Appraisers that played with investor clubs

[Pamela Crowley (Florida)]

Appraisers that played with investor clubs could end up targets of investigations:

http://www.columbusdispatch.com/liv...TATE.ART_ART_01-18-08_B1_PB93EN2.html?sid=101

More out-of-towners have reported being stuck with inflated mortgages on houses in low-income Columbus neighborhoods, where they were directed by real-estate investment classes.

A Virginia couple and their Maryland son took the advice of an investment club and bought four homes from Mid-State Homes of Columbus with the help of Summertyme Mortgage of Sunbury.

The family has since sued Mid-State and Summertyme in Franklin County Common Pleas Court, contending that appraisers either negligently or fraudulently inflated the value of the properties so lenders would lend more than they were worth. The defendants then shared in the extra cash, the suit says.

Other defendants in the Brookses' suit are former Mid-State employee Karin Caruso, the Appraisal Group of Columbus and local appraisers Mary Jo Mowery, Leo Rowe Jr. and Joseph R. Colgrove.

 

[Conservative in Virginia]

Hi Pam.. Hope all is well with you. Thank GOD I have never even Heard of an investor 'club'! Too involved with my local horse riding club...much safer! The bad thing is I can see this 'sue the appraiser' mentality growing by leaps and bounds and this will serve to feed the fire. JEEEZE

 

[Pamela Crowley (Florida)]

Yes, appraisers will be dragged into these investigations and suits. All need to prepare to defend.

Added:
I like what Karl has been posting these past few months. Many appraisers would help themselves by turning themselves in now saying, "I'm so sorry! I didn't realize I was taught wrong. What can I do to help?"

 

[Mike Kennedy]

What can I do to help?"

turn in your license, get your personal affairs in order, pack a suitcase with tooth paste and a couple years supply of cigarettes ($$$) - you're gonna need 'em. have a nice trip.

 

[Fred]

Yes, appraisers will be dragged into these investigations and suits. All need to prepare to defend.

Like appraisers are responsible for falling prices.

An appraiser I know was sued over this. He appraised a house in 1998 and it sold for an amount close to the appraised value. A few years later, the boom was well under way and the house sold in 2003 for a little over double what it sold for in 1998. The former owner sued the appraiser. It took the judge minutes to dismiss the case. The best we can all hope for is judges of similar prudence who realize that a statement of the most probable price today is not a guaranty of what price will be in five years.

 

[Conservative in Virginia]

Steven, you read my mind. As I sit here reading all the recession news I am waiting for the lawsuits...'You appraised my home last year for 200K and Now the realtor tells me it is only worth 170K - it is ALL YOUR FAULT!' yeah.. you and the lender who MADE me get not one but TWO loans on the property..both adjustable and totalling 205K... It is all your fault..

 

[Workbox]

They are allover the place. They always seem fast talkers and know all the sales techniques. Especially these "future developments" they always have their "special group" and special "lender banks". Remember those Land sales I sent you Pam?

 

[Karl]

Does NOT matter rather Appraisers DID or DID NOT, assist in inflating the value. Appraisers have NO ONE to assist in thier individual defense, As noted by the many various artuicles we asre ALREADY the GUILTY ones. The problem is going to be 12 Homeowners sitting in the jury box that KNOW they been screwed.

Those that don't THINK they were involved with Investment clubs look back at some of your Appraisals See who the client was & look them up you MAY be shocked to find you were dealing with a "Club" AZ was loaded with these type investors bertting Fl. was & probablly AK. Anyplace that NRPI operated, "YOU ARE the DADDY"

 

[Ray Miller]

I feel it is going to be a long dark road for a lot of appraisers, the good and the bad. Many will be caught up as the blame for decrease in value of real estate. Some have got to blame everyone but themselves. Prepare for the worst and hope for the best.

 

[Non Sequitur]

What Steven Santora describes and what the OP describes are two very different situations.

I don't work for/with investment clubs for the same reasons I didn't accept assignments from Ameriquest and don't accept FHA assignments from one time Charlie MBs/LOs. Great report or not, if you're involved with a dirt bag when the lawsuits fly you'll get caught up in the mess.