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Do I Have To Pay?

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Paul Hatch

Freshman Member
Joined
Jul 18, 2003
I applied for a no cost loan. I paid for the appraisal but it was too low. I received my money back and
then went to another lender. Now they want to charge me for the appraisal because the loan
didn't close. Is this right or not? Thanks for any help.
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
I paid for the appraisal but it was too low. I received my money back

Was it actually an appraisal? I would happily shoot any appraiser I caught refunding the appraisal fee because the value came in too low. That's grounds for revoking the appraiser's license!!!! :twisted:

then went to another lender. Now they want to charge me for the appraisal because the loan didn't close. Is this right or not?

Absolutely you should pay for the appraisal!!!!
 

Paul Hatch

Freshman Member
Joined
Jul 18, 2003
As far as I know he was an appraiser. In a no cost loan, who is suppose to pay the appraiser?
I paid him, and was suppose to get my money back at closing. The loan never closed and I got
my money back from the appraiser. Maybe he was paid by the lender. Is something fishy here?
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
Paul:

1. You say the appraisal came in too low. The appraiser has no control over the market - he just reports it. He did a job, just like a plumber, and needs to be paid.

2. Whether or not the loan closed, the appraisal fee is due. The appraiser performed a service. The only question is who is paying for it. That being said, the lender may have paid for it or may be wanting you to pay for reimbursing the lender for the appraisal fee.

3. As to whether you should pay for it depends on the Request for Loan that you signed with your lender. No-cost generally means no up-front costs out of your pocket but rather are rolled into the loan. It doesn't mean that there are no costs. I would read the fine print.

Roger
 

Richard J. Glesser

Junior Member
Joined
May 16, 2002
Professional Status
Certified General Appraiser
State
Michigan
The appraiser is due his fee. The major question I have in this whole scenerio is where did your refund come from? That answer would flush out if something's out of order. :usa:
 

KD247

Senior Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
Need more information.

"I paid for the appraisal"

To whom?

"I received my money back"

From whom?

"Now they want to charge me for the appraisal"

Who's "they"?

Did you have any agreement with the appraiser?
 

wyecoyote

Senior Member
Joined
Jan 15, 2002
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Washington
Paul,

Depends. Your first one did they really complete an appraisal? Or was it an AVM? The no cost loan means everything is wrapped into your loan amount. As far as paying for the appraisal it depends on the signing you did. In it you could have signed that if the loan does not close or you do not accept the loan then you are responsible for the third party services performed. Over simplified answer but typically on most loan applications it has some legalize writing like this. As far as the first refunding if the appraiser refunded the cost of the appraisal because the loan did not close then yes he/she is in violation of USPAP. Unless the lender paid him/her then refunded your appraisal fee to you. We don't know what happened on this. You would have to read your loan application on the second loan request you made to see if you are responsible. Like others said we provide a service and our fees are not contingent upon the closing of a loan. So from an appraisers standpoint the appraiser is due their fee wether you pay or the lender pays the appraiser still must get paid for services renderd.

Specific answers to the appraisal was to low see rstrhans post. We only report what the market is telling us, we do not make up values.
 

xmrdfghap

Senior Member
Joined
Jan 15, 2002
Professional Status
General Public
State
Florida
Originally posted by Paul Hatch@Jul 18 2003, 01:07 PM
I paid him, and was suppose to get my money back at closing. The loan never closed and I got my money back from the appraiser.
If the lender markets his loans at no up-front cost to the borrower then I should think the borrower should incur no costs whatsoever.

The lender orders the appraisal, and the appraiser should (must) get paid. The question is who pays him/her. In my opinion, the lender should be responsible for the appraisal fee. His advertising says you don't pay anything until closing. If it doesn't close, you owe nothing. This is a marketing cost to the lender, and has nothing whatsoever to do with you or your responsiblity to the appraiser.

I think you should make yourself available to support the appraiser if the appraiser seeks action against the lender, but I do not see it being your debt.

Be prepared, though, to pay another appraiser for the same service. I doubt the lender will let you use the appraisal with another lender.
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Now they want to charge me for the appraisal because the loan
didn't close. Is this right or not?

Paul,

In order to answer your question we need to know who the 'they' is in the above sentence... I believe you are indicating that the second mortgage company is requiring you to pay for an appraisal.

If so, their asking you to do this is perfectly legitimate, as a new appraisal would be needed, regardless of who does the work.



It would appear that the original appraiser was paid seperately, OR coerced into refunding your original payment. You are therefore out no money for the first attempt. There are reasons we are concerned about this, but they need not concern you!

If we can assist you further please let us know.
 

Paul Hatch

Freshman Member
Joined
Jul 18, 2003
"They" refers to the mortgage broker. They are the ones who told me to get in touch
with the appraiser. When I did, he told me I shouldn't have to pay and I should get
a refund. He talked to his boss and he is the one who reimbursed me. I would imagine
that the mortgage broker reimbursed the appraiser, but I am not sure. I asked the
broker to send me the appraisal with the bill. Should I ask the broker for anything else?
I paid for the appraisal out of my own pocket and I don't want to pay the broker unless
they paid the for the appraisal. I do agree that the appraiser should get paid, but I
still think the broker should pay. I will look more closely at my paperwork to see if
I can find anything about the appraisal and what happens when the loan does not close.
 
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