Foreclosure question

[Pamela Biggers]

Just wondering what thoughts you all have on giving for different values on most clients REO addendum. As I see it in order to be in compliance with USPAP you would have to have four seperate work files for the four different opinions of values that you give to the client.

I see nothing wrong with giving information on active listings or repairs need to the property, but when they ask for four diffrent values than I think they need to order four diffrent appraisals.

Are appraisers, again, letting lenders and clients railroad us into doing more work for less money?

You know, I think it's time appraisers either stand up for ourselves or understand that as we let the lenders and clients get away with these things we will soon become nothing but little sheep doing their bidding. If they want to be out of compliance with Federal Rules and USPAP, then why don't they fill out the forms themselves or just put in the values that they need, what do they need us for?

I just dealt with a potential client who gets mad if you don't hit a value and said it was the appraisers fault that the loan would be held up. He seems to think that all we have to do is put the number that they want in the right place on the report. There are way too many of these people out there.

 

[Farm Gal]

Pam:

Take a deep breath, hon.

Yes they are asking for a lot an wanting to pay only a little.

In order of appearance: you can have 4 'appraisals' in one workfile.
just be clear what where why and how you came to your conclusions. And if you have to grid sales due to the location/market you should identify each 'section' of your masterfile on the property.

One of our state board members addressed such 'value estimates' in a recent USPAP class (may he stay on the board forever).

If you have sufficient information in the work file to address one value and as long as in YOUR PROFESSIONAL opinion the value difference for condition is the appraised value+or minus X (again based on your opinion... because many adjustments of this type are subjective anyway (despite being based on real information), it is YOUR EXPERIENCE and JUDGEMENT that counts)

You do NOT necessarily have to regrid all properties to arrive at the alternate values, particularly as regards 'short sale' issues and 'as repaired', but instead can specifically annotate why you adjusted the values for each section. This can be done in narrative format on scrap paper! It was his stated opinion that being the expert in the local market if you think the selected sales are 'best available' for the other appraisal conditions, and if the differences are somewhat subjective: condition, shortsale etc, that brief narrative format 'adjustments can be made and bing you are done. 8)

IF however one has to select different comps then in fact one IS required to regrid ...depends on the market... and YOU know your market

This rather liberal reading of USPAP when going line by line DOES make sense and this was hashed out in a crowd of pretty seasoned appriasers.

Don't know if this would fly in your area but I am somewhat comforted, despite every intention to apply due dilligence I thinks sometimes we make things harder than they have to be out of USPAP police fear...

 

[Joe Birrell (NY)]

Pamela:

I'm far from being a USPAP guru, but I think your reading to much into it.
Why would you want 4 seperate work files ? I'm assuming your talking about "as-is", "as-repaired", quick sale, etc. (what's the 4th one ?)
I see it as one value with variations. :wink:

 

[Farm Gal]

Joe usually:
1 as is normal marketing
2 as repaired normal marketing
3 as is quick sale
4 as repaired quick sale.

for which you need crystal balls on some places!

To paraphrase jtrotta:
The fog in my globe goes round and round