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Blew a deal - LO is ticked

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LadybugLover

Junior Member
Joined
Sep 30, 2007
Professional Status
Licensed Appraiser
State
California
I just completed an appraisal for a Mortgage Broker - fortunately it was COD and I've cashed the check - borrower is mad because I came in $100,000 short of what he "needed" to get out of his ARM. Subject is located in a newer subdivision which sold out right at the top of the market here. Since that time, everything has pretty much tanked - the model homes are now listed for sale - they all have $85,000+ in upgrades and are still selling for about what I appraised the subject property for. I unfortunately made an error in the sketch, which I have corrected - I was about 90sf off which isn't huge in this price range - but of course that's given him fuel for his fire that I'm totally incompetent! He's also arguing that the parcel size is bigger than I say it is - I'm using the Assessor's Parcel Map - clearly states 80 X 130, so not sure how I can be off on that - I told him I am not a land surveyor and if the borrower wishes to have it surveyed and has credible proof that it is bigger, I would be happy to revisit the report. Bottom line is, now he's saying if I don't change it to be satisfactory to him he will call the BBB, (gasp, I'm scared) and he will submit my report to the State Board - well, I feel my report is good, so I'm not going to lose any sleep over that either - but the bottom line is he's asking me to refund his borrower's money and if I do that, he'll just get another appraisal and be happy. Not going to happen so we'll see what he really does.

The appraisal report had the owner's estimate of value - which I told the LO at the time, we do not make any guarantees of value, we do not consider anything on the appraisal request to influence value conclusions, etc. etc. etc. I should have made him send me a new request with no estimat of value, I know that, but I didn't.

Anyhow, any suggestions - I've emailed him back telling him basically that I did my job, if the borrower wants another opinion, go for it, but I'm not refunding his appraisal fee. Which, by the way, I waited for a week to cash because the borrower didn't even have the $450 to pay for the appraisal. OF course, I didn't do any work at all on the appraisal until I could cash the check.

Seems that it's the desparate borrowers that are about to lose everything that get the snippiest! He's in an ARM that is adjusting and he wants out - well, that's not my problem -

Anyhow, I suppose I'll get flamed for even taking a job from a MB, but I did, and now I'll just see how it plays out.

Mary
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
Don't worry about it.

I've saved a voice mail left on my cell phone over a year ago from a broker with the same kind of beef. It's a 3 minute rant that is just too funny. Shocking and funny. I wish I knew how to make a digital recording of it so I could post it on youtube.

BTW... nothing ever happened. Nothing has ever happened. Let the MB and homeowner rant away.
 

Jalexi

Sophomore Member
Joined
Dec 30, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
If the Broker is so concerned about the welfare of the borrower maybe he should refund the $450 himself. How much more commission would he make if you came in 100k higher???
 

Webbed Feet

Elite Member
Joined
Feb 11, 2005
Professional Status
Certified Residential Appraiser
State
Canada
Ms. Lover,

No flaming from me! I only hope you got this dumb *** to send all of that to you via email ! ... Located in CA, he is in doo doo if you can document that. That is all undue pressure involving what is probably a proposed Federal loan.

Webbed.
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
Throw them a bone. If the ones with $85k in upgrades are selling for the same as you appraised it for last time then you should only be $85k off... not $100k.:icon_mrgreen:
 
Joined
May 2, 2006
Professional Status
Certified Residential Appraiser
State
Ohio
Borrower is mad............of course they are! Very few people live within or under their means. I live out in the boonies in a declining market and estimate my own house has lost 30% of it's value. I now owe more on it than it's worth. That's not the appraiser's problem. I could have studied the market more carefully and been more frugal, but I wasn't and I may have to pay the piper. No ones fault but my own.

You did your job and collected your fee. The MB can hug a root and the borrower is just going to have to buck up and take it like a man.
 

LadybugLover

Junior Member
Joined
Sep 30, 2007
Professional Status
Licensed Appraiser
State
California
Webbed - I do have it all in several emails. They are safely in the workfile. I'm comfortable with my value, talked with every one of the agents for my sales and listings - the one sale that sold high the agent told me it was high but the people were relocating to our area and needed to find a house and wanted it. The subject neighborhood is a Lennar higher end subdivision ($400,000-$600,000) when new. That whole area of town has tanked big time because it was "the" place to live 3-4 years ago - now they can't sell and get out of there fast enough! Oh well.......

Mary
 

LadybugLover

Junior Member
Joined
Sep 30, 2007
Professional Status
Licensed Appraiser
State
California
Thanks for the quick responses - DH and I talked about it on our walk down Main St. to get a soda - he just laughed it off too - We've been in this business for a long time and this is probably the 3rd time in 30 years that someone has threatened to be a meanie.

Mary
 

Lloyd Bonafide

Senior Member
Joined
Jan 15, 2006
Professional Status
Certified Residential Appraiser
State
California
I wouldn't worry in the least - let them complain to the OREA.

If they continue to hassle you, and you really want to tick the owner off, tell them that there are some new listings on the market that are priced lower, and that you may have to lower their value. :icon_mrgreen:
 

Bama Bayou

Senior Member
Joined
Oct 19, 2006
Professional Status
Certified General Appraiser
State
Alabama
I'm starting to think that this is a recent tactic to get the money for another appraisal. I just let them rant (people say the dumbest things when they get mad), tell them never to call me again, and hang up the phone.
 
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