Ariba
Senior Member
- Joined
- Feb 8, 2004
- Professional Status
- Certified Residential Appraiser
- State
- Colorado
Stolen from the recent headlines of another thread.
Here is the scenario, you appraised a home and while measuring committed a mistake that made the subject 2,300 SF GLA instead of 2,000 SF GLA. The appraisal was competed and the loan was funded and closed based on a GLA of 2,300 SF. A significant 15% GLA difference.:blush:
Someone brings it to your attention that the public record and previous appraisals stated that the house was 2,000 SF GLA. You discover that you made a mistake and in fact the property actually is 2,000 SF GLA.
1) Would you call the Lender/Underwriter and inform them of the mistake?
2) Would you correct the report with new comparables, photos, sketch, etc?
3) Do nothing since the mortgage loan was been funded?
4) Call your E&O Insurance representative?
5) Call your Appraisal Board?(just kidding)
6) Say nothing and cross you fingers?
7) Go on a three year sabbatical or until the statue of limitations runs out?
8) ??
Remember there is no way to recall the original appraisal. If you do decide to correct your mistake with a new appraisal what would the purpose be? The loan has already been funded? The lender cannot recall the loan.
The bottom line, what courses of action do you take when you find ANY significant mistake in an appraisal report you completed and the mortgage loan has been funded?
How do you cover your liability and a** in case the Appraisal Board investigators start calling.
Here is the scenario, you appraised a home and while measuring committed a mistake that made the subject 2,300 SF GLA instead of 2,000 SF GLA. The appraisal was competed and the loan was funded and closed based on a GLA of 2,300 SF. A significant 15% GLA difference.:blush:
Someone brings it to your attention that the public record and previous appraisals stated that the house was 2,000 SF GLA. You discover that you made a mistake and in fact the property actually is 2,000 SF GLA.
1) Would you call the Lender/Underwriter and inform them of the mistake?
2) Would you correct the report with new comparables, photos, sketch, etc?
3) Do nothing since the mortgage loan was been funded?
4) Call your E&O Insurance representative?
5) Call your Appraisal Board?(just kidding)
6) Say nothing and cross you fingers?
7) Go on a three year sabbatical or until the statue of limitations runs out?
8) ??
Remember there is no way to recall the original appraisal. If you do decide to correct your mistake with a new appraisal what would the purpose be? The loan has already been funded? The lender cannot recall the loan.
The bottom line, what courses of action do you take when you find ANY significant mistake in an appraisal report you completed and the mortgage loan has been funded?
How do you cover your liability and a** in case the Appraisal Board investigators start calling.
