Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10.2 9/5/84; site yale.ARPA Path: utzoo!watmath!clyde!burl!ulysses!ucbvax!decvax!yale!andrews From: andrews@yale.ARPA (Thomas O. Andrews) Newsgroups: net.legal Subject: Appraisals and Citicorp Message-ID: <535@yale.ARPA> Date: Mon, 28-Oct-85 03:49:56 EST Article-I.D.: yale.535 Posted: Mon Oct 28 03:49:56 1985 Date-Received: Wed, 30-Oct-85 06:04:13 EST Distribution: net Organization: Yale University CS Dept., New Haven CT Lines: 72 *** REPLACE THIS LINE WITH YOUR MESSAGE *** I tried to make the following story as objective as possible, but at times my account is definitely biased. List of facts (uh, as I recall them, anyway): 1) In the summer of 1984, Mr. W had his house appraised by Citicorp. according to his memory, they appraised, the house at $76,000. He also has had his house appraised by numerous other assessors, etc. and the house was always appraised at over $72,000. The house is on the south side of Chicago, near the lake, in a predominantly black neighborhood. 2) In the fall of 1984, my Mr. W and his wife move to Providence, R.I., and look for a buyer for their Chicago house. As prospective buyers role in, the house is appraised for the possible mortgage loans, and on each occasion, the house was appraised for more than $72,000. Prospective buyers roled in, but when it got right down to buying the house, most of them backed down, or were rejected for bad credit history. 3) In walked a Mr. E, who showed great interest in the house. Mr. E is a Citicorp customer, and wanted planned on getting his loan from Citicorp. In August of 1985, Citicorp sends an appraiser over to the house. In his assessment, the house is valued at $65,000. 4) Mr. W and wife write a very rude note, implying all sorts of improprieties on the part of Citicorp. 5) Citicorp reappraises the house. New appraiser determines that the house is worth $56,000. In the meantime, Citicorp claims to have found original appraisal (mentioned in note 1,) and report that their first appraisal was at $65,000. 6) Mr. W asks for copies of both of these appraisals. Long delay. Apparently, an executive of Citicorp was not pleased with the recent $56,000 appraisal, and had driven by the house. Without so much as leaving his car, he was able to determine that the an inaccuracy had been made, and adjusted the appraisal to $65,000. (This executive had no experience in appraising houses.) 7) Copies arrive of the two appraisals - one handwritten, one typed. This is where things get a little strange. What one would expect: Appraisal 1: From Summer 1984. Appraisal 2: From Summer 1985, for Mr. E. And, indeed, Mr. E's name does appear on one of the appraisals - the one dated 1984! The document that Citicorp claims is the first appraisal is dated 1985! Now, this is a confused account. I've only heard about from my mother on the phone. But Citicorp is beginning to smell bad. It is not a big leap of the imagination to guess that the first appraisal is a fake. But, aside from this, is it common to have unqualified bankers adjusting appraisals without so much as examining the interior of the house being appraised? The reappraisal to $56,000 and subsequent readjustment appear to be veiled threats. "See, we can hurt you even more. But we'll be nice, and keep it at $65,000," says the benevolent giant. Now, is this a way to run a bank? More specifically, can Citicorp do this to people? In particular, is there anybody out there who knows anything about appraisals? (By the way, I know Mr. W - he's my stepfather.) -- Thomas Andrews "Gosh, I used to know how to do that." Favorite excuse of engineers