Can a borrower cancel the refinance process due to a low appraisal

bri911e · Joined: 04 Sep 2008 Posts: 2 1.48 Dollars($)

We were doing a refinance with a cash out and the appraisal came in too low to get the amount of cash that we needed. Are we obligated to continue with the transaction?

0.10 Dollars($)

No, but you may be on the hook for the cost of the appraisal

chrisburns · Posted: Thu Sep 04, 2008 4:40 pm Post subject:

You can back out of a real estate transaction at any time.

Most likely you will pay for the appraisal upfront. Did you already pay for it?

bri911e · Joined: 04 Sep 2008 Posts: 2 1.48 Dollars($)

no we did not pay for it upfront

jmiller · Joined: 04 Sep 2008 Posts: 13 5.75 Dollars($)

You can cancel the loan process at anytime.

Whoever you are working with on this cash out refinance process should have double checked with the appraiser and gotten a value check confirmation on the value first before having the appraisal done. By doing this first, it saves you, the homeowner money (the cost of the appraisal) and time.

Always confirm the value b4 spending your hard earned money on an appraisal.

Guest 0.10 Dollars($)

I agree you will have to pay for the appraisal, and I respectfully disagree with previous poster - it isn't your loan officer's fault that it came in too low. Most banks now don't let the loan officer know who is doing the appraisal so it is clearly difficult to have any conversations with appraisers about specific properties prior to the appraisal. Also, many appraisers in my area are now unwilling to give even a ballpark estimate of property value without a full walk-through and thorough research of the comps.

You can always cancel the refi transaction, you just have to pay the appraiser since that was a third-party fee.

gmakerley · Posted: Fri Sep 05, 2008 8:31 am Post subject:

you're so right bailey - again.

lisascherzer · Joined: 04 Jan 2008 Posts: 755 1.03 Dollars($)

No you are not obigated and can back out anytime.

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