Who else has had to deal with this new program? Here is my latest experience. I have a SFR, which I purchased for $14K, 15 months ago, it was a REO. I am pulling some cash out and had to have it appraised. My broker had to use an AMC, the AMC called their appraiser in.
I gave the appraiser my rehab list, showing all of the improvements I made to the property since I purchased it. This scumbag came in with an appraisal value of $35K. He used comps in parts of the town that are in a war zone when comps were readily available on my street. I own another home that is very comparable to this home, not 500 ft up the street and it appraised for $64K two years ago.
In our argument to the AMC, I listed nearby comps and listed exactly why his comps were invalid. After a week of the AMC supposedly reviewing the file, they came back with a one paragraph letter from the same appraiser stating that, since I only paid $14K for the house one year ago and did only cosmetic repairs, he could not justify going any higher on the house and that his comps were valid.
If I had been able to call in my investment appraiser, he would have easily appraised this house for $50K. This appraiser should have never taken my purchase price for the home into consideration. The purchase was well over one year.
One side note about this appraiser. While we were walking around the house, he told me that he had a six plex that he wanted to sell. I told him to send me the info and I would run the numbers and perhaps we could come to an arrangement. He sent me the info and after running the numbers, I simply replied to him telling that his price was too high and I could never make it cash flow. This happened before he submitted my appraisal to the AMC.
At this point, is there any other recourse? We are at the mercy of the AMC’s now and whatever lazy dirt bag appraiser they choose, which in most cases is going to be the cheapest.
