Posted on 06/17/2011 4:33:21 PM PDT by WilliamIII
How much do you pay for leads from trulia if you don’t mind me asking? Are they worth it?
That makes no logical sense at all. Unless, that is, the buyer wanted to reduce their downpayment due to the higher appraisal. Or, the lending institution held the property due to foreclosure. Those two situations would have the lender balking.
Otherwise, it’s all to the good for the lending institution, for buyer to have higher equity in the property. In the even of default, that means more for the lender after auction or REO sale, so it’s an even safer bet, for them or to whomever they sell the “paper,” which would be Fannie Mae or Freddie Mac for all intents and purposes these days.
The loan underwriters have a set of criteria to go by and if anything varies at all the kick it out. Logic and common sense have nothing to do with the process.
I’m familiar with the process and have bought properties that appraised high. It’s sort of an objective, to get a deal, from buyer’s perspective.
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