• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Are the dumbest reviewers from Atlanta?

Status
Not open for further replies.

Elliott

Thread Starter
Elite Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Oregon
Todays, WSJ,

Artificially Raised Values
In some neighborhoods, the fraud scheme itself may have artificially raised values. Another explanation is that the appraisal market is fiercely competitive. Experts say some appraisers may offer inflated values in exchange for their standard fee of several hundred dollars -- a strategy that can win business without exposing an appraiser to charges of fraud. "Appraisers get sucked into these schemes because they are starving for work and many of them don't know what the heck they are doing," says Carl Heckman, co-founder of the Georgia Real Estate Fraud Prevention and Awareness Coalition, composed of appraisers, lenders, mortgage brokers and residents.

In the neighborhoods where the Atlanta scheme operated, values have plummeted. Many homes associated with the scheme are now in foreclosure. Some have sold for as low as 50% of what buyers in the fraud ring paid. "The banks are getting more and more aggressive in their pricing because they don't want to own these homes," says Warren Lovett, a real estate agent with Coldwell Banker in Atlanta.

Mortgage Fraud 101 Graphic

http://s.wsj.net/public/resources/images/P1-AJ938B_GMONE_20071220223126.gif
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Sadly, no. I dont' think it's that the dumbest reviewers are here... we just had the most Skippy's! We had more crooked attorneys, LO's, and appraisers than I have ever seen. Many would use sales provided by the agent or investor. Forget that they did not go through MLS, but still had some slick agent involved! Duuuuh, a BIG clue that it's not a market sale!!?? That's why I won't do residential in the beltway, too much fraud.
 

hastalavista

Elite Member
Joined
May 16, 2005
Professional Status
Certified General Appraiser
State
California
Not a very flattering cartoon accompanying the article with the appraiser holding up a big $500k value sign in front of the house with with a $200k value sign.
 

Laughing Heir

Senior Member
Joined
Oct 16, 2007
Professional Status
Certified General Appraiser
State
Pennsylvania
I love how the lender is constantly portrayed as the poor schmuck left holding the bag. Large scale fraud could not exist without their complicity.

One thing you can't fault the media for is it's consistency.
 

hastalavista

Elite Member
Joined
May 16, 2005
Professional Status
Certified General Appraiser
State
California
I love how the lender is constantly portrayed as the poor schmuck left holding the bag. Large scale fraud could not exist without their complicity.

One thing you can't fault the media for is it's consistency.

I don't think I'd go as far as complicity. I'd probably agree to complacency. :new_smile-l:
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Not a very flattering cartoon accompanying the article with the appraiser holding up a big $500k value sign in front of the house with with a $200k value sign.

So true, they forgot to show the other MAJOR player... the ATTORNEY who doesn't ask questions for ask for ID.
 

Carnivore

Elite Member
Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
Todays, WSJ,

Artificially Raised Values
Another explanation is that the appraisal market is fiercely competitive. Experts say some appraisers may offer inflated values in exchange for their standard fee of several hundred dollars -- a strategy that can win business without exposing an appraiser to charges of fraud.

Wait till some of these appraiers learn this is no defense for a fraud accusation.

Elliott;1508323" said:
Appraisers get sucked into these schemes because they are starving for work

I dont believe that at all. It may be true now(current market), but not during the boom times of the last five years.

and many of them don't know what the heck they are doing," says Carl Heckman, co-founder of the Georgia Real Estate Fraud Prevention and Awareness Coalition, composed of appraisers, lenders, mortgage brokers and residents.

Now that is the truth.


http://s.wsj.net/public/resources/images/P1-AJ938B_GMONE_20071220223126.gif[/QUOTE]
 

Lloyd Bonafide

Senior Member
Joined
Jan 15, 2006
Professional Status
Certified Residential Appraiser
State
California
Full article:

http://online.wsj.com/article/SB119820566870044163.html?mod=googlenews_wsj


The criminals obtained $6.8 million in mortgages from Bear Stearns Cos., including a $1.8 million mortgage to Calvin Wright, a New Yorker who told the investment bank that he and his wife earned more than $50,000 a month as the top officers of a marketing firm. Mr. Wright submitted statements showing assets of $3 million, a federal indictment alleged.

In fact, Mr. Wright was a phone technician earning only $105,000 a year, with assets of only $35,000, and his wife was a homemaker. The palm-tree-lined mansion they purchased with Bear Stearns's $1.8 million recently sold out of foreclosure for just $1.1 million. Bear Stearns, meanwhile, posted the first quarterly loss in its 84-year history as it wrote down $1.9 billion of mortgage assets yesterday.


One of the biggest losers in the Atlanta scheme was Bear Stearns. A total of $6.8 million in Bear Stearns loans were used by the enterprise. The fourth-largest mortgage that Bear Stearns originated in 2006 went to a borrower in the Atlanta scheme. That involved a mansion on which Bear Stearns lent nearly $3 million. Today, that mansion is in foreclosure and listed at $1.75 million.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks