What It's Really Worth?

Wow! That's all I've got to say.

Yesterday I went met an appraiser at a house. The owners are trying to sell it. They owe $93,000. 2 years ago it appraised for $127,000.

What do you think the appraiser said it was worth yesterday? Same house, no major damage, no changes in the neighborhood?

$53,000!

Like I said - WOW!

How does that happen? When I tell people on the phone that refinance appraisals are ALWAYS incredibly over valued, I really mean it. This is a prime example. The bank wants to lend as much money as they can.

All is fine if the owners are planning on staying in the house a long time. But, when something happens and they can't afford it any more, and want out, what happens? They can't sell it.
Well, now I'm working on discounting the debt from $93,000 to a point where it could be sold. This is what I do! Will the bank go for it? We'll see.

Gotta run - more on this tomorrow!

"Stop Foreclosure Man" - Joel Zieve