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Bank Owned Properties

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DRMORALES

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Freshman Member
Joined
Aug 8, 2007
Professional Status
Certified Residential Appraiser
State
Nevada
What Is The Ruling On Using Properties That The Banks Have Taken Back As Comps. The Record The Repo And An Assigned Value In The Tax Records. Is It A Useable Comp?
 

Michigan CG

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Nov 1, 2006
Professional Status
Certified General Appraiser
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Michigan
No, it is not a sale. It is a foreclosure, no buyer, no seller, ordered by a court.
 

Kali the Boston Terrier

Senior Member
Joined
Jul 7, 2003
Professional Status
Certified General Appraiser
State
Michigan
Most people refer to these as transfers and not sales. The assigned value is typically the amount that the bank had to eat...and not an indicator of "Value".
 

stefan olafson

Senior Member
Joined
Apr 2, 2003
Professional Status
Certified General Appraiser
State
North Dakota
I agree, these are typically sheriff's deeds or something like. The lender with the most to lose typically pays the bottom dollar to protect their investment.
 

Joe Booth

Junior Member
Joined
Oct 16, 2003
Professional Status
Certified Residential Appraiser
State
California
Transfer, not a sale, not a comparable. When the bank sells it, there is a comparable and possibly a typical sale in todays market.
 

farmguy

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Joined
Jun 27, 2007
Professional Status
Banking/Mortgage Industry
State
Texas
If you are in an area that is really getting ugly those deals can help determine what it is not worth. If the sale was well attended and the bank bid wins, it is an indication it is worth less than that.

It is not bad where I am (yet) but in mid 80's we were grasping at any information available to help.
 

Ion Caza

Sophomore Member
Joined
Oct 21, 2005
Professional Status
Certified Residential Appraiser
State
Michigan
I would never use this as a comp. It probably has a quit claim deed or a sheriff deed. The moment when the bank sells it, I'll might use it as a comp-REO property after a "normal" market exposure.
 

Non Sequitur

Elite Member
Supporting Member
Joined
Feb 14, 2002
Professional Status
Certified Residential Appraiser
State
Louisiana
What Is The Ruling On Using Properties That The Banks Have Taken Back As Comps. The Record The Repo And An Assigned Value In The Tax Records. Is It A Useable Comp?
The USPAP Supreme Court has said.....they don't care. It all depends on your market.
 

The Dog

Senior Member
Joined
Apr 18, 2005
Professional Status
Certified General Appraiser
State
Oregon
It is going to be interesting. Just looked at the MLS listings on a newer subdivision (45 homes of which around 30 are built over the last 18months). 15 sold in last 18 months, presently, there are 12 listings, (a couple still being built and not listed, sold as vacant with builder reserving right to construct home on it). Of the 12 active listings, as of today 9 are foreclosures listed at anywhere between 15-28% below the listing price of the rest of the new homes. Of the sales in the last 6 months, 4 are foreclosures including one pending.

Going to be interesting to see how the rest of this sub. will react to the lower listing prices of the foreclosures. Also going to be interesting to see if ANYONE is interested in the higher priced homes, or if they prefer the lower priced foreclosures (btw, some of the foreclosures have never been lived in).
 

Daystar

Member
Joined
Sep 7, 2006
Professional Status
Certified Residential Appraiser
State
New York
What Is The Ruling On Using Properties That The Banks Have Taken Back As Comps. The Record The Repo And An Assigned Value In The Tax Records. Is It A Useable Comp?


oh my!:Eyecrazy:
 
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