Understanding and Appraising Residential REOs

About this course

Since the Great Recession, there have been changes in lending practices. The economic conditions caused by the recession created a need for appraisers who have specific knowledge and experience to properly develop and document opinions of real property value in foreclosure. This program begins with an overview of the history related to current foreclosure practices. The program continues with causes of foreclosure and steps in the foreclosure process. You’ll learn how to identify assignment elements including the client, intended users, value, and other assignment conditions. Through a series of dilemmas and a case study, you’ll gain an understanding of the scope of work, proper inspection procedures, market analysis, and additional components needed to arrive at credible results for a foreclosure appraisal assignment.

What you’ll learn

Understand the needs of clients who order appraisals for preforeclosure, foreclosure, or postforeclosure decisions.
Recognize the range of services that an appraiser can provide in preforeclosure, foreclosure, or postforeclosure decisions.
Identify the elements involved in completing assignments.
Differentiate between various types of value definitions.
Identify the market for a property.
Formulate a proper scope of work when completing appraisal assignments in a preforeclosure, foreclosure, or postforeclosure decision.
Understand inspection requirements for assignments in a preforeclosure, foreclosure, or postforeclosure decision.

Course curriculum

Introduction
Module 1: Background of Real Estate Owned (REO) National Factors
Module 2: Historical Influences
Module 3: Local Economic Events, Personal Circumstances and Predatory Lending Practices
Module 4: Real Estate Owned (REO) Procedures
Module 5: Problem Identification in REO Assignments
Module 6: Scope of Work - Extent to which the Property is Identified and Inspected
Module 7: Scope of Work - Type and Extent of Data Researched
Conclusion