Posted on: 21st Mar, 2011 08:59 pm
I am considering filing suit against our appraiser. We refinanced our home through the VA, and we (me, our lender, and former real estate agent) disagreed with the appraised price, based on 1) she calculated 200 square feet less then we have and as a result 2) the comparables changed which lowered the value by $20000. When we appealed, she said she would write a new report based on the new information (detailed measurements and new comparables, and one week later submitted the same report with no changes. She mislead us that she would write a new report. Do we have a case?
Hi Guest!
Welcome to forums!
It will be better to contact a real estate attorney and check out if you can file a lawsuit against your appraiser. If the appraiser is wrong, then you will be able to file a lawsuit against her.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
It will be better to contact a real estate attorney and check out if you can file a lawsuit against your appraiser. If the appraiser is wrong, then you will be able to file a lawsuit against her.
Feel free to ask if you've further queries.
Sussane
You can try talking to an attorney, but most likely they will tell you that the case is pretty weak. For example, you say that you, your lender, and your real estate agent disagree with the value. The problem is that none of the people you just named are disinterested third parties. You would need multiple measurements done by disinterested third parties to prove negligence or improper methods by the appraiser on how the property was measured. Then you would need an additional appraisal completed by another appraiser (disinterested and an experienced expert witness) to show the difference in value opinion as well as evidentiary support that shows 200 square feet is a $20,000 adjustment in your market.
The bottom line is that the appraisal is an opinion. Another appraiser is allowed to have a difference of opinion and there is nothing illegal about it. The only area the law can help is if the appraisal was fraudulently completed, meaning that it was done with the intent to mislead you, or if there was negligence or incompetence on the part of the appraiser. All of these are very difficult to prove. After all of that, for now, your only financial loss is the appraisal fee.
The bottom line is that the appraisal is an opinion. Another appraiser is allowed to have a difference of opinion and there is nothing illegal about it. The only area the law can help is if the appraisal was fraudulently completed, meaning that it was done with the intent to mislead you, or if there was negligence or incompetence on the part of the appraiser. All of these are very difficult to prove. After all of that, for now, your only financial loss is the appraisal fee.
Thank you for the voice of reason, Ben. We see far too many frivolous lawsuits, and it's pretty clear that this trio that objects to the assigned value of the property have a vested interest in the value.
Next thing you know, they'll sue underwriters for not using overtime income to qualify a borrower, even if it's not steady.
Next thing you know, they'll sue underwriters for not using overtime income to qualify a borrower, even if it's not steady.
The VA handles appraisals differently then other mortgage types, and oversees the appraisal process. Your Loan Officer should contact the VA and file a complaint.
I am currently trying to sell my home so that my husband and I can purchase a new home on a lake. Our home sits in a lake neighborhood with beach access. We have updated almost everything. It went on the market in the $240's and within 3 days had offers. We had a signed PA with check in hand for $235 within a week of listing. We were thrilled. Inspection--perfect. Then the appraisal!!! We had recently had an appraisal done for a refi ( we then saw the new home and decided to pursue it!) that appraisal was for $240. So we thought we would be fine.
Ummm...no go. This clown said, $190!! He put us up against every foreclosed home or short sale in the area. He didn't find a single comp to my home that made sense. A $50 thousand dollar difference!!!
His behavior was also inappropriate. Arrogant, condesending and was talking about my bed.... where was he going?!? He even copied a portion of my refi appraisal for his report!!!
Unethical!!! I have filed an official complaint with the state of michigan and am fighting but what amazes me--is this one buffoon could blow this whole deal--commissions for 3 realtors, builders working on the new property.... this is just wrong and i feel something needs to be done in Washington about it!!! But what? Who do I call or write?
A frustrated seller--who is trying to help the economy!
Brenda
Ummm...no go. This clown said, $190!! He put us up against every foreclosed home or short sale in the area. He didn't find a single comp to my home that made sense. A $50 thousand dollar difference!!!
His behavior was also inappropriate. Arrogant, condesending and was talking about my bed.... where was he going?!? He even copied a portion of my refi appraisal for his report!!!
Unethical!!! I have filed an official complaint with the state of michigan and am fighting but what amazes me--is this one buffoon could blow this whole deal--commissions for 3 realtors, builders working on the new property.... this is just wrong and i feel something needs to be done in Washington about it!!! But what? Who do I call or write?
A frustrated seller--who is trying to help the economy!
Brenda
What type of loan is it? FHA, VA, USDA or Conforming?
A diatribe, no doubt...but "clown" and "buffoon" seem a tad strong. Was he wearing a big red, fake, nose? How did the appraiser obtain a copy of the appraisal done for the refinance? That sounds truly odd.
I doubt highly that a letter to DC is going to stir up any sympathy for you. Maybe the real buffoon was the appraiser who told you that the value of your home was $240K. Can you truly look out there and see properties that are comparable to your own that are selling in that range...and has it been recently?
I don't mean to rain on your proverbial parade, honestly. But we all know that appraisers don't agree in every case with other appraisers. What about the realtors who you may have spoken with? Are any of them on board with $240K or on board with $190K?
As for his behavior, there's no excuse, and that ought to certainly warrant a complaint letter. Will it result in much of anything, though? I doubt it, because these attributes are awfully difficult to document and prove, unless there's a precedent already established with regulators.
I doubt highly that a letter to DC is going to stir up any sympathy for you. Maybe the real buffoon was the appraiser who told you that the value of your home was $240K. Can you truly look out there and see properties that are comparable to your own that are selling in that range...and has it been recently?
I don't mean to rain on your proverbial parade, honestly. But we all know that appraisers don't agree in every case with other appraisers. What about the realtors who you may have spoken with? Are any of them on board with $240K or on board with $190K?
As for his behavior, there's no excuse, and that ought to certainly warrant a complaint letter. Will it result in much of anything, though? I doubt it, because these attributes are awfully difficult to document and prove, unless there's a precedent already established with regulators.