Discussion on Lowball Appraisals Spark Uproar

Schumpeter Reincarnate Joined: 24 May 2008 Posts: 46246

http://ml-implode.com/viewnews.....proar.html

Dud? Joined: 16 May 2009 Posts: 3

so, has anybody figured out that maybe values have fallen so these homeowners and loan officers' numbers are off? Do you actually think that an appraiser WANTS to cut a value? If you cut a value, you risk losing a client, so, that's really not a viable option. Perhaps, as much as the homeowners and loan officers WISH for the value to be there, it's just not. The appraiser reports the best sales in the past six months in the subject's immediate subdivision.....of course, an unethical appraiser might leave the subdivision to make a higher value.....but we really have to use the sales in the immediate subdivision.....and believe me, we're sorry if they don't support the estimated value. Everybody's blaming the HVCC, but most appraisers aren't doing anything now that they didn't do before the HVCC...and we're really sorry that the economy is in the toilet. Franklin Roosevelt had the New Deal, Truman had the Fair Deal, and Obama has the Raw Deal.....

Cherry Bomb Joined: 14 May 2009 Posts: 151 Location: Mars

Ex, values have fallen but not as bad as these incompetent appraisaers are reflecting them. Values are being understated due to appraisers with little experience, appraisers working in markets they are unfamiliar with and just lousy appraisers. Pre HVCC banks and brokers had the choice to select their appraiser. The few (and I mean very few) appraisers that worked with lenders to grossly overstate values is being held out to be the norm rather then the rare exception. Lenders and brokers work with appraisers because they know which appraisers are familiar with certain areas and know how to fairly appraise properties.
The HVCC is a farse, it should be eliminated and lenders and brokers should be able to go back to ordering their own appraisers.
Remember, the real estate (like all markets) market is cyclical. Values were going to drop. This is not due to overstated appraisals but a world economy that is in very bad shape. There are many reasons the economy is so bad but real estate is only part of the picture. Con men like Madoff have stolen billions in wealth that people should not have lost.

Eliminate the HVCC now. This wll help revive the real estate market and the US economy.