Hi Prashanth, I agree with Lake's answer but wanted to contribute some about STR's - my answer deals mainly with Oahu as each county in Hawaii differs somewhat on how they handle STR's.  

Like Patti said, you get what you get....I just recently went through this process and had to contest the appraisal, which the lender also handles. 

Do you have any idea how to handle that?

I am not sure how Alabama handles this but I would contact the state Real Estate Commission there.

My question is how would you handle this situation and the safest bet?

@Vemmanath VasudevanFrom your post, I don't think you understand how refinancing works and how to handle an existing loan.First, you need to learn about lien positions. 

Are there any other factors I should consider as I decide how I want to respond/handle this? 

Recently tenant's BF broke the lock & handle on the storm door while trying to get inside after a breakup.

Unless you have a solid W2/salaried job, that 1yr break might be difficult to explain --- maybe..Your credit rating is based on your credit history, i.e. how well do you handle debt. 

Long time lurker, first time poster here…I was curious for customer service feedback on my rentals, specifically how you all handle certain issues.