Is going deeper into debt the way to get out of debt?
Bloomberg has reported Stearns Lending LLC has filed for Chapter 11 Bankruptcy. Stearns blames rising interest rates as the cause for the $1.16 billion in liabilities and has only 1.22 billion in assets. The restructuring of Stearns involves acquiring a $35 million loan to keep the company running and another $60 million cash infusion. See the article here.
In another nonsensical story:
Equity Valuation Partners has launched a new program that allows the homeowner to provide property information to the appraiser through a proprietary app. Per the company’s release:
“The EVP-EVAL service includes a proprietary app and valuation platform allowing lenders to satisfy evaluation requirements with an actual appraisal. And instead of chasing information in the usual cumbersome process, data comes to the appraiser for a dramatically faster turnaround.”
The concept of allowing an extremely biased homeowner provide photos and information about their own property is completely absurd. By definition and licensing, the appraiser is suppose to be unbiased, impartial and not advocate for any interest. Of course an appraisal management company is behind this.
See the PR News article and video release hear.
And then there is Zillow:
Zillow can determine the condition and quality of materials from photos, so they claim. How many appraisers tap the floor to determine what type of material it is. Today’s finishes are very similar and it is difficult to tell. How many homeowners get upset when you say tile and they claim porcelain? Is there a measurable difference in the market? Zillow’s claim does not seem logical. See the article written by Dave Towne on Appraisers Blogs
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