1) Condition 2) Condition 3) Condition

[Bemis Pownall]

HOW ABOUT
substituting styles.
Review years ago the subject was a trilevel, apprasier called it contemporary and called all the sales contemporary(they were 2 stories) pushed value way up there. I cut him with clone sales. He lost his license couple years ago. I never turned him in, until I reviewed his work after he had lost his license. Yup doing mortgage work with no licnse, I refused that review recommended that they get a marketible appraisal. I believe this appraiser is doing time now, spent all his $ on legal fees.

 

[Pam]

Giving someone your "preference" is not coercion. And if an "appraiser" can be coerced by someone stating a "preference" I would suggest another line of work for that "appraiser."

 

[Verne Hebert]

Hey Randy,

We have a criminal like that over here in Kalispell also. I truly "appreciated" the mastery of an appraisal I reviewed last week.

In our area we adjust the "site" and not the "location" line because we have good land sales and a complicated market; example 20 acre parcels run from $ 15,000 to $ 280,000. So the site line can be a place to bury enough to put the bank upside down.

I don't do desk reviews for that reason, and few are done here.

Do you do any work for Met Mortgage & Securities? If you don't you should. They are good to work for-location in a mid rise downtown. About 7 reviewers and 2 gals ordering.

Verne Hebert

 

[Jim McGrath]

Blue, what do you do when your REO appraisal has bids of $35,000 in repairs and a severe mold problem, and they say to do the appraisal as if the mold does not exist, and not subject to any repairs?

"THIS APPRAISAL AND REPORT IS BASED UPON A HYPOTHETICAL CONDITION OF THE STRUCTURE BEING IN AVERAGE CONDITION WHICH, IN REALITY, IT IS NOT. SEE ADDENDUM FOR EXPLANATION OF SUBJECT'S ACTUAL CONDITION."

What do you think?

What I used was "this appraisal is based on the hypothetical condition that the mold and damage does not exist, if the mold and damage does in fact exist, the opinion of value of this appraisal may be subject to change".

Jim

 

[Blue1]

Pam,

Saying to an appraiser that anything other than "average" condition will "kill" the loan is, to me, a bit more than stating a "preference."

 

[Randy Beigh]

Verne

In Spokane, Metro has their own staff appraisers, so not much work is farmed out. Although, I spent 5 1/2 years there. Left in 1990.

 

[Pam]

Mark "average" and make it "subject to." Voila! No deal murder.

As an aside, lots of things are deal killers --- next to a toxic waste dump, a bookstore on the main floor, a refi that's currently listed, etc. etc. etc. Should those items not be reported/analyzed?

Appraisers are supposed to be "disinterested third parties." Not reporting material facts because it would "kill the deal" is not the act of a disinterested third party.

I think they should test for strong backbones and thick skin before granting licenses/certifications.

 

[Red Blumenstock]

Jim:

What you are using in this case is an extraordinary assumption, not a hypothetical condition.

The definition of an extraordinary assumption is, "an assumption, directly related to a specific assignment, which if found to be false, could alter the appraiser's opinion or conclusion."

A Hypothetical Condition is defined as,"that which is contrary to what exists but is supposed for the purpose of analysis". In this case, the appraiser knows that the condition is false.

Red Blumenstock