Good insights RV as to the process and mechanics.
Anectdotally, I have known of a couple of recent examples where vals came back at approx 20 % below comparable sales. The figures used for CMA were settled, not just sales listed on REIV or The Age and the valuer would not accept the further evidence provided to amend the figure they gave and the bank would not revise the situation.
They were not my loans, however putting the borrower behind the eight ball was the fact that they wanted to suck out some further equity from a fixed interest term loan. The bank therefore has them over a barrel. Break (pay) and walk or we'll deal with you walking later.
I had a couple of vals done recently for my own purposes however making it very clear to my lending manager I had CMA's and Residex data, they came back at around under 4-5 % what I anticipated. This I can live with. Perhaps being informed changed the instructions....the customer will never know.
I still believe the lending climate has changed. Perhaps my nomenclature earlier of "fire sales" was a bit strong, however lenders (some far more than others) are being more conservative and how much this is impacted by LMI's I don't know as I am not from the industry.
The case outlined by Rob Williams is probably familiar to others on this board. The climate has changed and with that we need to be more aware and informed. We need to play smarter and with different rules..........doesn't mean we need to like those rules though.
Thanks again for your insights RV from your posts in this thread.
Anectdotally, I have known of a couple of recent examples where vals came back at approx 20 % below comparable sales. The figures used for CMA were settled, not just sales listed on REIV or The Age and the valuer would not accept the further evidence provided to amend the figure they gave and the bank would not revise the situation.
They were not my loans, however putting the borrower behind the eight ball was the fact that they wanted to suck out some further equity from a fixed interest term loan. The bank therefore has them over a barrel. Break (pay) and walk or we'll deal with you walking later.
I had a couple of vals done recently for my own purposes however making it very clear to my lending manager I had CMA's and Residex data, they came back at around under 4-5 % what I anticipated. This I can live with. Perhaps being informed changed the instructions....the customer will never know.
I still believe the lending climate has changed. Perhaps my nomenclature earlier of "fire sales" was a bit strong, however lenders (some far more than others) are being more conservative and how much this is impacted by LMI's I don't know as I am not from the industry.
The case outlined by Rob Williams is probably familiar to others on this board. The climate has changed and with that we need to be more aware and informed. We need to play smarter and with different rules..........doesn't mean we need to like those rules though.
Thanks again for your insights RV from your posts in this thread.