Pay For Second Appraisal?

[Mike Ault]

I am the borrower. I asked for a reconsideration from 1st lender I never received a answer after a month, so I retained a new lender and ask for the FHA file to be transferred, and was then told that FHA wanted to do a second appraisal. My new lender has set up the 2nd FHA appraisal, but he seems to the that we can still challenge the first one. I am concerned because it is not my understanding that we can do anything but order a new one, and if FHA 120 day rule applies to this situation It all a moot point. (I would be paying for three appraisals)!

A "reconsideration of value" is a much different scenario than "errors of fact". Apparently the first lender didn't agree with your argument, and so you switched lenders. If I was the original appraiser under the above scenario, I wouldn't change anything for the new lender either. If I made substantial "errors of fact" on my original submission, however, I wouldn't want those out there with my signature on them, so I would change them for the original lender. And, at that point, the original lender could transfer the file to the new lender.

 

[Dublin ohio]

A "reconsideration of value" is a much different scenario than "errors of fact". Apparently the first lender didn't agree with your argument, and so you switched lenders. If I was the original appraiser under the above scenario, I wouldn't change anything for the new lender either. If I made substantial "errors of fact" on my original submission, however, I wouldn't want those out there with my signature on them, so I would change them for the original lender. And, at that point, the original lender could transfer the file to the new lender.

As usual the plot thickens

 

[Legitamate]

May not be the correct word, but if the factual deficiencies (He neglected to measure half of a room, comps over a year old when there were comps more recent and closer) are cured it would be a change in value.

 

[Legitamate]

A "reconsideration of value" is a much different scenario than "errors of fact". Apparently the first lender didn't agree with your argument, and so you switched lenders. If I was the original appraiser under the above scenario, I wouldn't change anything for the new lender either. If I made substantial "errors of fact" on my original submission, however, I wouldn't want those out there with my signature on them, so I would change them for the original lender. And, at that point, the original lender could transfer the file to the new lender.

Thank you for your comment, however you are speculating as to why I changed lenders. And you would be incorrect.

 

[Mike Ault]

May not be the correct word, but if the factual deficiencies (He neglected to measure half of a room, comps over a year old when there were comps more recent and closer) are cured it would be a change in value.

What constitutes a "comparable" in an appraisal report is an opinion, not a fact. Sometimes sales that are "older and more distant" are also more relevant to market value than ones that are "closer and more recent". The appraiser may have excluded half of a certain room from the GLA due to ceiling height restrictions, or some other issue that we are not privy to at this point. Are you telling us that your original client posed these questions to the appraiser and received no answer back from them? What did they tell you when you inquired about your reconsideration of value? "Nothing they could do", or they "agreed with the appraiser", or "no response at all"?

 

[Legitamate]

What constitutes a "comparable" in an appraisal report, is an opinion, not a fact. Sometimes sales that are "older and more distant" are also more relevant to market value than ones that are "closer and more recent". The appraiser may have excluded half of a certain room from the GLA due to ceiling height restrictions, or some other issue that we are not privy to at this point. Are you telling us that your original client posed these questions to the appraiser and received no answer back from them? What did they tell you when you inquired about your reconsideration of value? "Nothing they could do", or they "agreed with the appraiser", or "no response at all"?

They actually agreed with me, but we are way off my original question. If someone has the answer I would really appreciate it.

 

[Mike Ault]

They actually agreed with me, but we are way off my original question. If someone has the answer I would really appreciate it.

Terrell gave it to you.

 

[Terrel L. Shields]

I would be paying for three appraisals)

Forget the lender #1. Don't challenge it. Lender 2 is leading you to believe that you can 'fix' the report thru #1 and you cannot. So, just tell Lender 2 to put a sock in it and order another appraisal.

comps over a year old

FHA does not take comps over a year, I believe. So, perhaps the report is bad, but it's not going to change having to get another appraisal.

 

[Mike Ault]

FHA does not take comps over a year, I believe. So, perhaps the report is bad, but it's not going to change having to get another appraisal.

FHA requires three comparables which closed within the preceeding 12 months. Older comparables can be recited as comparables four, five, six, etc.

 

[Zoe]

FHA file transferred to different lender. Lender B finds factual corrections that need to be made in Appraisal. I have a understanding that the original appraiser may not want to make corrections and why. And the only recourse is to pay for a new appraisal. What does "pay for a new appraisal mean" Pay for the original Appraiser to make corrections? Pay for the original Appraiser to start from scratch? Pay for a different Appraiser? (And if a different Appraiser is hired wouldn't this then break the 120 day FHA Rule) Please help I'm confused.......

I don't know on FHA rules. However, I would ask lender B to call Appraiser A.

Appraiser A will probably be more than happy to correct original appraisal.

Appraiser A will probably be cheapest way to get new appraisal if FHA requires more updated appraisal.