Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
No need for an appraiser. Easy to automate to give a safely low estimate. You could even select how safely low you wanted it.
De minimus is $250,000. According to FIRREA you must have an appraisal on any loan greater than that.
Quote:
Originally Posted by olecapt
Lending is still a competitive industry and anyone with a system that consistently low balls value will soon cease to be in business.
Over pricing has put the American economy very close to being "out of business" and lenders today are not willing to take any more chances.
Quote:
Originally Posted by olecapt
While heavily low side appraisals may secure the immediate transaction they will reasonably swiftly put the offending institution out of the business. Would not even take months.
The only institutions that are still lending in many communities are the local banks who portfolio their loans. They have always been conservative and profitable. The ones who still make higher risk loans are requiring greater LTV than they were last year.
List of lenders who failed in the past 2 years from over pricing loans:
I find it interesting though that an appraiser would suggest that it is OK for an appraiser to low ball. I agree in some ways it may be safe...but honest?
An appraisal is actually a range of values. Once an appraiser finishes his selection of comparables, makes the adjustments and reconciles the approaches, the range of value can be expressed as a range such as "$225,000 to $260,000" from which the appraiser will state a specific figure. Any figure in that range is supported and equally accurate. A couple of years ago, the typical appraiser would select a figure near the top of the range. today the typical appraiser will select a figure from near the bottom of the range.
Quote:
Originally Posted by olecapt
Or do you really claim an appraiser or set there of have a right or duty to shave truth to benefit their client?
It is their duty to report what it is based on their research and experience. No one has suggested shaving anything. But the nature of appraising is such that a value range is more accurate than a single number, and requiring a single number requires an appraiser make a judgment call. With appraisers all over the nation facing suits and criminal charges, most prefer to CYA by coming in on the low side of the range rather than the high side.
It would appear you are attempting to defend a deliberate low ball strategy by claiming that appraisers used to deliberately high ball appraisals.
Would it not make most sense to suggest that Appraisers attempt to identify the most likely fair market value for the property rather than play games?
I would have no particular problem with appraisers using a range rather than a point value. But I suspect that is not acceptable to the appraisers customer even if more true.
It would appear you are attempting to defend a deliberate low ball strategy by claiming that appraisers used to deliberately high ball appraisals.
Would it not make most sense to suggest that Appraisers attempt to identify the most likely fair market value for the property rather than play games?
I would have no particular problem with appraisers using a range rather than a point value. But I suspect that is not acceptable to the appraisers customer even if more true.
You need to go back and re-read Goodpasture's post.
ya, especially if they don't even bother measuring the house! GEEEEZZZZ! CHECK YOUR OWN SQUARE FOOTAGE, DON'T COUNT ON ANYONE ELSE TO GET IT CORRECT!
If a lender orders a 2055 there is no measuring involved. If the lender ordered a 1004 and the appraiser did not measure, he/she needs to be reported to the state board.
Appraisers belieive FHA, VA, Fannie May and Freddie Mac have folded and left town as there are no more lenders except locals.
There are a large number of financial institutions which have failed the last few years apparently because they could not get proper appraisals...However Appriasers had nothing to do with thees failures..
Appraisers need not actually make an appraisal. They simply pick a wide enough range to cover their needs. Having picked a range they can then pick any value in between. By the simple strategem of setting a range from way high to way low...the appraiser can pick any number they want with impunity.
Given the ability to set a range and the suits and bad stuff that has happened the appraiser may well pick a number based on covering his or her ass.
Appraisers belieive FHA, VA, Fannie May and Freddie Mac have folded and left town as there are no more lenders except locals.
There are a large number of financial institutions which have failed the last few years apparently because they could not get proper appraisals...However Appriasers had nothing to do with thees failures..
Appraisers need not actually make an appraisal. They simply pick a wide enough range to cover their needs. Having picked a range they can then pick any value in between. By the simple strategem of setting a range from way high to way low...the appraiser can pick any number they want with impunity.
Given the ability to set a range and the suits and bad stuff that has happened the appraiser may well pick a number based on covering his or her ass.
That about got it?
No it doesn't. You obviously don't understand this issue.
No it doesn't. You obviously don't understand this issue.
Ahhh who is it that does not understand the issue?
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
