Real Estate Blogging

Appraisers are committing a crime by inflating housing prices. They should have to tell the buyer in a clause that they are not impartial and the price reflects the desires of whoever is paying for the appraisal.

Let's not leave out the real estate professionals. They benefit most from high prices.

Appraisal and fraud are synonymous.

High prices and fraudulent appraisals are definitely most favorable for real estate professionals. All of them are involved in this business and all should take responsibility.

I am a victim of fraud appraisal and loan agent. I know the fraud was instigated by the loan agent, who was posing as an investor and soliciting support. My credit was used to purchase property, vastly inflated (unbeknown to me). I was told the property would be rented to cover the note as well and everything would be a 50/50 split.
The note on the property is 2500 per month, the max rent in the area is 1300 per month. I have had to cover the rehab of the property out of my pocket in order to rent. I have received no recompense from the partner/loan agent. I find I cannot sell, because the out-standing principal is greater than the market. I'm saddled with a mortgage I can't refi to lower the monthly payments.
I'm desperate, can anyone refer me to what I can do about this problem and help me prevent this from happening to some other innocent person. I believed in the integrity of the loan agent/investor. I know I made a stupid mistake, but can my mistake be rectified. Can I also get back at those who deliberately sought to do me harm. Please help

Dear Rels, a major appraisal management company



I am writing to you and requesting that our company fees be increased to $300 for a standard URAR under the new RELS requirement. We are no longer willing to work for you company at below market rates. Unfortunately your company is constantly demanding and quoting what is required under USPAP but rarely compensating for any of the added requirements. As of this day I have already notified Rels and now you about our decision. I have also emailed this to several other offices here in New York, New Jersey and Connecticut and will post this information on the web about Rels. I am sorry to say that our long enjoyed slave relationship has come to an end and we can no longer work for your $175 fees. I see the light and you company is not looking for reputable appraiser, but are looking for solely the bottom feeders. I sincerely hope you company gets what it deserves in the long run and hopefully one day soon.



Sincerely



Domus Appraisals

15 Hancock Avenue

Yonkers, NY 10705

The problem with fraud is that most appraisals are order by management companies. They pay an appraiser 45 to 55 percent of the fee they collect. In return they demand the reports be completed in one or two day. One does not even have time to review anything, let alone due a thorough job. These companies like LSI, RELS, Landsafe, etc. and owned by major lenders. Rels is part of Wells Fargo, LSI is Fidelity and Landsafe is for Country Wide. In order to work for these AMC one signs an agreement not to disclose any fees that the appraiser is being paid and on average it is 50 percent of what is being charged is paid to the appraiser. The demand is a one maybe two day turn time. How can one do all the work, verify all details and send in report in say 24 hours very simple you state only what is required no more no less. These companies are called AMC and they have done more harm than good. Most appraiser that do work for the companies are new in the business say one to two years and they are willing to work for these fess as they fell the AMC is their mentor. The AMC are not mentors they are scavengers’ bottom feeders. If you do a quality report and have a PHD they will pay you the same as a new person off the street. The only thing they look at is if they are licensed, I had a call not long ago to do an appraisal on a $4,500,000 purchase and it was being finance by Bank of American. They told me my fee for this assignment was $225. When I told them I could not do it for that fee they said this would hurt our long term relationship. I said we have no relationship you are a demanding quality, speed, accuracy, integrity and will to pay ---it for it. Get some other person who can accommodate our needs. The sad thing was the lender was paying $1,500 for this appraisal and the AMC was willing to pay $225 or quote they would be losing money. Has anyone ever heard you get what you pay for?