Errors & Omissions In Report - Appraiser Refuses To Fix

[Dan Padsio]

Regarding a single family home appraisal report, appraiser completely left certain things out of the report, marked sections as "None" when the items were present, etc. In the comps he was using, let alone not being the same/similar style of home (used cape cods when home is a split) - had completely wrong information within the comps used (wrong acreage compared to tax records, calling basements finished when not) - all which led to a lower value of the home being appraised.

Thought it would be an easy fix and appraiser and bank were sent the correct information, but appraiser refuses to correct. These are not opinion items, these are actual facts about the subject property and comps which he refuses to correct, no one understands why, maybe an ego thing? What would you do about the appraiser at this point? Put "E&O" in the title because we do have his insurance policy and if this deal falls through due to his low valuation, he will most likely be getting sued. Should he be reported to the state licensing board, AMC, etc??

 

[ramrcdk]

Regarding a single family home appraisal report, appraiser completely left certain things out of the report, marked sections as "None" when the items were present, etc. In the comps he was using, let alone not being the same/similar style of home (used cape cods when home is a split) - had completely wrong information within the comps used (wrong acreage compared to tax records, calling basements finished when not) - all which led to a lower value of the home being appraised.

Thought it would be an easy fix and appraiser and bank were sent the correct information, but appraiser refuses to correct. These are not opinion items, these are actual facts about the subject property and comps which he refuses to correct, no one understands why, maybe an ego thing? What would you do about the appraiser at this point? Put "E&O" in the title because we do have his insurance policy and if this deal falls through due to his low valuation, he will most likely be getting sued. Should he be reported to the state licensing board, AMC, etc??

What Roll in this do you have? Chips fall where they may & specifically, as a trainee I would do nothing but LEARN !

 

[Dan Padsio]

Part of the deal, not an appraiser, no clue why it says trainee

 

[ramrcdk]

Part of the deal, not an appraiser, no clue why it says trainee

Ohhh OK, then a REview Appraiser AND the specific Lender, LO should know what to do.

 

[Dan Padsio]

Thanks, all the corrected information was sent into the bank approx. 1 week ago along with similar comps. Doubt they will send out a new appraiser but hoping they at least update the values. The appraiser is not in-house, I am guessing due law changes the bank uses an AMC. Want to know what to do with this current appraiser who refused to change, not opinion items, but facts. RE Lawyer said a lawsuit is an option, probably not worth it, but why would this guy risk all this for a refusal to change his report. Items are clearly wrong/missing.

 

[Elliott]

For most FNMA related mortgages, the purchaser would ask for a review of value submitted to the lender, the AMC or lender would contact the appraiser with the information, and appraiser would respond (not 'refuse to change') and explain. Maybe you should submit the information again and express that the issues presented last time weren't adequately addressed.

 

[glenn walker]

Regarding a single family home appraisal report, appraiser completely left certain things out of the report, marked sections as "None" when the items were present, etc. In the comps he was using, let alone not being the same/similar style of home (used cape cods when home is a split) - had completely wrong information within the comps used (wrong acreage compared to tax records, calling basements finished when not) - all which led to a lower value of the home being appraised.

Thought it would be an easy fix and appraiser and bank were sent the correct information, but appraiser refuses to correct. These are not opinion items, these are actual facts about the subject property and comps which he refuses to correct, no one understands why, maybe an ego thing? What would you do about the appraiser at this point? Put "E&O" in the title because we do have his insurance policy and if this deal falls through due to his low valuation, he will most likely be getting sued. Should he be reported to the state licensing board, AMC, etc??

Nothing you were engaged by the lender to complete a review and your lenders deal is going down in flames due to a lower value ( So it sounds like he came in higher ) and then you reviewed his work and determined that due to the issues you discovered it warranted a different opinion of value ( LOWER ) So you the desk reviewer determined the lower value is now killing your lenders loan?

"OK" so what do we do now ? Well step one would have been to contact the appraiser and not make accusations but to get things corrected and hopefully meet a middle ground- BUT-that is now DOA- So step-2 cry-beg-hope- Step-3 talk to your lenders attorney who already knows there is no money to be made because the original appraisers E & O attorneys are going to wear you guys out. And if the attorney really thinks he has a case the worst part is when the guys E & O attorney obtains a copy of your desk review in his discovery process. Then he will have your desk review analyzed and reviewed by some USPAP expert who also just happens to be an-expert witness who's specialty is working with attorneys that like to sue appraisers and this guys only joy in life is to find holes in desk reviews. So after thousands of dollars spent your lender crawls back under a rock and says Uncle but by now the original appraiser is so P****-off he gets a cheap private attorney who just happens to need some easy money. So you wake up on a Monday at 6: am and guess who is ringing the door bell- O' No It's Marshal-Dillion serving you a subpoena !! then the private attorney files a complaint with your State Board claiming the quality of your desk review was poor and just to add fuel to the fire he includes a summary written by his USPAP expert who has laid out additional information to assist the Boards reviewers. Dear God all this B.S for a stupid $100 desk review .

In Summary: Remember the old saying " Often The Hunter Becomes The Hunted " So never consider or recommend a lender suing anybody especially if you are the reviewer- that helped kill their deal, because lenders are notorious for never falling on a sword for anyone-their own mothers are not even exempt : ) LMAO

 

[Dan Padsio]

Nothing you were engaged by the lender to complete a review and your lenders deal is going down in flames due to a lower value ( So it sounds like he came in higher ) and then you reviewed his work and determined that due to the issues you discovered it warranted a different opinion of value ( LOWER ) So you the desk reviewer determined the lower value is now killing your lenders loan?

"OK" so what do we do now ? Well step one would have been to contact the appraiser and not make accusations but to get things corrected and hopefully meet a middle ground- BUT-that is now DOA- So step-2 cry-beg-hope- Step-3 talk to your lenders attorney who already knows there is no money to be made because the original appraisers E & O attorneys are going to wear you guys out. And if the attorney really thinks he has a case the worst part is when the guys E & O attorney obtains a copy of your desk review in his discovery process. Then he will have your desk review analyzed and reviewed by some USPAP expert who also just happens to be an-expert witness who's specialty is working with attorneys that like to sue appraisers and this guys only joy in life is to find holes in desk reviews. So after thousands of dollars spent your lender crawls back under a rock and says Uncle but by now the original appraiser is so P****-off he gets a cheap private attorney who just happens to need some easy money. So you wake up on a Monday at 6: am and guess who is ringing the door bell- O' No It's Marshal-Dillion serving you a subpoena !! then the private attorney files a complaint with your State Board claiming the quality of your desk review was poor and just to add fuel to the fire he includes a summary written by his USPAP expert who has laid out additional information to assist the Boards reviewers. Dear God all this B.S for a stupid $100 desk review .

In Summary: Remember the old saying " Often The Hunter Becomes The Hunted " So never consider or recommend a lender suing anybody especially if you are the reviewer- that helped kill their deal, because lenders are notorious for never falling on a sword for anyone-their own mothers are not even exempt : ) LMAO

Absolutely wrong, I am on the seller side of the subject property. The property was appraised TOO LOW for the buyers bank/mortgage, not too high. The appraisal, IF IT HAD THE CORRECT FACTS, would come in right at the number the buyer wants to pay for the property. I have no clue what you are talking about, desk reviews, etc.., but this is simply a case of the appraiser not including the correct information on his report regarding the home for sale and comps. Facts, not his opinion of the property. The E&O & lawsuit discussion was brought up as option, simply because this guy valued a $500k property at $450k and killed a deal.

 

[bnmappraisal]

The property was appraised TOO LOW

...In YOUR opinion but another opinion is it is not "worth" as much as you would like (i.e. the appraisers opinion)

I'm not pretending to say if the appraiser's report is correct or not - I literally have NO idea as I have not seen it, nor know your market - but there's a lot of factors that go into an appraisal report

Sometimes appraisers make mistakes; we're human.

Sometimes those "mistakes" may have an affect on the opinion of market value (OMV), other times they have no affect on OMV

For most FNMA related mortgages, the purchaser would ask for a review of value submitted to the lender, the AMC or lender would contact the appraiser with the information, and appraiser would respond (not 'refuse to change') and explain. Maybe you should submit the information again

 

[friendlyeddie]

Sounds like qualified opinion vs opinion. Not sure what sections you are citing as marked "None" but if we are talking appliances, fireplaces, woodstoves, then you are going to be hard pressed to see that $50k difference accounted for. Did you verify the acreage of the comps outside of what the assessment used? If so, where does the discrepancy originate? MLS, Deed, Assessment, Survey? Or are you claiming the appraiser used an arbitrary number? If you have more similar comps then dispute the comps utilized with the lender, if you filed a dispute then what was the response? Seems pretty cut and dry. Who is telling you that the appraiser is refusing to fix the items? Could be the bank passing the buck not wanting to ruffle the borrower's feathers