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The company with whom I'm in talks for a mortgage has reduced the value of my home against what it was appraised for. The appraiser valued the home at $65000. but the company listed the appraisal at $60000. The explanation they gave was the underwriters felt it was too high an appraisal so they lowered my home value and now if I go with them, I'll receive somewhat less as the loan. Is it legal for any company to lower the appraised value?

Niicss · Posted: Thu Apr 10, 2008 4:25 am Post subject:

Welcome Porter,

Appraised value is somewhat nearer to the value of your property. So it is not the exact value of your property. When did you appraise the property? It may be that the price has decreased.

Let me know if you have any more queries.

gmakerley · Posted: Thu Apr 10, 2008 5:51 am Post subject:

there are many times when an appraised value is adjusted by an underwriter. disagreement with the analysis of an appraiser is not at all surprising, particularly in the current environment.

as for legality...it is, after all, the lender's money to lend and ultimately their decision whether to lend at all, or how much to lend if their intention is to do so. all factors, whether credit, income, debt, value, etc., come into play in the decision-making. and, yes, it is perfectly legal and appropriate.

brian1 · Posted: Sun Jun 29, 2008 1:21 am Post subject:

all lenders have a lender review department and they will only lend on what they think is a fair value of the home...
It is the Banks Golden Rule - they have the gold they make the rules

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Is it legal for a lender to reduce appraised value?