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Lender wants new appraisal day before closing.

Posted on: 22nd Sep, 2009 09:39 am
So, We started a process for a short sale in Wellington, FL in July. There was a contract in place but the buyer dropped out midway through the process. We immediately put in an offer and after a counter offer, the sellers bank accepted it (10k above asking price). We were set to close on 9/22 as long as funding was approved which ultimately was. The first appraisal was at 146k but the appraiser was found by our agent. now, a day before closing the lender decided that they did not agree with the appraisal and wanted to send out their appraiser for a second opinion which has ultimately pushed us back on closing (REAL HEADACHE).

My question is this normal? And what should we expect from this?

We are first time home buyers and are very unfamiliar with this process.

I appreciate your feedback.
nothing in the mortgage industry in this country is "normal" any longer. it's not surprising to find out that a lender is not impressed with an appraisal report and that another is required. i don't think it's a given that most lenders would wait until the eleventh hour to ask for a new appraisal, though.

i don't know what you should expect. it's funny that your agent found the appraiser - that's abnormal (huh? abnormal? that presupposes normality, which i just denied...oh well). lenders need to use appraisers that are acceptable to them, not chosen by a real estate agent. i don't get that.
that might be why they're asking for a new one, but it doesn't explain the timing.

what to expect? who knows, really...if the value judgment is the same or similar, you'll probably have to deal with a delayed closing is all...hopefully that's the case.
Posted on: 22nd Sep, 2009 09:44 am
Under the HVCC - Home Valuation Code of Conduct, it is improper for a lender to use an Appraisal that was brought to them by your agent. The lender must order the Appraisal either through staff not connected to the loan department within the Savings and Loan or the Bank or utilize an AMC. Do not waste your money on ones that the seller gives you or your realtor, they are worthless to the lender you go too. If you want to use them for your own or other non-lending purpose that is great. Certainly, you may want to consider hiring an Appraiser devoid of any pressure to just go do their job without any pressure and come up with an honest answer. A truly honest Appraisal is not supposed to be to help you or anyone for that matter, just to give an honest unbiased opinion. Want to learn more, go to M artin Appraisals dot com and look for Appraisal articles or become a member of LinkedIn and look for the USPAP,Uniform Standards of Professional Appraisal Practice
Posted on: 09th Feb, 2010 02:38 pm
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