Financing in 85283>Question Details

ryfuller, Other/Just Looking in Alabama

If we were denied a refinance on investment property due to an oversight by the mortgage company, could we receive a refund for the appraisal fee?

Asked by ryfuller, Alabama Tue Sep 18, 2012

We were not told upfront that we would be considered professional investors because we own more than 10 properties and therefore the company we were working with would be unable to loan us any money. We paid $525 for an appraisal fee, an appraisal was done, and now we have been denied due to this "rule" that they should have told us from the beginning. Is there any law that states we should be refunded our appraisal fee?

Thanks!

Also, does anyone have any recommendations on where we could get financing?

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Bill Parker, CPA*’s answer
Strange....When I started my answer, there were no responses shown. When I posted, I saw the previous four. Reason some of my message appears as if I had not read your posts--I hadn't--they were not there...Later.

Bill Parker
NMLS #223607
0 votes Thank Flag Link Wed Sep 19, 2012
I see you asked this question back in September, but I do want to bring something to your attention...

You stated that the properties have been in your family for generations. If you own these properties free & clear, then you should be able to finance up to 10 properties. The key word here is "financed" - so if you own more than 10 properties, but only 5 are financed, you have room for 5 more financed properties.

Please feel free to contact me directly if you have any further questions, I'd be glad to help.

All the best,
Ros

Roswell Moore, CMPS
Certified Mortgage Planner
480-422-5095 direct
http://www.ezAZloan.com

We are a Direct Lender, Mortgage Bank where we originate, process, underwrite, fund, AND SERVICE our loans, in-house, with FHA (starting at a 580 score AND still only 3.5% down), FHA Streamline refinance loans (NO minimum credit score, NO appraisal required) Go Green rehab loans, HomePath, Investor Friendly (10 financed properties), VA, VA Refinance loans (NO appraisal required on IRRRL loans), USDA loans, Jumbo loans, Conventional loans, plus, we allow Escrow Hold-Backs!
Web Reference: http://www.ezAZloan.com
0 votes Thank Flag Link Wed Feb 13, 2013
Hello ryfuller:

There is probably nothing out there (rules, regulations, law, etc.) which covers this, as it is such a subjective situation. Did you tell them upfront you had this many properties? Were they listed on the loan application? Etc., Etc.

In my opinion, it becomes a question for the company and you of legal obligation vs. moral obligation. The legal path is probably not worth your time, money or frustration. On the moral side,if the loan officer knew you had this many properties and failed to realize he/she would not be able to help you out of their own ignorance, then I would point out to them it would probably be in their best interest to take care of you as a moral obligation.

If they are a licensed Mortgage Loan Originator with an NMLS # after their name (see my signature below) and you do not feel they are taking proper action, you can complain to your/their state regulatory agency about the treatment you are receiving. On the other hand, if they work for a bank or credit union, where their employess are exempt from being licensed, you have little sway over them. Another good reason for people to look for a licensed loan officer these days.

If you invest as much as it seems, you may have just learned a very valuable $525 lesson...

I do not have all my lender information with me right now, but I will look to see which ones offer financing in such situations and get back to yousoon.

Bill Parker
NMLS #223607
602-565-3646
0 votes Thank Flag Link Wed Sep 19, 2012
Glad to hear your rentals have done well, once in a while every landlord gets a bad tenant. The screening has gotten better today with the technology available which helps.

Would you reach out direct to me so we can discuss your situation a little more off the public view and potentially find a lender for you.
0 votes Thank Flag Link Wed Sep 19, 2012
Our rentals have always done well, with the exception of a bad tenant here and there. We don't consider ourselves professional investors because the land and properties have been in our family for generations. However, if we can find the right lender, we're interested in expanding.
0 votes Thank Flag Link Wed Sep 19, 2012
As Doug is saying I'm pretty sure that you won't get any kind of refund for your appraisal. What you need to do is find a lender that really knows what they are doing when it comes to investors and when you find that lender stick with them.
0 votes Thank Flag Link Tue Sep 18, 2012
Sorry to hear that someone failed to complete the Pre-Qualification process at a level that would/should of discovered this issue. It's frustrating and I see it so often when buyers use some mortgage company that offers a low rate or promises the world to them. Mortgages today are available in many flavors, so long as you enjoy vanilla.

We have a couple of options that I could look into for you and or provide you with contact information if you prefer that.

I'm not aware of anything in statutes that would require the refund of the appraisal.

How are your rentals doing?
0 votes Thank Flag Link Tue Sep 18, 2012
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