Join the Discussion

Comments So Far: 7

• 0%

  gatitabonitasen1 year, 8 months ago

  this practice is very common and going on forever they raise the values , the LTV would be higher some people would keep their homes , some would lose them ect , The problem lies that lately less people are able to keep their home once they enter to a High value propierty or refinance their propierty because they lose their job , the economy you name it . But this is something very common and not very regulated , to control something like this now is almost imposible because if the goverment for example re ajust the home values to make it more affortable or to correct the market , People would lose millions not to mention mortgage companies basicaly the economy would tank flat to its belly . This is a very serious problem with a no so easy solution

  Reply
• 0%

  NelsonR1 year, 8 months ago

  Having been in Real Estate I can assure you it is a practice that has prevailed within the industry. My main problem were that lenders and realtors were in collusion to get buyers into situations they could not afford. I am not just blaming their acts, their in it for the loan fees and commissions. The Buyer's are responsible for their own acts. Very seldom is the buyer willing to take a home in their affordability range. They usually see for another 20,000 or more they get a bigger bang for their buck. Consequently they go in over their heads, with acquiescence from banks.

  I blame the Federal Government mostly since Fannie Mae and Freddie Mac are within their preview. They buy these loans knowing full well many of them are a large risk since the LTV ratio is above the head of the person borrowing.

  But what the heck, those individuals who own the shares for those Government programs will never lose. The banks will take their bad loans and be bailed out by the taxpayers.

  Reply
• 0%

  LightonaHill1 year, 8 months ago

  In Palm Beach County, where I live, more than 90% of people cannot afford to buy an average house; they simply don't make enough money. Many of those who own homes have used the 'appreciation' in their home's value to refinance and take out the equity. The result: mortgage payments increase and foreclosures and delinquencies are rising.

  Globalization, corporatism, and a 'real' decrease (roughly 25% in the past two decades) in the average American's wages (as prices continue to rise) is hindering the ability of the average American to own a home, decimating the middle class and undermining the fabric of our country's social structure.

  Reply
• 0%

  NelsonR1 year, 8 months ago

  lightonahill - exactly on point but try convincing a conservative who is reaping the rewards of the lower caste within our society. Good Luck.

  Reply
• 100%

  kctrixter1 year, 8 months ago

  Where I live we have a property tax, and by far the most my house was ever assessed at was by the Tax assessor.

  Reply
• 0%

  kctrixter1 year, 8 months ago

  I would love for the state to have to buy you house or car at the price they assessed it at if you feel you can't afford the tax.

  While I'm ranting whats with the insurance companies charging you premiums on say $20,000 car, then when it gets wrecked they send someone out to find and deduct every scratch and ding on your car, and tell you it's only worth $15,000, shouldn't they have to give you back the difference in premiums you already paid.

  Reply
• 0%

  mexicalifas1 year, 8 months ago

  Oh please Appraisers feel pressured to inflate values, whatever. There is limited room in which the price of a home can be increased. First of all you need recent comparable sales in order for the appraiser to support and justify his value of the subject property. Finance mortgage company's and banks review all appraisal reports submitted with the loan and all reports have to have full color pictures and at least 4 to 5 comparable sales within a certain radius. If the funding company finds the appraisal questionable they either reject the loan, order their own BPO or ask for a recertification of appraisal in any case values can not be inflated in the way this posting makes it sound like. I will tell you what does inflate values though the simple capitalistic law of supply and demand. Supply and demand is in a nut shell what any market is all about. Here in California prices are ridicules because when house's where scarce buyers inflated the prices by overbidding the asking price.

  Reply