortgage note buyers like DMO can provide lump payments to seller-held notes in good condition. The mortgage note buyerâs online quote form helps note holders determine the benefits of selling their mortgage notes, trust deeds and other instruments. Interested not holders can visit http://www.dmodirectfunding.com/free.html to request a quote.