Refinance Appraisals, why so high?
In one of my farms, I'm seeing recent refinance amounts way out of whack with values. These aren't reverse mortgages and not all are subprime. At first I thought my data was wrong. But now I've seen it enough times with different lenders to wonder what's going on.
For example: Seller called yesterday, says he owes $230K. Property is in poor condition, for sure it's not worth more than $150K. He bought it in 2008, so I assume the loan is from his purchase. I look at the loan history. He's refinanced 4 times since 2008, two of which were last year. There are plenty of comps and all the houses are similar and conforming. The range for everything for REOs to rehabs in the last 8 months is $120K-$180K.
Are lenders using something other than comp values for refinance appraisals?
For example: Seller called yesterday, says he owes $230K. Property is in poor condition, for sure it's not worth more than $150K. He bought it in 2008, so I assume the loan is from his purchase. I look at the loan history. He's refinanced 4 times since 2008, two of which were last year. There are plenty of comps and all the houses are similar and conforming. The range for everything for REOs to rehabs in the last 8 months is $120K-$180K.
Are lenders using something other than comp values for refinance appraisals?