Mortgage Rates, Refinancing Applications Rise

I am a mortgage underwriter (I verify that the appraiser has correctly followed guidelines and adequately supported the value they assess on a home).

As to Steve's point: There is currently a bill going through for just that purpose. The administration is all about "keeping people in their homes". It's their main goal in this particular current crisis. Vote Democrat if you feel as you do, they're the ones that push things like that. (I have 2 degrees in history).

To Kim's issue: My job revolves around this. I hope whoever told you that isn't an appraiser. That information is incorrect. It is MY job to decide if a comp is too far away. And if it is, I just ask for another comp. There is ALWAYS another comp. If you've been told this by a professional, find another professional.

While there ARE guidelines for distance on "comps" (comparable properties), they can be flexible (depending on who is underwriting it, our program is VERY successful and allows that). If an appraiser gave me an adequate explaination for why he chose one farther away (in a similar market, like you allude to) or farther back in time (because only a few houses sold over the guidelines period), I would accept that as long he/she made the proper adjustments to value. The economic value of something is supported by what someone would pay for it, in ANY industry. If I trust the appraiser to do his/her job, he/she should be able to find houses that have sold in your area and figure out if they are similar to your house. The real abstract of a comp is if a hypothetical someone would 'consider' buying your home along with it. Ie: yours has 4 Bedrooms, a horse stable, and a pool, someone would consider another house that has 3-5 bedrooms, a horse stable, and a pool the same distance away from where they work. Now add in another 50 factors (sq ft, view, condition, etc) and you've got your comp.

Granted I don't know everything about your house. There are lots of things that could make it exceptional, that might give whoever it was a legitimate reason to say what they said to you, but the odds of that are pretty low. If it REALLY was the case they couldn't find a comp, honestly, its something really outrageous you did to the property or knew about the property when you bought it. And if that's the case they should have told you how to fix it.

Any Mouse of MN 8:18PM February 04, 2009