My Blog Buddy from Over the River - talk about the "New" Appraisal Process. We are all seeing Appraisers you are unfamiliar with areas or neighborhoods say and do some crazy things!
Via
Cindy Jones-Northern Virginia Real Estate & Military Relocation Services (RE/MAX Allegiance #1 RE/MAX Company in the World):
Yep that was on the appraisers report. An entire neighborhood in Woodbridge is built on a toxic waste dump. What does the lender do with this little piece of news?
It is just one of the new twists that we are seeing when appraisers who may be unfamiliar with a neighborhood head out to provide the lender with a value on a home. Now anyone who is familiar with the neighborhood in question knows that there isn't now or has there ever been toxic waste associated with the site.
After weeks of back and forth, a significantly delayed settlement and a frantic first time homebuyer the issue was resolved. What did it take? A new appraisal to refute that the neighborhood wasn't contaminated with some strange combination of chemicals sure to cause a nighttime glow and mutated mosquitos and of course the buyer had to pay for it!
Then yesterday while anxiously waiting for the appraisal results on another property the word came down that the assigned appraiser was on vacation and wouldn't be getting to the property for another few days. Okay so why don't you assign another appraiser? Just not the way the new system works is the reply. But our anticipated closing is a week away. So that isn't our problem.
Don't get me wrong I think appraisers are a key piece to the puzzle and if we had some stronger regulations when the market was going crazy we might have kept some, not all of today's mortgage mess from happening. But the newest wrinkle with the HVCC has come at a time when we need appraisers to know the area they are assigned as well as the agents who list the homes.
I'm sure at some point we will all look back on these days with a better feeling that what we have now. For the moment the sinking feeling in the pit of my stomach over multiple appraisals being delayed and coming back with strange notations is keeping me from having a balanced perspective.
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The new appraisal process is plum crazy. The appraisers are now getting their revenge for all those years when lenders and Realtors were twisting thier arms to get the value they wanted on homes that weren't worth the money. They're getting their revenge for all the stuff they were "encouraged" to overlook. Now, since they really aren't accountable to anyone and they are justy part of a pool, they figure they can take time off, make any errors they want, etc.
It's sad but it's the new reality and we'll have to adjust to it. I'm going tostart putting settlements 45-60 days out to account for the appraisal mess (the appraisers are also busy with the re-fi boom, don't forget).