Posted on: 06th Feb, 2010 01:29 pm
i figured i was in a good position to refinance my house, of course regardless of your position the loan officer will make you think so. so we went through the whole process including me putting down a $500 deposit. everything was good to go until the appraisal came back. i bought the house a year ago for $140k, the house at that time was appraised at $155k. the appraisal this time came back at $140k. obviously makes no since for me to refinance in order to get a lower rate now. my question is can i request to have the full $500 credited back even though the loan technically was not denied, we just did not move forward with it because of the appraisal. the loan officer says i will get it back minus the cost of the appraisal and credit reort. i will get $120 back. i did not anticipate the value of my home dropping like that, $15k in one year, but i feel the loan officer, who has probably been through this same scenerio a few times should have anticipated it and should have not even allowed me to go through with it. what can i do, who should i speak with about getting the full deposit back?
Appraisers are to remain objective, impartial and unbiased. The appraiser has conducted a service and still needs to get paid even if the value of the home is less than desired. Same with the credit report, it is an upfront cost that is probably already disbursed and neither can be refunded.
For your lender to reimburse you for the full deposit, it would be taking the money out of their own pocket. Probably not going to happen. This is why they ask for money from you up front. However, the risks should have been communicated to you at that time.
For your lender to reimburse you for the full deposit, it would be taking the money out of their own pocket. Probably not going to happen. This is why they ask for money from you up front. However, the risks should have been communicated to you at that time.
On a side note, I would probably be less likely to believe that the value has dropped 15k in one year unless you are in a severely declining market but perhaps the first appraisal was a little high.
Also, according to you, the loan was not necessarily denied, but YOU decided not to move forward because of the appraisal. My question is why does it no longer make sense to get a lower rate?
Also, according to you, the loan was not necessarily denied, but YOU decided not to move forward because of the appraisal. My question is why does it no longer make sense to get a lower rate?
I agree with ben your value very well could have dropped $15k in a year. My home in south florida decreased close to $100k in the past 12 months. But I do not understand why the value coming in where did doesnt constitute getting a lower rate. At the end of the day saving some money each month is the goal, right?
an astute loan officer would attempt to obtain an opinion of value prior to an actual appraisal, if any of you thought that there was a chance of a low value on the report. that would have cost you nothing - i guess your loan officer didn't have that notion.
but by the same token, it's not up to a loan officer, specifically, to be able to advise you of the value of your home. that's the job of an appraiser. and once an appraiser has been chosen and the inspection is completed, there's no going backwards. that person must be paid for the work completed, as it's only fair, after all.
even if your loan was declined due to low value, which i would have to believe was the case in fact, you wouldn't be due any funds back other than what you're receiving. again, the appraisal is independent of the lender, and the appraiser was hired by the lender to perform that service, and must be paid. lenders can certainly rebate an appraisal fee if they see fit to do so, but it ought not to come out of the loan officer's pocket.
but by the same token, it's not up to a loan officer, specifically, to be able to advise you of the value of your home. that's the job of an appraiser. and once an appraiser has been chosen and the inspection is completed, there's no going backwards. that person must be paid for the work completed, as it's only fair, after all.
even if your loan was declined due to low value, which i would have to believe was the case in fact, you wouldn't be due any funds back other than what you're receiving. again, the appraisal is independent of the lender, and the appraiser was hired by the lender to perform that service, and must be paid. lenders can certainly rebate an appraisal fee if they see fit to do so, but it ought not to come out of the loan officer's pocket.
>>My question is can I request to have the full $500 credited back even though the loan technically was not denied,
No.
No.
We never went through with our loan, the appaiser never came, we cancelled with him. Can the fee that the company wanted so quickly be refunded if the appraisal was never done.
sue, you definitely ought to be able to recoup the fee you paid. yes they do want it so quickly, but part of the reason behind that is to provide the best of service for you as a buyer/borrower.
by the same token, they should be just as prompt in returning those funds to you. inasmuch as the appraisal fee is to go only to the appraiser for the job performed, your lender would have no reason to retain it. stay on them, as busy departments often overlook things like this all too easily.
by the same token, they should be just as prompt in returning those funds to you. inasmuch as the appraisal fee is to go only to the appraiser for the job performed, your lender would have no reason to retain it. stay on them, as busy departments often overlook things like this all too easily.