California Hard Money Lenders More Conservative in overvalued Cities

[Corey Dutton]

From Trulia’s Bubble Watch article from January 2015, it’s no wonder that California’s hard money lenders are now requiring appraisals prior to funding properties. But why? According to Trulia’s Bubble Watch, California and Texas were identified as the top two markets in the U.S. where home prices are most overvalued. Trulia’s valuation measurements comes from looking at prices compared with the historical norm in each market.

Real estate investors in California that rely on hard money lenders to finance their new purchases and refinances have been hitting the appraisal hurdle pretty hard. And for good reason, since many of our affiliated lenders in California have been complaining that appraisals aren’t coming back where they should and thus, borrowers are walking away from these transactions. The good news, according to this report, is that home prices are healthier now than at any other point in the real estate recovery. Another bit of good news? Take a look at the top ten metros in the U.S. that are undervalued. This list presents new markets for real estate investors in California or Texas to consider investing in.

(Article Source: http://www.trulia.com/trends/category/bubble-watch/)

Posted by Corey Curwick Dutton, Hard Money Lender