Getting Sued

[nmeknat]

I did an Appraisal back in march 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. 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.

 

[Louis Pompeo]

It sounds to me that you ignored the "real" market in your first analysis.

If most of the market were foreclosures and there was an active market for foreclosure property - you screwed up by using sales that do not reflect the "real" predominant marketplace.

Let's hope that your client, or his client does not turn you into the State Appraiser Board.

 

[jeanwillick]

If your market was mainly foreclosures and you didn't mention in your report, you may have screwed up and your report is suspect.

The cheapest way out for you may be to return the fee and chalk it up to a lesson learned. If you resist, they may turn you in to the appraisal board and it will cost you a lot more than the requested fee.

 

[Webbed Feet]

I did an Appraisal back in march 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.

So you determined these comps sold at the "real market value" because you appraised your comps as well as your subject? This part of your post makes no sense at all.

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.

Dude, that is called a "New Assignment," not just "change the report."

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.

Are you sure you even knew who your client was? Or did you mean give the borrower money back? Just exactly whose "Client" are you posting about?

Am I at fault here and should I give them the money back? Please help. This is Urgent.

Give who what money back on what basis? You cannot hand back money because people did not get the value they wanted. That would be operating on a contingency fee basis in violation of USPAP and in violation of your signed certifications. No loan was promised by you in the performance of your services.

I hope your report made more sense reading it than your post here did.

Webbed.

 

[Lobo Fan]

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!

 

[Webbed Feet]

If your market was mainly foreclosures and you didn't mention in your report, you may have screwed up and your report is suspect.

The cheapest way out for you may be to return the fee and chalk it up to a lesson learned. If you resist, they may turn you in to the appraisal board and it will cost you a lot more than the requested fee.

If a fee is returned expressly due to a value not being hit, a loan not being obtained, that is a USPAP Ethics Rule violation.

Webbed.

 

[Webbed Feet]

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 can't beleive people are saying that either when they don't know more about what is going on than what has been posted so far.

GOSH... why don't we ALL encourage a possible Ethics Rule violation?

Webbed.

 

[Conservative in Virginia]

perhaps have mentor or trusted peer appraiser review your work first.. none of these guys (me included) know exactly how good or maybe bad the report is/was. Your post was a little difficult to understand, but I understand - it is a stressful and scary time when the words "I am going to sue you" and 'turn you over to the state board' comes your way.
Get a second opinion of a geo - competant local appraiser and ask his/her advise.

IMESHO

 

[chad hampton]

he said back in march his market wasn't all foreclosures. I'd tell the LO to send his client $300 if he feels bad about it. I still don't see what was wrong with your report.

you the hell goes to court over $300 anyways? Waste of time.

 

[Webbed Feet]

P.S. By the way, I suspect you have not been served diddley yet regarding any lawsuit... You are getting a lot of verbal hot air out of somebody, right? Mostly I bet from a L.O. that made promises to a borrower the L.O. should have never made and now that L.O. is stirring up the borrower by lying to the borrower about what is going on. Typical tactic to pressure the appraiser to refund money so they can go to a different appraiser to hit the needed number. Most likely you are being completely lied to. There is no lawsuit filed by anyone. Even if there is, why would you give a rip if the borrower is suing the loan officer and loan officer's company? For all you know the borrower thought you did a great job, the issue is the L.O. lied to the borrower.

Webbed.