M
Mick Fitzgerald
Guest
My question is, are drive by valuations of distressed properties a fair method of valuation ?
in what context?
mortgage valuation for new lending? probably not
acquisition of high volume loan book by fund? probably so
if you're talking 'normal' valuation as part of mortgage application, the Mortgage Credit Directive is going to tighten up the quality of valuations significantly so that they have to be done in accordance with certain professional standards
I thought a receiver had to get the best price reasonably attainable, at the time of sale, for every distressed property ( their equitable duty to the debtor ). If a receiver allowed valuers to conduct drive by valuations, are they not leaving themselves very exposed to legal challenge. For example the valuer values a house as a three bed during a drive by valuation, but it is in fact a 4 bed with an attic conversion. The house is subsequently sold as part of a large portfolio to a fund for x amount when in fact the market value for the house is substantially more.