Randy Beigh
Senior Member
- Joined
- Jan 16, 2002
Last week, I was sent a field review. No problem, as I have done 1,000's.
I spent over 5 years for a company and my job was to review appraisals from around the country. I learned long ago to separate myself and my personal feelings from appraisals, until last week.
The appraisal was on a rancher style home that was larger than typical and in a 70's, suburban neighborhood that was built on a hillside. The subject was one of the older homes at the bottom of the hill with no view. It had been appraised for $280,000 and when I glanced at the report, I noticed there were 9 comparables. That made me curious. Why in this typical area would one have to provide 9 comparables.
I did my usual first steps. I pulled up Metroscan and MLS on the subject
and all sales. Up popped a current listing on the subject for $225,000 and
it had been on the market since before Christmas. It is listed by one of
the more reputable and better saleswomen in town. I called her and she
started off by telling a very sad story.
The owner re-financed her home. She took the money, built 5 bedrooms, a kitchen, and a dining room IN THE BASEMENT. There were 3 bedrooms, a kitchen, and dining room on the main floor, already. The agent said her
intent was to start an adult care center. She promptly went broke.
Then things really went bad. She had 2 hip replacements, came down with
something called Cushing's disease(makes her head swollen), and cancer. The home is now in pre-foreclosure and there is no money. The agent said she felt the home would sell for between $205,000 and 210,000. But much more money is owed on it than that. Because of a wide variety of quirks with the home, I arrived at $200,000.
I have no doubt the homeowner wanted the $280,000(no proof, just guessing) and I'm sure the loan officer did. The appraiser had the ability and the obligation to put a stop to this, but failed. Instead, he set out to prove with 9 sales, the value was there. Now, this homeowner, who is going to die, will die broke and without a home to die in. It is not the appraiser's fault that she is going to die, but it his fault that she will die without her home.
This review made me sick. Appraisers' could and should provide a valuable service to their communities and their country. Instead, many of us have sunk to the lowest levels of society and for sure, can't be trusted.
I lost my objectivity over this. I tried looking for the appraiser's phone
number and he's not in the book, anymore. I called the local MLS office and they said, he has dropped off the list. I called the state and his license comes up for renewal this month, but he hasn't submitted for renewal. Maybe, he is gone.
Yesterday, the state asked me to submit the appraisal for action. But, I
told them that I will decline as that is a waste of time. We talked about
an appraisal that I sent to them in March of 2000. I was the 5th person to
turn him in and FannieMae has since reported him and the case is still
pending. Meanwhile, he is still doing what he does.
Just thought we all should see an example of the value of an honest
appraisal and how one dishonest appraisal has affected one homeowner and one appraiser.
I spent over 5 years for a company and my job was to review appraisals from around the country. I learned long ago to separate myself and my personal feelings from appraisals, until last week.
The appraisal was on a rancher style home that was larger than typical and in a 70's, suburban neighborhood that was built on a hillside. The subject was one of the older homes at the bottom of the hill with no view. It had been appraised for $280,000 and when I glanced at the report, I noticed there were 9 comparables. That made me curious. Why in this typical area would one have to provide 9 comparables.
I did my usual first steps. I pulled up Metroscan and MLS on the subject
and all sales. Up popped a current listing on the subject for $225,000 and
it had been on the market since before Christmas. It is listed by one of
the more reputable and better saleswomen in town. I called her and she
started off by telling a very sad story.
The owner re-financed her home. She took the money, built 5 bedrooms, a kitchen, and a dining room IN THE BASEMENT. There were 3 bedrooms, a kitchen, and dining room on the main floor, already. The agent said her
intent was to start an adult care center. She promptly went broke.
Then things really went bad. She had 2 hip replacements, came down with
something called Cushing's disease(makes her head swollen), and cancer. The home is now in pre-foreclosure and there is no money. The agent said she felt the home would sell for between $205,000 and 210,000. But much more money is owed on it than that. Because of a wide variety of quirks with the home, I arrived at $200,000.
I have no doubt the homeowner wanted the $280,000(no proof, just guessing) and I'm sure the loan officer did. The appraiser had the ability and the obligation to put a stop to this, but failed. Instead, he set out to prove with 9 sales, the value was there. Now, this homeowner, who is going to die, will die broke and without a home to die in. It is not the appraiser's fault that she is going to die, but it his fault that she will die without her home.
This review made me sick. Appraisers' could and should provide a valuable service to their communities and their country. Instead, many of us have sunk to the lowest levels of society and for sure, can't be trusted.
I lost my objectivity over this. I tried looking for the appraiser's phone
number and he's not in the book, anymore. I called the local MLS office and they said, he has dropped off the list. I called the state and his license comes up for renewal this month, but he hasn't submitted for renewal. Maybe, he is gone.
Yesterday, the state asked me to submit the appraisal for action. But, I
told them that I will decline as that is a waste of time. We talked about
an appraisal that I sent to them in March of 2000. I was the 5th person to
turn him in and FannieMae has since reported him and the case is still
pending. Meanwhile, he is still doing what he does.
Just thought we all should see an example of the value of an honest
appraisal and how one dishonest appraisal has affected one homeowner and one appraiser.
