One of the biggest problems has been in the current real estate market has been the time it takes for the lender to review the short sale package. Short sale offers have been hampered by cycle times that have easily lasted months and most time you will not get a retail buyer to wait, as they are looking for a home that they need to move into in a reasonable time. The only buyers who will endure a long delay are the ones who are willing to trade the inconvenience for a very low-priced house.
As most know we now have alternative valuation using BPOs. BPOs however, are not seen as a replacement to Appraisals, yet appraisers contend they are the valuation experts; the Realtors assert that when it comes to short sale valuations, BPOs could very well be the best option out there to determine an immediate sales price.
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The FDIC has recognized the use of BPOs to establish loan-to-value ratios as part of its Loss Sharing Proposal to Promote Affordable Loan Modifications and the Federal Reserve Board has adopted BPOs as part of its Homeownership Preservation Policy for Residential Mortgage Assets.
Using a standard like the National Valuation Standards Institute www.nvsinstitute.com by which Banks, Asset Management Companies, and Real Estate Agents & Brokers value properties creates legitimacy and could bring control to the market as all the parties involved in the transaction would gain confidence the assets are being priced appropriately and out‐of‐control depreciation would be curbed.
To file a complaint or to get free information on fraud and other consumer issues, contact the Federal Trade Commission at www.ftc.gov/consumerprotection or 877-FTC-HELP (4357).
The Mortgage Asset Research Institute found in 2009 that while overall loan frauds rose by 7 percent, the incidence of frauds involving property valuations increased by 50 percent.
So whether you are a homeowner, agent or appraiser we all need the fraudsters to FEAR retribution from the ethical honest "real estate industry professionals".
Michael S. Richardson
Director/Chief Quality Officer
Author of "An American Epidemic, Mortgage Fraud a Serious Business"
Follow me on Twitter @ FocusonFraud