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Lender Pressure ?

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ANTHONY ALLEN

Thread Starter
Sophomore Member
Joined
Sep 19, 2004
Professional Status
Licensed Appraiser
State
Georgia
I have a appraiser friend of mine and he ask me to please post his concern. He has stated that he appraised a house for 173k, the contract price $172k and the lender conditioned the appraisal. The CONDITION was they would only loan 163k on this house and ASK THE APPRAISER TO CHANGE HIS VALUE to reflect the new contract price which was dropped after the lender made clear they would only loan 163k.
 

George Ellerman

Senior Member
Joined
Feb 21, 2005
Professional Status
Licensed Appraiser
State
Ohio
I have a appraiser friend of mine and he ask me to please post his concern. He has stated that he appraised a house for 173k, the contract price $172k and the lender conditioned the appraisal. The CONDITION was they would only loan 163k on this house and ASK THE APPRAISER TO CHANGE HIS VALUE to reflect the new contract price which was dropped after the lender made clear they would only loan 163k.
The value is what it is. It has nothing to do with a contract price.
 

Jason S

Sophomore Member
Joined
May 1, 2007
Professional Status
Licensed Appraiser
State
California
Something does't sound right. The appraisal came in $10K over the contract price which I have never found to be a problem on a purchase or refi for that matter. If that's the value, then that's the value

Have your friend get the condition in writting.
 

ANTHONY ALLEN

Thread Starter
Sophomore Member
Joined
Sep 19, 2004
Professional Status
Licensed Appraiser
State
Georgia
I asked him the same thing to get the condition in writing and he said it was faxed to him. He has this in writing, unbelievable !!
Now that it is in writing ????????
 
Last edited:

bfriendly

Junior Member
Joined
Oct 14, 2007
Professional Status
Certified Residential Appraiser
State
Georgia
I have a appraiser friend of mine and he ask me to please post his concern. He has stated that he appraised a house for 173k, the contract price $172k and the lender conditioned the appraisal. The CONDITION was they would only loan 163k on this house and ASK THE APPRAISER TO CHANGE HIS VALUE to reflect the new contract price which was dropped after the lender made clear they would only loan 163k.

hhhmmmm.....change the VALUE, or the CONTRACT PRICE on the report? If they want a change they need to request a "NEW ASSIGNMENT" and supply the current contract.
Sounds like the contract was what he said it was(172k) on the effective date of the OA. New assignment, new date, new contract---MO MONEY PLEASE!

IMO, if THEY(Client) make a change after the appraisal was finished, that is not your friend's problem........if he made a mistake, then he should fix it.
 

bfriendly

Junior Member
Joined
Oct 14, 2007
Professional Status
Certified Residential Appraiser
State
Georgia
Something does't sound right. The appraisal came in $10K over the contract price which I have never found to be a problem on a purchase or refi for that matter. If that's the value, then that's the value

Have your friend get the condition in writting.

OH YEA, DUH(me) definitely have him call them and say, "Can you email me EXACTLY what you want me to do"?
 

CANative

Elite Member
Joined
Jun 18, 2003
Professional Status
Retired Appraiser
State
California
LOl... Someone's not playing with a full deck.

$163k is 95% of $173 (rounded). That's the 5% "haircut rule" the GSE's have come up with when they have decided the subject market is in decline, whether or not the appraiser marks the declining box.

So if the sales price becomes $163k the lender will now only lend $155k.

With all the BS going on now I would just decline the request. My job was done and I have moved on.
 

Ted Martin

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified General Appraiser
State
Kansas
Personally I don't appraise to the contract value, it is what it is and the lender can do what they want.
 

Karl

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Arizona
LOl... Someone's not playing with a full deck.

$163k is 95% of $173 (rounded). That's the 5% "haircut rule" the GSE's have come up with when they have decided the subject market is in decline, whether or not the appraiser marks the declining box.

So if the sales price becomes $163k the lender will now only lend $155k.

With all the BS going on now I would just decline the request. My job was done and I have moved on.


I second that & my question is how come your "friend" doesn't want to come on this Forum themselves?? Another question is what was the List price of the home?
 

William K

Senior Member
Joined
Sep 21, 2007
Professional Status
Certified Residential Appraiser
State
Illinois
I have seen this 3 times in the last 2 months, both on refi's and sales in 1 market where the market is showing sure signs of a decline. It doesn't matter to me ,what games the lender wishes to play with the value as to their loan. VALUE IS VALUE. I appraise based upon the SOW and with the Definition of Market value in mind. The Fannie Definition did not change , they did not say appraiser's when your in a declining market once you reach an opinion of market value reduce it another 5% and report that as your value. That is for the lender to do based upon their guidelines. MY OPINION OF VALUE IS JUST THAT MY OPINION. It doesn't change because "well it'll just make things so much easier for us". And as a side note I DON'T CARE THAT THE OTHER APPRAISER DID IT!
 
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