Borrower send letter from attorney wanting appraisal fee returned

[saberry17]

The management company paid me, not the borrower. I think the E&O insurance company isn't getting involved yet because there has not been a claim filed yet. thanks

 

[Metamorphic]

I would decline, but be sure to thank the attorney for the letter which will help the board understand the spirit in which the claim was filed against you.

 

[Smokey Bear]

You might want to try a polite letter to the attorney, saying that due to client confidentiality you can't discuss the issue with him/her. AND that they should be talking to the client as the borrower is neither the client nor an intended user, and din't pay you. And then give them the client's contact info.

 

[PropertyEconomics]

I think I woudl file a complaint with the Bar Association in your state .. it seems to me like this might be an attempt to extort money on behalf of a client ... but I dont know the legalities of my comment honestly ... perhaps others here can chime in as well.

 

[saberry17]

thanks for everyone's input.

 

[residentialguy]

Wanted anyone's advise if this had ever happened to them. I received a letter from an attorney's office that a borrower hired on a property I appraised. The borrower is demanding his appraisal fee back because I did not come up with the value that he and a realtor friends of his says his property should have appraised for. I called my E&O insurance & they stated that they do not help on these matters. They did give me a form to have signed if I decide to return the borrower money. I do not want to return the money because it was a good appraisal. Do not want to waste my time if he files a compliant with the board. I could not believe this attorney states in the letter that his client demands that I re-appraise the property for at least $225,000 or if I refuse to change the appraisal I refund his money.
Just wanted to see if anyone has had this happen to them & how they handled it? Thanks.

Tell the borrower no and then tell them to get the money back that the lawyer charged them because he didn't scare you into refunding your appraisal fee like they hoped. :icon_mrgreen:

 

[Junior Member]

Saberry,

You mentioned talking about this with an E&O provider. I don't know who your E&O company is but if you are with the company I work for (LIA Administrators) and feel you need further advice regarding this situation, please call our office and ask specifically for me.

It is true that a demand for return of an appraisal fee only is generally not a "claim" under any E&O policy because whether a fee is refunded is a contractual matter -- as opposed to a demand letter threatening to sue you for damages. However, whether or not it is a formal "claim," if you are with my company, I want to make sure you are getting the right advice for the situation.

Thank you,
Peter Christensen (LIA's general counsel)

 

[The Argus]

I've heard that over 90% of the complaints in Colorado are from homeowners who feel their value was too low.

Shocking!

 

[AnonApprsr]

Hey Peter, very nice of you to do that. I'm with LIA and the one time my company had to contact you guys it was comforting, and felt very professional.

 

[CCA123]

Thank you Mike Kennedy! This has happened to me where the homeowner was unhappy with the appraised value and wanted a refund. Unfortunitly ,she filed a complaint with the state RE commision and caused me several sleepless nights. If this happens again(God hope not) I will send this to the RE commision with my work file and response. It is a big problem for appraisers,homeowners filing complaints due to a low values. I have read editorials that encourage homeowners to file complaints (very depressing).BTW: When I recieved the complaint to refund the appraisal fee, I felt at that point all the stress the HO caused ... I did not refund her money. A month later she was forclosed on.Thanxs for the information.