Our Value Reconciliation Report (VRR) provides an analysis of two or more residential property valuations to assist lenders and servicers in reconciling disparate values on specific nonperforming real estate assets. A professional real estate analyst performing the reconciliation renders an opinion of which value is most likely accurate, based on the unbiased findings from comprehensive research.
Designed to help default specialists determine the current market value (reconciled value) of a given property, a VRR evaluates public and private information to verify data. This process compares and studies these valuations for methodology, completeness/credibility, market conditions and comparable sales.
A VRR may identify causes for the disparity among the valuations analyzed, and it supports the broader case presented by the lender or servicer regarding the most probable sales price of the subject property under market conditions.
Other Flexible Applications
Default due diligence is the most apparent and valuable application for a VRR. When a borrower defaults on a loan, the servicer may discover an inflated origination appraisal. It is beneficial to outsource this process to an unbiased real estate professional who will conduct a methodical investigation of the disparate values.
Wholesale/correspondent quality assurance can utilize a VRR on prefunding or postfunding transactions. Origination appraisers and review appraisers often reach an impasse on the rebuttal process. The VRR offers the lender reprieve from this time-consuming process.
Lenders use our VRR for portfolio acquisitions, special investigations and postclosing audits, saving costs and alleviating the burden of research.