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Law Pro
Law Pro, Lawyer
Category: Real Estate Law
Satisfied Customers: 24870
Experience:  20 years extensive experience in real estate law, foreclosure, finance, and landlord tenant law.
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Re an appraisal by bank on a commercial property with 2 SBA

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Re an appraisal by bank on a commercial property with 2 SBA loans that is IN foreclosure (court date of 11/4/13): Is there any advantage (to me) in trying to have the bank appraisal come in high vs low? I ask because my roof caved in and I have not repaired it. I'm wondering if I should bother. As of 11/4 I'm sure the judge will give a summary judgement to the plaintiff (bank) anyway. Thanks.
Hi! Thank you for asking for me.

I used to do alot of real estate closings and dealt with loan originators who "talked" to appraisers.

It used to be the case where you could "inform" an appraiser where you need the appraisal to come in at - that you needed it above a certain point.

Then, the appraiser, because they wanted your continuing business, they would always get the appraisal near or above that "mark" needed.

However, since the mortgage foreclosure crisis - where appraisers have been taken to court for fraud (criminal and civil) they don't do it anymore.

In fact, in situation where the appraisal isn't used for obtaining a loan - they still won't deviate from an objective appraisal. For example a real estate tax assessment appeals - they still won't make the appraisal low for fear of reprisals if their appraisal is reviewed.

So, although I would like to tell you that you can find an appraiser and get them to give a high value (which would be in your best interests) it ain't going to happen.

Given all the appraisers who were prosecuted - they are not running scared and won't think about giving anything but their honest opinion.

Yes, appraisals can vary as between appraisers - but nothing like they used to. In fact, when two appraisals are vastly different given the same subject property - that throws up "red flags" and potentially an investigation.

So, although I'd like to be able to tell you that it's possible - it's not.

However, you would like the appraisal to come in as high as possible given your situation.
Customer: replied 3 years ago.

I'm afraid you misunderstood my intentions. I was merely wondering if there would be an advantage to delaying the appraisal until I could repair the ceiling and clean up the mess--NOT to try and influence the appraisal in any other way. Your last sentence, however, gave me the info I needed: "However, you would like the appraisal to come in as high as possible given your situation." So it seems it will be to my benefit to postpone the appraisal (the bank chose the appraiser and he has appraised this property at least twice before, being the only 'commercial' appraiser in our remote county) until I can make the place look better and fix the ceiling. Thanks again.

Yes, you would want the appraisal to come in as "high" as possible to reflect as much equity in the property as possible.

Thank you so much for allowing me to help you with your questions. I have done my best to provide information which will be helpful to you. If I have not fully addressed your questions or if you have any follow up questions, or if I have misinterpreted your questions in any way, please do not rate me yet, but simply ask a follow up question without rating so I can provide you with a fully satisfactory answer.. I thank you in advance for taking the time to provide me a positive rating!

If you have any questions, about this or anything else, please ask for me, Law Pro, directly in the question and I will try to assist you as best I can.

For example, you would state, "This question is for Law Pro . . . (then on with your question).

I wish you the best in the future.
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