Countrywide Full Spectrum Lending ripoff mortgage company manipulated appraisal Franklin Tennessee

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.

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.

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.

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.

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.

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.

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.

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:

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Subject Property

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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

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LOW AVERAGE HIGH

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

Sq Footage: 2610 3283 3966

Bedrooms: N/A N/A N/A