HELP - the appraisal company gave me a super low-ball appraisal

[Elizabeth Rose]

Hi BP community! I would love some guidance here... 

I have been working with a credit union to get a HELOC to allow me to tap my equity to buy additional real estate. As a final step, they requested an in-person appraisal to confirm the value of my current residence. The appraiser ended up valuing my property at a good $50K LESS than I know it's worth given other comps in the area. I pushed back on this and requested a re-appraisal - I submitted comps showing what other less desirable condos in my area have recently sold for - but the appraiser is sticking to his estimate (of course he's not going to admit he made a mistake). The credit union has shrunk the loan amount they're willing to go with to match the appraisal. I've told them I'm unhappy with this and requested an appraisal by a NEW company, and even offered to pay for it... but they are saying no - I need to go with the current appraisal or they can't move forward.

I'd love any thoughts/feedback/ideas you may have on what to do here. I like this credit union (Bethpage) as they offer 85% LTV on condos while most other lenders only do 80%... but the final loan amount would be less than I could get from other lenders (even at 80% LTV) if these other lenders accept my condo for what I feel it's worth based on comps. The disadvantage here though is that I'd have to start the loan process all over again with a new lender...

Thanks in advance for your help!

[Andrew Freed]

@Elizabeth Rose - Sounds like you're backed into a corner. I would search for another small credit union or bank that goes up to 100% HELOCS and try the process with them. If you are really concerned about the appraisal, you can always purchase one to be done for your property prior to starting the HELOC process and provide it to the bank when they request the appraiser. This worked for me, I had the same situation with a HELOC but did a failed refinance a few months back and had a solid appraisal in hand. I provided it to the bank and they upped my appraised amount by $100K.

At the end of the day, there are a ton of local small banks that offer competitive HELOC products. You just need to search and find them. I'd try investor focused local facebook groups and ask there.