Steve Owen
Elite Member
- Joined
- Jan 16, 2002
- Professional Status
- Certified General Appraiser
- State
- Missouri
When I am contacted by any number of mortgage brokers shopping for an appraisal, more often than not, I am asked to do a "Comp Check" before actually performing the appraisal. What this amounts to is a "Pre-determination" of the value of the subject property. Not only do I not provide this "Service" but it is illegal for me to do so. Evidently, this doesn't stop other appraisers from doing so because I am told all of the time that others do it. What these mortgage "Professionals" are doing is dialing for dollars. And they keep dialing until they find an appraiser that will play ball.
That's it in a nutshell! And, not just a problem with sub-prime, but with the entire residential lending market. I once heard someone on the Forum put it "lie now and hope inflation covers it." But, what if inflation doesn't? So long as debtors are willing to continue to pay off the debt even if the house is not worth that much, it might not matter. But, there is mounting evidence that is not the case. And, of course, there is always that pesky problem of what if you have to move or sell the house for some mandatory reason... what then? Well, selling it to the bank might look pretty good to a lot of people.