Appraisal of REO and Foreclosure Properties

This course provides a greater understanding of the lending and foreclosure processes leading to properties becoming real estate owned (REO), and the roles and responsibilities of valuation professionals in this process. 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. 
Examination of an appropriate scope of work for an REO appraisal is discussed and explained, with special attention to the differences between traditional mortgage appraisal assignments and foreclosure assignments. Special attention is paid to clearly identifying the definition of value as well as assignment conditions and requirements from clients and intended users such as Fannie Mae and HUD/FHA.
We will cover the concepts of cost to repair and cost to cure, along with data sources to support cost estimates, as well as investor incentive (risk demand) estimates extracted from the market.

Course access is available for 6 months from the day it is opened. All courses, regardless of whether they have been opened, expire two years from the date of purchase. Extensions are available for purchase within 30 days of a course expiring. No extensions will be granted after this period.

Course Roadmap

1. Default and Foreclosure

2. Instruments Used in Foreclosure

3. The Foreclosure Process

4. Scope of Work

5. Property Inspection and Repair Cost Estimates

6. Valuation and the REO Formula

7. Client Requirements and the REO Supplemental Addendum

8. Inspecting, Developing, and Reporting

9. Final Exam