Posted on: 12th Mar, 2009 10:49 am
Hello Everyone,
I am in the process of purchasing a HUD foreclosure w/ a FHA loan through Flagstar Bank. The loan officer says I need to pay $400 for an appraisal although a FHA/HUD appraisal was just done in January 2009. I spoke with the HUD office selling the home and they said they will only recognize one appraisal done in a six month period. Can I insist on Flagstar using the FHA/HUD appraisal? I am trying to reserve as much cash as possible for other fees I have to pay.
I am in the process of purchasing a HUD foreclosure w/ a FHA loan through Flagstar Bank. The loan officer says I need to pay $400 for an appraisal although a FHA/HUD appraisal was just done in January 2009. I spoke with the HUD office selling the home and they said they will only recognize one appraisal done in a six month period. Can I insist on Flagstar using the FHA/HUD appraisal? I am trying to reserve as much cash as possible for other fees I have to pay.
Hi Suzanne,
You can definitely speak to the lender about considering HUD's appraisal of the property. However, I guess, it would be the lender's discretion whether he would accept it or not.
Thanks
You can definitely speak to the lender about considering HUD's appraisal of the property. However, I guess, it would be the lender's discretion whether he would accept it or not.
Thanks
Hi Suzanne,
I don't propose to know their reasoning, but here are a few theories:
Is the previous appraisal you are referring to, the HUD REO appraisal done for HUD's marketing purposes? If so, then it may still be required to get a new appraisal. You are correct that once an appraisal is connected to the FHA case number, the appraisal remains with that case number for six months. However, If it is the HUD REO appraisal, it may not be attached to the case number because the purpose or intended use is different than for FHA assignments.
On another note, I also know that Flagstar is very picky on their appraiser selection and approval, and for good reason. Even if the appraisal is attached to the case number, it is possible that the appraisers credentials do not meet Flagstar's standards. So they may have another appraisal done for internal purposes.
I know that you are trying to conserve money, and you can surely ask, but it really is up to the lender.
I don't propose to know their reasoning, but here are a few theories:
Is the previous appraisal you are referring to, the HUD REO appraisal done for HUD's marketing purposes? If so, then it may still be required to get a new appraisal. You are correct that once an appraisal is connected to the FHA case number, the appraisal remains with that case number for six months. However, If it is the HUD REO appraisal, it may not be attached to the case number because the purpose or intended use is different than for FHA assignments.
On another note, I also know that Flagstar is very picky on their appraiser selection and approval, and for good reason. Even if the appraisal is attached to the case number, it is possible that the appraisers credentials do not meet Flagstar's standards. So they may have another appraisal done for internal purposes.
I know that you are trying to conserve money, and you can surely ask, but it really is up to the lender.
Ultimately this comes down to it being Flagstars money and they are going to make the rules. Even if it conflicts with anyone else's rules or interests, I've been getting a lot of hassle from lenders for appraisals. I hope this helps...
indeed, it is standard practice for a lender to require a new appraisal. as apexoffice noted, the hud appraisal may have been for marketing purposes only.
and as james noted, lenders make the rules. after all, it's their money (in theory - i don't wish to get involved in a discussion about bailouts) after all.
and as james noted, lenders make the rules. after all, it's their money (in theory - i don't wish to get involved in a discussion about bailouts) after all.
