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Shelly,
Thanks for explaining VA's process to me. So just to make sure I'm understanding you, the appraisal only needs to come in at the mortgage amount? Therefore if your clients are buying a 700k home and putting 500k down with a 200k mortgage you are told that the house appraises for the 200k mortgage. What it the actual number is 589k and your clients are paying 700k for this house. Do you not know the 589k figure, you are just told that the home appraises out to meet the mortgage amount?
I just worked with relo buyers from VA and they still can't sell their home. They are so frustrated, it has been almost a year and a half for them!
Thanks for helping me wrap my brain around this.
no appraisal has to come in at purchase amount, as our purchase agreement states. If it doesn't come in at purchase amount, then the purchaser and buyer can go back to the table and negotiate. As per our purchase agreement. And the mortgage company is going to alert the buyer and the agent, if the appraiser hasn't already called the listing agent.
However, in the example that you described, the lender probably offered a "drive by" appraisal as well to save the money ( I don't recommend it in this market). I mean the mortgage company doesn't care, do they? If it is a good borrower (credit wise) and they are putting that much down... Mortgage company is going to get theirs.
Where in VA is your buyer trying to sell? Some parts of the state are worse than others. Northern Va. is particularly tough right now.
In Va. you are entitled to a copy of the appraisal. This is true in most states. Unfortunately you are probably dealing with some very aggressive people who are used to getting their way, especially with timid buyers. Tell them you want a copy or you will make a report. THEY will give it to you. I am concerned that they don't want to give it to you. WHY???? Is it for less than you paid? Does it have conditions such as "Subject to repairs", that may not have been done. Did you pay them to pay for the appraisal. Many times they are charging much more than they are paying out. I am curious how this turns out and would be interested in the outcome. You can write to me at this time/temporarily @ sjshannon@aol.com SUBJECT: APPRAISAL
It seems I'm in agreement with the majority. The fact is the bank does own the appraisal untill you pay for it. I've never heard of a buyer getting the appraisal before closing - but it could happen. I've just not had such a deal.
Here in Colorado, the standard contract states that the appraised value must come in at the sale price (or above). If it doesn't the buyer may withdraw.
Did you pay for it upfront or did the bank spot the money and you are paying for it at closing? If you paid, it's yours. If not, it's theirs until closing.
Did you pay for it upfront or did the bank spot the money and you are paying for it at closing? If you paid, it's yours. If not, it's theirs until closing.
Wrong.
I know this thread is 2 years old, but there seems to be some confusion here. Federal law states that the appraisal is done for the LENDER, not the borrower. It essentially belongs to the lender, and although there might be rules or regulations requiring the lender to provide a copy to the borrower at their request, the appraisal itself, along with all of the rights and privileges it may carry, belong to no one but the lender. Of course most lenders don't mind providing a copy, and anyone can order an appraisal for their own personal use. I am an appraiser, and I cannot under any circumstances, release a copy of an appraisal to a borrower or anyone else without the full approval of the lender who ordered it. Doesn't matter who paid for it.
If the lender is the "Client" they own the appraisal and no one can be provided with a copy without their (I suggest written) authorization. I have even watermarked in red "CONFIDENTIAL" and within 15 minutes got a screaming phone call from an agent who said "I'm looking at this appraisal, that I just got from the lender". This is pretty strange that often the lender immediately provides it to agents and refuses it to the borrower, who is entitled to it. But it is a play on power and ignorance and as long as buyers/sellers/agents/lenders and unfortunately even some appraisers don't know or understand it will be this way. In my experience and opinion, lenders don't give it to borrowers because they don't want them to see anything that might cause a problem/question.
The best thing you can do is have your agent do a CMA that's what the appraisers do anyway
or have your own appraisal but like I said your agent can do it for free
Think again. There is a HUGE difference between a CMA and an appraisal.
Nevermind....just realized this thread is almost 2 years old.
Yeah, I wish I had read through the entire thread before I posted my previous message LOL
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