Who owns the Appraisal?

[Philip Bashaw]

Hello BP'ers!

I recently got a property under contract and was shopping around for a hard money lender. I talked to several and then decided I would try and work with one lender that was willing to do 100% financing. He sent me rate sheet, terms, etc. and I signed a letter of interest to proceed. However, it clearly states that it is not a commitment to lend money. By a stroke of luck, I found a much better deal and told Lender #1 I'm going with someone else, Lender #2, because it's a local lender and a better match for me right now. He said ok, let me know if I can help you in the future. Done. 

Here's the weird part.  Prior to finding Lender #2, the first lender called in an appraisal, but I paid for it! I called the appraiser and said "Hey, where's my appraisal?"  The appraiser said, "Um, you need to call Lender #1, that's his property. You need to call him to release it" WHAT!? Is this true? I pay for something and I can't have it? They cashed my check, I have no appraisal and therefore I should get my money back, right?