A second appraisal from out the blue (real estate, recourse, refinance)
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I recently had an appraisal done for a refinance. The appraisal came back just fine and I thought everything was ready to go. Yesterday almost a month after the first appraisal was completed I get a second updated appraisal and that appraisal comes back at a price $70,000 less than the first appraisal. The second unsolicited appraisal was not asked for by the mortgage company and they said they have never seen anything like this before. Needless to say they aren't happy. The second appraisal uses a completely different set of comparables and the comps that they use in my opinion, they should not have. The funny thing is since the first appraisal was done there is a house on the market in the neighborhood for approximately the same price as the first appraisal. It just seems really weird to me, something isn't right. Just curious on if you guys ever run into this before or have any suggestions.
That's the weird thing. It seems to have been the company that assigned the original appraisal. The bank did not. The bank said this has never happened before.
It is very weird. I emailed the apprriser. I do not expect to hear back. The same guy did both appraisals. 3 weeks apart and 70k less. Obviously something going on. And as I said earlier, a inferior house in our development is on the market for the same price as the original appraisal.
It is very weird. I emailed the apprriser. I do not expect to hear back. The same guy did both appraisals. 3 weeks apart and 70k less. Obviously something going on. And as I said earlier, a inferior house in our development is on the market for the same price as the original appraisal.
The whole thing sounds very corrupt. The first appraisal should be the one used since most are good for 90 days depending on where you're house is.
Maybe he found out his original information was wrong. You were making serious financial decisions and commitments based on the first report. Decisions like giving notice or making arrangements for those funds. I would file a complaint with the whoever handles appraisal ethics and the CFPB, and the ethics committee for the Board of Realtors. Since this involves real estate transactions (comps) there could have been other transactions affected by bad information. Most appraisers have real estate licenses, and are members of the local boards for lockbox access.
Even though the appraisal is for the lender, you could have realized damages. You could have committed funds from the refi, or turned down other offers for funds. $70,000 is more than a typo and it sounds like no one is providing you with an explanation. What did it do to your rate? Was it for VA, FHA or USDA?
With the new appraisal I won't qualify for the refi. I appreciate everyone's advice. Very frustrating. When I read the addendum it said that the appraiser was provided 4 additional comps after the first appraisal from the lender to use and he admitted that they were given the most weight. All were inferior properties. It really doesn't make sense.
With the new appraisal I won't qualify for the refi. I appreciate everyone's advice. Very frustrating. When I read the addendum it said that the appraiser was provided 4 additional comps after the first appraisal from the lender to use and he admitted that they were given the most weight. All were inferior properties. It really doesn't make sense.
WOW, I've never heard of such a thing. I had my house refi done about 4 months ago. The appraisal was done and the refi went through no problem. There was one appraisal, that's it.
It's crazy, one way or the other the appraiser was influenced. Just not sure I have any recourse. Might get a 3rd appraisal but at this point not sure it's worth it. FWIW, the bank is pissed. They said it never happened before.
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