Getting Sued

[Michigan CG]

I just got to Leann's response, and we have slightly differing opinions on this. I read into it that the OP might have not looked at the current market, but others see a different light.

The moderator response is the one I was dreading. I want to be me, and have my opinions but try to keep this as a great place to learn. I took the moderator thing because I trolled this forum for months before I ever made a post and I learned a lot of things here, and I am hoping for the same for others.

There are a lot of people on this forum who never post. It is because they see others attacked for "stupid posts". Some of those posts are stupid. many are not. Some on here are too judgmental, some are just honest.

I will continue to be honest, and post what I think (but always with the thought that I have to control myself, be it good or bad). I hope that when I say something stupid that the more knowledgeable will correct me. I hope that people who disagree with me will do so and not think that a moderator cannot be challenged. It is not like I am a USPAP instructor like many on here, or an SRA or an MAI like many others on here.

I am still me, and stand behind my opinions of this thread, and welcome alternative views to my opinion on this particular subject. For all of those who call me Tim, I expect (hope) you to still call me that, and still like the PM messages that tell me I might be smoking something funny. I am Tim first, appraiser second, moderator third just because it might help the profession via this forum.

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You do not know what you do not know.

 

[Louis Pompeo]

Response #2 was the only correct response

It sounds to me that you ignored the "real" market in your first analysis.

If most of the market were foreclosures and there was an active market for foreclosure property - you screwed up by using sales that do not reflect the "real" predominant marketplace.

Let's hope that your client, or his client does not turn you into the State Appraiser Board.

IMHO, response #2 was the appropriate, professional response to this situation.

But then, I may be a little partial....:laugh:

 

[airphoto]

Technically, although (perhaps) not done in the correct fashion, there are two appraisal here. The second, at a later date and including more current information as of that later date, appears to more adequately address the foreclosure situation and is the one submitted to the second lender. In the intervening periods the market further tanked .. which is not within control of either the appraiser or the lender. The appraiser appears to have performed adequately with the information at hand ..

End of story ..

 

[Carnivore]

The problem we have here is that some of you think the appraisal report is a product as opposed to a service expressed as an opinion. This has real significance in civil Tort. Check with your lawyer for your area. Think implied warranties. Think about this one, you can return a product, you can not return a service.

The second point is that the borrower has standing with the lender and most likely not with the appraiser. The Lender definitely has standing with the appraiser.

In florida this issue is up for debate because of Lehman v Potts & Potts. I think its possible on appeal this would be overturned. One of my legal client(counsel), after reading Lehman V Potts informed me that this is not true in all states. This is important for me and this client because of an on-going assignment I have with them with some similarities.

The other thought that came to mind is that it is very possible to have a multiple tiered market. I can not speak to the OP's market , but in my own these do exist.

In conclusion I understand the PR end of this issue. This is why many busiensses settle out of court. The potential PR damage is much greater(or at least unpredictable) then the settlement. Lets assume the OP did not make a mistake and had reported the market correctly(different than what they actually did). What would have been the lenders decision? I submit the lenders decision would have been the same;

"Loan Denied".

I understand how the lenders were harmed by the appraiser.

So tell me how the Borrower was harmed by the Appraiser?

 

[lizhorvath]

Uh oh.

Nevermind - I'm not in the mood to stir the pot on the "Lady" comment...

But I can't get past the Duck's assertion that 45 days later, it would be a new assignment.

I completely agree.

 

[incognito]

And why is that. Are certain people with the exception of the owner now bigger than the forum itself?

It has NOTHING to do with the person. It has to do with YOUR lack of respect, DUDE. Act like a professional...

(YES, "DUDE" is my way of showing YOU lack of respect).

 

[PropertyEconomics]

I am thinking that someone was paying for a credible report that reflected current economic conditions, current market conditions and the the OP didn't think that foreclosures were "real market value". Whatever that is, this downfall started long before March of this year. "Real market value" is foreclosure in many markets.

When you sell a product it should be quality. From what I can read into it, this was not a quality product, nor was it reliable. No one can say in their right mind that they did not know about the national housing crisis, yet alone an appraiser. If I am going to pay for an appraisal I would expect the appraisal (product) to be reliable. He sold a bad product (not reliable), and in this country the payer of the bad product should get a refund.

Mr Evans ... my comment to you and the issue I have which I termed HORRIBLE ADVICE ... is "DEFECTIVE PRODUCT REFUND" ... now who in their right mind would call such a refund that? Perhaps you meant it a different way, but those are your words. Hell if you are going to do that why not tell the client you have gone ahead and turned in your license as well as you did a "defective appraisal report".

LeeAnn ... my comment about Moderator or Not .. was simply to show that, sometimes, criticizing a moderator may not be the most prudent thing one can do here on the forum. I havent jumped on the OP, I havent called the OP a peanutbutter person, I havent passed judgement on the OP appraisal. I merely read the posting and offered my advice as to what I would do. For anyone to give a "defective product refund" as suggested by Mr Evans ... well you can read what I wrote above.

Sometimes I really wonder if we think of what we say or type before we say or type it. When I see advice that just makes no business sense I will point it out. I have in the past and will continue to do so in the future. I may not always be politically correct in my presentation, but I assure everyone I offer my advice as strongly as I can because it is what I believe to be true and correct. I strive within my own community to help those with less experience from appearing before our appraisal board. When we offer advice it should be things we ourselves would do. Conversely when we see others offering advice that is contrary to that, we also should state our case clearly. Bad advice is bad advice ... we can either own that or we cant.

 

[Michigan CG]

PE,

I understand your thinking. I wouldn't literally call it a defective product refund out loud. But if I had a report that was not credible, and I knew it, I would refund the fee since i knew that I did not do my job correctly.

 

[TN Pro]

It has NOTHING to do with the person. It has to do with YOUR lack of respect, DUDE. Act like a professional...

(YES, "DUDE" is my way of showing YOU lack of respect).

You are quoting me but replying to the original poster.
Dude, why would i care about respect from you, i care about respect from my peers...

 

[Carnivore]

PE,

I understand your thinking. I wouldn't literally call it a defective product refund out loud. But if I had a report that was not credible, and I knew it, I would refund the fee since i knew that I did not do my job correctly.

This forum is public, so much for you not saying something publicly.

Appraisers Forum Statistics Members: 42,770


On to a more important point. If your going to go down that road of refunds, then why stop where you did. Do you really want to leave a bad report floating around out there? I am sure you would not based on your activity here at the forum.

So why not issue a corrected report and comp the Fee? Now thats what I think it would take to repair the damage and head off future trouble.