Comps Done By Third Party In Ohio

[Mark Shadley]

Sorry if this has been asked/answered.

In Ohio, is it legal; if an appraisal comes in lower than a mortgage broker wants, can they ask a third party (real estate agent) for comps? And then use the third party comps instead of the comps used in the appraisal?

Thanks in advance for any answer.

 

[Restrain]

Under most lenders, Appraiser A turns in report. Buyer/seller/lender goes out and finds other ‘comparables’ and submits them per current regulations tomthe appraiser for his/her review. The appraiser is under NO obligation to use the alternative sales. Example is an appraisal in Texas where the lender submitted ‘sales’ that were, in fact, refi’s. The lender took the mortgage amount, said it was an 80% LTV, calculated the sale price. Other alternative sales have been homes that were very dissimilar, etc. The appraiser is obligated to review and decide if the sales are or are not appropriate, reply to the lender or modify the report if the appraiser feels it is required.

The lender cannot change the appraisal. The lender can do other things if the loan is less than 80% LTV, under the de minimus, etc.

Hope this helps.