Appraisal Higher than Purchase Price (loans, rate, refinance, loan)

[michael11747]

Originally Posted by SmartMoney

I applaud your response and verbiage, particularly "scurrilous." How appropriate in this situation. It's those appraisers that fed the frenzy that put us in this mess, coupled by the loan officers that demanded value that wasn't there.

i might give him respect for the use of "scurrilous". and these appraisers are all over the place. i hear about them from realtors, bankers, insurance agents, and builders. they are, of course a boon to these people, but i can tell you as an investor that they were a crucial part in this mess we are all trying to sort out now. no way around it. i'm not blaming it all on them, and i doubt they were being unethical, but to appraise a home by factoring in 20% appreciation/year based on the location it is in, all the while deferred maintenance piles up, is incorrect practice. it happened here quite a bit, and we are still waiting for our bubble to "burst", as our economy is a little slower than the national economy.

[michael11747]

Originally Posted by Goodpasture

What a scurrilous remark. You show me an appraiser who "tries to go a little over the loan value" and I will show you an unethical appraiser in violation of state law (in all 57 jurisdictions and every country that has adopted USPAP). As soon as one of those "skippie" appraisers appear, we do our best to prove his lack of ethics and get his license revoked. As an AQB Certified USPAP instructor, a former appraisal board hearing officer, a former member of the disciplinary committee, (I withdrew, both as a hearing officer and disciplinary committee member when I started the appraisal school. It is unethical for me to recommend remedial education when I am trying to sell seats in my classes) an owner of a successful appraisal practice, an owner of a successful appraisal school, and a practicing appraiser for more than a quarter of a century, I find your comment highly offensive.

your right, i apologize, i should probably have worded it a little differently, but i have seen it happen where i live quite a bit. and when taken as a whole in this huge mess, i think it played a part in it.

[Goodpasture]

Originally Posted by michael11747

.......and when taken as a whole in this huge mess, i think it played a part in it.

In fact, you can place the blame on several areas of effort. To accomplish the financing of inflated values, it requires the deliberate effort or, at a minimum, a blind eye on the part of appraisers, loan officers, underwriters, title companies, and bankers. What breaking the law requires is a group of crooks and/or incompetents who deliberately or innocently defraud someone.

But to blindly say "appraisers try to go a little over the loan value" as though this is either accepted or common practice is simply unacceptable. It is as bad as saying all cops are on the take, all soldiers are rapists and murderers, all loan officers are thieves, all landlords are chiselers and mean, all priests are pedophiles, or all politicians are liars.......wait a sec......ignore that last one, I think they all ARE liars........but you get my drift.

[michael11747]

Originally Posted by Goodpasture

In fact, you can place the blame on several areas of effort. To accomplish the financing of inflated values, it requires the deliberate effort or, at a minimum, a blind eye on the part of appraisers, loan officers, underwriters, title companies, and bankers. What breaking the law requires is a group of crooks and/or incompetents who deliberately or innocently defraud someone.

But to blindly say "appraisers try to go a little over the loan value" as though this is either accepted or common practice is simply unacceptable. It is as bad as saying all cops are on the take, all soldiers are rapists and murderers, all loan officers are thieves, all landlords are chiselers and mean, all priests are pedophiles, or all politicians are liars.......wait a sec......ignore that last one, I think they all ARE liars........but you get my drift.

true enough, i am a little bitter over what happened here, but every time i talk with a banker, they assure me the appraiser will match the sale price, or when i talk to a realtor they tell me to watch the banker, i never even get to meet the appraiser. i am rehashing what i hear from people in the industry, which is back talk about others in the industry.

one could easily say investors are greedy moneysuckers, which would offend me, but i would have to accept it because they were a part of this whole mess as well.

[STR8-TALK]

Throughout my life, I have always found thing are usually not what they appear to be. I don’t understand why anyone would be offended by the facts. What they are suppose to be and what they are, (usually differ). I recently had my home appraised for re-financing and I was asked by the APPRAISER, "what value was I trying to reach". I am currently assisting my daughter in a purchase of a home and I don't like what I hear about appraisal practices. I don't like paying for a service that is not accurate. When I pay for an appraisal I expect the appraised value to be based on current value of the property without influence from the financing price. But as I understand it, the appraised value will be more based on the loan value than the actual value so the appraisers can CYA.
Appraisal – Defined:
1. The act of estimating or judging the nature or value of something or someone.
2. An estimate of value, as for sale, assessment, or taxation; valuation.

I don’t see CYA, borrowed amount or even the amount the loan company wants to see in this definition. Once again FLEECING OF AMERICA. Things are not what they appear to be. So here is my question to SMARTMONEY. If I have an independent Appraisal down separate from the loan broker and the appraisals differ substantially (let’s say by 15% or more), Do I have any recourse?

[STR8-TALK]

Throughout my life, I have always found thing are usually not what they appear to be. I don’t understand why anyone would be offended by the facts. What they are suppose to be and what they are, (usually differ). I recently had my home appraised for re-financing and I was asked by the APPRAISER, "what value was I trying to reach". I am currently assisting my daughter in a purchase of a home and I don't like what I hear about appraisal practices. I don't like paying for a service that is not accurate. When I pay for an appraisal I expect the appraised value to be based on current value of the property without influence from the financing price. But as I understand it, the appraised value will be more based on the loan value than the actual value so the appraisers can CYA.
Appraisal – Defined:
1. The act of estimating or judging the nature or value of something or someone.
2. An estimate of value, as for sale, assessment, or taxation; valuation.
I don’t see CYA, borrowed amount or even the amount the loan company wants to see in this definition. Once again FLEECING OF AMERICA. Things are not what they appear to be. So here is my question to SMARTMONEY. If I have an independent Appraisal down separate from the loan broker and the appraisals differ substantially (let’s say by 15% or more), Do I have any recourse?

[google9]

what makes you think the appraiser just appraise over the sale price ? it could simply be buyer got a good deal out of a home that worth more than what they paid!

[Melinda112]

I'm in the process of buying a house I got my own appraisal the house value at 400000 the seller asking 440,000 come to find out my loan officer n the seller r friends the loan officer stated I have to use the bank appraisal can they falsifying the appraisal.

[Lowexpectations]

Originally Posted by Melinda112

I'm in the process of buying a house I got my own appraisal the house value at 400000 the seller asking 440,000 come to find out my loan officer n the seller r friends the loan officer stated I have to use the bank appraisal can they falsifying the appraisal.

This scenario wouldn't be helpful to the seller in any way so I'm not really sure why you are asking especially in a 5 year old thread

[rrah]

Originally Posted by Melinda112

I'm in the process of buying a house I got my own appraisal the house value at 400000 the seller asking 440,000 come to find out my loan officer n the seller r friends the loan officer stated I have to use the bank appraisal can they falsifying the appraisal.

There are processes that lenders must now follow in ordering an appraisal. The loan officer doesn't choose a specific appraiser. The specific appraiser is chosen randomly (or some other way that the officer is not in charge of).