by Lisa Udy on June 9, 2010
The housing market, no matter where you live, is being effected by powers that we small people have no control over. Unless you’ve been living under a rock for the last 2 years, you’ve probably heard that appraisals have been coming in really low.
These low appraisals are disrupting the housing market. I’m not talking about an appraisal that comes in a little low and has evidence to back it up. I’m talking about appraisals that come in extremely low with the lowest possible comparables to back up the claims.
According to the Appraiser Law Blog, the FDIC, who has taken over more then 200 banks over the last 2 years, is retaining the legal claims of any party involved in the aid of the bank failing. This includes appraisers. If an appraiser did an appraisal for a failed bank, the FDIC has the right to sue them if they feel the need to.
The FDIC has created a new division called PLG, the Professional Liability Group. They have been hiring law firms across the country, and are preparing to sue the pants off of parties involved in “helping” the banks fail.
The article goes on to say that the best way for an appraiser to avoid a lawsuit is to come in low on the appraisal to save their butts. Can you believe that? What effect is this going to have on the housing market and homeowners?
Low Appraisals Effecting American Homeowners Bottomline
We all know the housing bust has caused many people to lose equity on their homes. But this is going to cause more people to lose equity that is righteously theirs.
An appraiser’s job is to determine a homes value and nothing more. They are required to give a value based on comparable recently sold homes. These values are now being effected by large government entities. Instead of going by the data, appraisers are forced to come in low so they aren’t sued!
The effect this has on you, the homeowner, is lost money. As a home seller or homeowner, you should be furious. Even if you’re not selling your home, low appraisals in your neighborhood will effect your homes value.
The FDIC is taking away your homes equity and your local appraisers are getting sued over the bad practices of banks. How does this make you feel as a homeowner? Are you happy to be losing more equity? We would love to see your comments here!
Is there a class action suit going for home appraisals that are coming in too low. Maybe we need one to keep the appraisals honest. I have a good case for any attorney who what's to take the case... Post a response and we can take it from there...
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