Posted on 05/11/2012 3:12:16 PM PDT by pabianice
Recently, I applied for a new, lower-rate mortgage. My credit rating is perfect and is quoted as 801 (average) by the three financial rating companies. I am a fiscal conservative and my record shows it. I have owned homes since 1977 and have never been late with a mortgage payment, let alone missed one. I have a guaranteed monthly income plus an investment portfolio.
In March I applied for a new mortgage to drop my interest rate from 4.8 to 3.8. The contractor who had rebuilt my home to new standards in 2006 unofficially appraised my home for $385K as of 2012. The finance company’s appraiser -- about whom I know nothing -- valued my house at $265K. He disregarded the complete update of my property less than ten years ago as he did the expensive landscaping we had done as well. My refi application was denied. My $450 appraisal fee was gone.
Something is rotten here. In talking to other people I am finding this an ever more common occurrence. This situation makes no objective sense. Is this simply a scam to steal appraisal fees? Are banks and refi organizations somehow being rewarded for turning-down mortgage applications? Who might benefit for stopping the home finance industry? In an election year, I have little doubt that the blame will be placed somewhere, whether justified or not.
best of luck.
Was someone in a coma from 2006 till now? Home values have plummeted I lost almost 40% of mine in less than 2 years
you were the victim of a scam
They probably never issue any loans, just collect the fees
thats news to you?
Did your contractor have a licensed appraiser value your house?
Refi’s are always appraised low.
You must live someplace where property taxes don’t mean much to the local government.
Down here (South Texas) it is just the opposite. The county tax appraiser will use ANY reason to raise your valuation (more money for them). By fighting like hell I keep the appraised value of my home about what it is worth. People that aren’t vigilant are living in homes that are appraised for much more than they are worth.
Appraisals are all about the tunnel of the appraisers vision. Refi companies want to appraise down, so that if you do fail to pay they’ll still be able to recoup their costs. Contractors appraise down before they work on it and up after, so they can show how much value they added.
I just did a refi and my appraisal was obscenely high
You need a lender who really wants to make the loan
Do you belong to a credit union? Many affinity gourps have them... I think they are the most customer oriented
A question: What has happened to home prices in your neighborhood as a rough percentage of value? That affects the appraisal you will get. If your neighborhood values have tanked, you’re going to get a lowball appraisal.
I would expect 2006 values to be higher to extremely higher, depending on location. Sorry, but that is reality. I’ve lost ~ $600K in appraised value between three properties since 2008.
Nothing is wrong except for the chaos in the housing market due to Barney frank and his buddies.
Your home is worth on the market what someone else will pay for it, appraisal normally based on a large part of what comparable properties have sold for in your area.
As to the appraiser banks now must randomly select them, the banks may not even know the person performing the appraisal. Another Government regulation. I know my wife works at a bank.
You should not have relied on the unofficial number provided by the builder.
No more bank/appraiser relationships. They must. Be randomly chosen often by a third party.
Appraisals are only as good as the comps that available for your property. I don’t know about the area where you live but in my area the market for houses above $200,000 has been virtually dead for 3 plus years. This gives you a limited pool of comps to pull from over $200,000 even less over $300,000. The lenders are now requiring up to 6 comps which have sold within the last 6 months. Very difficult in this market.
A loan officer from Suntrust told me if they even talk to the appraiser it will be immediate job loss.
Get access to the MLS, multiple listimg service, and go find your own comparable sales over the past six months, houses similar to yours in square footage, lot size and amenities. If those comparable, sold properties support your notion as to the value of your house, then something is amiss. If they support the appraiser’s valuation, then there is nothing amiss.
My market value estimated by the municipality where I live is down about 10% from it’s high point, not as bad as many.
At least you can now appeal your real estate tax valuation...
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