A new ‘revised appraisal’ tool is being marketed toward debtors' counsel involved in negotiating loan modifications, defending foreclosures or participating in foreclosure mediation programs.
The appraisal, offered by Delray Beach, Fla.-based Retro Appraisals LLC, estimates the market value of a subject property based on the date of the most recent financing of the property.
According to a Retro Appraisals press statement, ‘The theory is that the financing was based upon a questionable appraisal which the lender approved without proper oversight. The Revised Appraisal looks back at the actual facts existing at the time and brings to light the real value of the subject property (on the past date), as opposed to the inflated value that was the basis for the loan."
Between 2005 and 2007, approximately 70% of appraisals made for mortgage financing, whether for an original financing or a refinancing, were overstated and inflated, the company says.
SOURCE: Retro Appraisals LLC