Problems with abnormally low appraisals while refinancing
This came from the Sunday, January 7th SFGate column by Robert Bruss. To quote:Q: I saw an item in your column about the abnormally low appraisal on a condo refinance. As I recall, the lender's appraiser estimated a value $157,000 below that of an independent appraiser.
I had a similar experience with a lender who claims to be the nation's largest. Because I have a 745 FICO score and good income, my qualifications for the refinanced mortgage were not at issue.
The appraiser hired by the lender told me she was expected to appraise at least 10 percent below market value. But I was so shocked by how she valued my home, despite three nearby sales within the last four months for at least $35,000 more each, I demanded a reappraisal. The lender refused.
So I refused to pay the appraiser her $450 fee. I then refinanced with another lender who used an honest appraiser. Are lenders now requiring low-ball appraisals on mortgage refinances?
Helene W.
Naperville, Ill.
A: Based on your experience and other readers who responded, it appears some mortgage lenders have become ultra-cautious about appraisals for mortgage refinances.
Although it is against appraisal rules for a lender to instruct appraisers to "hit the number" or lowball appraisals, it appears that is happening.
If enough borrowers like you refuse to accept low appraisals, lenders will stop their illegal tactics.
- SFGate
posted by SFResidence.com @ 8:07 AM
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