restricted area

[ajea7474]

review appraiser reduce the value because we are in a restricted area
I never heard of restricted area in NJ
is there a map that show you restricted in new jersey.

 

[JRS at OBX]

Plenty of restricted airspace in Jersey, just go to the airport and buy a sectional (chart-map thing)

Seriously though, it is probably a lender thing. Certain areas that have been declared a declining market or something like that. It's likely not your problem.

 

[Tony V]

review appraiser reduce the value because we are in a restricted area
I never heard of restricted area in NJ
is there a map that show you restricted in new jersey.

What kind of a restricted area?? do they state??

 

[Smokey Bear]

More info would be helpful.

 

[Lost Cause]

Almost sounds like some kinda redlining.

 

[Smokey Bear]

HEY - who stole my avatar? LOL

 

[hastalavista]

It's likely not your problem.

I agree. :new_smile-l:

 

[ghrousseau]

review appraiser reduce the value because we are in a restricted area
I never heard of restricted area in NJ
is there a map that show you restricted in new jersey.

http://appraisersforum.com/showthread.php?t=138108&highlight=MGIC


Read my post. Investor's and Fannie/Freddie have identified areas as soft or declining markets for the purpose of determining maximum LTV's that they are willing to lend to. The review appraiser is likely and inappropriately arbitrarily using this for the purpose of reducing the value. Now if the review appraiser's sales are better, more current, and more comparable, then they might have a point. Regardless, review appraiser has to follow USPAP. This strikes me as kind of odd too, because I work for a lender. Under many of the current investor guidelines for conventional (not FHA/VA) products, the loan amount is just reduced. The appraisal value is what it is. It stands on it's own merit. The lender or investor will just reduce their maximum LTV by 5% in most markets. Some property types like investor or second home have other restrictions in identified declining markets. Regardless, the lender is not supposed to cut the value of the report to fit the guideline. They are supposed to cut the loan amount back to get the LTV under the restricted amount based on the current appraised value.

 

[GCJim]

http://appraisersforum.com/showthread.php?t=138108&highlight=MGIC


Read my post. Investor's and Fannie/Freddie have identified areas as soft or declining markets for the purpose of determining maximum LTV's that they are willing to lend to. The review appraiser is likely and inappropriately arbitrarily using this for the purpose of reducing the value. Now if the review appraiser's sales are better, more current, and more comparable, then they might have a point. Regardless, review appraiser has to follow USPAP. This strikes me as kind of odd too, because I work for a lender. Under many of the current investor guidelines for conventional (not FHA/VA) products, the loan amount is just reduced. The appraisal value is what it is. It stands on it's own merit. The lender or investor will just reduce their maximum LTV by 5% in most markets. Some property types like investor or second home have other restrictions in identified declining markets. Regardless, the lender is not supposed to cut the value of the report to fit the guideline. They are supposed to cut the loan amount back to get the LTV under the restricted amount based on the current appraised value.

What GH said.....well spoken.

 

[OSU Beavers]

<cough>Red Lining<cough>