Financing in Omaha>Question Details

Brianne, Both Buyer and Seller in Omaha, NE

My husband and I wanted to refinance in July and had an FHA appraisal - we decided not to refinance, can the appraisal be cancelled?

Asked by Brianne, Omaha, NE Mon Nov 16, 2009

We wanted to refinance in July and the appraisal was completed and we paid for it but decided not to refinance because it wasn't worth it.

We have since updated the house some more and decided to sell the property. We have the opportunity to build and at a discount and are expecting, so the extra room will be needed.

The reason we would like to know if we can cancel is that... the value of the appraisal was done before some upgrades and even though we didn't refinance the fha appraisal is still out there and our buyer's lender is using this appraisal to determine what our home is worth. Is there anyway around that as we've made upgrades and the comps in the area have gone up in these past four months as well.

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Brianne

I am not sure why your buyer's lender is still using that appraisal as it was done in July. In the past FHA appraisals were good for six months, but with the financial meltdown that our nation has experienced over the last year all lenders that I deal with on FHA are requiring new appraisals after 60 to 90 days due to the changing market.

Have your Realtor call the buyers agent to discuss this issue unless the buyers loan officer will talk with you. If you made many upgrades, the least that could be done if in fact they are using the old appraisal is to request a reconsideration of value which would necessitate including any upgrades made since the last report.

Hope this helps.

Good Luck
1 vote Thank Flag Link Mon Nov 16, 2009
Hi, Brianne

You can do 1 or 2 things:
1.) Inform the appraiser of your improvements and your neighborhood's rising value and see if both will make a difference in your own home's value. If so, he/she can update their appraisal accordingly upon by pulling new comps and coming back out to your home for a reinspection. They may charge an additional fee to do so however.

2.) FHA appraisal are good for 6 months. Afterwards, another one can be done. Given the appraisal is 4 months old already, and depending on your improvements and if your neighborhood continues to rise in value, you may just want to wait and order a new one in the hope of getting an even greater value. But this market is unpredictable at best, and you could get hit with a couple of short sales in your neighborhood in the interim as well. Food for thought and I hope this helps.
1 vote Thank Flag Link Mon Nov 16, 2009
Requesting a "reconsideration of value" is not a good idea and won't happen. The appraisal done in July was based on the condition of the property at that time. Since the additional undates were done to the property after the appraisal, they would not be allowed to be considered for that appraisal per regulations. By requesting a reconsideration based on updates after the fact, you are asking the appraiser to commit appraisal fraud.

What you need to do is request the buyer's lender order a new appraisal, with a new effective date and value. The buyer's lender has the option to order a new appraisal with a new case number, or not, if the buyer is going FHA. FHA appraisals generally stay with the property for 6 months. Perhaps your buyer can switch to conventional, or some other type of financing.
0 votes Thank Flag Link Mon Nov 16, 2009
Do you currently have an fha loan , there are fha loans that you can do that doesnt require an apprasial its a streamline process. Rates are really really good you should reconsider refinancing if your rate is above 5.5% liz.stallion@gmail.com
0 votes Thank Flag Link Mon Nov 16, 2009
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