Getting Sued

[bart nathan]

Bluffffffffffffff

 

[ghrousseau]

Typically borrowers can not sue lenders because their loan was denied. Lenders are required to comply with strict federal housing laws regarding the issuance or denial of credit. Ask the LO to fax you a copy of the loan denial so you can see why the loan was really denied. The borrower may have been denied for numerous reason including credit, collateral(your appraisal), occupancy, ratios, unverifiable income/employment, ect. Also, most borrowers sign an upfront agreement regarding credit report and appraisal fees which are typically non-refundable for this very reason.


Tough call, but not maybe worth the possible complaint. Why don't you ask the LO to split the difference with you.

 

[Michigan CG]

I did an Appraisal back in march This housing crisis started before march, for most of the nation it started in late 2006. When did you notice declining prices and foreclosure activity? in Rancho Cucamonga, San Bernardino County where most houses are going foreclosed. At the time there were still some comps that have sold for the real market value which I used in My report. Did someone teach you not to use foreclosure properties because they don't show REAL MARKET VALUE? a month and half later the Loan Officer contact me that the value is cut becuase by then all of the comps are only the foreclosure ones and he wanted me to change the report with some newer comps and more comment which I did. By the time he submit the report to another Lender the San Bernardino Market has gotten even worse. So they didn't fund the loan. he asked me to give the client their money back which I collected for my Appraisal. I didn't think it is fair to me since I provided the service he asked me to. Now he is telling me the client is suing him and his company for the Appraisal Fee and wants me to send them a check. Am I at fault here and should I give them the money back? Please help. This is Urgent.

I am not sure you did perform the service you were asked to do. The market was in a deep spiral long before March, long before LAST March. You are paid to show the market as it is on the date of appraisal. You did not account for the national housing crisis. How old were the comparables, did you mark declining Market on the report. Did you make negative time adjustments?

I think you should refund the money, not because you did not hit value, but because the report was not credible (just a guess) and you did not provide the service you were hired to do. Call it a defective product refund.

If i were that homeowner, I would have a copy of that report and turn it into the state.

 

[Mr Rex]

Tim, throttle back on the font explosion or I will be forced to ask the Head Guy to revoke your Mod status. Also, too much use of colors. Nilla wafers and vanilla ice cream, capiche?

 

[Vivian Bachner]

Timothy - Tough stance but I agree. This is not about a USPAP Ethics violation if he refunds the money. Its about competency

 

[Ken B]

Sounds like your lender used you as the scape goat for the collapsed deal, and maybe rightfully so. This thing could get really ugly really early. Write the check and consider it a cheap lesson. I can't believe I am saying this!

I would require some sort of waiver of liability in exchange for the refund. The only thing worse than coughing up the fee is doing so and getting sued anyway.

 

[Michigan CG]

Sorry Rex.

 

[Ken B]

Tim, throttle back on the font explosion or I will be forced to ask the Head Guy to revoke your Mod status. Also, too much use of colors. Nilla wafers and vanilla ice cream, capiche?

Looks like Tim has been taking tips from Mike.

 

[Mr Rex]

KB has noticed the trend too.

 

[Bama Bayou]

I carn't read it either.