Quote:
Originally Posted by Moneyguy1
Sammy:
We trust our doctors. We trust our attorneys. We trust the experts. So, if an individual trusts an appraiser, is this individual wrong to do so? I know very few homeowners that even know the meaning of the word "comps".
One of my finance teachers in graduate school told us:
"Your friendly, neighborhood banker is neither."
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I don't know anyone who doesn't keep track of home sales in their own neighborhood. Doesn't matter. Appraisal, accurate or not, did not force the borrower to take out more than he wanted to. At worst, it let the bank loan more, but still within their underwriting guidelines. And most states have a three day right of recison for refis. So there's really no excuse for someone to get into a bad refi and then try to blame someone else.