Posted on: 01st Jul, 2011 04:40 pm
Hi,
We're refinancing. One appraiser (residing an hour away and spent <15>90 minutes on site). Can I, and how can I, get a refund for the bad appraisal?
We're refinancing. One appraiser (residing an hour away and spent <15>90 minutes on site). Can I, and how can I, get a refund for the bad appraisal?
Welcome BenJammin,
Well... that's difficult to say. If you wish, you can file a lawsuit against the appraiser. You should contact an attorney and he will guide you further in this regard.
Well... that's difficult to say. If you wish, you can file a lawsuit against the appraiser. You should contact an attorney and he will guide you further in this regard.
Can I just stop credit card payment?
Hi BenJammin,
If you stop your credit card payments, the creditor may take legal actions against you. He may even charge off the account and send it to collections who can harass you for the payments.
Thanks
If you stop your credit card payments, the creditor may take legal actions against you. He may even charge off the account and send it to collections who can harass you for the payments.
Thanks
You have to deal with some expert since in your case, we should be looking at different areas since there are factors that might affect getting a refund like in your case. You should provide more information and let an expert analyze your problem well.
Most of my initial post was omitted, for some reason.
Anyways, the bad appraisal comped houses in a lower value area resulting in a $405K appraisal. Another appraisal, assigned to the lender I ended up closing with, comped houses in our area resulting in a $490K appraisal.
Hope this helps.
Not happy with having to pay for blatantly unfair appraisal.
Anyways, the bad appraisal comped houses in a lower value area resulting in a $405K appraisal. Another appraisal, assigned to the lender I ended up closing with, comped houses in our area resulting in a $490K appraisal.
Hope this helps.
Not happy with having to pay for blatantly unfair appraisal.
Hour away is notthe end of the worl may be higher priced but what were the relative age of the for the appraisal you liked and the $405K? How did the MC section of both appraisals read? You can supply additional comps if you disagree with the appraised value. Did you? Out of curiosity what is the tax value of your home? Not an infallible indicator of value but gives some perspective. How was the of sale prices of comps?
You supplied enough detail to guess which appraisal, $405K or $490K, is th Best guess is yourying to get a refund.
You supplied enough detail to guess which appraisal, $405K or $490K, is th Best guess is yourying to get a refund.
I'll answer what I can.
Since I don't know what is meant by "relative age of comps," I'll give you age of house and date of sale:
Subject property age: 58
$490K Comps:
Age: 24 Date of sale: 3/22/11 Adjusted price: $489K
56 " 5/16/11 " $488K
54 " 5/2/11 " $504K
58 Listing date: 4/21/11 " $524K
50 " 4/29/11 " $510K
$405K Comps:
Age: 58 Date of sale: 12/2/10 Adjusted price: $405K
49 " 11/3/10 " $409K
63 " 2/10/11 " $401K
57 Listing date: 5/27/11 " $410K
62 " 4/11/11 " $413K
57 " 4/18/11 " $426K
Current assessed tax value: $481K (I guess this should make me even more happy w/$490K appraisal).
I don't know what is MC section.?
I did supply additional comps to the lender who had the bad appraisal assigned to them, including comps used by the $490K appraiser. They were apologetic and said they would look into it. I told them then they only had a couple days to rectify because closing date was approaching for competing lender w/$490K appraisal. This was last week and I haven't heard back. Needless to say, I'm closing w/the $490K appraisal lender, even though $405K appraisal lender's offer was $2K more attractive. So, at this point I just want my $385 appraisal fee back for the bad appraisal. I inquired about it with the credit card company I paid w/ which stated I need to at least try to contact vender before filing a claim. I did so today in writing to the appraisal management company who provided the invoice, (well, emailed letter to customer support); not to the lender, nor the appraisal co./appraiser himself. Any other suggestions? Thanks
Since I don't know what is meant by "relative age of comps," I'll give you age of house and date of sale:
Subject property age: 58
$490K Comps:
Age: 24 Date of sale: 3/22/11 Adjusted price: $489K
56 " 5/16/11 " $488K
54 " 5/2/11 " $504K
58 Listing date: 4/21/11 " $524K
50 " 4/29/11 " $510K
$405K Comps:
Age: 58 Date of sale: 12/2/10 Adjusted price: $405K
49 " 11/3/10 " $409K
63 " 2/10/11 " $401K
57 Listing date: 5/27/11 " $410K
62 " 4/11/11 " $413K
57 " 4/18/11 " $426K
Current assessed tax value: $481K (I guess this should make me even more happy w/$490K appraisal).
I don't know what is MC section.?
I did supply additional comps to the lender who had the bad appraisal assigned to them, including comps used by the $490K appraiser. They were apologetic and said they would look into it. I told them then they only had a couple days to rectify because closing date was approaching for competing lender w/$490K appraisal. This was last week and I haven't heard back. Needless to say, I'm closing w/the $490K appraisal lender, even though $405K appraisal lender's offer was $2K more attractive. So, at this point I just want my $385 appraisal fee back for the bad appraisal. I inquired about it with the credit card company I paid w/ which stated I need to at least try to contact vender before filing a claim. I did so today in writing to the appraisal management company who provided the invoice, (well, emailed letter to customer support); not to the lender, nor the appraisal co./appraiser himself. Any other suggestions? Thanks
In the $490K appraisal you have surprisingly current comps desirable but unusual in this day and age. This is a for the higher appraisal. The boundaries are indicated about of the way down on the first page and depending how the neighborhood was defined, its hard to believe the appraiser missed these unless there are some radical differences from style, size, etc. on your home.
The MC section is a separate page and follows the comp page. Basically is trends and an overall picture of the neighborhood market. I was cool on this section when it came out but find it somewhat informative now.
Bracketing is what killed you on the low appraisal. Ideally you want comps with a sales price slightly lower, slightly higher, and about the same. You could have a point that the first appraiser had a preconceived notion of the value on your home and choice of the comps then supported it. Id keep pressing for an answer to the comps you supplied -- $2,000 is $2,000 after all.
I tend to have a lot of faith in appraisers and if anything, think the ones we use occasionally come back with overvaluations. Since nothing other than bracketing seems to stand on in the low appraisal and appraiser has been slow to get back, I reluctantly am suggesting. Go to closing with the low-appraisal lender and immediately rescind the transactio deliver the rescission notice with receipt. Lender must give you the money back. I feel like a traitor suggesting this but m starting to agree with you that the first appraisal was a bit screwy.
The MC section is a separate page and follows the comp page. Basically is trends and an overall picture of the neighborhood market. I was cool on this section when it came out but find it somewhat informative now.
Bracketing is what killed you on the low appraisal. Ideally you want comps with a sales price slightly lower, slightly higher, and about the same. You could have a point that the first appraiser had a preconceived notion of the value on your home and choice of the comps then supported it. Id keep pressing for an answer to the comps you supplied -- $2,000 is $2,000 after all.
I tend to have a lot of faith in appraisers and if anything, think the ones we use occasionally come back with overvaluations. Since nothing other than bracketing seems to stand on in the low appraisal and appraiser has been slow to get back, I reluctantly am suggesting. Go to closing with the low-appraisal lender and immediately rescind the transactio deliver the rescission notice with receipt. Lender must give you the money back. I feel like a traitor suggesting this but m starting to agree with you that the first appraisal was a bit screwy.
"Dirty pool" describes it well. However, I will say that the bad appraisal only comped 3 bed, 1.10 bath homes. Ours is 3 bed 1.5 bath (3/1.10 on appraisal). The good appraisal was more flexible with that -and adjusted prices accordingly.
Bad appraisal lender never got back to us, and we've already closed w/good appraisal lender -so your advice about rescinding is well received, but isn't going to happen. Thus far, I'm going the route of appealing directly with the appraisal management company for the $385 refund, then to AmEx -still curious if you would agree that is the best route at this point.
Bad appraisal lender never got back to us, and we've already closed w/good appraisal lender -so your advice about rescinding is well received, but isn't going to happen. Thus far, I'm going the route of appealing directly with the appraisal management company for the $385 refund, then to AmEx -still curious if you would agree that is the best route at this point.
let me see if i am understanding this correctly. you ended up applying for a refinance loan with two different lenders and got two different appraisals.
the lender with the best loan terms that would have saved you $2000 in closing costs (everything else the same - loan term/rate?) you passed on because of the appraisal and you went with another lender whose appraiser came in with a higher value even though the loan cost you more money? doesn't make sense if this is what happened.
as long as you got the loan with rate/terms you wanted why would you switch lenders? that would be like throwing the baby out with the bath water. maybe i am missing something and if so would be interested in knowing what it is.
the lender with the best loan terms that would have saved you $2000 in closing costs (everything else the same - loan term/rate?) you passed on because of the appraisal and you went with another lender whose appraiser came in with a higher value even though the loan cost you more money? doesn't make sense if this is what happened.
as long as you got the loan with rate/terms you wanted why would you switch lenders? that would be like throwing the baby out with the bath water. maybe i am missing something and if so would be interested in knowing what it is.
jimgilly:
Here's some additional info to shed more light:
Both lenders offered same loan term/rate. Only difference: one lender (w/$405K appraisal) offered, in addition, $2K credit towards closing costs.
Current loan balance: $397K.
In order to avoid paying PMI, appraisal would have to be at least $497K.
As it is, with the $490K appraisal lender I have to bring an extra $5K to the table to lower the LTV to 80% to avoid PMI.
No way in heck I could bring $92K to the table to do the same with the lender with $2K better closing cost deal, but worse, or shall I say faulty, appraisal ($405K).
I don't know if this lender would have even wanted to continue after their appraisal result. My status with them is in appraisal appeal/debate/now request for bad appraisal fee refund ($385) stage.
Here's some additional info to shed more light:
Both lenders offered same loan term/rate. Only difference: one lender (w/$405K appraisal) offered, in addition, $2K credit towards closing costs.
Current loan balance: $397K.
In order to avoid paying PMI, appraisal would have to be at least $497K.
As it is, with the $490K appraisal lender I have to bring an extra $5K to the table to lower the LTV to 80% to avoid PMI.
No way in heck I could bring $92K to the table to do the same with the lender with $2K better closing cost deal, but worse, or shall I say faulty, appraisal ($405K).
I don't know if this lender would have even wanted to continue after their appraisal result. My status with them is in appraisal appeal/debate/now request for bad appraisal fee refund ($385) stage.
That's the missing piece you left out before that explains your situation. Guess your best case would to do what you are doing though this is a legal issue and requires legal advice.
As a side note, if you did have the opportunity, I don't know what the purpose of going through closing with the low appraisal lender would have accomplished, only to turn around and file a rescission as one poster suggested. Perhaps he/she can comment further on this as I'd like to know what the benefit would have been.
As a side note, if you did have the opportunity, I don't know what the purpose of going through closing with the low appraisal lender would have accomplished, only to turn around and file a rescission as one poster suggested. Perhaps he/she can comment further on this as I'd like to know what the benefit would have been.
The "possible" benifit of closing and rescinding that rescission guidelines state that in such a case everyhting must be refunded that was paid and the Borrower needs to be made whole as if nothing ever occurred.
I am sure there are lenders who would refuse to refund third party fees paid. The it becomes a legal as to what the rescission guidleines really mean and who has to refund what. It may or may not have accomplished the suggested goal.
I am sure there are lenders who would refuse to refund third party fees paid. The it becomes a legal as to what the rescission guidleines really mean and who has to refund what. It may or may not have accomplished the suggested goal.
How in the world could there be any benefit by closing with a lender you are not going to keep the loan with only to turn around and then go with your second option anyway? Please explain this because I can't seem to follow the logic on this.
OK, it just dawned on me the rescission was to subject the lender with the $405,000 appraisal to refund the appraisal fee. From my understanding of the law the lender would be required to refund any and all fees paid by the borrower which would include the appraisal fee.
What I focused on was the OP stating he didn't have the funds ($92,000) that would have been required to pay down the loan to avoid PMI in the first place. Of course, if he knew he was going to rescind then he could have opted for bringing the lowest amount to the closing table, whether or not that would have been an ethical thing to do.
Even had he not already closed, this hardly would seem to me to be worth the hassle in order to get the low appraisal lender to refund back the $385.00 for the appraisal. I would be interested in knowing if he gets a refund at a later date by taking the steps he mentioned.
What I focused on was the OP stating he didn't have the funds ($92,000) that would have been required to pay down the loan to avoid PMI in the first place. Of course, if he knew he was going to rescind then he could have opted for bringing the lowest amount to the closing table, whether or not that would have been an ethical thing to do.
Even had he not already closed, this hardly would seem to me to be worth the hassle in order to get the low appraisal lender to refund back the $385.00 for the appraisal. I would be interested in knowing if he gets a refund at a later date by taking the steps he mentioned.