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Tulsa Appraiser's Subpoenaed

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Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Tulsa World article (www.tulsaworld.com, if you want to pay for it)

A Federal Grand Jury has subpoenaed at least 5 and possibly 11 of the 12 appraisers who work for the Tulsa County Sheriff on foreclosure sales. These are independent appraisers with a contract from the county and are not related to the assessor's office. The 12th appraiser apparently is Chad Stites, whom if you recall from 1 year ago, was fired as the Sheriff's appraiser because he was purchasing property that he had appraised for the county.

Stites was a state lawmaker who lost his bid for re-election after details came out in the press about properties that he had appraised which were sold at auction to his daughter's fiancee and then sold for $1 back to Stites a month later. In all, 6 properties were identified as possible transactions where Stites bought the property through surrogates.

A state prosecutor turned the evidence over to federal authorities and the charges could potentially be conspiracy and obtaining property by fals pretenses.

The subpoenas may relate to gathering evidence against Chad Stites or perhaps investigating whether other county-hired appraisers are also violating their contracts by dealing in property that they had appraised.

Stites is or was certified general appraiser in Oklahoma and Arkansas, maybe other states.

The plot sickens.
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
:angry: hang 'em high.

Sad thing is anyone involved in this mess probably thinks they were doing a legitmate business practice. :eek:

Sadder thing is that it might <_< be the case... but doen't sound like it. :angry:
 

Dale Smalley

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Florida
Politics and appraising don't mix.
If they were bought at auction anyone could have bid and purchased these properties. What do you see being a problem with him buying properties at auction if they bid against other buyers?
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Dale:

What ususally happens is the good ol boy system kicks into effect and no-one, not even family of the dispossesed homeowner gets notified of the pending sale...

Not saying that happened in these cases, but might be.

IF I ever bid on a HUD house that I appraised it would be after 365 days of exposure AND a letter from someone at HUD saying I could DO that. County appraisers going intothe repo business better make very sure that there is adequate exposure AND that it is really arms length.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
What do you see being a problem with him buying properties at auction if they bid against other buyers?

The problem is two-fold, that is, he might lower his appraisal so that the set in price was less. Courts usually have a required minimum price, such as 2/3rds the value. These sales usually have only one buyer, the mortgage holder. Outbid them by a dollar and you own the property...and they are going to set the price at the amount owed plus a few bucks for legal expenses. Few people attend these regularly because a number of them never reach the court house due to bankruptcy proceedings stopping it at the last minute. You go to the CH and boom, no sale. After while even bottom feeders tire of the process.

Secondly, Stites contract with the Sheriff plainly stipulated that he cannot bid directly or indirectly upon the property in question.

Last, When you certify an appraisal with the SOP statements we use, you agree that you have no FUTURE CONTEMPLATED interest in the property being appraised.....no matter how legit you appraise it, if you think this would make a good buy and you or someone at your bidding bids on it, it is improper.
 

David Riggs

Sophomore Member
Joined
Apr 12, 2002
The Tulsa county sheriff sale appraiser values the property and then the bidding starts at 2/3 of that value. If an appraiser wants the property then he could value the property low and then bid at the sale. It still would be an open sale but the bidding could start low.

I have bid against Chad sites company before at the sale, only I didn't know it at the time. They were very active and bid high if I remember right.

On a side note, I have recieved work that chad sites was scheduled to appraise and then backed-out at the last minute. Don't know why but I can guess it had something to do with his license. That's fine with me, out with the old "style" in with the new. "me" B)
 
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