So we had Real Estate jeopardized big time and putting the whole world economy upside down by the Banks and NOW WHAT ?
The banks are trying thru the appraisal system to take us down again !!!
How many of you out there had to give up buying a property because the appraisal did not come thru?
The National Association of Realtors and the National Association of Home Builders have complained that low appraisals have derailed many sales.
The HOME VALUATION CODE OF CONDUCT went into effect on May 1 just to fix that…Lenders during the last period of stressed real estate began relying more and more on appraisal management firms (AMF) who employ appraisers with very little experience in their local markets (most of the time appraisers from out of the area) Some of them have not made the proper adjustments when using distressed properties as comparables for NONDISTRESSED properties…some times even doing “a drive by” or just a phone and photos comps…
A group called the Appraisal Institute issued a bulletin supporting the Freddy Mac and Fannie Mae guidelines instructing lenders to review appraisers’ education, experience, and professional affiliations
Let’s hope this bulletin is going to straighten things around..if you are in that situation ask you realtor to complain to the lender and fix the wrong done..