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Lawsuit--ours is over but it can happen to you

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TC

Elite Member
Gold Supporting Member
Joined
Jan 31, 2002
Professional Status
Certified Residential Appraiser
State
Pennsylvania
The Second Part of King Henry the Sixth
Act IV. Scene II.
Blackheath.


God save your majesty!

Cade. I thank you, good people: there shall be no money; all shall eat and drink on my score; and I will apparel them all in one livery, that they may agree like brothers, and worship me their lord.

Dick. The first thing we do, let’s kill all the lawyers


Still good advice!!

TC
 

MARKETVALUE

Thread Starter
Sophomore Member
Joined
Feb 11, 2002
Professional Status
Certified Residential Appraiser
State
Georgia
JROTTA-

Dont see where you are comming from with the recert issue? Please explain.

The business partner thing is absolute misrepresentation. We litterally had no idea this relationship exsisted nor that this individual exsisted. Was advised heavily by different counsel to take my lumps on this one and smile alot and do whatever the judge wanted and ultimately chalk it up to experience. Ironic thing is here is that the guy who sued me did believe that I was in bed with the homeowner to defraud him. If anything, Mr homeowner may have deserved a counter suit for breach of contract, but as the court said b/c mr suer had an interest (read lien) in the property he was a forseeable user regardless of the intent and actual assignment of my appraisal. So what the hell am i go to sue anyone for? Very frustrating....................

BTW before you ask, I have no way to know who a second lien holder is unless I turn myself into a title guy and start charging $3k for my appraisals. Only one of my data sources even reveals present primary lien holder.

MRM
 

jtrotta

Senior Member
Joined
Jan 16, 2002
MV

most Lenders we deal with here, absolutely / positively / will not accept any appraisal (Res) if it exceeds 120 days, without either an Update and/or Re-cert of value, based on the flexing market and in general 1 or 2 of the comps may exceed FNMA guidelines & Lender procedure and would now exceed guidelines by over 6-9 months or beyond the 1 mile, thus the request for the needed "update" of data.

In your scenerio, you noted the appraisal was done in Feb and the suit in June (thats already 5 months) if your original comps were 3-4 months old in the origination of the report, they would now be over nine months and considered "old" by most standards, thus the required need for an "update and/or re-cert"; plus if other sales had taken place during that period and would indicate a "Decline In Value" why would you not be able to support the "ever changing marketplace" :?:

To the best of my knowledge, when we go out to the job and base an "opinion of value" it is based on the sale taking place on that day-as if you were the Buyer. Now if the "Owner" did not request you to "Forecast a Value" - how could you know what the value would be 5 months later, hence the needed "Update and/or re-cert of value" -

hope I got my point across, making pizza with the 11 year old and it's comming out the oven now. 8O

8)

Back from the dinner; you also stated the other appraiser's estimate was higher; the Buyer did some improvements and put it on the market for $290,000 and then eventually sold for less @ $230,000. Now if he overpriced it to begin with, he could have missed the "marketable opportunity time" and created the LOSS himself, as he priced it ABOVE both appraisal's to start off. 8O :? WHY :?:
The loss he created was "Self Inflicted" by way of stupidity & greed. The way I see it, had nothing to do with your old appraisal - :roll: PS: just went back & re-read your post again and you got this suit a year after you appraised the property, :?: - somebody is playin you bud, :lol: $5,000-they'd have ta put me in jail

Good Luck
8)
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Quite possibly nothing...lawyers see E & O as a license to sue. An individual with only a home as asset can file Ch. 7 before his mullet can collect...What do others think? The lawyer absolutely will not pursue unless there is a deep pocket to tap into.
 

bobburnitt

Junior Member
Joined
Jan 16, 2002
I agree with Terrel that the E & O paints a target on your butt.

To MARKETVALUE, You say you won't do appraisals for individuals????? That's going a little strong isn't it????? This is America, anybody can sue you at anytime, for anything. Motgage lending is going to quit using appraisals, then you cross off individuals, who are you going to work for?

Even when you do an appraisal for a mortgage lender, the INDIVIDUAL can sue you over it. Again, anybody, anytime.

BB in Texas
 

Larry Lyke

Senior Member
Joined
Feb 2, 2002
This is a lawyer calling. What do you own, Mr. Appraiser?

One shack by the RR tracks and it's mortgaged to the hilt.
Have a '88 compact car with 189,000 miles on it. Needs tires.
And, you can have my wife and one of the kids (your choice).

Now, 'bout that babe on the back of the milk carton.
Oh, she was married to you?

My world is better already.

She ran away? No wonder!
 

jtrotta

Senior Member
Joined
Jan 16, 2002
Larry,

very well done :lol:

To the others; No - E & O - no work in most area's; you (to the best of my knowledge) cannot be "self insured" in our business. And, I do not believe our business is disappearing, I do believe it's changing and we'll have to adapt to change, so that we can be on edge again, sort of the rule to keep you on your toes in this business. 8O

8)
 

bobburnitt

Junior Member
Joined
Jan 16, 2002
I realize in some states E & O is a license requirement, so no E & O, no license, no work etc. Some lenders in this area won't use you if you don't carry E & O, not many, but a few. I don't want to work for them anyway.

In Texas, there is no legal or regulatory requirement for R.E. appraisers to carry insurance, nor is there a 'recovery fund' or bonding requirement. However, most appraisers in Texas are also licensed as brokers or R.E. salesmen. If you are a licensed broker or salesman in Texas, part of your license 'fee"' goes into a 'recovery fund'. If you are practicing R.E. brokerage, or R.E. appraisal under a bridge with a borrowed pencil, this $100,000 recovery fund is out there just waiting for a lawyer to tap it.

So if your have multiple licenses in Texas, they will sue you and if they get a judgement they will hit the real estate recovery fund. The recovery fund is also known by it's more correct name "a lawsuit magnet".

This is one of those things where you are damned if you do, and damned if you don't. If you have E & O, it is sooner or later going to tempt someone into suing you, and the E & O company will give them some money to go away, even if you are in the right. That disgusts me. If you don't acrry E & O and some one gets a judgement against you, well you have a judgement against you and probably will lose you license. You are screwed either way.

BB in Texas
 

MARKETVALUE

Thread Starter
Sophomore Member
Joined
Feb 11, 2002
Professional Status
Certified Residential Appraiser
State
Georgia
BB-

Sorry it has taken me so long to reply. Its been a busy couple o weeks around here. The reason we dont do individuals is purely economic and was put in place before we were sued. They are non repeat business and they typically have no concept of our product and thus tend to be high maintnance. I was days away from suicide if i didnt stop having to spend 45 minutes on the phone with a home owner explaining why their house isn't worth the highest LISTING in the HISTORY of the subdivision. No thanks-you can have them all. Call me a sell out but I can package my product for underwriting and rarely raise red flags and turn a much larger profit than the time its takes with individual homeowners.

I know...... I am elitist +++++.

MRM
 
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