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Author: mew5280 Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 127807  
Subject: Re: Appraisal Fraud? Date: 8/13/2005 5:44 PM
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Thanks to those who addressed me questions/concerns.

RE: As it is now, even if the appraisal was wildly inaccurate to the high side, it ended up being a GIFT to your advantage. I don't see what you have to complain about in regards to the loan transaction. It appears you made out quite well, in the big picture. You saved money in the debt restructuring at the mortgage lender's risk

My main point is that I trusted the appraiser/appraisal. I paid $225 for the appraisal and expected an honest assessment. I made my decision to take money out with the expectation that my house would still have 60K in equity.

Addressing the "AT THAT TIME" ...this was only 6 months ago and the values in my area have increased not decreased since that time. As I review the report right now, I can see that the appraiser went to the other side of a major thoroughfare to get the comps. There is a DRASTIC differences in property values from one side to the other. There are million dollar homes on that side, not so on "my side." So the homes he used, although similar to mine in SF and the same zip code, they were on the "better side of the tracks."

When I refinced, I used the equity to pay off a second mortgage/line of credit (10K) and then took about 8K cash to help pay off some higher interest debt. So it wasn't all that much. My main concern was to get an interest only loan so I could pay off some other debt.

Now I do realize that appraisals are not black and white and that nobody can really say what a property is worth. EXAMPLE... a friend of mine listed her 850 SF home last Spring. Her realtor said she should list it at 225K and expect to get a little less. She refused, listed it at 250K and it sold the first day on the market.

And lastly, even though that first realtor didn't think I could get 200K for the house, after thinking about it, I disagree. Like my friend, I will decide when I sell, what I want to get from it, what I think it's worth. My house has some great amenities that do not necessarily add to a home's value in a straightforward way, so I would market my house for it's amenities (i.e. sprinkler system, landscaping, original restored 1948 features that you can't purchase today (EX: we actually used a heat gun to burn the paint off the kitchen cabinets so we could repaint and restore the original cabinets. They were custom built to the kitchen and have character not found in cabinets you would buy today, unless you spent a lot of money).

Thanks for the replies.
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