Here we go again

[Pamela Crowley (Florida)]

This is an order from the same lender as the one who's son 'threatened' me.

Order says: Estimated Market Value: $129,000.00

That's the high end for that neighborhood.

House is smaller and badly needs a new roof. The screened porch roof is literally falling apart with wood rot - the garage ceiling drywall is falling in from leaks.

About $5,000 in repairs.

Appraised it at $105,000.

Best part: Owner bought it VA in 6/95 for $74,900 with a mortgage for $76,350.

02/96 he gets a second for $25,000. This means 8 months after his purchase for $74,900 he owes over $100,000.

This guy has practically no equity right now. Guess who's going to be blamed.

Think I'll have a quick chat with that LO tomorrow morning.

Morons everywhere!!!!

 

[Blue1]

Pamela,

I am always amused that we appraisers are the very LAST ones called in the making of a Real Estate loan. Funny how everybody already knows the "Estimate of Value" before the appraiser is called in........on second thought......not so funny. :roll: When will they realize that we appraisers are not in the business of upholding other folks bad decisions?

 

[Dee Dee]

I got a chuckle out of a recent order that I recieved. The LO had handwritten:

Homeowner's Estimate of Value: $187,000.

Now I have to ask you.......how many homeowner's would come up with such an accurate figure? Hello? Of COURSE it was the 'needed value' that the LO had come up to make the promised deal fly. :roll:

 

[TC]

Dee Dee,

It's not that unusual for homeowners to know exactly what they need to make the deal work. So many of them tell me at the inspection the number I have to hit so they won't pay any PMI. Consumers are becoming more educated in the lending business, they just don't understand the appraisal business. 9 out of 10 times I can tell what the owner paid for the house without researching it, it's the loan amount they are looking for now.

TC

 

[Steve Owen]

Dee Dee, I've got one better than that. Estimate of value $120,764.!.!.!

When I get to the house, it doesn't really look like it (but maybe close) so I ask the home owner, how long you live here. The home owner proceeds to tell me when she bought it and for how much. I then ask her, "So, where'd you get your idea of the current value of the home?" She says, "Well, I'm not really sure, but I told the LO I thought it was somewhere between $105 and $120." Guess how much value the house would have to have to do the deal the LO wanted?

 

[Dee Dee]

Consumers are becoming more educated in the lending business, they just don't understand the appraisal business.
TC

I've had two homeowners in the past week who have informed me that, "Everybody knows the value is whatever the lender tells the appraiser it needs to be".

How in the h*ll am I supposed to respond to comments like that???? 8O
Not only is it painfully true in far too many situations, but it's all I can do not to go into a full-blown tirade in front of the homeowner.

Dee Dee

 

[Steve Owen]

I would respond to that (and have) by saying "That may be true for some appraisers, but it is not true for this one."

Then, I would give the home owner more information than they ever wanted (in abbreviated format, of course) about the history of FIRREA and how much it cost each tax paying American the last time things got out of whack. I would be polite, but firm (and also indignant).

 

[Dee Dee]

Then, I would give the home owner more information than they ever wanted (in abbreviated format, of course) about the history of FIRREA and how much it cost each tax paying American the last time things got out of whack. I would be polite, but firm (and also indignant).

I tried something similar to that once....it was the 'indignant' part that bit me in the rear.
The LO called me on my cell before I even made it back to the office, asking me what I had said to the homeowner to get him so upset. Up until that point I thought I had a good relationship with the lender, but never recieved another order after that, in spite of the value estimate honestly coming in at more than what the HO's 'estimate' had been.

No lender, good or bad, likes an appraiser who upsets the homeowner.
Any ethical appraiser would have difficulty keeping their mouth shut when such comments are made by homeowners, but more often than not I'm discovering that getting into a spitting match over politics within the industry can be suicidal for my business.

The next time an HO tells me that the value is whatever the lender says, I think I'll just chuckle and say something like, "Well......that's one theory".....and quickly move to another room.

 

[Ross (CO)]

I am learning that there is a very fine line of conversation and explanation on which we can walk when at the subject and interacting to the homeowner's questions and prognostications of the value or hints of what they "need". No matter what comments we make.....ending every reply with a positive and gentle voice tone, as well as a smile, will do us great favor in smoothing over whatever it was we said. Clearly our visit can be an extremely sensitive experience for them ! They know the master plan or scheme with the lender rep and how things have to go for those parties to get what they want --- to he** with what the appraiser's ethics require him or her to do. Yes, I have been called by a lender later that same day with the ludicrous question of .."what happened (!) out there when you were at the house"? My calm reply is .."what are you talking about'? , and go on to explain how things went just fine. ( I am now making direct notes along edge of my sketch page for those special comments or questions posed by the h/o as I am going through the property, and which are "important" to remember ) They reply that the homeowner stated that you would not answer their questions, blah, blah, blah.....which really means that I would not PROMISE what my final value would be as I was going out the front door ! ! Desparate people will do desparate things, and sometimes we are pawns on that playing board. Any excuse will do to "cancel" our order and for them to move on to another appraiser who will play ball. Do they care what our feelings are ?, no. Are we shown much respect or thanks for our efforts ?, ever so rarely. Keep your chin up kids, the fun is only beginning.

 

[Travis McGee]

This estimated value thing continues to be a problem.

I wonder what would happen if when we got that on an order, or if a borrower pushed like that if we:

Asked for a confirmation of item 6. on the appraiser's certification in writing from the lender or homeowner???