The Investment Decision In Subprime

As for the appraisal itself the comparable sales which are the ‘meat’ of the report upon which value is justified, could be up to 12 months old as of the appraisal date. So our 6 month old appraisal could have comparable sales up to 12 months old, giving us a grand total of 18 month old comparable sales, and up to 24 months old for new construction.

Does anyone see a problem here is a bearish real estate market? Is it any surprise that when values started to drop, even a little, that loan losses on foreclosures went WAY up.