Financing in Maywood>Question Details

Jely33, Other/Just Looking in Maywood, IL

What to do when you receive an unfair and low apprasial from Wells Fargo. In 2006 property appraised at $300,000, now they say $105,000.

Asked by Jely33, Maywood, IL Thu Oct 8, 2009

They used foreclosed and bank owed properties as comparables, and used properties that really didn't compare.

Help the community by answering this question:


Use a different program. If you are using a conventional loan, the lender has no control over the appraiser. They can not contact them or ask why? If you go FHA, however, the lender can ask the appraiser "this is what we need". The appraiser can obtain info from the lender of properties sold etc. It's a matter of getting paid for the work. In May 2009, the HVCC law went into affect by our lovely government that states that conventional programs would not allow any party to contact the appraiser at any time. It's not Wells fault, it's the government's fault.
0 votes Thank Flag Link Fri Oct 9, 2009
You might want to look at the link below.
in ONE YEAR the average price per square foot dropped 25%.
My bet is that your property did in fact decline that much in value.
Sorry to say....
0 votes Thank Flag Link Fri Oct 9, 2009
Keith Sorem, Real Estate Pro in Glendale, CA

Here are some stats for Maywood you may be interested to know.

2006 average sales price:

3 bed $183,021
4 bed $195,588
5+ bed $ 189,161

2009 average sales price:

3 bed $57,407
4 bed $71,071
5+ bed $ 88,200

FYI there are many towns in the surrounding area that have seen values fall as much as these.
0 votes Thank Flag Link Thu Oct 8, 2009
BTW Jely33,

You know what would be truly incredible? If you got a letter from your County reducing your taxes DRASTICALLY because your property value has so "crashed". Betcha you don't....

My understanding (and I'm not an appraiser:disclaimer) is that an appraisal on a home not in distress should not have all distressed property as comps. Some Lenders will even allow up to 6 comps and allow you to go a little out of the immediate market if there is absolutely nothing but foreclosed properties in your market, to find regualar comps. I guess it depends on how conservative versus how aggressive the Lender is.
This is where the reason for the loan becomes important too. You would probably get better options with a rate and term refinance (to reduce payments) over, for instance, a cash out loan., or with an FHA over a Conventional loan.
I say look into other Lender options so you have enough information to make an informed comparison, and therefore, decision
0 votes Thank Flag Link Thu Oct 8, 2009
Would have to have the particulars of this house to give a precise answer but here is some general information about the area.

Unfortunately the bulk of sales this year in Maywood have been foreclosures. You'd be hard pressed to find a close property that wasn't. 91 houses have closed since the beginning of the year and 86 of them have been $150,000 or under 76 of those were under $100,000. Currently there are 148 houses on the market. 100 of them are under $150,000. With stats like these, it's understandable why this appraisal came in where it did.

The numbers from 2006 are higher but not much better. 181 sales for the same time period with 101 of the at $150,000 or under.
0 votes Thank Flag Link Thu Oct 8, 2009
Hi Jely33,
This always brings up the issue of having to fit in a Lender's "box". Did you use a Broker? If not, you should probably consider that. Brokers have access to several Lenders and if this is an FHA loan, they can order from any HUD approved Appraiser, rather than being stuck with someone inhouse, that might not even be from the vicinity of the subject property. With conventional loans, the Lenders now order the appraisers in house, ergo, this kind of thing might happen.You could dispute but I don't think it will serve any useful purpose. The appraisal guidelines were actually reviewed to allow appraisers to ignore "distressed" properties as comps in the valuation of regular properties for loans. This is where your problem lies. Frustrating, yes, unusual, no.
With an FHA loan, we can assist you by ensuring that we use an FHA approved appraiser who knows the market as well as the USPAP (appraisal) guidelines.
That is a huge difference but there are several similar horror stories out there. I would be interested in a few more details - what is your loan amount? Is this a rate and term or cash out refinance?
Should you need a second set of eyes to review your loan, I would be happy to take a look at it.
Good luck to you. Don't give up just yet whatever you encounter. A lot of people in the same situation have actually ended up with better luck simply by saying a nice "Thank you", and moving to a different Lender.
0 votes Thank Flag Link Thu Oct 8, 2009
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer