Someone Needs to Take Control of these Underwriters

Okay it happened again - I think Someone needs to take control of these underwriter's and tell them they are NOT appraisers or Real Estate agents. Are they aware we are trying to sell homes out here and keep the economy moving? Not to be rude but some where during the mortgage melt down and real estate collapse they decided they were God.

Here's just a few examples - a few weeks back we received a call from the mortgage broker saying the underwriter did not like the appraisal because it was too high. Excuse me but when did underwriters become licensed appraisers? The best part is this home was priced "well below market" and had multiple offers. Supposedly she used the Automated Valuation Method to determine the appraisal was to high.

Well let me just say this - Real Estate is way to complex to be using this system. For one the AVM does not take into account multiple offers. It does not look at what is currently available for sale, in other words what buyers are seeing. Nor does it know that the home it may be using was trashed out or filled with mold. Yet the banks have decided that the underwriters can use this system and kill deals. As I said Someone needs to take control of these underwriters - better yet the Banks. I won't even go there.

Then the other day I am talking to the mortgage broker to get my weekly update and she tells me that since the buyer was putting a large amount down, they were not doing an inside appraisal. Okay did someone do a drive by? Nope we used the AVM (gulp) and we have the value at $68,000 and asks if that's what we needed. Ah No you apparently have the wrong file because we sold that 1800 sq ft detached condo with a fully finished basement and 2 car garage for $150,000. I nearly went through the phone to wring her neck. You need to get someone out there now to do an appraisal because the AVM is whacked. Makes me wonder if she ever looked at the purchase agreement.

So here's where the straw broke the camels back. We get an approval from the underwriter with one small condition, it appears that the buyer missed an initial on the purchase agreement. So they send it back to clear the condition and she decides that maybe they better get a second appraisal (at the buyers expense). You have got to be kidding me? This is a perfect buyer, slam dunk and she is buying a condo well below the market. Really someone needs to get control of these underwriters and remind them they are dealing with peoples lives.

It really makes me wonder if these underwriters have ever bought a house before? Sometimes I think we are dealing with robots ABC 123 and not people with common sense.

I was beginning to think it was just me. Then yesterday I read a post from one of my favorite blogger Jay Thompson - well it appears he is running into the same problems. How about You??