The Chandlers tax estimate from 2016 was 159.000$ and according to Zillows, the house would be worth 176.000$ right now.
Any financial institution is most likely not going by the tax assessed value. While government assessors do take into account certain aspects of condition in their calculus, it behooves them to err on the higher side, as it will maximize their tax revenue. (Speaking of which, I wonder how they are on their property tax payments. If they're sufficiently far behind, Greene County could repossess and/or sell the property for taxes. I am intimately familiar with how tax sales work in my state, but every state and often different counties within states have different practices.)
Also, it relies a lot more on comps in the neighborhood and local market trends/averages than a brutally honest individual broker or assessor's appraisal would be. When we're assessing properties for our own investments or for clients at my firm, we rely way more on our broker/property manager's opinion of the facts on the ground, driving by the property, observing, etc. Lot of variables go into the "true" (and honest) valuation of real estate in that regard. Tax assessed value is a useful data point but only to an extent.
Another thing I'd like to point out -- personal soapbox here -- is that Zillow's data is often utter shit. They run algorithms that just trawl realtor listing services and things like that and are often very inaccurate on their data due to the sloppy, quantity-over-quality way they gather them. GIGO.
All that said, imagine this scenario. Someone deep within the bowels of the mortgage company that holds the Chandler loan is tasked with writing up the report in advance of their decision on foreclose-or-write off. They type "14 Branchland Court" into Google and, about to finish typing their query with "tax assessment" or "property card" or some such, lo and behold, to their surprise, Google is a couple of steps ahead of him, suggesting some pretty bizarre stuff to him... a smelly, autistic rabbit hole awaits his innocent click... not that he would put any of this stuff in his report, but still, what data he can glean from the condition of this
extensively documented property is enough to make his decision for him.
I feel sorry for that employee already.