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Should I or shouldn't I?

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Lobo Fan

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Elite Member
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Nov 28, 2004
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Certified Residential Appraiser
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New Mexico
I recently received an REO order. As I got into the research, I thought it looked familiar. I appraised this property in 2005. I have dreaded this moment, when an REO occurs on something I appraised. Is this a conflict of interest?

Should I complete the assignment or spit the hook? The client gives me about 4-5 per year so it is no big loss if I lose them.
 

PropertyEconomics

Elite Member
Joined
Jun 19, 2007
Professional Status
Certified General Appraiser
State
New Mexico
I recently received an REO order. As I got into the research, I thought it looked familiar. I appraised this property in 2005. I have dreaded this moment, when an REO occurs on something I appraised. Is this a conflict of interest?

Should I complete the assignment or spit the hook? The client gives me about 4-5 per year so it is no big loss if I lose them.

I wouldnt do it ... plain and simple.
 
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Mike Boyd

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Jan 18, 2002
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Retired Appraiser
State
California
Most REO assignments I get state that if I or a member of my company, have appraised this property before, to cancel the assignment and notify the client.

You should definately spit out the hook.
 

Lobo Fan

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Elite Member
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Nov 28, 2004
Professional Status
Certified Residential Appraiser
State
New Mexico
I am a much better appraiser now than I was in April of 2005. I think my original value was OK. The comps I used were all reasonable. I was newly licensed at the time and was trying to be extra careful.

It is possible that the new value will be lower. If they see the same name on both appraisals, wouldn't it be a red flag? The original appraisal was for a COD one hit wonder. Who knows who they sold it to, or if it was even the loan in foreclosure. I don't know if that loan ever closed.

I guess I am being a nervous Nellie. The last time this came up, it was one I completed as an apprentice. My original appraisal ha been "doctored" with all new selling amounts on the comps (but they forgot to change the adjusted values).

I guess if I do a good job on both versions, I will be OK. I just feel like I am tempting fate a bit.
 

PropertyEconomics

Elite Member
Joined
Jun 19, 2007
Professional Status
Certified General Appraiser
State
New Mexico
I am a much better appraiser now than I was in April of 2005. I think my original value was OK. The comps I used were all reasonable. I was newly licensed at the time and was trying to be extra careful.

It is possible that the new value will be lower. If they see the same name on both appraisals, wouldn't it be a red flag? The original appraisal was for a COD one hit wonder. Who knows who they sold it to, or if it was even the loan in foreclosure. I don't know if that loan ever closed.

I guess I am being a nervous Nellie. The last time this came up, it was one I completed as an apprentice. My original appraisal ha been "doctored" with all new selling amounts on the comps (but they forgot to change the adjusted values).

I guess if I do a good job on both versions, I will be OK. I just feel like I am tempting fate a bit.


Nervous isnt good .. decline the assignment. Simple as that.
 

Carnivore

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Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
Lobo,

Check the latest deed of trust. It may be from a new loan originated after the loan your appraisal was used for.

In other words you could move forward.
 

Don Clark

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Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
I recently received an REO order. As I got into the research, I thought it looked familiar. I appraised this property in 2005. I have dreaded this moment, when an REO occurs on something I appraised. Is this a conflict of interest?

Should I complete the assignment or spit the hook? The client gives me about 4-5 per year so it is no big loss if I lose them.


If it is for Fannie Mae, or Fannie Mae has securitized the loan Fannie Mae will not allow the appraiser to do the REO Appraisal. The Fannie Mae guidelines quoted here are from their Valuation Section and are specific to Fannie Mae REO Requirements:

Appraiser as a disinterested, unbiased Third Party:

"An appraiser cannot have a personal interest in the property being appraised, or have a family member, employee or co-worker with an interest in the property. An appraiser must not have performed a prior appraisal on the property, and neith can the firm with which the appraiser is associated."

VA and FHA, as far as their written requirements do not seem to have the same restriction.
 

Ray Miller

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Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
Move on. Let someone else have it.
 

Alison Swain

Senior Member
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Sep 13, 2005
Professional Status
Certified Residential Appraiser
State
Florida
I haven't run into an REO assignment on a house I've previously appraised, but I know of several that I previously appraised which are now in foreclosure. Yes, this makes me very nervous, but as a few here have pointed out, the appraiser was never the one responsible for making the mortgage payments.

Like you, I'm a much better appraiser 3 years down the road, but still --- every new REO that I know I once appraised makes me think, "Oh, crap!" :unsure:

My reports were always well supported and weren't inflated, but I know that there will probably be plenty of babies thrown out with the nasty bathwater.
 

bart nathan

Member
Joined
Jun 9, 2005
Professional Status
Certified Residential Appraiser
State
California
what REO company is it?

www.sactownappraisals.net
 
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