Challenged Appraisal - Banker Flipped Out

[Matt Bell]

We recently received a low appraisal on a home that needed significant work.  The appraiser used homes that were 2-4 miles away from the subject property - in Montgomery, AL that is a long distance and the neighborhoods are not comparable.  We identified 2 very good comparable properties that were in the same neighborhood and wrote up a very nice letter - no name calling - pointing out our concerns with the comps used and asking if the appraiser would kindly reconsider based on the additional comps we have located which seemed to be better for comparison.

The loan officer we were working with sent us back a rather rude email and essentially broke up with us.  Once we finally got her the phone after a few days, she claimed that no one challenges appraisals and if we wanted to be difficult - we could take our business elsewhere.

Has anyone every experienced a reaction like this before?  The loan officer seems to be overly protective of the appraiser.  For a number of reasons, including that we have 2 deals pending with this bank that we need them to close on or they may fall through - just going somewhere else is not an immediate option.  

[Stuart Birdsong]

@Matt Bell:

Fire the Loan Officer. This is common practice for buyers or sellers, and the agents when the appraisal does't seem to support the purchase price. In addition, if the comps they use aren't applicable, or you have more recent and better comps, than it is completely within your right to contest the appraisal. Your loan officer should be able to assist you with this process. Most importantly, you would hope that they would be willing to help you at least make a case. Best of luck, hope it works out for you!

Stuart