DELRAY BEACH, FL -- Attorneys have a new tool in their arsenal to use in Loan Modification, Foreclosure Defense and Foreclosure Mediation. It is a Historical Revised Real Estate Appraisal which is completed in the usual manner on standard forms by a certified state licensed appraiser. What makes this appraisal different is that it estimates the market value of the subject property based on a past date - the date of the most recent financing of the property. The theory is that the financing was based upon a questionable appraisal which the lender approved without proper oversight. The Revised Appraisal looks back at the actual facts existing at the time and brings to light the real value of the subject property (on the past date) as opposed to the inflated value that was the basis for the loan. Attorneys are reporting successful outcomes in accelerating stalled cases and receiving significantly better offers when adding a Revised Appraisal to both new and existing files.
Between 2005 and 2007, approximately 70% of appraisals made for mortgage financing, whether for an original financing or a refinancing, were overstated and inflated. Mortgage brokers, real estate agents, and lenders had close contact with appraisers and most appraisal order forms had a line item that asked for the borrower or their agent to write down the value that was needed from the appraiser. "Given the current economic situation, this fact is hard to believe, but it is true," says Steven Greene, co-founder of Retro Appraisals LLC (http://www.retroappraisals.com/).
There was no HVCC (Home Valuation Code of Conduct). There were no Appraisal Management Companies. The entire chain of the loan process from broker to lender was geared to closing as many loans as quickly as possible. Lender's risk management, as far as oversight on appraisals, was weak at best and non-existent in most cases. In addition, most lenders sold off their loans in a very short period of time so the risk of holding too many loans with low values on their subject properties was minimal.
>From the large numbers of poorly constructed appraisals in lender's files, it becomes obvious that lender employees "looked the other way" while loans were processed and funded instead of calling for appraisal reviews. Pressures were put on these employees by Lender Management to deliver numbers in both volume and in dollars at the end of each month. The relationships between lender's employees, lender management and high-volume-producing mortgage brokers were inappropriate, much too close, and without controls.
THESE ARE NOT ISSUES LENDERS ARE EAGER TO SHOWCASE.
A look back at the facts using a Historical Revised Real Estate Appraisal, in most cases, puts just enough pressure on the lender and their representatives to seek solutions rather than face the possibility of dealing with some of the above issues. Therefore, concludes Greene, "the Historical Revised Real Estate Appraisal is extremely helpful to a borrower and his or her counsel when seeking to modify a mortgage, defend against a foreclosure, or take part in a court-ordered mediation."
For more information about Historical Revised Real Estate Appraisals,
contact:
Steven Greene
E-mail: info@retroappraisals.com
Phone: (800) 973-7260
http://www.retroappraisals.com/
This release was issued through eReleases(TM). For more information, visit http://www.ereleases.com/.
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Source: Retro Appraisals LLC
CONTACT: Steven Greene of Retro Appraisals LLC, +1-800-973-7260,
info@retroappraisals.com
Web Site: http://www.retroappraisals.com/
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