A few years back when things were booming, homes were being appraised at unbelievable values. Home values were shooting up so high we could not even keep up. Appraisers were having troubles getting comps to justify the prices. Then the market turned and prices started to fall.

Now what I see is that homes are being turned back over to the banks and banks are selling homes below appraisal values. It seems like we are doing just what we did a few years back just in the other direction.

With that happening it will cause home values to drop even more when the banks let the homes go for far less than what they will appraise at, just because they do not want to hold onto the home. They had no problem holding onto the mortgage when prices were at an all time high.

I believe there should be some type of rules on what the banks can sell these homes for and should not be for much less than appraisal value. Once they sell a home for less than appraisal value then it affects the surrounding home owners value. Yes, it is a destressed sale but an appraiser will still consider that home.

Remember banks will get their money one way or another and it should not be at our expense or future home values. They helped create the situation now clean it up correctly. What are your thoughts on this issue?