Field Review After Appraisal?

[gmhm1099]

Hi Everyone,

I received an email from my mortgage broke today saying that Chase USDA is requesting a field review after receiving the results of the appraisal. The home was sold in an estate sale in March of this year for $113K. We're set to close on this property on 10/30 for $192,500 (original asking price was $189,900, but we offered more, because they are paying all closing costs allowable (approx $10K). This wasn't out first offer obviously. Well, the appraisal came in at $193K, only $500 above sales price. My question is, has anyone had experience with a field review? If so, how did it turn out? I've anticipated a lot of things, but this is something that I definitely didn't see coming. Thanks for any feedback!

[DallasLoanGuy]

they sometimes come back fine.... but i see value get cut a lot too

[gmhm1099]

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@DallasLoanGuy wrote:

they sometimes come back fine.... but i see value get cut a lot too

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That's what worries me though. How much are they really willing to drop if the value gets cut? The listing price was $189,900, but we're paying $193K so that they pay almost all closing costs. With the $10K closing costs that they're throwing in, they look at it as getting $183K for the house. If the lowered value comes in anywhere close to that, I would bet that there will be a better chance than not that they'll put it back on the market at the lowered price and try to sell to someone that isn't asking for closing costs. The good thing is that the lender (Chase USDA) is letting my mortgage guy set up the field review (I believe that this is normally done by underwriting), so that bodes well for us.

I anticipated everything and anything that could have gone wrong with the loan from our standpoint (credit, jobs, taxes, whatever), but never game much consideration to the house itself messing up the loan. I can't help feeling that this isn't going to end well!

[ShanetheMortgageMan]

It all depends on the strength of the appraisal.  If the appraiser has overlooked better comps, prepare to have a value change, but if they've done the job properly then the value should be supported by the field review.  All you can really do is make sure that YOU are well qualified, then it is up to the home being able to pass lender requirements as well, and to find that out money almost always have to be spend... just one of those risks with buying a home.  Hope it comes back fine for you.

[gmhm1099]

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@ShanetheMortgageMan wrote:
It all depends on the strength of the appraisal.  If the appraiser has overlooked better comps, prepare to have a value change, but if they've done the job properly then the value should be supported by the field review.  All you can really do is make sure that YOU are well qualified, then it is up to the home being able to pass lender requirements as well, and to find that out money almost always have to be spend... just one of those risks with buying a home.  Hope it comes back fine for you.

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Thanks Shane. Is this more commonplace now days? If so, how common? I think that the red flag was raised when they had to go outside the normal area for comps on the appraisal.

[ShanetheMortgageMan]

It's only done if the comps don't meet the lenders requirements, then they do work to make sure nothing was overlooked.  If it's in a rural area, not surprising some sort of additional review (desk or field) was called for.

[sg712]

I don't know if that's what happened to me but I had an appraisal done on the home I'm buying and it came back $5,500 over purchase price. I thought I was set. Then later my LO called saying that they wouldn't approve the loan at that amount only for a lesser amount.  I had to come up with almost $10,000!

I asked my LO what happened and he said that's all USDA said they would lend on that house.

I have a friend who knows a LO who said USDA is only loaning out certain amounts in areas and the more you make the less they'll loan you!

?? Don't know what is true?? but this has been my homebuying experience.

[Jazzzy]

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@gmhm1099 wrote:

Hi Everyone,

I received an email from my mortgage broke today saying that Chase USDA is requesting a field review after receiving the results of the appraisal. The home was sold in an estate sale in March of this year for $113K. We're set to close on this property on 10/30 for $192,500 (original asking price was $189,900, but we offered more, because they are paying all closing costs allowable (approx $10K). This wasn't out first offer obviously. Well, the appraisal came in at $193K, only $500 above sales price. My question is, has anyone had experience with a field review? If so, how did it turn out? I've anticipated a lot of things, but this is something that I definitely didn't see coming. Thanks for any feedback!

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This is what may have triggered the review. They may be wondering what raised the value so much in such a short time. From $113 to $193 in such a short time may be a red flag to them.

[Clover04750]

I'm interested in how this worked out for you.

I'm in Nc, also using a USDA loan, and the underwriter is requesting a review appraisal because they think it appraised too high. I'm about $2,000 invested into the home and only a week from the dd date/2 weeks from closing. The home is an estate in a sub division, with a finished heated basement and separate parcel of land. The first appraisal came back at the price comp homes in the area were sold for in the subdivision within the past 5 years. However, the underwriter says there are too many adjustments. The only negative adjustment I can see is that there is a well-kept foreclosure next door. The PHO added another bathroom, another entire living space in the basement including a second kitchen, a screened porch...maybe I'm a little biased because I love the home. It needs some GFIC's switched around and a jack on one side of the basement that was removed to make the basement living room bigger, both my preferences, but is otherwise perfect. I won't be receiving any work requests now that everything is halted by this second appraisal. If it doesn't work out I lose 2 grand and the PHO already has the results of everything because I just handed them over in full to them expecting to get the house. pHO has a second offer more than mine and I'm paying asking price, so the backup must be cash. Basically everything is weighing on someone else's incompetence (underwriter or appraiser) not that I'm all that competent about any of it anyway. I know I cannot afford to come up with a couple more thousands out of pocket if the house appraises for less.

I'd be very interested in finding out how your similar experience worked out for you. I'm not sure how to plan for the worst here or if there's anything I can do to regain my losses at all.

[merigorownd]

Our lender just ordered a field review for our home purchase loan. It's costing us an additional $480 for the review plust $638 to extend the loan time for 2 weeks. There is no way we can come up with the additional $10,000 which will be needed if the house does not appraise, in order to close. I am trying to get myself into a state of mind to let the house go because I think that's where we are headed. Buying a house now with average credit, student loan debt on two salaries in this economy has been a total nightmare for three months so far.