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What does this mean? Is it legal?

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Freshman Member
Feb 26, 2002
I have posted before regarding this matter but have discovered new info and would like your insight....

I will refresh scene...
1997 purchase house for $85,000
1999 Home equity loan (non-purchase) with Bank writing $115K as FMV
2000 Home equity loan (paid off 1999 one) bank put FMV as $117K
2001 I begin questioning high 35% appreciation on 1999 loan then only 1.7% appreciation on 2000 loan.
2001 Through Branch Agent I finally got Freddie Mac AVE Home Market Valuation document for 2000 loan stating the value to be only $103,054
Bank REFUSES to give me 1999 Valuation documentation eventhough I paid for it (its on my settlement statement with Appraisal company name listed.
2001-2002 Letters sent to CEO with copy of $103,054 document. Their Counsel offers NO explaination stating only that their lien is valid and they will not discuss the issue further.

This is what I finally have concluded. (AppraisersPetition comments were Eye opening to this Naive consumer):

1) 1999 Loan-Bank Falsely inflated or got a 2nd appraisal for FMV and used the one that would "Make the Loan" (Bank refuses me appraisal Docs)
2) 2000 Loan-Same Bank never thought I would come back in for another Home Equity Loan. So when they saw the $103K Market Valuation Report they Could Not now tell me to my face that in one year 3 months that my property went down $12,000 so they ONCE AGAIN falsely inflated or got a 2nd appraisal to Cover Up acts committed on the 1999 loan.
3) 2000-2001-CEO and the Bank's Legal team KNOW what's going on and are now conspiring to Cover up the Fraudulent acts.

I cannot move from my house as planned because the Equity that I thought I still had based on the high $115k and $117K would be Stripped with the reality that my house will not sell close to those figures.

While presently looking for an attorney that can handle this (mega in my mind) issue, I am constantly gathering infomation regarding my case...

Here is what I found This morning and I am getting the chills...
I don't why I did not see this sentence before on my Contract, but under Good Faith Estimate of Settlement Costs it states after a few HUD paragraphs the following:

"We require you to use the following providers of settlement services. We have repeatedly used or required borrowers to use the services of the provider within the last twevle (12) months:

Item 803, 1102, 1108 (Appraisal Fee, title search, title insurance)
"So and So Equity Services
1234 Equity Lane St 100
Some City, State 22222"

Well, "So and So Equity Services" (name changed) is the name on the lower $103,054 Valuation Document that the Bank apparently thought they shred.

What does above sentance mean????.. "We REQUIRE you to use ... and ... We have REPEATEDLY used or REQUIRED BORROWERS to use...

What does it sound like to your group of appraisers? Does this sound legal?
Jan 16, 2002
Professional Status
Certified Residential Appraiser
North Carolina
You may well have an inflated appraisal, but you are not the aggrieved party. All the bank did was loan you money that you asked to borrow. You signed the note and are responisble for repayment. The fact that the banks decision may have been ill informed has no bearing on the contract. You are the only one who can protect yourself from yourself.
Jan 13, 2002
Professional Status
Retired Appraiser

I would suggest that you take all of this information that you have collected to your local television network news consumer protection reporter. While you are at it, sent copies of it all to the national networks, ABC, NBC, CBS, FOX, CNN, etc. Let them ALL have it. Copies to all your local, state and national legislators also.

Go for a congressional hearing regarding predatory lending. Don't stop!!!


Freshman Member
Feb 26, 2002
How can I get seen in Washington??? That's a biggie, but I have the summer off and I want to be heard.

When I saw that statement... "You are REQUIRED to use (our appraisers).. it sort of got me flustered. It sounded to me like a "nice" easy ticket for corporate and "appraiser" Collusion.

Because, as a Teacher and single mom with young child, I am limited on time, I haven't had the time to devote full time to contacting the media. But when I saw that sentence yesterday on my contract I did get into action a bit. I got together the 44 page brief I prepared (in case I can't fine a lawyer who will take this pro bono), a scary letter on Saving and loan scandal, predatory lending, deceptive business practices and sent them off to just a few people to start, they were:

John Cornyn, Attorney General State of Texas
John Ashcroft. United States, U.S. Department of Justice
Michael T. Shelby , United States Attorney

This bank has been made aware of laws they have violated and apparently feel they are above all United States and Texas laws. Hopefully the United States Attorney General will show them otherwise.

Any other addresses you might have would be helpful.

I appreciate your response and I will do what I can to see that appraising is taken out of the hands of lenders and consumers entirely.

Kingwood, Texas

Head Surfer

Staff member
Jan 4, 2002
Professional Status
Retired Appraiser
You have already posted about your situation before and received 3 pages of replies. See this topic here:


The "ask an appraiser" forum is for members of the public to ask general questions about appraisal to get an idea of how the appraisal process works and some of the terminology involved. Appraisers may answer these general questions if they wish, and the reader must understand that they are unofficial and for informational purposes only.

Questions about specific situations such as yours, especially those cases where someone is alledging improper conduct can not be answered here. The appraisers here were not a party to your transaction and it would be improper for them to render an opinion.

What you need to do is contact a lawyer.

Wayne McKerley, Admin.
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