How would the market look IF: APPRAISERS couldn't use REO's as COMPS?

Real Estate Agent with Coldwell Banker Fort Lauderdale Beach

How would the market look IF: APPRAISERS couldn't use REO's as COMPS?  Just wondering how this market would fare if there was a DOUBLE STANDARD? Those who were paying their mortgages and were in good standing and that shouldn't have to bear the brunt of those that couldn't or wouldn't or shouldn't pay their mortgages verses those that do.

You know, I have thought about this for a long time because it really doesn't seem fair to me that those who pay and always have paid their mortgages on time are suffering because of those who don't.

Really, in the boom of 2005, when several banks were lending money to people who they shouldn't have, are now, ruining the value of those who were able and honest enough to do so. This is not fair (in my opinion).

Why should those who pay on time and continue to pay on time even though their homes have been devalued due to the foreclosures in this market have to suffer?

Is there a DOUBLE STANDARD? I think so, what do you think?

What affect would this have on the current market?

Karen Monsour, 954-464-4194



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Best regards,

Karen Monsour, REALTOR®

Coldwell Banker Fort Lauderdale Beach
4757 N. Ocean Blvd.
Fort Lauderdale, FL 33308
954-464-4194 cell
954-969-9974 fax
A recent recipient of®'s "Award of Excellence" for online marketing.

Multi-million dollar producer.

Comments (6)

Donna Gallegos
South Group Real Estate - Pensacola, FL
I don't work 9 to 5, I work Start to Finish

I feel the same way Karen. It seems un-american to punish homeowners who do and continue to, stand by their obigations while others walk away or get foreclosed upon due to job loss or yep.. taking a loan that most people would know they couldn't actually afford to pay back. I stayed in shock most of 95/96 as I watched lenders qualify buyers for way more than their budget would allow. "ok if the kids go without shoes and coats, we can pull this off" what were people thinking? Luckily, I don't remember any of my buyers going to the heights that were offered, they knew it was too high for their budget.

As unpopular as my opinion is, I believe the buyers who took unrealistic loans have to also take some responsibility for the mess that happened because of it. To say the consumer is to dumb to know that they cannot afford a hefty loan is an insult to human intelligence. just sayin...

I don't know how one could not use the foreclosures around here, without them we would have no way to place value. Foreclosures are whats selling for the most part :(


Mar 01, 2011 01:02 PM
Karen Monsour
Coldwell Banker Fort Lauderdale Beach - Fort Lauderdale, FL
REALTOR, SSRS - Sells FL Waterfront, Short Sale Expert!


We only have 32 REO's east of US1 here in Fort Lauderdale, FL...people love it here an we have held our own...It's a Canadian market here now.

Makes me sick...I have done a few short sales where---it shouldn't have happened...mattress money?  If you are working, but not paying your mortgage...where is that money.  I'm sure it's not in the bank....I get you...You get me???

Mar 01, 2011 01:20 PM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Hi, Karen from Fort Lauderdale, and Hi, Donna from Pensacola.    Greetings from Tallahassee.

Even here in Tallahassee, which has been fairly stable due to the State Government being the primary Employer, some neighborhood prices are getting absolutely wrecked by the REO and Short Sale Comps. 

I know of a duplex neighborhood where Listings were priced in the $120's, but now there is an 80K Short Sale "Under Contract" and a 99K Short Sale "Under Contract".  Plus the 2 or 3 REOs that were sold for about $100,000 each.  So now those people trying for $120's won't stand a chance of getting an Appraisal.

All of those Shorts and REOs were NINJA Loans back in 2003 - 2006.   Those Buyers can "take responsibility", but they cannot possibly repay the Loan (one townhouse had THREE purchase money mortgage loans on it - what were the Lenders thinking?)

To answer the Title of your Blog, if Appraisers could skip over the REOs, prices would be more stable, and those [neighbors] who have paid their debt in a timely manner would not be upside-down.


Mar 01, 2011 02:11 PM
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Karen --- certainly an interesting question.   Okay, if appraisers did not use distressed sales ---- would the buyers just follow along and not take these actual sales.  Hmm, when one of my buyers makes an offer on a property they review a Comparative Market Analysis --- and if there are REO/short sales they are a part of that report with notations.  Everything comes into play and then they make a decsion based on the information at hand and knowing that not only does a seller have to accept their offer but in most cases(except cash offers with no appraisal) but so will their lender.  Most of the single family homes in the markets I sell are not tract homes so there is a lot of variances in the homes I sell.   I'll be checking back to see what others say.  

Mar 01, 2011 05:28 PM
Karen Monsour
Coldwell Banker Fort Lauderdale Beach - Fort Lauderdale, FL
REALTOR, SSRS - Sells FL Waterfront, Short Sale Expert!

Hello Fred from Tallahasse.

I totally agree with you.  The loans in the so called "peak" of the market. I could think of a better word, but I'm a lady.

I am lucky to work on the beach where things have remained quite stable as at least half - if not more owners are second homes. That leaves me with 40-50% to be inadequate owners.  Thank goodness we don't have many.

Some agents down here only work in stable condo units - for this very short sales, no foreclosures, no REO's - building holds value...prices stay up....

Mar 02, 2011 01:42 PM
Karen Monsour
Coldwell Banker Fort Lauderdale Beach - Fort Lauderdale, FL
REALTOR, SSRS - Sells FL Waterfront, Short Sale Expert!

Hello Michael from San Marino, California.

How are you?

We do CMA's here as well. Our CB broker requires them with all listings.  I do them for buyers as well, so we're on the same page there.

I sell water front for the most part. Homes or condo's.  By the beach as I said above, we don't have a whole lot of issues, however, they sure do in other area's.

I would like to hear more opinions as well...when I wrote this the blog roll well was --- rolling quite fast. 

Mar 02, 2011 01:46 PM