Desperate? States to Rig Appraisal Process

[The Straight Story]

Desperate? States to Rig Appraisal Process


Four states, Illinois, Maryland, Missouri and Nevada, have legislation pending that would prohibit or restrict appraisers from using `distressed sales` such as foreclosures and short sales, as comparable sales in their residential real estate appraisals.

If these bills pass, appraisers would have to choose which law to obey. They are required to obey the Uniform Standards of Professional Appraisal Practice in federally related transactions. That standard mandates analyzing `such comparables sales as are available.`

Not following USPAP could result in the appraiser having his or her license pulled.

Even if the laws were passed and the appraisers violated the Federal standards, it would likely result in a collapse of home sales in the impacted states as no one would have any reliable data upon which to buy or loan.

http://www.coosavalleynews.com/np90245.htm