Pam: This is happening all over the country. Dockets are being filled with foreclosures. The number of people who are late in mortgage payments is out of site. Freddie and Fannie will keep doing their AVMs and BPOs and the appraisers will be blamed.
We must organize to fight this. The good appraisers (honest values) are going to get squeezed out and that will leave the poor quality appraiser to give the mortgage company the value that they want. Hang the investor (government) and really hang the appraiser on the blame.
American Guild of Appraisers OPEIU AFL-CIO [email protected]
For a real time update on REO’s, call a few of your local attorneys. A lawyer friend of mine (did I say that?)..... recently put a complete halt to his divorce work and ambulance chasing and is
spending all his time handling foreclosures. I’ve grown tired and hoarse screaming about the refi/foreclosure abuse. What I’ve been doing lately which does make a difference on the local level is every time
the subject comes up with a Real-i-tore, I ask how them many times in the last couple of years have they lost a listing because they were about to list a house for $100,000 and found out the home owner owed $130,000. Next time you chat with an agent, pose this question and watch their reaction. Many agents waste a great deal of time with these borrowers and get mad as hell when they can’t list the property. I encourage the agents who will listen to raise hell with their brokers in charge and let them know which slime ball mortgage brokers are costing them sales......do you think they’ll refer them the next time they get an opportunity? I liken it to starting a blaze in your enemy’s yard.
Yea, but the marketing is booming (so they say). So, if 4% goes belly up do they care ? They are still 96% ahead due to the scams they are all running on the buyers. This is the most bizzare market I have ever seen. Locally, the real estate agents are boosting each new listing by at least 20% without any sold properties to justify such increases (and this is on identical homes). Expired listings are actually being relisted at higher prices !!! The buyers are like deer in the forest during hunting season.
At least the deer get the idea after they hear the first gun shots. :roll:
Our local paper recently stated that if forclosures here continue at the pace similar to what the first quarter of this year has already shown, the foreclosure rate will be at least 25% higher than it was last year.
I've also noticed the same odd phenomena that Joe mentioned...that realtors are continuing to boost the prices with no justifiable market to back their prices. If the homes in my area don't get sold by the middle of the summer there is going to be some major panic by labor day for people to unload for whatever price they can get.
It makes no sense at all, and leads me to wonder if the local media hasn't been bought up and playing puppet to the growth industries (realtors, lenders and developers). One need only listen to or read who is buying advertising to see who might have an influential edge.
quoting "must organize to fight this. The good appraisers (honest values) are going to get squeezed out and that will leave the poor quality appraiser to give the mortgage company the value that they want. "
Why fight it, embrace it! Let the B------s hang themselves. Once these foreclosures snowball, the blame game will start with the worst appraisals. Locally one bank has pretty much blackballed an appraiser for highballing appraisals. In three case they were unable to sell the foreclosed properties for as much as 1/2 the appraised value. In our state, the bank cannot legally sell without a lengthy court hearing unless the property is sold at least for 2/3rd the market value (appraisal)
I was under the impression that when a Property is foreclosed, there is a publication in the Daily Legal News for a certain number of days. Afterwards the Action is filed in Court, and the Sheriff Takes over, Appraise the Property (Non-licensed Appraisers, political hacks) and place a value based on his/her guess. 2/3 of this Estimated Value is classigied as the minimum bid, but all of this has little significance since the Bank's Representative (usually an Attorney) will bid the property up to the interest that the Bank has in the Property. Usually this figure (for a vacant, vandalized property) is higher than it's market value, but the Bank's Representative makes the successful Bid, acquires the property and turn it over to FHA, VA, Fannie, etc., and collect the Insurance or guarantee. That's my understanding as to how the foreclosure process works, at least in my community.
Our group was recently the beneficiary of a "trip up" by the numbers makers. Our best client has always told us to be "conservative"and they will not tell us what the loan amount is because they don't want us to feel pressured (can you imagine!). We look for all that a property is worth, but we don't stretch. The bank had three appraiser groups that they used. Several weeks ago, the bank had some of the other groups appraisals reviewed. The reviews came back that the reports were anywhere from 15-20% above the market value. On one reort they used 2 year old comps (in a burning up market) and had $60K in adjustments on a $70k sale. I can't see how they were getting them approved by the UWs! Anyway, they now have only two groups they are using and we are getting most of the business.
We continue to "call them as we seez them" and be careful of our comps and adjustments. Due to AVMs, we are getting the oddballs that require going further for comps and making more adjustments. Just have to be sure they are reasonable. I have done as many appraisals in April as I did in all of Jan-Feb combined. I LOVE IT!!!