[maga1013]

I am working with a mortgage lending compnay in Mout Pleasan, Michigan. This compaany works with many lenders to get us the best rate, and loan product. The appraisal was done for my house, but the lending company denies the appraised value of my house. The appraiser was sent bythe lender, but the lender believes that the appraisal value was over stated. Lending company says that they cannot lend me loan, its because they don't believe that my house is worth that much. My question here would be, could the lender deny the appraisal, being the fact the appraiser was sent by them? I spent $400 to do the appraisal. What can I do at this point? Thanks.

[caspper69]

Originally Posted by maga1013

I am working with a mortgage lending compnay in Mout Pleasan, Michigan. This compaany works with many lenders to get us the best rate, and loan product. The appraisal was done for my house, but the lending company denies the appraised value of my house. The appraiser was sent bythe lender, but the lender believes that the appraisal value was over stated. Lending company says that they cannot lend me loan, its because they don't believe that my house is worth that much. My question here would be, could the lender deny the appraisal, being the fact the appraiser was sent by them? I spent $400 to do the appraisal. What can I do at this point? Thanks.

You are entitled to the appraisal report, but since you are not the appraiser's client (the bank is), you cannot use it again. I know it doesn't make sense, but that's the way the industry works. Banks (and brokers, by extension) will not pay a $400 fee for an appraisal for every Tom, Dick and Harry that walks in the door. But since the way USPAP works (Uniform Standards of Professional Appraisal Practice), only the client may rely on an opinion of value (i.e. the person that engaged the appraiser's services directly).

And of course, since the crash, Brokers are no longer allowed direct contact with the appraiser at all.

So the long and short of it is you're SoL. You can try a different bank or broker, and hope they retain a different appraiser. It's likely that there have been too many comps in your area that undermine the value of your home. Or it could be that the appraiser they hired just did a crap job with the comps. Who knows. But now a lot of banks' underwriting departments are scrutinizing every report and may run additional AVM (automated valuation models) on the property to make sure the appraiser isn't stretching the value of the property.