CRIME vs Fair Credit Lending

[dwayne_sheridan]

In reviewing many BPO's, several realtors are mentioning "crime" "gang activity" & "graffiti" in the negative comments section.

Maybe I am wrong; I thought HUD or some Governmental Authority would freak out with such verbage based on redlining. I recall my real estate licensing tests (years ago) asking a question about this issue.

Tried HUD, they're worthless. The Govt is efficient at doing nothing!

Any thoughts or links??

 

[DTB]

In reviewing many BPO's, several realtors are mentioning "crime" "gang activity" & "graffiti" in the negative comments section.

Maybe I am wrong; I thought HUD or some Governmental Authority would freak out with such verbage based on redlining. I recall my real estate licensing tests (years ago) asking a question about this issue.

Tried HUD, they're worthless. The Govt is efficient at doing nothing!

Any thoughts or links??

Good luck finding a specific citation, I believe you have unearthed one of the Holy Grails of urban myth.

 

[c w d]

Why would discussing the effects of a high crime rate and active and obvious gang activity and their affects on marketability and indicated market value be prohibited? I've never heard such a thing. That would be like saying "We don't discuss chemical plants in the area". I think some Appraiser, Realtor, MB or lender who didn't want you to kill the deal told you that......

If one is afraid to go into an area to appraise a home due to criminal activity then how does one ignore those effects on value when someone is considering spending money to purchase a home there?!?!?

As long as the appropriate statistics are referenced I would think it would be perfectly acceptable.

 

[DTB]

Let's compare the comments now to then: http://appraisersforum.com/showthread.php?t=114992&highlight=crime

 

[Mztk1]

Here is the HUD prohibited word/phrase list, direct from my MLS. Get ready to roll your eyes and be annoyed:

 

[DTB]

Here is the HUD prohibited word/phrase list, direct from my MLS. Get ready to roll your eyes and be annoyed:

They must not have crime, gang and graffiti down there or certainly they would have been included.

 

[Head Surfer]

Here is the HUD prohibited word/phrase list, direct from my MLS. Get ready to roll your eyes and be annoyed:

Wow, I thought there would really be some bad words on that list! Is this for real?

restrictions?
retirees?
secure?
child?
first-time home buyers?
married?
mature?
quiet neighborhood?
physically fit?

If those words are prohibited in MLS listings I can only say I am glad I no longer sell real estate or appraise it if that's what it's come to!

 

[Hamlet]

Here is the HUD prohibited word/phrase list, direct from my MLS. Get ready to roll your eyes and be annoyed:

That’s because half the people on this list are also on the “protected species” list.

 

[Mike Boyd]

THAT is what would make it acceptable. Willy Nilly statements about "high crime area" are forbidden as it tends to further denigrate a neighborhood. But, if you include verified facts, it is OK.

However, in appraising a house that IS BEING FORECLOSED ON and the appraisal is for that foreclosing lender, it should not be an issue. ANY negative, or positive, for that matter, statement should be supported by facts, not opinion. As appraisers, our OPINIONS are limited to the final value.

 

[RSW]

Here is the HUD prohibited word/phrase list, direct from my MLS. Get ready to roll your eyes and be annoyed:

That just blows my appraisals out of the water.