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What if the lender reduces home appraisal value?

Posted on: 29th Sep, 2007 02:05 am
I had my home appraised by a certified appraiser and it came out to $80,000. this was to check what the lenders appraiser has appraised the home accurately and how correct was I in taking this decision! But the lender's determination of my home value came out to be $7000 less than what my new appraiser has evaluated. They said after my appraisal they felt that the value was too high so theyt lowered the worth of my home. Is that legal??
I think it's legal. This actually happens everytime it goes not for a review by the lender.
Posted on: 29th Sep, 2007 02:13 am
Hi Kelvin,

The lender sometimes can do this and in turn also limit the loan amount to some percentage of your home's appraised value. By doing this, the lender limits the risk in borrowing provided you default on the loan.
Posted on: 29th Sep, 2007 03:36 am
yes, reducing the home appraisal value by lender can reduce the venture to lend you loan in case you can't fulfil your payment.
Posted on: 01st Oct, 2007 07:47 am
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