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The Appraisal Saga

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billpayer
Member

The Appraisal Saga

In my previous message regarding my judgment I mentioned that the appraisal was $4000 less than the contract price.  Sellers agreed to lower the price and we amended the contract and file sent to under writing. That was almost 2 weeks ago. Apparently the bank underwriters had questions about the appraisal that the apraiser had to answer. The appraisal had on it that I would recieve a 5k credit from the seller-I will not and I never had that written in the contract but that had nothing to to with the appraisal so it was just wrong information on the form. The appraiser had to correct this wrong information and answer some questions about the comparables. They corrected the wrong information and when they answered the questions the underwriter was not satisfied with the answer so we are still waiting for the answers.

So to my mortgage guru out there please advise--what the heck is going on? Is this normal? This delay seems to be a pissing match between the underwriter and the appraiser and I am helpless to do anything. What I'm worried about is that when they finally resolve this issue they will come to me with some bs about not having all my documentation. This is making me crazy. Any advice mortgage gurus should I contact supervisors? What can I do? (btw I was supposed to close on September 30th)

Message 1 of 14
13 REPLIES 13
cdtotten
Established Contributor

Re: The Appraisal Saga

All you can do is wait, unfortunately. This isn't what I would consider normal, but happens a lot. Some underwriters have a stick up their rear sometimes. Good luck.


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Message 2 of 14
IOBA
Senior Contributor

Re: The Appraisal Saga

This is a very good reason why I don't think appraisers should have a copy of the ratified contract.   I mean, really, just how does it help them figure out the price of the home???

 

I am sorry your process is being dragged down by a mistake.

 

Hang in there, good luck, and here is your  "ARGH!!  Smiley Mad" membership pin.

Message 3 of 14
mamahearts
Frequent Contributor

Re: The Appraisal Saga

I'm sorry you have to deal with this and hopefully it'll get resolved sooner rather than later. 

I agree with you about the appraiser getting the contract.  My appraisal was done today and came in only $400 over the selling price.  I don't think that seems right.  But whatever at least it wasn't under!  Good luck to you!!!

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Message 4 of 14
Booner72
Senior Contributor

Re: The Appraisal Saga

I think that appraisals are a joke.   What the buyer and seller agree to pay is what it should be worth.   Government loans like FHA & USDA should require inspections to make sure the house is a sound investment, but the appraisals have to go, IMO.

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Message 5 of 14
IOBA
Senior Contributor

Re: The Appraisal Saga

Take that a step further....when people bought their home, they are definitely ok with the price!   They were willing to pay it, go into debt for the house, etc.

 

Now what really angers me is the people who are now crying, "Oh, I am underwater - the bank just needs to forgive the principle different [home worth and principle loan amount] AND they need to lower my interest rate cuz it's just not fair!"

 

Um, excuse me?   You wanted that house.   You agreed to pay the  bank xx amount for that house.   You refuse to move, get a room-mate, or do anything else to improve the loan bottom line.   You continue to tinker around the place.   And you want the bank to just GIVE YOU xxxxx in forgiveness cuz the market tanked???

 

Uh NO!   I find that sooooo wrong!

 

I can understand if you are struggling to make your payment, doing a loan modification or refinancing to a lower rate.   I have no problem with that.   But really, why should the bank "gift" part of the house cuz the market tanked?  I don't think they should!

 

*** I don't think I have read of anyone posting here that they want the bank to forgive part of the principle cuz they are underwater and it's just so unfair.   I do know several people who have continually cried that scenario.   I don't associate with them anymore.   Really, you can spend $1500 to throw a party, but you can't put that on your loan or into your property to improve the value?? ***

 

For almost everything we purchase, we loose value in it at some time or other.   And if you going to live in the house, who cares if it is underwater?  <---- financially, not literally    

 

Ya gotta live somewhere.

 

Ok, I am done about that.   I wonder what it would take for the policy to change so that appraisers don't have a copy of the ratified contract in hand  when they go do their job?   Anyone?

Message 6 of 14
Walt_K
Senior Contributor

Re: The Appraisal Saga


@Booner72 wrote:

I think that appraisals are a joke.   What the buyer and seller agree to pay is what it should be worth.   Government loans like FHA & USDA should require inspections to make sure the house is a sound investment, but the appraisals have to go, IMO.



This would never work.  There may be some valid criticisms to the appraisal process but the bank needs to protect its investment.  People could be willing to pay way over what a property is worth.  The bank wants to be sure it can get its money back if it has to foreclose.  They can't count on a second buyer being willing to pay what the first buyer paid if it is completely disconnected from any objective criteria.


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Message 7 of 14
frogfan12
Established Contributor

Re: The Appraisal Saga

The appraisal can hold everything up. Once I had my appraisal and it came in low, it went through a review process and almost caused me to lose out on the house. The bank issued me an ultimatum to have the seller agree to a new, lowered price or move on. My advice would be to stay on the bank. That's what got me to close within 45 days of being under contract. Otherwise, they will take as long as they please.


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Message 8 of 14
Anonymous
Not applicable

Re: The Appraisal Saga

I have some choice words about appraisals (last one came in $35k low and we lost the house) but I hope everything goes well for you!

Message 9 of 14
billpayer
Member

Re: The Appraisal Saga

UPDATE:  Last week on the 20th when I started this topic I was very depressed. The Appraiser had not answered the questions and the bank is just twiddling their thumbs and waiting. So I decided to very politely and very kindly harrass the heck out of this appraiser.  So I looked him and his company up on the internet and me and my attorney sent him very polite emails basically telling him to get off his duff and answer the questions.  The processor at the bank was very nice to send me a copy of the questions that they needed. Then I realized that the appraise was a sub sub contrator. The bank had contracted with a lender closing service who contracted with the appraiser from hell. So I contacted the lender closing service (sales and marketing was the only email address I could find for them) and they very kindly forwarded my letter to the vice president of client services who had an in office appraiser look over the appraisal and see if they could answer the questions to the bank's specifications. So I basically stalked the appraiser and made him sorry he ever took this job. But it worked and as I write this letter I am cleared to close and awaiting my closing date. I never had to cuss people out or yell at anyone but polite persistance and prayer has brought me here. Thank you for reading my saga.

Message 10 of 14
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