They are keeping the housing recovery down.According to survey by the National Assoc of Realtors, more than 1/3 of realtors have experienced the cancellation of contracts from low appraisals. This is true despite multiple cases of overbids.
Often the appraiser does not know the area and sometimes never even visits the house.
Overly strict lending requirements and inadequate appraisals are keeping qualified buyers from buying or refinancing. Even Ben Bernanke agrees.The average fico score with someone putting down 20% is an amazing 764.