Home valuations don't make sense
July 2, 2009 · 4:38 PM
Sometime in 2007, New York State Attorney General Andrew Cuomo filed suit against a property appraisal firm for allegedly over-inflating the value of certain properties in that state. The result was the new and highly disputed Home Valuation Code of Conduct. Ostensibly, this procedure which took effect May 1 (now sanctioned by certain non-governmental agencies such as Fannie Mae and Freddie Mac), was placed to ensure there would be no sway or favoritism between lender companies and property appraisers. “National Appraisal Companies” now funnel all appraisal requests in double-blind assured applications to selected individual appraisers on their rosters. However, since its implementation (according to many individuals working in the mortgage industry), the HVCC has done more damage than assistance to anyone but the National Appraisal Companies and mortgage lenders and big fat banks.
How can Kitsap County assess property for a particular sum, set your property taxes relative to that sum, and an ‘independent’ appraiser shows up from out of the area and undervalues your property by 28 percent? Well, it’s happened. And it’s going to happen again to many others in our state. Not only that, but the certain appraisal specifically utilized five comparison properties as fair market values. According to mortgage brokers, three of these had been foreclosures. Fair? So if you’re in the market to sell or refinance your property, be forewarned. You may be in for a huge disappointment.
Who is allowing this to happen? Weren’t Fannie Mae and Freddie Mac implicated in the sub-prime mortgage scandal? Now they’re being allowed to implement a new mortgage procedure which conveniently undervalues property nationwide. At whose expense? Homeowners? So much for your nest egg, retirement, financial solvency, etc.