- Sep 5, 2007
- Professional Status
- Certified Residential Appraiser
Did an appraisal in January 2007 and got the order to do the final inspection last week. Did the final inspection and they stated that an update was also required. Ok, did the update with declining value checked (of course) and they now say need a new full appraisal. When I did the original report they maxed the LTV to 80% with the draws available and the cap of the final loan. They did max out the draws and now they are possibly upside down on the house they were moving into today. The problem is the bank will NOT fund the perm loan due being upside down. This guy is a doctor with a credit score over 800 and he is going to be homeless and out of pocket 200k. Spoke with the president of the construction lending department (large bank) and he told me that this is a major issue for the whole country, they have had to foreclose on many homes before people moved in for this reason. This business really sucks right now.