This course provides a greater understanding the lending and foreclosure processes leading to Real Estate Owned (REO).  Included is the development of the traditional approaches for residential appraisals with a special emphasis on the unique challenges associated with REO and foreclosure properties from accepting the assignment to delivering the final report.
An overview of the lending process is discussed and the role of valuation experts is explored and explained.  The loan may ultimately end up in foreclosure and result in REO requiring the services of a professional appraiser.

Examination of an appropriate Scope of Work is discussed and explained with special attention paid to the differences in traditional mortgage appraisal assignment and a foreclosure assignment.  Special attention is paid to clearly identifying the definition of value as well as assignment conditions and client requirements.

Cost to Repair and Cost to Cure are explored with data sources to support cost estimates as well as investor incentive (risk demand) estimates extracted from the market.

Finally a clear understating of specific Development and Reporting requirements are explored.  References to Uniform Standards of Professional Appraisal Practice (USPAP) are noted as well as Statements on Standards, Advisory Opinions to assist in empowering the appraiser in developing creditable analysis.

    Understand the lending and foreclosure process
    Understand the need for professional valuation experts
    Understand the specific role different experts play in an assignment
    Understand accepting a REO assignment
    Develop an appropriate Scope of Work for this type of assignment
    How to support repair cost estimates with data sources
    Explore Investor Incentives and Risk Demand in REO appraisals
    Explore each approach to value in relation to the assignment and assignment conditions
    How to describe specific deprecation estimates as extracted from the local market
    Understand the difference in appraising REO and foreclosure properties
    Understand the need for a clear definition of value and its source
    How multiple value estimates may be part of one assignment and the need for a concise understanding of        the clients intended use
    Explore how to develop and report REO and foreclosure appraisal reports in a manner that is meaningful to the client and other intended users.
    Explore limitations of form report formats and the burden placed on the appraiser to clearly and accurately set for the analysis and conclusion  in a manner that will be meaningful and not misleading