Construction to perm Desk Review

[Reelestate]

I just declined an order for a Desk Review where the previous appraisal in January 2005 had a value of $3,000,000. Now the structure is complete and they are converting loan from construction to perm, and the value can't be more than $1.8M. My question is what does the bank do in this case?

 

[Scott Kibler]

Collect the outstanding loan balance when due. However they can.

 

[Mike Boyd]

Find another appraiser who will come in at $3 million. Are you saying the value dropped by a million, 200 thousand in 2 years? Or, that the original appraisal was wrong?

 

[Mike Kennedy]

SHOULD order an appraisal. should, could, would or will ......they want the truth ? is the question. sounds like they're fishing for a rubber stamp. wise move declining.

 

[Joyce Potts]

Are they asking for a review of the 2005 value or the current value or both?? If they want the 2005, it may because they already suspect something is not quite right, perhaps??

 

[Reelestate]

Original appraisal maybe $500K overstated

Original appraisal maybe $500K overstated. What do you think will happen when bank converts construction to perm and review exposes this situation

 

[Lee Lansford]

Original appraisal maybe $500K overstated. What do you think will happen when bank converts construction to perm and review exposes this situation

IF the review is done ethically and competently, the bank will do 1 of 2 things:
a) Have a collective stroke;
OR
b) Order another review.

Maybe both.