mortgage company did wrong appraisal

[acmb05]

What is the name of your state? Tennessee.

I paid $350.00 for the appraisal for a home we are purchasing. All of the paperwork is done and we weere supposed to close on The 30th. That morning the mortgage lady called me and said they needed to push the closing to the 3rd or 4th(4th is last day in contract and then owners can back out) It seems the company just did an MLS appraisal and the company who they are selling the mortgage to requires an on site appraisal(which is what I paid for anyway). Now if an on site appraisal comes back and is even slightly lower than what the loan amount is it will require us to put more money down on the home which we dont have right now. If this falls thru because of this and the owner backs out do we have any recourse against the morgage company? Loan has already been approved as I stated we were supposed to close this past Thursday. I paid for one type of appraisal and they did a different type of appraisal but charged me for it anyway.

Example: The home is selling for 119,000 we got a loan for 100% of the purchase price. Now if the second appraisal(onsite appraisal) comes back at say 110,000 that means we would have to come up with 9000 in order to close. They dont expect the appraisal back until Monday or Tuesday(the last day on the contract) If they get it back Monday that would only leave us one day to get the money(not possible) and we will probably lose the home as the owners have other interested parties already. If the correct appraisal that we paid for had been done two weeks ago when we paid for it we could have planned for these problems. As it is we will have 24 hrs at the most.

So will I have any recourse against the company for not doing the correct appraisal(that I paid for) if we lose this house?

[justalayman]

I would like to kow what an "MLS appraisal" is. It sounds like it is a "market evaluation" by what you have posted. If that is the case, there never actually was any appraisal. An appraisal is an appraisal. Very simple. It just sounds like they goofed and didn't do what they were supposed to do and are BS'ing you.

Have you asked for an extension of the deadline? If not, it may be better now than waiting until the last minute. Since they sellers would have a hard time getting out of the contract before the deadline and it would not neccessarily be a prudent action anyway, one would think they would not try to do it. If they would withdraw from the contract (after the deadline) anyway, you really don't have anyhting to lose by asking now. It would be better to forwarn than spring it on them at/nearer to closing. If the sellers are confident that you would be willing and able to come up with some additional funding in neccessary, they may find it in their best interest to extend, at least a minimal amount.

re: bank liabilities;
I hope you could make a claim. I'm sure some of the other folks will lend an ear here and help you out. Like in many situations though, the question that begs to be asked;

what are(would be) your damages?

[acmb05]

Originally Posted by justalayman

I would like to kow what an "MLS appraisal" is. It sounds like it is a "market evaluation" by what you have posted. If that is the case, there never actually was any appraisal. An appraisal is an appraisal. Very simple. It just sounds like they goofed and didn't do what they were supposed to do and are BS'ing you.

Have you asked for an extension of the deadline? If not, it may be better now than waiting until the last minute. Since they sellers would have a hard time getting out of the contract before the deadline and it would not neccessarily be a prudent action anyway, one would think they would not try to do it. If they would withdraw from the contract (after the deadline) anyway, you really don't have anyhting to lose by asking now. It would be better to forwarn than spring it on them at/nearer to closing. If the sellers are confident that you would be willing and able to come up with some additional funding in neccessary, they may find it in their best interest to extend, at least a minimal amount.

re: bank liabilities;
I hope you could make a claim. I'm sure some of the other folks will lend an ear here and help you out. Like in many situations though, the question that begs to be asked;

what are(would be) your damages?

A market evaluation is exactly what they did. We are having our real estate agent make up an extension as we speak and are hoping that the homeowners agree to it. As to the second question we would be out:

$350.00 for the appraisal(since they did not do what they were supposed to do), $250.00 for inspection, Also numerous other small items. All total we are out of pocket at this point around 900.00. I also dont know if I could get anything from them for my time and aggravation because we stopped looking when everything was approved for this house. I have also bought things like some fencing to match what is already there to make the grilling area larger. I did not purchase this stuff until the day before closing as we all thought everything was fine.

From what my real estate gent told me the mortgage company knew about this 3 days before and waited to say anything in case they could get the appraisal done in time. So they jerked us around hoping to slide thru with the market evaluation and charging me for the appraisal when one would have never been done. I requested a copy of the appraisal and was supposed to get it a closing so dont know what they would have done had the market eval. been enough and they never did an appraisal.

Also we had already given our landlord our notice to move and they have another renter already. Now I have until the 10th to vacate where I am now and if we dont get this house we will have to find a way to either stay here for awhile longer or plan to move in less than a week.

What pisses me off more than anything is getting charged for stuff they did not do.

[pojo2]

Bottom line, it is not over until you are sitting at the table with all parties involved present and the paperwork is SIGNED, not just in front of you but signed and the funds have been disbursed.

Things can and very often will go wrong at the very last minute even with every duck in a row.

There are drive by appraisals as well.

Good luck on everything working out.

[acmb05]

Originally Posted by pojo2

Bottom line, it is not over until you are sitting at the table with all parties involved present and the paperwork is SIGNED, not just in front of you but signed and the funds have been disbursed.

Things can and very often will go wrong at the very last minute even with every duck in a row.

There are drive by appraisals as well.

Good luck on everything working out.

Yes I realize this. My complaint it that I paid for an on site appraisal because that is what the bank wanted and the mortgage company we are working with did not do that but charged me for it and neglected to inform not only me but the homeowner,and real estate agents involved until 2 hours before closing time. They knew 3 days before and should have notified us all what was going on, we could have gotten extensions done and everything else then instead of waiting till the last mionute.

[pojo2]

My answer does not change. It may be that at the last minute they could not sell your loan to the Company they wished too and the one they did sell it to had different criteria.

My post was more to address your "additonal expenses" of having purchased fencing, if I remember correctly, BEFORE the deal was completely finished. And the comment is not so much to you, you have already made the mistake, but to others who come along.

As to your damages, if you think you have some othere than the refund of the appraisal fee then see a real estate Atty who can go over everything and tell you what your possible remedies might be.

Ask the bank for the appraisal fee back. Really that is about all we can offer you here. Yes, they charged you for an appraisal and I guess if you want to get REAL technical then some one sat down and did the comp research to come up with the value of the home thus an appraisal.

I hope it all works out for you.

[HomeGuru]

Originally Posted by acmb05

Yes I realize this. My complaint it that I paid for an on site appraisal because that is what the bank wanted and the mortgage company we are working with did not do that but charged me for it and neglected to inform not only me but the homeowner,and real estate agents involved until 2 hours before closing time. They knew 3 days before and should have notified us all what was going on, we could have gotten extensions done and everything else then instead of waiting till the last mionute.

**A: you can file a complaint against the mortgage company.