If the title changed that would not warrant a full appraisal , few updates in their info. considering property values not changed, OR sq. ft. and etc etc.
GREAT QUESTION : keep us updated
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
You should be red as copper given the ineptitude by which your loan is being handled. FHA rep is correct, if lender is requiring another appraisal, then its up to them to pay for it, not you. However, typically this is only done when underwriting is questioning the value the appraiser came up with. Perhaps that is the real issue after all. Again, the other reason you were given doesn't make a bit of sense. And if it was an issue, it could have been simply and easily corrected with a just a phone call from your lender's appraisal dept to the appraiser. And done for free!
The appraisal was done in my name, and paid for by me, but ordered by the lender. The property owner of public record is the executor who inherited the property from the decedant. So it appears the appraisal is correct. I would never recommend this type of loan or this lender to anyone again. We were supposed to close Sept. 30 and it has been extended out 5 times because of our financing and the hoops the lender is making us jump through. The seller, having inherited this property, is now in HUD hardship status because she could not carry the mortgage and utilities this long. It has been very bad.
BTW, I took Fred's advice and contacted FHA this morning. I was told that this house would not be considered a "flip" but is exempted from those guidelines because it is an inheritance. Either way, the FHA underwriter said the cost of a 2nd appraisal is not allowed to be passed on to the borrower. She recommended I tell my lender that their underwriter needs to call an FHA underwriter and get a clue.
This is not an FHA requiremenrt. If title changed hands, all the appraisers has to do is update the appriasal accordingly. Another appraisal should not be required, and the expense (if any) to make this simple change should not be charged to you. If it is, again, the cost should not be anywhere near what the appraisal cost. I believe there is another issue here. If you can't get a straight answer, you may want to take your business elsewhere. If you do, your FHA case# and present appraisal must be transferred to new lender within 48 hrs and w/o any costs to you. Hope this helps and good look.
What does a change in title have to do with the value of a property?
I would call the local FHA office and your Congressperson's office and tell them the problem. Make sure they understand that this is a national problem.
It's stupid, obnoxious, overbearing, ridiculous and downright silly. Also, if they want a new appraisal, let them pay for it. It's not your fault.