Mr. Hickey:

I appreciate your willingness to share your ideas in a forum where feedback is publically posted. Not everyone in your position would do that.

Hi Jay,
We are all in this mess together, and I am trying to think of some solutions that will help everyone. Currently the market will not rebound until all foreclosures are out of the system. Did you look at my proposal for underwater homeowners? There are millions of people that have been paying their mortgage on time but currently owe $300,000 and when they try to refinance, their appraisal is at $200,000. I am open for solutions.

Jay, Yes you are correct with the 28/36% ratios. Would you be for reforming the guidelines with these ratios?

What is Ron Paul's Solution for the Housing Market?

" Small houses designed for efficiency and powered using renewable energy with prices ..." Sounds like Agenda 21 to me.

Susan...you can call it populist, but maybe you really mean popular? For centuries we've had to relearn the lessons of history of a manipulating bank. Here's what Thomas Jefferson had to say about it.

“If the American people ever allow private banks to control the issue of currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their fathers conquered.” Rats.

Some of the greatest economic minds in history have made the same case. End the Fed.

You want to know why things are getting tough? The real elephant in the room is monetary policy in this nation. Realtors did not cause the housing boom, but were happy to ride it while it lasted. How did housing become an investment? Because the Fed's easy money policy allowed individuals and banks to assume ridiculous amounts debt, and create a speculative atmosphere. What could go wrong? Housing always goes up! Myths and misallocations created by bad policy.

Look to the fed first. Thoreau said "there are a thousand hacking at the branches of evil for one who is striking at the root." The root of this mess is the Fed, and the DC monster that it feeds an unlimited supply of debt.

@Susan - the very last thing we need to do is let foreign buyers into the market. The market needs to hit bottom before it can recover. Inflating prices is part of what caused the problem in the first place.

@Roseann who posted:
" Small houses designed for efficiency and powered using renewable energy with prices ..." Sounds like Agenda 21 to me.
...
~~
Agenda 21 being some sort of conspiricy theory which has nothing at all to do with the need for affordable housing and renewable energy.
This concept is already in place in many parts of the country. There is even a small house society and plans available for the construction of small efficient houses via major retailers and web sites, and with the advances in renewable energy including nanotechnology and roofing shingles/glass which capture the sun's energy, small housed powered with renewable energy is already here.
Everything is not a conspiracy theory or part of a socialist takeover of the world. New concepts emerge as part of a consumer need and affordable housing is most definitely one of those.
For additional reading go to www.sciencedaily.com

Susan -

Plan whatever you want. Just don't ask the government to help or pay for it. If it is totally market driven and works out fine. If it does not work out without government intervention let it fail.

Hi Susan,
I believe that we need to create incentives to bring jobs back to America. We also should be working on being 100% Energy Self Sufficient by the end of the decade, this will create jobs. I agree, Americans are broke! Housing, Food, Utilities and Gas are taking every single penny of the working American. It does not have to be that way. I believe in the Ground Up Theory, which is creating cash-flows for the working class by reforming student loans, lowering gas prices, and fixing housing market. If Americans have more money on a regular basis, they will spend it. This means that a local business owner will need to hire someone (JOB Created), then the Warehouse will need to hire someone (JOB Created), then the Manufacturer will need to hire someone and I want that to be here in America.

@James Hickey

We need less government involvement in the market, not more. Your solutions all involve government intervention and manipulation of the market. Not good, not good at all. Less government intervention is the answer, not more.

At least you're willing to let everyone know that you think government is the answer to the problem, not the problem itself. That way, educated people will know not to vote for you. I'll at least thank you for that.

Have you noticed the National Association Of Realtors doesn't promote housing as a hedge against inflation anymore ?
Time for a new strategy to get the buyers out. Let's appeal to their sense of community pride but better watch out; the taxman cometh, so while the unsuspecting homeowners are standing in line at Menards or Home Depot with their carts loaded with paint and drywall, the assessor is paying very close attention.

@Roseann -
Over my dead body!!!

I am for smaller governments. Illinois has over 7,000 governing bodies within the border. I am currently looking into merging local fire districts where one or more are struggling. I believe that we need Transparency and to look at budgets very closely to eliminate waste. Sometimes though we need to have the government step in to help the markets recover quicker and that is what I propose with my student loan reform and housing reforms. By helping everyone that is underwater, on average will give $700-$1000 a month in cash-flow. By reforming the FHA Guidelines this will allow Americans to purchase these foreclosures. Once all foreclosures are gone, the market will stabilize and rebound. Supply vs. Demand.

@Susan - you forgot irresponsible people who borrowed more than they could afford, people who lied on their mortgage applications, etc, etc.

You don't seem to understand the difference between the housing market and the rental market, why there are both and why not everyone can own a home.

Here lies one of the problems facing Americans, wether they are owners or renters, and that is simply put, under the current arrangement they cannot afford the cost of housing. When is the last time you took a peek at the " for rent " ads. It's not unusual for 2/3 bedroom rental to fetch 1200.00+ a month, and if the would-be tenant is earning 10.00-15.00/hour, nearly their entire income will go toward rent.

This is about the need for affordable housing, wether it's rental or ownership.

How about local taxing bodies using their powers under eminent domain to take back from the banks those abandoned and foreclosed properties and using them for jobs training and for housing homeless veterans and displaced families.
Since the banksters were instrumental in creating this crisis, let them be instrumental in repainr at least some of it.

Miguel, that is my thoughts exactly.

They can purchase these properties. Nothing needs to change in order for that to happen.

Anyone who quotes the Huffington Post and/or Lisa Madigan can't be taken seriously!

You mean this newsflash that hit the wires before noon?

Kiss The Foreclosure Settlement Goodbye: Bank of America, Wells And JP Morgan Are Sued Over Use Of MERS

http://www.zerohedge.com/news/kiss-foreclosure-settlement-goodbye-bank-america-wells-and-jp-morgan-are-sued-over-use-mers

For additional humor:

Robo-Mortgages Could Be Just The Beginning Of A Much Bigger Scandal In The Mortgage Industry

Read more: http://www.businessinsider.com/robo-mortgages-could-be-just-the-beginning-of-a-much-bigger-scandal-in-the-mortgage-industry-2012-2#ixzz1lMa8ISL3

Are we having fun yet?

excuse me, Roseann-Kimberly-Roseann:
please do not misquote me in order to pursue your own political objectives and BTW, don't forget to renew your membership in the Flat Earth Tinfoil Hat Society.

I continue to be amazed by the number of people that just don't understand this. There just is NO free money.

'Tired' and 'Barry' - that's one of the key problems with our current system, too many people believe that there is this magical supply of money, and that's it is controlled by the Rich and Wall Street. Who can blame them when the MSM and our current Obama Administration tells them that the solution to our problems is that we need to tax the rich more, and demonize the banks. Who can blame them when most of them don't pay any Federal Income Taxes, and many of them get money from the government each month. Where does it all come from, they don't care as long as it keeps coming. Unfortunately enough of these uneducated and absolutely ignorant (when it comes to understanding things like banking, inflation, deficit vs. debt) people will vote for someone like James Hickey because he's giving them something for free. In their simply minds, it's something for free....after all, they won't have to pay for it.

For every $1,000 in investments the Banks can loan $10,000. I believe that we can make this happen by adjusting the holding requirements and some funding. But if this helps millions of Americans and speeds up the recovery of the economy is it worth it? I think so. How would you Fix the Housing Market?

Jim. Jim. Jim.
If you are "For America" as you say, they you will be against banks creating money out of thin air.

Fractional Reserve Banking is theft. It is a shell game that never works out in the long-term.

Hi Barry,
I completely understand that there is no free money. Budgets need to be moved around to make sure wasteful spending is ultimately eliminated, and that the resources that we do have are used in the most effective manner. The banking system was created on leverage. Example a bank that has $1B in investments can loan $10B to corporations and individuals. Now if this $10B in loans outstanding is really worth only $7B (Today's appraised value), but is still on the books for $10B, but if the borrowers defaulted the bank would probably be lucky to get $5B at a fire sale. I believe that we should lower the Banks Books to $7B, have $3B as silent liens, inwhich the banks will eventually get paid whenever the property is sold or the current loan is paid in full. This will lower the risk levels, and make the books closer to the real value. We need to get out of fantasy land. This can be done and should be done. This will help ALL Americans Democrat, Republican, Independent, and Tea Party members.

Hi Scott,
Debates are good. Student Loans will work. We must hold the universities to keeping their tuition and fees within the CPI growth rate. I also believe that we will need to look at past price levels to find the starting point. I said I am NOT for FORGIVING DEBT!
Lower Gas Prices, can be achieved by finishing the Canadian Pipeline (Rerouting it from environmentally protected areas), and opening the US Reserves, and Investing Highly in Bio Mass Technology. Algae Bio Mass uses land that is not good for farming, and has the same breakdown as Oil without the negative spill effects. Cost 50Cents a gallon. Fix Housing Market by reforming the FHA Guidelines allowing 28/36 ratios with no waiting period for those that had a foreclosure or bankruptcy, Once all foreclosures are removed the market will stabilize. I believe by helping those underwater the economy will rebound quicker.
I agree with you that low interest rates encourage people to borrow more, that is why I want to put a stop to universities raising their fees 10x that of the CPI, that is crazy and needs to be stopped. Savings is the route to wealth. I have walked over 250 miles door-to-door talking to citizens in the district, and most people are broke! They can barely makes ends meet, and are unable to save anything. There are new computerized appraisal systems that look at EVERY house within a mile, and prices each according to square footage, and extras. This will give a median price for the area.

Scott - I agree with much of what you say, but your views on value are simplistic and a bit naive. Would you pay $15 for a dozen eggs when you can go down the street and get the same dozen for $4? An appraiser's job is to report what is going on in the market, not to ensure transactions take place. The market value of a property is determined by previous transactions of similar properties whereas both parties - the buyer and the seller- are typically motivated, the property has been exposed to the market for certain period, and there is no duress. Sure you can list your home for $1,000,000 but that doesn't mean someone will pay that much. The whole purpose of an appraisal is so the bank can ensure the collateral is adequately valued should there be a default. That can't happen unless the value derivation meets certain requirements.

William...not naive. I've seen appraisers in action. Prices are fudged...all the time.

BTW. Some people do choose to pay more for Farm Fresh, Free Range, some choose to pay less for Genetically modified, or Jewel brand.

THE BANK CAN ENSURE THE COLLATERAL? Now you're the naive one. Go look at how many banks have failed every year for the past 5. Record numbers because they have been terrible at allocating value. Their balance sheets and Texas Ratio's are out of touch with reality. Value derivation meets certain requirements? HAHAHAHAHAH!

Jim...computerized median prices! OF COURSE! YOU'VE CRACKED THE CODE!

Wait...no you didn't. Fixing prices, and making generalizations on asset values never works. Prices are determined by individuals, not the state, or some academic banker.

PLEASE. PLEASE read a little history and a few Austrian Econ authors.

Scott - these banks have failed due to their investments on the secondary market, the CMBS. The taxing authorities recognize the loss in value but have to keep operating. Therefore, they have begun to lower assessed values but have increased the equalization factors. Thus, although values have declined significantly, real estate taxes have remained steady.

And, yes, I am an appraiser. There is no motivation for an appraiser to "fudge" values. There may have been at one time but that time has long since passed.

William...long since passed? We'll see.

Don't worry though, you can still pay .79 cents for a coffee...or you can go to Starbucks and pay $5.

Hi Scott, Have you heard of AVMs (Automated Valuation Modules) This is where a computer will look at ALL transactions within 1 mile or whatever scope you choose. It then can break down values based on numbers (Price per Square foot) etc. These numbers don't lie, since this is what a buyer & seller have agreed upon. Whereas an appraiser would look at only a couple houses in the area, usually the ones that sold at the highest price, and then give their opinion of the value. By looking at every house, and pricing according to square footage for example, a 2,000 sf house at $150sf is worth $300,000 and a 5,000sf house down the block is worth $750,000, while the 1 bedroom condo that is 750sf is worth $112,500. But the Square footage price will be the average of all properties sold in an area. This is the best way to get a true value of your property.

Scott - your argument doesn't hold water. We're not talking about Starbucks vs. Dunkin' Donuts. We're talking about why would anyone pay a premium for the same or similar product? All things being equal, a consumer will not pay more for the same thing. If you can buy a fully loaded Ford Mustang at one dealership for $35,000, why would anyone pay $40,000 for the same car at a different dealership?

And Jim, you probably should't expound on things you obviously know nothing about. Residential real estate appraisal is never about $/SF. That's just a ridiculous sentiment. You are right, though, AVMs do look at all the sales in a specified area. But let's think about that. AVMs capture sales of 1,200 SF ranch homes on a slab as well as 4,000 two story custom built homes with finished basements. Are you trying to tell me someone is willing to pay the same $/SF for both properties? That's just ignorant. And appraisers don't just look at "a couple of sales and pick the highest". We look at all the sales of similar properties in a given market area. In case both of you don't know this, regulation was passed several years ago that forbids communication between the lender and the appraiser. So what motive would an appraiser have for "pushing value"? Absolutely none.

Automated Valuation Models sound like a dream Jim. A true panacea. Just like the Quant modeling that the automated stock trades are producing at hedge funds like MF Global. They automatically calculate prices of the buyers and sellers too.

William are you joking?

Dell laptop vs. Apple laptop
Kindle vs. Ipad!
New York Apartment vs. Minnesota Apartment

A Porsche Cayenne and VW Toureg are made in the same factory with nearly all the same parts. One costs twice as much. Same or similar products? Look at how much Trader Joe's nets compared to Jewel. People like buying what the believe. Beliefs affect buying just as much as prices.

Come on really? You've never paid $30 for a filet? No, you must go down the street and buy one at Friday's.

A strictly computerized appraisal model takes the human element out of the equation. A computer model can't see that one 2,000 sqft home is pristine while another may be a broken down shack yet still be on the same block.

Scott - that's the true definition of a strawman argument. You keep comparing apples to oranges and not apples to apples. You can't do that with real property. But that's ok. You can continue to defy logic. My illustration compared Ford Mustang to Ford Mustang. Not Ford Mustang to a Ferrari.

Strawman..HAHAHA!

Ever hear of convenience? Personal Preference?

"I had a bad experience at Fry's, I'll pay more at Best Buy." "I don't feel like driving to Macy's for these shoes...I'll just buy them here at Nordstroms."

No...that never happens. People ALWAYS pay the lowest price for the same thing. Yep.

Scott - you keep insisting on comparing real property with consumer goods. That doesn't make any sense.

William, you keep insisting that humans make rational actions all the time, especially when it comes to buying property. That makes no sense.

How many apples to apples are there in Real Estate? This neighborhood or that. This corner apartment or the ground level one? This school district, or that.

Willliam...one more. "This mustang is more at Bob's dealership, but my family always buys cars at Bob's Ford of Fairyland. We love them there. They know us and we trust them."

That never happens either. I'm sure of it.

Scott - Alright, let's look at this example. You're looking for a new house. There are two identical split levels next to each other in a neighborhood you like, in a school district you like. They are both similar in square footage and have had the same level of improvements. One is listed for $250,000 and the other is listed for $275,000. Which one do you make an offer on?

The whole basis of real estate appraisal is based on the principal of substitution. If one home has one more full bath than another, ho much more is the typical buyer willing to pay? And that is what has to be taken into account - the TYPICAL buyer. One person may be only willing to pay an additional $2000 for that bath but there might be 10 buyers out there willing to pay $4000. There typically isn't a buyer out there willing to pay $10,000 for that additional bath.

You want apples to apples..here you go: Extremely over-priced union built messed up piece of crap or moderately priced rite-to-work state market driven home.

"There typically isn't anyone willing to pay 10,000 more"...well, except during the housing frenzy of the last decade. Other than that...

;) Good debating you.

@James Hickey

For someone who has been a Realtor and Mortgage Broker for over a decade, you just don't seem to understand the housing market. Computer models to value a house based on square footage? Are you joking Sir?

At least we all get some insight into what your abilities would be as an Elected Official, and you are sure doing the public a big favor with all your comments. Keep it up, your campaign will be over before it starts.

Scott - likewise. I enjoy healthy debate.

"will create jobs"? Here again, you are making prototypical false assumptions. GE doesn't pay any corporate taxes...and they are still outsourcing jobs.

Fair share. Wouldn't it really be "fair" if everyone paid the same amount? Isn't that egalitarianism? Good luck with your arbitrary ratios.

I have a solution. Its called End the Fed. End the manipulation of the cost, velocity and quantity of money. End the distortion, and destruction of wealth by inflation.

The root cause of our economic issues lie there. (And with people who don't understand economics.)

Jim --- Everyone needs to paytheir fair share?!?!?!? What kind of messed up thinking believes that with the top 2% paying 40% of the total tax bill and the top 10% paying almost 68% of the total tax bill that they are not paying a fair share?!?!?! Maybe you are right...we should have the bottom 50% who pay NO federal income taxes at all start paying the 20% you would like corporations to pay. It is about time that the bottom 50% start paying their fair share!!!! Fair would be everyone paying the same amount, not stealing my money and giving it to a life long generational couch potato baby making machine!!! Different topic...but welfare should not be a career and it amount of the check should not go up everytime you have another baby. Your liberal progressive thinking is what got us into the mess in the first place!

"But I also believe that we need to eliminate the Millionaire Tax Cuts, and everyone should pay their fair share."

Where would you start, at what income level?

Would you favor a tax system where EVERYONE pays Federal Income Taxes? Is there a minimum % that everyone should pay, say 10% of their income, or 5%, or 2%.....because today, about HALF don't pay anything. Is that fair?

Jim, more false assumptions. You don't know what a policy like that will do. Taxes are only one reason corporations are moving overseas. Lower labor costs are another. "Good paying jobs" is a value-decision.

Hi Scott,
One thing I do know is: America has the highest corporate tax structure in the world, and only the few large corporations with lobbying powers seem to get breaks, but the small business owner is left holding the burden. Another thing, our tax on foreign profits is not working, corporations are keeping their money overseas, so by eliminating this tax, the worst that could happen, is that corporations continue to do what they are currently doing. Labor costs are starting to rise in China, as each providence thinks they deserve more money for their experience. Many foreign corporations have subsidies from their government. I believe we need to create policy that inspires companies to move their factories and plants back onto American soil, and create jobs at home. Currently America is spending $165B per year in unemployment compensation. My creating jobs, this can become a revenue source for the government since taxes will be collected on income and spending of people returning to work.

Hi Kim,
I am talking about the middle class, the working people in America, are you a part of the working class? The upper and lower classes in America do not work, and welfare reform is an issue. I believe we need to help those that cannot help themselves, but we also need to stop people from taking advantage of the system. I agree Welfare should not become a lifestyle or career. I have many ideas on how to fix this issue.
I am talking about millions of Americans that make over $1M a year (After they have written off whatever deductions that they can). The tax system is flawed and I believe it needs to be corrected, and simplified.

Labor costs rising? Still a tenth of the typical US Salary, at less than $4k a year. Factor in millions more in Cambodia, Malaysia, Vietnam. The President described an engineering shortage; not in China and India. They produce a million engineers a year, to our 70,000. Hello cheap jobs.

You've benefitted from cheap labor, as have we all. Your shoes, did you buy American, and pay more?

We all want more people to work. The reality is that many will have to work for less, to pay the debts of the most bankrupt nation in the world.

You think you can tinker with a tiny gear or two, and create change. The battery starting and stalling the engine is the trouble. Unless you disconnect the reckless Fed, the engine won't function as it should.

From Von Mises..."The wavelike movement affecting the economic system, the recurrence of periods of boom which are followed by periods of depression, is the unavoidable outcome of the attempts, repeated again and again, to lower the gross market rate of interest by means of credit expansion. There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved."

Economic choice happens millions of times a day in mutually beneficial transactions. We decide value as individuals, not in a city building.

And...under his plan the house would have a 100 year mortgage. So you wouldn't be paying that extra $100,000.00 for potentially 100 years. That's nuts!

Give me a 1,000 year loan with low,low monthly payments!

I like criticism or debating, this helps to create solutions with everyone's input. One person does not have all the answers. In my example, I am trying to show one of the millions of underwater homeowners. The Do-Nothings will not help to solve a problem, but instead try to pretend a problem does not exist. By reforming the FHA Guidelines and removing the 4 year waiting period after a BK or Foreclosure, will allow millions to purchase a home using the 28/36 ratios. Helping underwater homeowners, will give them extra cash which can be used on a monthly basis to help stimulate the economy. Stated Income/Asset Loans and greed is what caused this mess. I am talking about going back to the basics of 28% of income toward housing and 36% of income toward total debts, with a downpayment and tax returns/paystubs to prove income. This will help everyone, even those that have no mortgage on their property.

@James Hickey

You didn't even know about the 28% threshold until someone else pointed it out to you, and now you are quoting it? Before you decide to run for public office, you might want to put a little more research into your ideas before posting them in a public forum. You might also want to remove "common sense solutions" from your original post, because it's apparent that your ideas have nothing to do with common sense, and everything to do with more government intervention.

Somewhere above you claim to be against big government, yet all your ideas involve more government. How can that be? You claim that you want to eliminate much of the taxing bodies here in Illinois, but you're not running for state office. How will you be able to make those changes in the 11th congressional district? You won't.

How much thought have you really put into this? Why do you really want to hold elected office? Why should any of us think you are even remotely qualified to make decisions on behalf of the people?

Ummmm, no. You're not. The cost of construction $/SF is in many appraisals. However, this is replacement value, not market value. And the the Cost Approach is only somewhat accurate when only dealing with new or newer construction as estimating physical depreciation is far more subjective than choosing relevant comps for the sales comparison approach. In fact, many lenders have emphatically requested the Cost Approach NOT be performed unless it's for a new construction home. Now, the cost approach is generally only used for insurance purposes, not lending purposes.

Secondly, back to AVMs. AVMS have absolutely no way of knowing of recent improvements, level of interior/exterior finishes, whether or not a basement is finished, if the property is overlooking a pond or on a busy street, etc. AVMs might be a good start for someone to get a feeling about what is happening with values, generally speaking, in a certain area but nothing more. This is my profession. I AM very knowledgeable in this sector.

Appraiser's don't assign price, realtors do. Appraisers determine an estimate of value. There is a difference. And, again, $/SF has absolutely no bearing in residential real estate, only commercial real estate.

Susan, Put down the Kool-aid long enough to read about the Community Reinvestment Act created by your Democratic friends..and strengthened over and over again through the years by the same. That REGULATION is first and foremost responsible for the situation that we find ourselves in today! It forced lending institutions to give mortgages to people that had no business owning a home. Add to that entities like the one our Socialist-in-Chief and his organizer friends put together to strong arm banks into giving loans to welfare recipients and wow...what do you get? FORECLOSURES!!! The phrase 'for the common good' was not meant to be used as a way for lazy and/or stupid people to get free stuff! It was meant to keep us from becoming a Totalitarian State! But keep talking... The more you say the better Conservatives look!!!

10+ Trillion? Check your facts. That is just wrong. And... Eliot Spitzer? What a joke! Great moral role model!!!!

Susan, you are clearly out of touch with reality. I'm sure you can use google well enough to know that my facts come from places like the Internal Revenue Service, not Fox News. You should do a little more research on what caused the Mortgage Crisis before you start blaming the Bush Administration and lack of regulations. Please, get your facts straight before you post.

Ever hear of bribes and/or favoritism? I had a work done on my home. When the inspector came to inspect (I use the term loosely) he stood on my front lawn, looked at the contractor and said 'Oh..it's you XXXXX' and just signed the paperwork without even walking in my house!

Everyone has to abide by codes, not just UNIONS. In my opinion unions had there place in history but they have become modern day mafia style extortionists!

If you believe that a crime has taken place, you need to pursue this with your lawyer or local police department. That is what cops and courts are for. To complain here is pointless and to blame unions is equally pointless.
...

Did he really say that ?
message to candidate James Hickey:
picking the low-hanging fruit is a republican pastime that you do not want to take up.

There is so much wrong in this, I just don't even know where to begin.

First of all, there is a fundamental difference between the definitions of "price" and "value". Price is the actual amount someone paid for something. Value is what the market believes the thing to be worth.

Secondly, only part of a Realtor's job is to put a buyer and seller together. A Realtor's job (on the sell side) is to push the market, being that they actually have a vested interest on what the property sells for. That's called commission.

Third, there is no such thing as a "bank's appraiser". Appraiser's are independent contractors that aren't even allowed to have contact with the lender anymore. Appraiser get paid a flat fee for their work, regardless if the deal closes. So how you think the appraiser is working in the bank's best interest is beyond me.

And finally, it is true many deals were killed by the appraisal. Do you know why that is? Because the property wasn't worth what the contract price stipulated. Between 2007-2010, values were declining, on average, between 2.5% - 3.0% a month. The purchase market couldn't keep up with that rate of decline due to the length of the purchase transaction process. The appraisal is the last thing to get ordered. From the time the contract was signed to the time the appraisal was completed, there was a chance the property had already declined in value by a good amount.

@William who posted <snipped>

Secondly, only part of a Realtor's job is to put a buyer and seller together. A Realtor's job (on the sell side) is to push the market, being that they actually have a vested interest on what the property sells for. That's called commission.

~~~
so how does a Realtor push the market, except to try and get the best price for his or her client or customer ? Ultimately, it is the bank's decision as to what the property is worth and what they will loan.
The property is worth only what someone is willing to pay you for it and what the bank decides through the appraisal.

And who hires the appraiser ? Who orders the appraisal ? The bank and why ? To protect themselves and to make certain the property conforms. Are you trying to suggest that the bank has no interest is ridiculous and inaccurate. Of course the bank has an interest and they should. Too bad it's the buyer who pays for the appraisal and has to "request " a copy in order to have that which they paid for.

Susan - your lack of comprehension/knowledge is astonishing. I never said the bank doesn't have interest in the process. I refuted your statement that the appraiser performs their work in the bank's best interest. Appraisers are unbiased and simply report what is taking place in the market.

The bank does not decide what the property is worth. The market does. The value lies in what a typically motivated buyer is willing to pay. This is determined through market analysis (the appraisal).

Banks do not hire appraisers. Banks contact a middleman (Appraisal Management Company). The AMC then hires the appraiser. The AMC acts as a firewall between the bank and the appraiser.

And, yes, a good Realtor's job is to push the market. They only hurt themselves and their client if they don't.

Hahahahahahah Debating you is like debating a 2 year old. They don't let facts get in the way. All they know is they want the candy...all liberal progressives know is they want the redistribution of wealth!! Read the Act before you comment. Funny how you and your friends lambasted Bush for his use of words. Practice what you preach...you can't even blame it on the your editor....'obstructionalist' is not even a word. Talk about spewing talking points. Pathetic. I am done debating you...I am going to take my rich under - taxed over - privileged butt for a mani-pedi on the backs of all the poor in the country!

@Susan Your lack of knowledge and apparently inability to use a search engine is not that surprising, considering the content of your posts. I agree with Kimberly, not even worth the time debating.

I think you managed to hit every Liberal talking point. Well done.

What part of what Susan said is incorrect. Please educate me.

@Tawanda
I guess nothing if you perceive yourself to be one of the "99%". This has apparently become Occupy the Woodridge Patch.

I'm not sure I get your point. Of course the bank initiates the appraisal. It's their money, hence their collateral. But ultimately, and I don't know how much more clearly I can state this, only the market determines the value of any particular property. The bank relies on the appraisal to make their decision on whether or not to lend on the property.

Pushing the market. When a property lists fro $200,000 does that mean it sells for $200,000? Of course not. It usually sells for less than list. The competent Realtor will read the market, list the property appropriately higher than they know they will get or what it worth. Through this process, in a healthy real estate market, prices of similar properties will gradually increase. What listed for $279,000 last month will list for $284,000 the next month. However, this hasn't been the case for the past several years. Values (and prices) have been steadily declining. It's up to the Realtor to squeeze every dollar out of the deal they possibly can.

Yes, if they list a property that is only worth $250,000 for $350,000, then yes that would be illegal. If they list the same property for $259,000, that leaves room for negotiation. They do it all the time. It's how they make a living.

And no one is arguing that the bank makes the final decision. But they base that decision on an unbiased appraisal performed by an independent contractor.

Are you involved in real estate at all or do you just make up this stuff from your experiences 30 years ago? Maybe you should go back and read my posts.

Or, conversely, we can regulate everything to death until the system comes to a grinding halt.

Not exactly, Roseann. This was about banks robo-signing documents and forging signatures in order to violate the law and the civil rights of the homeowners in order to expediate the process of taking homes away from Americans who fell on hard times due to job losses or other misfortunes.

Also, a portion of the settlement money will be earmarked toward helping struggling homeowners renegotiate their mortgages so that they may remain in their homes.

The settlement has, IMHO, given new meaning to the phrase " laughing all the way to the bank " as this paltry settlement likely came from the 17 trillion+ bankster bailouts to begin with, and will hardly provide comfort to the victims who have lost nearly everything, including their dogs and cats, as well as their credit rating.

Roseann posted <snipped>
Now THIS is funny.
****
There is nothing funny or entertaining about any of this. This is a tragedy that could have been avoided had there been regulations and existing laws enforced.

Do you find it funny or entertaining that families are living in homeless shelters ?

This is why you are a republiCON and I am not. I find none of this funny and I am not alone.
...

Guess @SUSAN doesn't comprehend sarcasm. Too bad. Soo sad. I'm sure you'll really, REALLY get a kick out of this:
The Epic Farce Continues - US Attorneys General "Robosigned" A Foreclosure Settlement Which Does Not Exist
http://www.zerohedge.com/news/epic-farce-continues-us-attorneys-general-robosigned-foreclosure-settlement-which-does-not-exis

By the way, Susan, stop with the name calling...you...you...progressive liberal, former republiCON. (Speak for yourself-you don't have a clue. I have no loyalty to ANY political party, but you may just change my mind about that.)

and that, folks, is hope and change.
http://www.zerohedge.com/news/dick-bove-foreclosure-settlement-there-no-sanctity-contracts-only-fools-meet-their-financial-co