Where do I go now?

[Anonymous]

We just spent the last 2 1/2 months getting approved to move our construction loan to a mortgage.  We got thru everything until the appraisal came back too low.  I also know the appraiser and she does not have a good reputation as she has her own real estate company and only uses comps that she has had something to do with.

The loan officer said they had to use what I call the "clearing house" of appraisers - where the bank cannot have contact, the appraiser is assigned by a 3rd party.  So if I order another appraisal, I could get this same one again.

My question is are there any banks that can assign their own appraisers anymore?

[BrianB_The_Loan_Professor]

All govt and conforming loans require the use of a third party Appraisal Management Company - There is so much wrong with this in my opinion I won't go into...

Ask the bank that you are working with if it would be possible to have a second opinion on the appraisal and let them know you are willing to pay for it since you think this lady is not hiitting the mark. Not sure how they will respond but thats where I would start.

Good Luck

B

[Anonymous]

Actually VA does not participate in the HVCC program. Even on a VA IRRRL when appraisals are required, they do not need to be done through HVCC.

[BrianB_The_Loan_Professor]

Thanks for claifying that - I guess I lump them together since VA assigns the appraiser basically having the same impact as the new rules for the other loans 

[Anonymous]

And sometimes having the same issues...

[Anonymous]

The loan officer told me that they could order another appraisal, if I pay for it, but there's a chance they would assign this same appraiser! He said this was the worst appraisal he's ever seen.  They basically told me try a local bank, which I'm not sure what good that would do either, if they all do the same thing as far as appraisers.

What if I hired my own appraiser, then took that to a lender.  Would they accept it?

(PS:  Now would be a good time to buy stock in Rolaids.  I'm sure I've driven it up)

[BrianB_The_Loan_Professor]

You cannot hire your own - it has the same potential for manipulation - basically there is no way of knowing if you somehow got a higher number because you interacted with the appraiser -

I am fairly certain when ordering an appraisal that you can request a certain appraiser NOT be used - you just cannot request anyone. This has worked for me in the past.

Good Luck

B

[Anonymous]

Ok, I will do that.  Thank you!

[Anonymous]

One other thing, I have to start all over with a new lender.  Should I tell them what happened  and about the 1st appraisal or just not say anything?

[Booner72]

I just read a fascinating article series on the appraisals these days coming in low.  It's bc appraisers are making 1/2 what they used to bc of the new regulations (management companies get half), that big banks sometimes can own the appraisal management company, that the appraisers are far and few between, that sales are so random that comps are not what they used to be, and bc the appraisers might not know the area as they could drive 50+ miles to complete the job. etc etc.  The article explained how this is causing loans to be rejected very late in the game, where in the past this would never happen.  I have no solution for you other than to commiserate w/ you and tell you thousands are also going through this same very thing.  I tried to post the article here but I didn't source it right and it had to be removed.