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need comments to withdraw from assignment

Discussion in 'Urgent - Help Needed' started by Rocky Mountain High, Sep 16, 2011.

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  1. Rocky Mountain High

    Rocky Mountain High Sophomore Member

    0
    Sep 21, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    Colorado
    I have an assignment for a refi. I have researched the data and know the subject value is going to fall below the most recent prior loan amount (2010) and prior sale price (2007), most likely a minimum of 20% due to market conditions. I know the borrower believes the home is worth 10-20% more than the prior loan amount and purchase price due to costs associated with some updating (items have a negative ROI).

    I know that I can just move forward and spend 15-20 hours completing the assignment (it is a complex property/location), and I'll get paid, however I am never comfortable putting homeowners in the position of paying for something (appraisal) and getting nothing (except an appraisal of course). Please know, my client did not ask for a predetermined value, nor did anyone. Basically - I just want to withdraw from the assignment because I know too much, however need advise on how to do this tactfully / what to say, without making up a BS lie.
     
  2. Randolph Kinney

    Randolph Kinney Elite Member
    Gold Supporting Member

    55
    Apr 7, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    I would not withdraw. I would complete the assignment. Your client engaged you, not the borrower. The lender wants to know the current market value to make a mortgage finance lending decision and is paying you for it. If not you, then someone else.
     
  3. Lee in L.A.

    Lee in L.A. Elite Member

    69
    Jan 24, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Who cares if the loan deal works or not. That's not your concern or worry.
    Not what you're getting paid for.
    If the borrower complains later, make them talk to the lender.
    They have this wonderful appeal process. :leeann:

    So, do the appraisal, make it as bulletproof as you can.
    Be ready to shoot down their appeal comps.
    Sometimes you are the deal killer. :new_snipersmilie:

    Such is life. :beer:
     
  4. Tom Woolford

    Tom Woolford Elite Member

    27
    Nov 20, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Florida
    You are not involved in the lending decision, and you have no idea what the equity is. Do the job you were retained for and let the underwriters do theirs.
     
  5. Calvin the Airedale

    Calvin the Airedale Elite Member
    Gold Supporting Member

    0
    Aug 17, 2004
    Professional Status:
    Certified General Appraiser
    State:
    Ohio
    Be a professional about this, complete the assignment and no matter the result, move on.

    You don't want to put the borrower in a spot? Kind of you, but your action puts your client in a tough spot, how is that any better?

    How, you ask? Because the lender can't just tell the borrower that you have a bad feeling for how the value would've turned out and so here, take your money back. The lender has already spent time analyzing credit, preparing paperwork, and oh yeah, they are obligated to give the borrower a real answer based on something more than your hunch.

    Lastly, you have already performed an appraisal (or so it would seem from the OP), so do what needs to be done and put it down on paper.

    If you can't stand dishing out bad news, you're in the wrong line of work.
     
  6. Rocky Mountain High

    Rocky Mountain High Sophomore Member

    0
    Sep 21, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    Colorado
  7. HF Mudd

    HF Mudd Senior Member

    15
    Jul 31, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    So you'd rather spend your time working for free? I'm assuming that you spent at least an hour or two performing research on the subject and the potential comparables to come to your preliminary conclusion.

    If you want to withdraw from the assignment because the fee is insufficient for the time required to produce a credible appraisal, just ask your client for more $$$. You will either have the order cancelled or you'll be adequately compensated for your efforts.
     
  8. residentialguy

    residentialguy Elite Member

    115
    Mar 24, 2009
    Professional Status:
    Certified Residential Appraiser
    State:
    Minnesota
    I understand your concerns. It bothers me, too. But if you withdraw, they will just get someone else to do the appraisal and they may decide not to continue using you. You've got avoid being an advocate for the buyer/lender. You are just hired to give your unbiased opinion. Even if the loan doesn't go through, that appraisal may help them in making other necessary financial decisions. No one likes to be told they have cancer...but I don't think not telling them is a better option.
     
  9. AnonApprsr

    AnonApprsr Elite Member

    0
    Jan 21, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    Massachusetts
    Not your problem. It also seems you've already performed an appraisal, be careful.
     
  10. Rocky Mountain High

    Rocky Mountain High Sophomore Member

    0
    Sep 21, 2003
    Professional Status:
    Certified Residential Appraiser
    State:
    Colorado
    thank you residential guy. At the end of the day, I don't need this client for my peace of mind. I've never been too weak for "this business" as was suggested. I live for assignments that most appraisers run from, and plan to do so for the rest of my career. I don't mind doing purchases and refi's but my meat and potatoes has always been REOs and lately shortsales. I've just never come across one that was so far out of value. I don't care if another appraiser does it and hits the real number and the deal falls through. However, I am a bit disappointed that nobody actually suggested an out, except for the raise the fee part, that was cool.
     
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