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HELOC Based off Appraisal?

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NC Appraising

Thread Starter
Senior Member
Joined
Apr 28, 2006
Professional Status
Certified Residential Appraiser
State
North Carolina
"Citigroup Inc.'s Citibank unit says that under the borrower's credit agreement, it is permitted to freeze home-equity advances or reduce credit limits if the home's value has declined below the original appraisal, or if it reasonably believes the borrower won't be able to make the required payment. "

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Original appraisal?

It was my understanding that most HELOC's were based on tax records, and AVM's.

Maybe more work for us?
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
Not necessarily. I have done a bunch of appraisals for HELOCs. Of course I'm in a more rural area, in areas with good online data, there probably is more reliance on Tax records, AVMs, Desktops, Drivebys etc etc.
 

USPAP Compliant

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
It depends on the LTV, their credit and other factors.

In my area MOST of these loans have been made on tax values and both borrowers and lenders are in hairy situations.
 

George W Dodd

Senior Member
Joined
Jul 9, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
In most cases these loans were made based on prior appraisals. Remember the appraisal you did for a purchase or refinance, well guess what, they used that appraisal again and again to make many of these equity type loans.
So not only did they get a free appraisal, at your expense, but you're also on the hook. "not the intended user" you say... well just ask Joyce Potts about that.
 

JTip

Elite Member
Joined
Oct 12, 2004
Professional Status
Certified Residential Appraiser
State
Pennsylvania
Our local bank requires an old 2055 for heloc's unless the client has superior credit and multiple accounts, including the mortgage. We have done multiple assignments for such loans.
 
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