Posted on: 05th Nov, 2007 06:13 pm
There has been a growing trend of higher than usual appraisals, much more than property is worth to lend people money around our area. This happen to a freind of mine, she is losing her home because she can not afford the payments now, flexible rate went through the roof. Doesn't a bank or the institution backing the loan question these high appraisals, they end up loosing in the long run when the person forecloses. Can't get blood from a turnip.
Hi,
The appraisal can be higher or lower than the actual value of the property. It is mostly the lender who assigns an appraiser, so the bank or the institution does not question the appraised value. If the buyer wishes, he can check whether the appraised value is right or not.
Thanks,
Larry
The appraisal can be higher or lower than the actual value of the property. It is mostly the lender who assigns an appraiser, so the bank or the institution does not question the appraised value. If the buyer wishes, he can check whether the appraised value is right or not.
Thanks,
Larry
Hi,
This is Larry above. Just forgotten to sign in :)
This is Larry above. Just forgotten to sign in :)
thanks Larry for the reply, I get a little irritated with them, guess I was just getting irritated at the wrong people, they have to know right from the beginning that these folks on fixed incomes can not afford these loans once the intrest rate goes up a few points and the payment almost doubles. They would never get their money out of the one house in particular that I know of, they appraised it way to high.
Hello Jbarto,
There is another factor that has to be considered. Two different appraisals of the same property may be differ from each other. That's just because the techniques applied for the appraisal differ from each other.
There is another factor that has to be considered. Two different appraisals of the same property may be differ from each other. That's just because the techniques applied for the appraisal differ from each other.
I guess the ability to pay the loan back once the rate increases is what is really getting my goat here. Different subject all together.
many areas across the nation right now are declining in value. Was it appraised high, or did the value drop?
Hi Mike,
I think Jbarto's saying that the home was appraised high enough than what an usual appraisal could bring out the value to be. Anyway, I think the bank can question because most of the times, appraisers are appointed by the banks offering the loans.
good luck
I think Jbarto's saying that the home was appraised high enough than what an usual appraisal could bring out the value to be. Anyway, I think the bank can question because most of the times, appraisers are appointed by the banks offering the loans.
good luck
just in case anyone is still looking at this string of commentary...
there have been a lot of sleazy lenders combining with a lot of sleazy appraisers, purposely inflating values so that loans could be granted despite a real value somewhat less. yes, people have suffered as a result, but these loan officers who began the process have been paid based on the loan closing.
fortunately, the 2007 "melt-down" of mortgage lenders has eliminated many of these people (not all, though).
when dealing with federally insured banks and lenders, regulations prohibit such a thing. for example, when i request an appraisal, the order is placed on a revolving basis of appraisers who are on the approved list for our institution. does that give me a little bit of leeway? yes, to a small extent, since we would naturally have appraisers on the list who are associates of ours to begin with. however, "steering" the appraiser to come up with a value greater than the reality of the situation is a dishonest practice.
no good lender - no honest lender - would have anything to do with steering an appraiser and requesting a value estimate higher than the real value of the property.
there have been a lot of sleazy lenders combining with a lot of sleazy appraisers, purposely inflating values so that loans could be granted despite a real value somewhat less. yes, people have suffered as a result, but these loan officers who began the process have been paid based on the loan closing.
fortunately, the 2007 "melt-down" of mortgage lenders has eliminated many of these people (not all, though).
when dealing with federally insured banks and lenders, regulations prohibit such a thing. for example, when i request an appraisal, the order is placed on a revolving basis of appraisers who are on the approved list for our institution. does that give me a little bit of leeway? yes, to a small extent, since we would naturally have appraisers on the list who are associates of ours to begin with. however, "steering" the appraiser to come up with a value greater than the reality of the situation is a dishonest practice.
no good lender - no honest lender - would have anything to do with steering an appraiser and requesting a value estimate higher than the real value of the property.
George, I like like the honestly :)
There will always be sleezy people in our industry, as new ones come and go. Most don't even realize the effect the put on our industry.
The honest ones will be around for a long time if they can make it through the rough times.
There will always be sleezy people in our industry, as new ones come and go. Most don't even realize the effect the put on our industry.
The honest ones will be around for a long time if they can make it through the rough times.