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info on appraisals and escrow

Posted on: 30th Mar, 2007 09:21 am
who decides the appraisal company.borrower or lender
Normally it is the lender who will order the appraisal. Lender will give you a copy of the appraisal at closing.
Posted on: 30th Mar, 2007 10:59 am
Hi Simran,

Welcome to the forums.

The lender may appoint a licensed appraiser just before the closing in order to determine the value of your property.

If you wish to appoint an appraiser for yourself, you may request the lender for it.

Thanks,
Jerry
Posted on: 31st Mar, 2007 02:52 am
we were trying to refinance our home with a company that we have dealt before. they have inflated the appraisal not once but twice. i have decided not to go with this company but approached another broker who was ready to service us with the best that he could put in. but he says we should take action against the company. just not leave them as it is. i was just wondering what else could we do. if i wasn't smart enough, i would have let the company do the appraisal again and then god knows what we could have ended with. with the second mortgage, we ended up owing up more than 57k than my house is worth. what should i do, is it possible that i charge them some money through some legal action as they wasted our time and we even lost our money that we've accumulated as savings to start off paying the loan.
Posted on: 15th May, 2007 05:34 am
"But he says we should take action against the company. Just not leave them as it is. "

He is right. You should immediately contact an attorney and discuss this whole issue. But do you have valid documentation to prove that the appraisal was indeed inflated by this company you have mentioned?

If you do then you have a very good case and would also be able to recover financial losses from them.

Miller
Posted on: 15th May, 2007 06:42 pm
[We were trying to refinance our home with a company that we have dealt before. They have inflated the appraisal not once but twice. I have decided not to go with this company but approached another broker who was ready to service us with the best that he could put in. But he says we should take action against the company. ]

You should file a lawsuit against them, it is a fraud to inflate the appraisal. levi
Posted on: 16th May, 2007 03:22 pm
Hi MJ,

Couple questions. How do you know the appraisal was inflated? Do you think the lender has altered the appraisal or the appraiser inflated the value?

For the lender & appraiser to inflate an appraisal is a violation of many laws obviously and you DO have a right to go after them. I guess the question is, has the inflated value hurt you or your financial situation?

If not, it might be best for your time to just file a complaint with the state board of appraisal and contact the mortgage bankers association and file a complaint. If it has hurt your financial position and you can prove the appraisal was inflated, call a lawyer to take action.

Best of luck. Usually to determine if the appraiser was purposely trying to inflate a homes value they will hire a couple review appraisals based on the date of the original appraisal.

Best of luck,

Mike
Posted on: 16th May, 2007 04:55 pm
Well i got it reviewed by another appraiser. Ok, so you mean that the state board of appraisal will take care of the appraisal and review it. I really don't wanna go into this review again as it has already cost me a lot. But Mike, how long doe sit take for the state board to review the appraisal?
Posted on: 17th May, 2007 05:58 am
There's no such specific time period. It will depend more on the appraiser.
Posted on: 18th May, 2007 03:25 am
"Well i got it reviewed by another appraiser. Ok, so you mean that the state board of appraisal will take care of the appraisal and review it. I really don't wanna go into this review again as it has already cost me a lot. But Mike, how long doe sit take for the state board to review the appraisal?"

How far off was the appraisal compared to the review appraisal you had done? Was there more than a 5-10% difference? Was the review appraisal pretty clear that the other appraiser inflated the value?

I've seen appraisers be 50k off from each other and there was no pressure on either of them to inflate a value or hit a lenders value. appraisals are not science, but rather an opinion of value.

It really depends on your state board on how long investigations take. Some are very swift and go after fraud aggressively while others (not naming states!) are really lacking and will likely do nothing about it.

What the state board will do is first you fill out a complaint form and indicate what the complaint is about, second they will contact the appraiser by mail and let them know a complaint against them has been filed. 3rd they will hold a board meeting to discuss if they found any wrong doing, if they do then they will discuss penalties.

If you're personally looking to get something out of it then this is not the way to go. You will need to get a lawyer.

If it was me I would go to the state board to file a complaint, if they find wrong doing then that means you have a basis for a law suit, if needed.

Best of luck :)
Posted on: 18th May, 2007 01:33 pm
yeah Mike, the difference was around 25%. And I have just decided that i will have to file the complaint no matter what happens and how long it takes.
Posted on: 22nd May, 2007 12:47 am
25% is way too much, doesn't mean its inflated purposely but someone is obviously far off mark. Let us know what they board does and your state if you don't mind.

Thanks
Posted on: 22nd May, 2007 09:12 am
yes, the lender have more power to decide the appraisal company,because he is lender, you are a borrower.
Posted on: 08th Oct, 2007 07:27 am
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