California Real Estate is very hard to appraise in this down market

I note the same problems in San Diego. You must be ready with your other workout options

Real estate chaos hits appraisal industry

Instability in the region's housing market is making it difficult to determine values, according to mortgage brokers and real estate appraisers. "It's miserable," said Karen Mann, who runs a small East Bay appraisal firm called Mann & Associates. "I've been in the business 28 years, and this is the worst downturn I've seen."

While Mann's Discovery Bay office is in one of the hardest-hit parts of the Bay Area, appraisers in San Francisco and other places where the market has fared better echoed many of her concerns. "They are shooting down the value of appraisals like I've never seen before," said Rick Gordillo, whose practice specializes in residential real estate. "It's almost as if they don't want the business. They are turning away loans even when the values are there."

Even seemingly low appraisals are being questioned by lenders, who have been burned by the mortgage crisis and are now scrutinizing loan applications with much more care, said Ed Craine, vice president of the California Association of Mortgage Brokers.