Fact Sheet: Appraisals Reports Affect Foreclosures

A lot of consumers are affected by the financial housing crisis that hurts everyone, when it comes to keeping their homes. It is a disturbing disaster and it puts a nation of people in jeopardy of losing their homes. A foreclosure can cause a lot of damage to a person credit, and even mental and emotional stress.

You can attend a auction which sells homes for a price of $450,000 when it was appraised for only 200,000 and the bidder buys at the selling price. Now the bidder becomes the new homeowner and begins the process of assessing mortgage payments with the lender, but a few months later the payment begins to falls behind. In reality the home was bought for a price that was appraised at a lesser value than the selling price, and the lender based the mortgage payments at a rate of the selling price, which puts the homeowner in jeopardy of loosing their home, because the home was not actually worth the price that it was sold for but what it was appraised for.

It is not fair that the home is sold for a price that the appraisals did not agree with, it is robbery to the person that is buying the home. The lenders should review the fact sheet of the Appraisers and base the price on what the Appraisal report shows, so they may give a fair price to the potential buyer.

The auditor should review all reports before a selling price is stated to ensure potential buyers that they are getting a fair deal. This will release stress and worry from the potential buyer that they are getting a home that the appraiser and lender agree on a fair price.

The tax rate on a home is lower on a home if the appraisal value is lower, therefore the lenders should match the price with the selling price. You the buyer, must inquire to the lender to request to see the appraisal report before bidding on the home at an auction or you can request to see the report if you are dealing with a mortgage broker.

It would be good if the person that is buying the home will research all information to ensure a fair price is on the table, which will not put them at risk for foreclosure in the future. It should be stated that all homeowners that received a higher selling price verses a lower appraisal for their home should get a refund or some type of statement showing a difference that will be paid so they will not be in jeopardy of loosing their homes.

In the real estate market homes are priced at 200,000 and appraised at either higher or lower value. It’s not fair to the homeowner, because either way its not fair deal that was processed.

Most refurbished homes are being sold for prices that a person can afford and the appraiser may give a higher value, but in the long run, the homeowner suffers because it will be reverted back to what it supposed to be. So you should always check the reports out in detailed before buying a home.