Mar
28

Four States Weigh Bills to Make Appraisers Disregard Foreclosures

By
I think this is interesting…..
Four states are considering legislation that would prohibit or restrict appraisers from using distressed sales, such as those of foreclosed properties, as comparable sales when estimating the value of a home. The rationale for the bills in Illinois, Nevada, Missouri and Maryland is that the prevalence of foreclosures and short sales — almost four out of 10 sales in the country are distressed — is distorting the markets.
The rationale for the bills in Illinois, Nevada, Missouri and Maryland is that the prevalence of foreclosures and short sales — almost four out of 10 sales in the country are distressed — is distorting the markets.

But lenders are worried that excluding these transactions from appraisals will lead to the kind of inflated valuations that contributed to the housing crash four years ago.

ARTICLE SHORTENED DUE TO LENGTH….

LINK TO ARTICLE HERE

BLOG NOTE:

As someone who reviews appraisals from all over the Carolinas, I feel that foreclosures should never be the basis for estimating “market value”. With that being said, you can’t just put blinders on and pretend that they don’t affect values and marketability.

Michael Dodds, MAI, CCIM 

Categories : National News

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