Removing link to "Lessons from Losses"

Discussion in 'Commercial/Industrial Appraisals' started by Vernon Martin, Dec 2, 2011.

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  1. Vernon Martin

    Vernon Martin Senior Member

    0
    Jun 8, 2005
    Professional Status:
    Certified General Appraiser
    State:
    California
    Up above is a sticky thread with a link to a free e-book that I have provided to clients and the public in the past. Although I did not authorize this link, I have allowed it as a form of free publicity.

    I am now removing this book at the request of the Appraisal Institute, so the link will no longer work. This is a mutual decision of ours, as the AI has published a new book of mine entitled "Fraud Prevention for Commercial Real Estate Valuation", and the AI thought that the public would confuse the two books despite the minimal overlap. I didn't think such confusion would happen, but since its publication in October I've been getting feedback indeed indicating such confusion between the two books, so I must remove "Lessons from Losses".

    You can learn about the new book at www.appraisalinstitute.org/fraudprevention . The new book goes into much more depth on the subject of fraud prevention. I would encourage all commercial appraisers to learn more about fraud prevention, whatever you read, as what one does not know about commercial real estate fraud can hurt both you and others who rely on your reports.

    I'll present an example. At an ASA meeting I went to last month, there was an old-timer who had just been sued by the FDIC. His legal bill came to $27,000, which is very typical for such a lawsuit.

    He had appraised a house for above $600,000 although the house was listed for sale on the MLS for $600,000. When the appraiser learned of this listing, he asked for an explanation from the broker, who said "That ad's not supposed to be there. My gal made a mistake." The appraiser believed the broker, much to his chagrin. The loan went into early default, the bank failed and was taken over by the FDIC, and when FDIC looked at the situation, they found the home still advertised for $600,000. After foreclosure and resale, the home sold for subtantially less and the FDIC demanded that the appraiser make up the difference. It seemed sad because this appraiser seemed to be an "old school" appraiser with strong beliefs about right and wrong in the appraisal profession; his only mistake was to believe the broker.

    I wish this was just an isolated instance, but if you talk to your own liability insurers you will find that this is now standard practice for the FDIC. My own insurer spoke of getting 3 FDIC letters in one day for three different clients. First they send a demand letter; then they sue.
     
  2. rbrienza

    rbrienza Member

    1
    Sep 16, 2007
    Professional Status:
    Certified General Appraiser
    State:
    Colorado
    Mr. Martin,

    I did download the "Lessons from Losses". It is a good read and I did learn a lot from it. I look forward to getting the New book in the coming months.

    Thank you

    ray
     
  3. Caligirl

    Caligirl Senior Member

    0
    Jan 27, 2006
    Professional Status:
    Certified General Appraiser
    State:
    California
    Vernon you are always a gentleman and professional. Thank you for sharing the download information with us.
     
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