Appraisers know your loan amount?

[Lobo Fan]

I read a stat somewhere that said that something like 97% of purchase appraisals come in at the purchase price or higher. I also read a document where an arizona appraiser ha his license suspended. He screwed up on a few issues but one of the items they called him on was that he hit the purchase price or estimated value 85% of the time. Apparently the appraisal board thought that number excessive.

Some lenders put an estimate of value on the order. I usually ask them to remove it and send the order again. Many times that number is some rediculous fantasy arrived at by taking the current pay off plus any credit cards and auto loans divided by the LTV value guaranteed to make the loan fly.

You have questioned one of the dark problems with our industry. There are number-hitting appraisers out there and they often get rewarded with more and more business. The market is changing however as investors are requiring real collateral for the loans.

 

[Tony V]

I did get the loan( I have to call the bank for the details), but personally I don't think it should have appraised where it did considering my market area, which is more flat than on a down swing. Who know though, I'm no appraiser, just a plumber LOL.

Be sure to request a copy of the appraisal from the lender.....You will need to request this in writing....If you like e-me through the forum and I will supply you with a sheet explaining what you need to do if they give you a hard time...

 

[DHeriford]

I made a more lengthly post, but for some reason internet connection went bad atm. So I'll keep is short. ->Thanks for the insight guys.

I did get the loan( I have to call the bank for the details), but personally I don't think it should have appraised where it did considering my market area, which is more flat than on a down swing. Who know though, I'm no appraiser, just a plumber LOL.

You know whats really sad? The fact you are pretty sure the home is over valued and yet the only thing you are concerned about is the fact you got your money to refi the house. Not bashing you please don't take this the wrong way. I"ve had several friends ask me to look at their house and tell them what i thought (yes of course i have a work file). I'll let them know what i think the house is worth and they will come back saying well the mortgage companies appraiser says its worth 10-20k more. I will typically beable to figure out exactly what it takes to get to that point and explain that if this appraiser is doing this its wrong and he will over value your home.

Then come to find out a month later they closed on a loan where the appraiser went outside to sub when there were 20 comparables in the subdivision. Then two years later the home is going into foreclosure because it never appricated to the amount of the loan.

I always think to myself who is the real person at fault in a situation like this? The skippy appraiser who over valued the home, the mortgage broken pushed the loan on you, or you for knowing the home was probly not worth what is appraised at?