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Is a second appraisal or AVM permitted in a lender’s foreclosure/REO processes?

April 26, 2017appraisal AVM foreclosure Lender permitted Processes REO

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Is a second appraisal or AVM permitted in a lender’s foreclosure/REO processes?

1 Answer

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Yes. A second appraisal or AVM is permitted as the Code does not apply to the lender’s foreclosure/REO process. The Code applies to all conventional mortgages that are sold to Freddie Mac regardless of the transaction type and only applies to new mortgage orginations if the new mortgage that finances the purchase of the REO is sold to Freddie Mac.