The housing industry was on a large real estate bubble that burst when the overly inflated cost of homes combined with the subprime lending practices of the large mortgage companies failed. All across the country people went into foreclosure and as a result the actual values of the more than 6 million bank owned properties has made it difficult to appraise the actual value of a home and its lot. For thousands of mortgage lenders that are now faced with determining the real values of the property that is being sold and financed there is a challenge to look beyond what the property value of over inflated homes was four years ago and see the real values that are being appraised for the lenders today. Using property evaluation services that determine what the homes are worth as they are being put on the market for sale a mortgage broker and financial institution is able to uncover how much risk will be taken on by the bank and what equity is available in the value of the home should the buyer default on their loan.
With an understanding that many houses have lost as much as 30% of what they were valued at prior to the real estate collapse in 2009 it is evident that an appraiser's guide is needed to establish the value of every property that is being sold by the banks and private individuals that have managed to stay in their home. Where houses that once priced for sale at $300,000 and above are being offered to buyers for a fraction of that cost it is imperative that the lenders who are financing mortgages have a clear cut value attached to the property so that they can make a sensible loan. Before investing in the home's buyer and risking the loss of hundreds of thousands of dollars that are being funded by the lender an appraisal of the land and house is required by every state in the union.
Inspectors that investigate the state of the property and report on repairs that need to be made work independently of an appraiser and as such the bank owned properties that have been placed on the market after a foreclosure do not require an inspection, but do require an appraisal to take place prior to the closing date that is set by the seller and buyer. Using appraisal management software that delivers the accuracy of a report that will determine the level of risk to the mortgage lender by offering up an actual value of the house and land that it is on banks that are working with appraisers can make the best loans to the individuals that are purchasing a resale or a bank owned home.