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Value Pressure For A Foreclosure?

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Bobby Bucks

Elite Member
Joined
Jan 27, 2002
Professional Status
Real Estate Agent or Broker
State
North Dakota
I’m curious if I’m the first person to ever get a response like I recently did after completing a
pre-foreclosure exterior inspection of a property. Subject is approximately 1500 SF, a vinyl box on a
slab, 1 attached garage, all on one level, a small corner lot so everything is visible. My value was
$135,000. There were plenty of recent highly similar sales in the subject subdivision which has
about 400 homes all of similar quality. This appeared to be a slam dunk with the usual extraordinary assumptions due
to the assignment being from the exterior. Now there is a major problem. The client is having an
absolute hissy. A refi was done on this property 3 years ago and the value was $190,000......they
faxed me the appraisal and yep, you guessed it, a classic prostitution job where all the sales were
within 2 miles and 6 months BUT were in other subdivisions. I pulled old sales and saw that at
least 8 sales were passed over. Appreciation for the last 3 years has been modest at best, maybe 3%. Several issues here. First, I informed them that my assignment was
not a review, if they need a retrospective review, then order one. Second, someone behind the
curtain on my assignment is applying major pressure......the AMC chick is actually wanting me to
reconsider my value....I asked to speak to her supervisor, but no luck. The mystery to me is why
does someone feel it necessary for me to agree with this sky high refi completed 3 years ago? I
must assume that someone’s rear is being put in a vise and it’s not the appraiser who did that
report. Maybe later for the appraiser? fat chance. Has anyone else had value pressure on a
pre-foreclosure before?
 

wyecoyote

Senior Member
Joined
Jan 15, 2002
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Washington
Bobby,

That is the first I have ever heard of pressure to go higher. I have had pressure from the realtor to go lower. But never to go higher. Someone somewhere is really being put out. Perhaps they did a 125% loan to value. But still this is really a new one.
 

Tom Barclay

Senior Member
Joined
Apr 7, 2002
Professional Status
Retired Appraiser
State
Oregon
What do you want to bet that the AMC was involved in the pressure put on the orginal appraiser? Looks like they will own that one. I would really like to see the paper trail on that order.
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
Was your actual client for the 2055 Exterior the same lender as from three years ago? Maybe the lender from three years ago is being asked by Fannie Mae (for example) to pay Fannie Mae the difference between the original loan amount and your 2055 Exterior. Stick to your opinion of this one, but just for curiosity sake, do some research into the three year old loan. Your current client might have to upgraded to at least an interior 2055--which might lower the value more! But there is something going on behind the scenes regarding that three year old loan!
 

Ted Martin

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified General Appraiser
State
Kansas
My guess it a preforeclosure, if the lender had it as an REO then you would have been given interior access. The lender probably has their shorts in a knot because the borrower's attorney is screaming preditory lending and your appraisal added another arrow to the borrwers bow.
 

Dee Dee

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
I think that Ted is on the right track.
 

Karl

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Arizona
Gotta love this business. I especially love the Confidenental BS. Just explain to them this is Y an Appraisal is good for only 6 months.
 

Patrick Egger

Sophomore Member
Joined
May 29, 2003
Professional Status
Certified General Appraiser
State
Nevada
Bobby ...

I don't know which AMC, but keep in mind that several are lender-owned. It looks like the lender is going to take a hit on this one and from their point of view how did we go from 190K to $135? It's possible they sold the loan with a buy-back clause ... hard to say.

I can understand their position, this isn't suppose to happen, but I suspect we'll be seeing it a lot more. I hope you send the original report into the state, along with those comps.
 

The Matrix

Senior Member
Joined
Apr 28, 2003
Professional Status
Certified General Appraiser
State
Colorado
Your job is done. Stick to your valuation. You have presented strong evidence of the subject's value. Its time for the number hitter to defend his/her outlandish valuation.
 

Bobby Bucks

Elite Member
Joined
Jan 27, 2002
Professional Status
Real Estate Agent or Broker
State
North Dakota
To clarify the info in the original post, the property is still occupied, delinquent and per public
records has not yet been foreclosed on.....ie. no substitution has yet been recorded. Their orders
always use the “delinquent” word and say “proceed with caution, etc.”........like they really care
about our welfare, huh? The client is the same as the refi 3 years ago. This particular company
typically orders anywhere from 1-3 pre-foreclosure reports before they render the coup de grace,
then they order the REO assignment on a URAR. I hope I don't have to do this one 2 more times! :eek: Of course I’m not going to name names, but
this outfit is shall we say a “wholly owned subsidiary of you know who”......maybe I should go to
the mortgage grapevine and link a pdf with the refi appraisal, the deed and the whole boat......air
out all their dirty laundry. It might even get some more business for the poor sod who did the refi.
He’ll probably need the money a year from now. Anyway, I would love to be a fly on the wall to
see what the entire story is there. :)
 
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