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What about Skippy Now?

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Ray Miller

Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
Venting I guess

Very interesting day today. I stop by a rural development as I was changing locks and placing auctions signs for 5 Condo Units and Pent House Condo Units that were sold the last couple of years for upwards of $500K in a Castle Rock Lake Front Development. Now the opening bid is $50K in 30 days.

This other development has 12 new homes that were built three years ago and 48 additional lots not built on. I was talking with the developer about bring them to auction before they go into foreclosure in 60 days. Not a one has been bought or lived in. The interesting part they all were appraised around $250K to $275K two three years ago, they have no other amenities except access to Castle Rock Lake about ¾ of a mile away by use of another lot on the lake. But there is lots of public access in the area to Castle Rock Lake to start with.

The interesting things about these subjects are the current bank appraisal is $125K to $135K today which the developer produced. When first appraised they were appraised using Castle Rock Lake Front property, they were appraised with Club House in the development with large swimming pool, horse shoe pits and other recreational amenities in the development. AND retail shopping center at the front of the development with such things as gift shops, bars, restaurants, and a few other types of businesses. None of which is true or were ever built. Yet the appraisers were the same one’s that appraised the big condo development that is now going bust with all these foreclosures for the $500K figures.

These appraisers are never called on the carpet by the state, but surely they contributed to the influx of higher and higher values in the area that were false and really could not be supported by honest appraising. They used comparables that were truly not comparable to the area, but boosted the values.

My question at this stage what can be done about these Skippy appraisers? Or are they just allowed to go on with life in the Skippy lane?

Mr. Stone knows of the development I am refering to as I have posted about it two three years ago and just a week or two ago.
 

Caligirl

Senior Member
Joined
Jan 27, 2006
Professional Status
Certified General Appraiser
State
California
When first appraised they were appraised using Castle Rock Lake Front property, they were appraised with Club House in the development with large swimming pool, horse shoe pits and other recreational amenities in the development. AND retail shopping center at the front of the development with such things as gift shops, bars, restaurants, and a few other types of businesses. None of which is true or were ever built. Yet the appraisers were the same one’s that appraised the big condo development that is now going bust with all these foreclosures for the $500K figures. They used comparables that were truly not comparable to the area, but boosted the values.

Based on the above I would forward those reports to the attorney general and the FBI.

It sounds to me like your state board is too busy with witch hunts and looking for scraps of paper that they think should have been in a workfile to deal with outright mortgage fraud.
 

c w d

Senior Member
Joined
Oct 2, 2006
Professional Status
General Public
State
Florida
My question at this stage what can be done about these Skippy appraisers? Or are they just allowed to go on with life in the Skippy lane?

It's obvious the states neither have the resources nor the inclination to prosecute these types of appraisers on the scale necessary to control and mitigate their damage to the real estate market. So what can be done? Nothing.
 
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