Lien Strip Appraisal

[UpsideDownMI]

When ordering an appraisal with the purpose of stripping my 2nd mortgage, what do I disclose as the purpose for the appraisal to the appraiser?

I was thinking that I should tell the appraiser that I would to know how much I could expect to receive if I liquidated my house within 90-120 days. I found in past experiences with appraisers that if you "plant the seed" the find a way to get where you need to be.

I do not think that I will have a problem getting an appraisal to come under the 147k that I owe on my 1st. I just won't be comfortable until I see the report from a licensed appraiser.

There are several houses for sale in my sub that are similar to mine that are asking less than 130K. One is a short sale that is asking 95k, and is the same size as mine and 3 years newer. Also The house 2 doors down from me sold a few months ago for 120k. Thanks.

[indebt00]

our lawyer referred us to our appraiser...so he knew our situation already

[justbroke]

You should only need to tell the appraiser the "purpose" of the appraisal. Anything else could lead to issues if the appraisal is questioned. I didn't want to tell my appraiser anything. However, he asked me as he was leaving if it was for "the Bank". I told him it was for Bankruptcy. His number came in BELOW what I thought, but that much below what I expected (around 2%). I never suggested or even blurted out any numbers. I didn't follow him around. I didn't sit there pointing out this and that. I wanted a defensible appraisal because I was cognizant of the fact that I may have to subpoena him later to testify in Court.

Remember, more than likely your lender has already done at least some sort of appraisal whether it was a BPO or some sort of electronic AVM (or both). They have a general idea of what it's worth.

While many will suggest to try to implant a number into the Appraiser, I don't find it that useful. I know that is what was done "in the days" of high property values and lenders willing to loan 125% of the value of a home on one's "stated" income. I don't wish to perpetuate that in any form by hinting, suggesting, or other coercing the Appraiser to come up with "my" number.

My feeling, is that if you want a real actual value, then you need to just let the Appraiser do their job without any suggestions. This will give you a good opinion of the value, and you will feel good about presenting it to the Court. In my District, we have to sign a VERIFIED motion with an "UN-SWORN DECLARATION" under penalty of perjury, that the value is accurate.

Well, that's just me.

[walkthaplank]

I told my appraiser that I was ordering the appraisal for purposes of determining property value for a BK.

[pcn]

I have to "disagree" on a point. I think it is perfectly OK and honest to point out any defects and have them factored into the price. A defect is a defect, and the bank's appraisal, if it is honest, should include anything that lowers the value just as our appraisal should. Ignoring the 4 car garage/shop in the back yard would be dishonest, but a true valuation would include both the good as well as the bad points.

[rrockinggramma]

did your attorney say that Michigan allows lein strips? I don't think they do.

[UpsideDownMI]

Attorney did say that you can lien strip in michigan. I verified this on the eastern district website. The court rules state that they must be done by adversary hearing or stipulation between debtor and creditor. Lien stripping my 60k 2nd is the primary reason for me to file 13 instead of 7. If I can't lien strip I will go for 7 as I am under the median.

[justbroke]

I have to "disagree" on a point.

I don't disagree with what you wrote. I'm talking about the people who follow the appraiser around pointing out everything. If you read your appraisal report, most, if not all, will have a disclaimer that they didn't "inspect" things (like electrical, water system, etc). Following the guy around the house and saying "hey, look at that".... "hey that's gotta take some money off"... is just not productive.

My post goes to what an Appraisal is and that you should allow the person to do their job. If they have a question about something "they" consider a defect, they will ask you.

Obviously having him skip the detached garage and apartment in back, is overdoing it.

My concern is that if you "play" with the Appraiser too much and give him too much "advice" on things, then you'll get a skewed number. Then when the Bank doesn't like your appraised value and have one done themselves, using yours as a basis... they don't match (like any two ever do match anyhow). Potential for a showdown on the valuation. Of course, this could happen anyhow, but at least it wouldn't be because of an undervaluation.

Perfectly OK, in my book to tell the appraiser that you're having the appraisal done for a Bankruptcy. Perfectly OK to tell the appraiser that a major "functional" part of your home doesn't work (like the pool has a leak). I don't think it's OK to follow him around pointing out things and asking him to take deductions for them. They generally grade the overall home's condition as poor, fair, good, very good. They look for major defects (foundation, roof, walls). They generally don't write "there was a hole in the kitchen wall, so I deducted $200". My home received a "good" rating and it needed a paint job on the interior and exterior.

Sure, I could have pointed out at least a dozen things that he didn't notice on the surface, to lower my appraisal... but I wanted an honest, unbiased opinion of the value. Not my coerced value. I guess, in some cases, where it may come close, pushing the Appraiser may be worth it. However, I didn't have any clue what my appraisal would come in at, and actually expected it to be MORE than my first mortgage value. I still was not tempted to stalk the Appraiser.

[pcn]