I live in CO where we are No. 1 again for foreclosures. While they are fining appraisers for appraising home?

Question:

for more than what they are truly worth, are they going to do the same for lenders that are equally as guilty? Don't they own some responsibility, if not most, for what is going on with the housing market with their 1% loans, no interest loans, etc.??

Answer:
i have a friend who was in real estate in both boulder and denver and even 10 years ago colorado had a problem with appraisers who inflate home appraisals and team up with lenders to lend the larger amounts...they passed laws against it but it is nearly impossible to regulate and enforce.

Im not sure I understand your question. Foreclosures occur when the resident doesnt pay his mortgage. Its not the appraisers fault. Perhaps the consumers shouldnt fall for the ridiculous interest-only loans schemes or variable rate loans...

An item is worth only what someone is willing to pay for it. Houses are no different. You trust your Real Estate agent when he/she tells you that this is a wonderful opportunity and a great price. The appraiser then appraises it for the price you are willing to pay. Now if these were truly independent appraisers who were actually looking at the cost of construction it would be different. As the market begins to fall sellers make all sorts of moves including paying all closing costs or paying for upgrades or cars or trips - all in an effort to keep prices high. But it will cycle again and we will forget this lesson. A true cost appraisal would be a good place to start.

Sorry, I think that the ultimate blame falls on the people who bought the houses after they stretched their credit to the limit. Wanting something and being able to truly afford something are two different things.

I live in CO where we are No. 1 again for foreclosures. While they are fining appraisers for appraising home?

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