• Report: #161919

Complaint Review: Countrywide Full Spectrum Lending

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  • Submitted: Mon, October 24, 2005
  • Updated: Tue, December 09, 2008

  • Reported By:Hendersonville Tennessee
Countrywide Full Spectrum Lending
801 Crescent Center Dr. Suite 520 Franklin, Tennessee U.S.A.

Countrywide Full Spectrum Lending ripoff mortgage company manipulated appraisal Franklin Tennessee

*Consumer Comment: Another thought

*Consumer Comment: From an appraiser

*Consumer Suggestion: Tough proposition

*Author of original report: Countrywide Full Spectrum Lending/Franklin, TN/manipulated appraisal

*Author of original report: Countrywide Full Spectrum Lending/Franklin, TN/manipulated appraisal

*Author of original report: Countrywide Full Spectrum Lending/Franklin, TN/manipulated appraisal

*Author of original report: Countrywide Full Spectrum Lending/Franklin, TN/manipulated appraisal

*Consumer Suggestion: I don't see $285,000 either

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I have been compelled to write this letter to make as many people as possible aware of my concern with the way a recent transaction with Countrytwide Full Spectrum Lending was implemented. The property in question is 136 Ervin Dr., Hendersonville, TN. The buyers are Terry & Terri Foster; the sellers are Hary & Janete Walston. I represented the sellers as a Designated Agent.

The day before closing I was notified that we might experience a delay due to the fact that the title work was not ready. The day of closing (May 27) I got a call from Countrywide Full Spectrum Lending stating that it did appear we were now having a problem with the appraisal.please note that the appraisal was performed on May 16 by Jeff Crawford, a very conservative and well-respected appraiser in Hendersonville.

There was no indication of any problem initially after the appraisal was done; however, the DAY we were scheduled to close I received a call saying that there was a problem with the value and that initial appraisal was going to be subject to a field review. I actually spoke to David Bradford, another appraiser, who had gotten the order to perform the field review.

I spoke to him several times in an attempt to explain that this was certainly a unique property and I did have comps from the area that would support the original appraisal value of $315,000. He repeated and insisted that his comps WOULD NOT support the value of $315,000 and that he could only come up with a value of $285,000.

Please keep in mind that Mr. Bradford NEVER set foot upon the property in question despite my repeated attempts at encouraging him to do so. I was also told that another appraiser had been called by Countrywide to perform a field review. She, too, could only come up with an adjusted value of $285,000 and like Mr. Bradford NEVER set foot upon the property to actually do the field review.

Would it not be logical to assume that an appraiser would actually have to leave his/her office and go to the property to perform a satisfactory field review to correctly determine the market value of a particular property?

The final value given to 136 Ervin Drive was only $285,000, which, also, was the amount that Countrywide would finance for the buyers. This adjusted value seemed to be encouraged by Countrywide and certainly supported. The timing of this final decision by Countrywide was extremely detrimental to the sellers because they had already packed most of their belongings (only remaining furniture were the beds) to move out of state, had already gotten movers that had to be cancelled.

Their son, Hary Allen Walston, had already given notice at his current job and had committed to a job in Texas, the other son, Brad Walston who is self-employed, had shut down his business locally to open it up in Texas and Mr. Walston, who is stricken with Parkinson's Disease had severed ties with his physician in Nashville and had arranged to see a physician in Texas.

As you can see this made for a very difficult decision for the Walstons. They had already made arrangements to begin their life in Texas so the prospect of putting the house back on the market was not economically feasible or desirable. The sellers reluctantly agreed to renegotiate the contract to the appraisal value of $285,000. We subsequently closed the transaction on 7 June 2005.

It is the perception of myself and the sellers that, at best, the timeliness and earnestness to obtain an accurate appraisal of the property was not evident. Traditional policies and procedures did not appear to be followed in this process. At worst, the situation appears to have been manipulated to assure the value AND loan amount did not exceed $285,000.

I am writing to request a review of this transaction with particular attention paid to Countrywide Full Spectrum Lending and facilitation of the appraisal process.

This letter has been submitted to the Asst. Commissioner for Consumer Resources Division/State of Tennessee and the Federal Trade Commission.

Lisa
Hendersonville, Tennessee
U.S.A.

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This report was posted on Ripoff Report on 10/24/2005 03:36 PM and is a permanent record located here: http://www.ripoffreport.com/r/Countrywide-Full-Spectrum-Lending/Franklin-Tennessee-37067/Countrywide-Full-Spectrum-Lending-ripoff-mortgage-company-manipulated-appraisal-Franklin-T-161919. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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Updates & Rebuttals

#1 Consumer Comment

Another thought

AUTHOR: Anonymous - (U.S.A.)

Regarding the extra lot. IF, IF it is to be included in the appraisal you would not simply add the value as you did in your post. This is called "assemblage" and is a no, no. You have to look at the "contributory" value of the lot, not just add it's stand alone value to the value of the property. The question you ask is how much value does this additional lot contribute to the value of the overall property. For example, lets assume you have a 1.5 acre lot and a .5 acre lot. .5 acre lots may be selling for $30,000. But what you really have is a 2 acre lot so the question is what are 2 acre lots selling for (actually the bigger question is what are 2 acre lots with similar improvements selling for)? It may be that 2 acre lots are only selling for $50,000. Say your 1.5 acre lots is valued at $40,000 then that would mean the contributory value of the 1/2 acre lot is only $10,000. Keep in mind I just made these numbers up and all kinds of scenarios are possible.
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#2 Consumer Comment

From an appraiser

AUTHOR: Anonymous - (U.S.A.)

You start off by bragging about the original appraiser. When a real estate agent brags about an appraiser it usually means the appraiser has never failed to hit the needed value on their deals. I know a couple of appraisers that are very well respected by the real estate agents in the area but they often produce inflated appraisals that won't hold up under review.

As far as the review appraisers not inspecting the property - typically on a field review the reviewer only drives by the property. If I were doing a review and the agent offered to let me view the interior of the property I would probably do so. However, in most cases the reviewer relies on the information in the report under review. If there were additional features that made this property more valuable it would appear that your "respected" appraiser did not make that clear in his report. The report should contain sufficient information for the reviewer to make a determination about the value.

I wonder what the red flag was in the "respected" appraiser's report that indicated the need for the field review. There was something that caused the lender to question the report. What was it?

You say that you told the reviewer that your comps would support the value. On several occasions I have been provided with "comps" from real estate agents. Almost always these are cherry picked sales that are superior to the property being appraised. Just because you can find some sales that may support the value you want doesn't mean they are the most comparable sales. The appraiser should look for the most similar, most recent and most proximate sales.

I suggest that you read the review reports. Try to put aside your bias and see if they justified what they did. They should have explained in their reports why they used different comparable sales or made different adjustments that resulted in a different value. You should try to read those reports with an open mind and see which appears to be more credible.
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#3 Consumer Suggestion

Tough proposition

AUTHOR: Steve - (U.S.A.)

So is this extra lot a separate and unique parcel? If it is, very few, if any lenders are going to encumber 2 parcels of land under one mortgage, and in a sub-prime scenario you definitely won't see that. Also, rarely do lenders loan on unimproved land.

Sounds like your transaction had some issues before it even hit the lender for underwriting. That being said, I agree with you that the mortgage rep for the buyer should have questioned this before being submitted for underwriting.

But, having 11th hour conditions to resolve are not unique to Countrywide. Every lender I have ever worked with will have something coming down at the last minute unless the deal is clean, clean, clean from the beginning.
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#4 Author of original report

Countrywide Full Spectrum Lending/Franklin, TN/manipulated appraisal

AUTHOR: Lisa - (U.S.A.)

The value of this property was definitely there....one significant feature included in the sale of the property was a surveyed, buildable lot which had comped out at approximately $30,000. That would bring the value of the property to $315,000. Both subsequent appraisers seemed to ignore this detail.
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#5 Author of original report

Countrywide Full Spectrum Lending/Franklin, TN/manipulated appraisal

AUTHOR: Lisa - (U.S.A.)

The value of this property was definitely there....one significant feature included in the sale of the property was a surveyed, buildable lot which had comped out at approximately $30,000. That would bring the value of the property to $315,000. Both subsequent appraisers seemed to ignore this detail.
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#6 Author of original report

Countrywide Full Spectrum Lending/Franklin, TN/manipulated appraisal

AUTHOR: Lisa - (U.S.A.)

The value of this property was definitely there....one significant feature included in the sale of the property was a surveyed, buildable lot which had comped out at approximately $30,000. That would bring the value of the property to $315,000. Both subsequent appraisers seemed to ignore this detail.
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#7 Author of original report

Countrywide Full Spectrum Lending/Franklin, TN/manipulated appraisal

AUTHOR: Lisa - (U.S.A.)

The value of this property was definitely there....one significant feature included in the sale of the property was a surveyed, buildable lot which had comped out at approximately $30,000. That would bring the value of the property to $315,000. Both subsequent appraisers seemed to ignore this detail.
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#8 Consumer Suggestion

I don't see $285,000 either

AUTHOR: Steve - (U.S.A.)

I just pulled comps and I don't see the $316,000 value either. Looks like $285,000 was generous. I would probably agree that Countywide was late getting to an appraisal review.

However, your buyers were coming in as sub-prime borrowers, as evidenced by Full-Spectrum being their lenders. Virtually ALL sub-prime transactions go through the appraisal review process. This is not unique to Countrywide/Full Spectrum, as New Century, Fremont, First Franklin, et al, do this.

I have been on the business end of both sides of these transactions many times over the last 10 years, and as the seller's representative you have a fiduciary duty to be aware of who your buyer is and what kind of buying power/credit do they bring to the transaction.

The comparables from today:

-----------------------------

Subject Property

----------------------------
APN: 083164C A 01000

Site Address: 136 Ervin Dr
Hendersonville, TN 37075

Use Code: Residential (Single Family Residence)

Transfer Value: $285,000

Transfer Date: 06/09/2005

Assessed Value: $0

Document No.: 751180

Year Built: 1981

Lot SqFt: 1.5 AC

Structure SqFt: 3469

Bedrooms: 0

Bathrooms: 4.00



Market Analysis

---------------------------
LOW AVERAGE HIGH

Transfer Value: $170,750 $264,628 $437,000

Sq Footage: 2610 3283 3966

Bedrooms: N/A N/A N/A
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