The previous lender ordered an appraisal for me. Now I changed to a new lender, and they basically have me jump through hoops and withholding my appraisal report and not transferring to the new lender. What can I do?
I didn't want to wait, so I went ahead and ordered another appraisal report through the new lender. Now the 2nd appraiser didn't know the market around the high desert area, didn't even put rental income into consideration and made so many mistakes. The 2nd appraisal came in significantly lower (80k) than the first appraisal report. It's a fourplex, and the rental income vs home value should be around the same value as the 1st appraisal report.
Investor · Rochester, MI · Member since 2017 · 1k+ posts · 584 votes
4y
If you know the company that did the report I would call them. It happen to me and the when I call the company they said they were not allowed to give me a report that I paid for. So push came to a “will smith” slap and I called my credit card company and filed a dispute charge. Clearly states on my credit card agreement products and services not received to consumers may file a dispute, once the appraisal company received the dispute charge they had to prove to the credit card company that product or service was delivered and I got my report in 24 hours.
Investor · Rochester, MI · Member since 2017 · 1k+ posts · 584 votes
4y
If you know the company that did the report I would call them. It happen to me and the when I call the company they said they were not allowed to give me a report that I paid for. So push came to a “will smith” slap and I called my credit card company and filed a dispute charge. Clearly states on my credit card agreement products and services not received to consumers may file a dispute, once the appraisal company received the dispute charge they had to prove to the credit card company that product or service was delivered and I got my report in 24 hours.
Investor · Rochester, MI · Member since 2017 · 1k+ posts · 584 votes
4y
It’s very interesting that your 2nd report came in totally different, in other posts I mentioned that these reports are pointless. Because when ever I order one they ask me how much did you buy it for or how much is the offer and then they come back close to that number, and I had a lot of backslash on those posts. So if you got the money get a bunch of them and call them out on BP. Appraisal should be standardized practice, by usines commons sense on materials, market comps, etc… Not asking the investor or buyer how much did you buy it for.
Investor · Dallas, TX · Member since 2016 · 887 posts · 1k+ votes
4y
In my experience if your new lender already ordered an appraisal and it came back low, you're basically screwed. I doubt they will throw that one away and accept a higher appraisal from a previous lender. I did however have luck disputing a low appraisal. Didn't get the full value I was seeking, but I did get a 25k adjustment upward. Just a lot of BS going back and forth with appraisal management company.
Lender · Dallas, TX · Member since 2019 · 41 posts · 14 votes
4y
@Evelyn Liaw
If you are applying for a conventional loan the lender is obligated to send you a copy. However, they own the report and have no obligation to transfer ownership to another company. In fact, most will not. That rule doesn't apply if applying for an FHA or VA loan. Those appraisals must be transferred upon request.
On the second appraisal, you can dispute the valuation by providing recent comps from your realtor to the lender to submit to the appraisal management company. Usually that is a waste of time, but worth a try. The only other option is to order another appraisal with a different appraiser, which will cost the full amount again.
If the appraiser is supposed to use average rents as part of their inspection for debt to income qualification and did not, that’s usually the lender’s fault. When the lender orders the appraisal they have to order a rent schedule as well.
The previous lender ordered an appraisal for me. Now I changed to a new lender, and they basically have me jump through hoops and withholding my appraisal report and not transferring to the new lender. What can I do?
I didn't want to wait, so I went ahead and ordered another appraisal report through the new lender. Now the 2nd appraiser didn't know the market around the high desert area, didn't even put rental income into consideration and made so many mistakes. The 2nd appraisal came in significantly lower (80k) than the first appraisal report. It's a fourplex, and the rental income vs home value should be around the same value as the 1st appraisal report.
Please advise...
The lender owns the appraisal, if you look at it it says "client" and then the lender's name. The appraisal is for them not you, therefore they don't have to transfer if they don't want to. For an FHA or VA it basically goes into a centralized system that is available upon request.
If you know the company that did the report I would call them. It happen to me and the when I call the company they said they were not allowed to give me a report that I paid for. So push came to a “will smith” slap and I called my credit card company and filed a dispute charge. Clearly states on my credit card agreement products and services not received to consumers may file a dispute, once the appraisal company received the dispute charge they had to prove to the credit card company that product or service was delivered and I got my report in 24 hours.
So basically they could do it they were just being jerks.