Redfield couldn't sell the house for less than 90 percent of its appraised value
until 36 months had passed.
The change allows the use of two methodologies, including appraised value
First BanCorp, the parent company of FirstBank Puerto Rico, announced it has completed a sale of non-performing residential mortgage loans with an unpaid principal balance of $236.6 million (book value of $203.6 million), as well as other real estate owned ("OREO") properties with an appraised value
of $22.3 million (book value $19.2 million), reports News Is My Business (June 21, 2013).
Also included in the salewas other real estate owned (OREO) properties with an appraised value
of USD22.3m (book value USD19.2m).
Losses attributed to commercial mortgage-backed securities may grow through 2010, according to the latest report from Trepp, a real estate tracking firm, due in part to the reduction in the appraised value
of properties with associated loans.
The financing was provided through a commercial bank at an 80 percent loan-to-cost ratio, which included the appraised value
of the land.
In the first situation, the RSC contracts with the employee to pay the appraised value
of the residence.
Doing this avoids PMI, which must be paid to guard against default any time a mortgage loan exceeds 80% of the appraised value
of the home.
The second scenario is the same, except the buyout price may be determined by an "amend ed value option" under which the employee can hire a broker to locate a prospective buyer who will offer more than the appraised value
. If such an offer is made, the employer through its agent--purchases the home at the higher bid price.
Just as with public companies, the appraised value
of a private company fluctuates over time, and this fluctuation, or volatility, is a key driver of stock option value.
ONE POINT TO CONSIDER is whether you should choose coverage for replacement value or appraised value
of your possessions.