As I am completing so many reviews these days, for appraisals completed in 2006 and 2007 – it is a curious finding to come across a really poorly developed appraisal……only to find that the appraiser no longer has a valid license.
In one sense, it makes the job easier – as I don’t really have to report an appraiser who has already had their license revoked! After reviewing the appraisal…it is clear to see WHY the appraisers (both registered trainee license and the supervisory certified appraiser) no longer have a valid license here in the state of Florida!
On the other hand – it is a wake up call to all to keep that E & O insurance policy in effect! In this case – the client suffered a major loss! The appraised value in July of 2006 was $480,000 according to these appraisers. The current sale of the home in 2009 - $175,000. The amount the home was over valued as of July 2006? $150,000!
Who do you think the lenders will be looking to for losses exceeding $100,000? Even if you no longer have a valid license…I wonder if you can still get sued for the financial losses? And if you didn’t maintain and “tail coverage” with your insurance….will you be PERSONALLY liable for the loss? Or at least be defending the lawsuit on your own?