Destroy Old Files At Your Own Risk

[Mike Simpson]

Appraiser's & murderer's--is there a statute of limitations for how far back an appraiser could be sued? I certainly hope so!

-Mike

 

[Mike Garrett RAA]

My state says..."five years". I get rid of the files on the day after that. There is no statute of limitations on fraud.

 

[Terrel L. Shields]

There is no statute of limitations on fraud.

Actually in my state and on the Fed. Level there is, depending upon what Act fraud is being pursued under.....that's a big issue in the suit against me. RICO - 4 years. Civil Fraud - 3 years., etc. RICO got tossed, so they now are arguing conspiracy to commit fraud. The issue though is tolling, when does the clock start ticking, and that depends upon if the plaintiff acted prudently to discover fraud. In my suit the plaintiff claims they were suspecious of the numbers when first presented to them in 1996 and were landed upon because they also claimed they could not have discovered the fraud until after their own foreclosure and bankrupcy (where they did not make the claim of fraud as required under state statutes) It was one or the other. They did not know until 2001 or they suspected a fraud in 1996. It cannot be both. Tolling started in 1996 by our clock and we are awaiting the judge's ruling on it as I speak.....it will be one year to the day on the 28th, and the plaintiff does not even have a perfected claim. My lawyer smiles and says "Cha-Chang" $$$

Terrel

 

[Mike Simpson]

There has been some heated discussion about what constitutes fraud. However, I think it would be a lot easier to bring charges of fraud against an appraiser if the appraiser (with permission of the state) were to destroy their own defense--the work file. Under that line of thinking--it would be easier to sue the appraiser after 5 years as their workfiles have a good chance of being destroyed (again with permission from the regulators).

-Mike

 

[Terrel L. Shields]

In fraud they rarely have to document a single act, but must document a pattern of fraudulent behavior, thus may request a number of your appraisals both pre and aft-5year. Fraud suggests you somehow profit from colluding with a lender or realtor to commit that fraud and do so repeatedly. In my situation, they have requested (and will get if this goes on) all my files from 1992-2002 of reports that I did for the lender that is being sued with me. That is about 400 commercial / farm reports and 800 residential ones, they are my second biggest client. Simply seperating the files from the file cabinets full of other confidential files will consume several days upon my part plus the "workfile" which most of my documentation is contained in banker boxes and 3 ring binders, perhaps 6-10 per year. Plus all cost books I have from that era, all software programs, all computers, all text books and guidelines, all invoices, all client lists, all borrower lists, and those lists required name, address, and phone number.

 

[Mike Simpson]

Terrel-

In other words everything you have to defend yourself will be removed?

-Mike

 

[Mike Simpson]

Taking all the appraiser's work files, computers and everything needed to run a business would pretty much put most appraiser's out of work--before they're even convicted. With no income how does one defend themselves?

I wonder how long an appraiser would get to answer a question on the stand from a prosecutor regarding something in a work file they haven't looked at in years?

-Mike

 

[Mike Garrett RAA]

Well, since I have never had to go to court or been sued, I don't know about that stuff...."thank God!". With electronic media there is really no reason not to keep files for a longer period of time. I can have 10+ years of files in my little office safe where as with paper copies I have to use a commercial storage facility at a cost of $50 a month not to mention the hernia just moving those legal file boxes. In fact, my service has stopped taking the full size boxes and now requires us to package in the half sized boxes which will only hold about 3 months worth of appraisals. Those still get heavy. I just boxed up 2001 and it took 5 boxes for appraisals and another one for the checks, receipts, and tax records.

I bet that is something these newbies don't even think about when wanting to get into this business. Record keeping and tax requirements...bet those add at least 10% to the work load and additional expense. Another reason to work for someone else!

 

[Mike Simpson]

My home based office takes up more than a third of our house--one entire room is strictly for storage--from floor to ceiling boxes and boxes of appraisals stacked on shelves!

-Mike