My appraiser gave details to the seller

[Brent Huling]

I am in the middle of purchasing a home as a fix and flip rehab loan. The ARV did not come in at value and the lender is asking for $50k more out of my pocket. I wasn't feeling comfortable with the deal and was debating using a finance or appraisal contingency to back out, but with the appraiser telling the seller that the house appraised at value but not the ARV and the specifics, I lost all of my leverage. I had asked the seller to drop the value $50k (The purchase agreement was $50k over asking) which they were contemplating, but now they know this, all bets are off. No reduction of price and they are holding firm on the deal. I had also offered $5k in escrow to walk away because the numbers weren't working, but with this info, they will now not cooperate. I have $75k in escrow on a $1.5M home.

There is a breach of confidentiality with the appraiser speaking directly to the sellers and seller's agent as well as professional negligence. Unless I want to walk from this deal and lose $75k in escrow, I now have to follow through on a deal I am not comfortable with due to the negligence of the appraiser. I have never sued anyone in my life, but this leak of information is turning out to be very costly to me. Do I have recourse on this? Based on my research with USPAP, it seems I do have a case here as there are strict rules about sharing appraisal information to anyone but the lender and the buyer. My agent called the appraiser yesterday and mentioned he breached his confidentiality and he said so what. Just doesn't seem to care. The home is in Oregon. Thanks!