Home Buying in 78759>Question Details

Korina, Home Buyer in 78759

FHA loan and 7 days from closing. Lender asked for 2nd appraisal. First one came in at listing price (430k), 2nd one - at 406k. app. went out of area

Asked by Korina, 78759 Sun May 1, 2011

My agent told me the 2nd appraiser used comps that were 11/2 away when there were at least 34 comps in the area that could have been used. We paid for both appraisals. My agent and listing agent are shocked at the 2nd appraisal being more than 5% off. So they are rebuting it. What do you think the lender will do?

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6
Im a retired appraiser. I stopped appraising and started investing and Ive done well because I understand what makes value. When I did residential appraisals (FHA,VA), there was seldom a 2nd appraisal ever and the value of the 1st appraisal was "assigned" to the house for a time. The only reason for HUD or the VA to require a 2nd appraisal was when the first appraisal, after review, was considered (politely) deficient. Things like a different square footage (compared to the measurement on an earlier appraisal), too high total gross percentage adjustment, too high a net percentage adjustment, an adjustment that it too large can cause the rejection of an appraisal. Constraints placed on the appraisal process by lending requirements can lead to an inaccurate value estimate.
0 votes Thank Flag Link Thu Mar 19, 2015
My first question is: who is your lender? Doesn't sound like he/she knows what they're doing!
Please call me I have a great one to refer you to!
Warm regards, larapavanelli.realtor@gmail.com 512-909-5807
0 votes Thank Flag Link Tue Mar 19, 2013
Do you know what prompted the lender to order the second appraisal?
0 votes Thank Flag Link Wed May 18, 2011
What kind of property is this? Is this a Single Family Residence, duplex, 3 unit, 4 unit? The reason I ask is because if your property is an SFR then your max loan amount is $288,750 with FHA financing and you may be dealing with the wrong loan.

Please list some more details about your transaction.

1. Property type
2. Sales price
3. down payment

Elliott R. Oliva
Mortgage Banker
Envoy Mortgage
512.825.8309 direct
eoliva@envoymortgage.com
0 votes Thank Flag Link Wed May 4, 2011
Korina...

FIRST OF ALL... HUD guidelines say you CAN NOT be charged for that second appraisal. If the lender calls for it, THEY have to pay for it...

Secondly, you might want to consider switching lenders.. seems a bit odd, and you should have better transparency and communication.

Please call me directly. I would be delighted to help.

b
Web Reference: http://www.203kworld.com
0 votes Thank Flag Link Wed May 4, 2011
Your current Lender should be advising you on what the process is and why a 2nd appraisal had to be ordered. He or she should know.

Are you buying a 'flipped' property that went under contract by you within 90 days of the Seller buying the property? If so, do you know what the Seller originally paid for the property?


Scott Butcher
Mortgage Banker
Maker Capital Group, LLC
2307 Lake Austin Blvd.
Austin, TX 78703
512-796-7738
scott@makercapitalaustin.com
0 votes Thank Flag Link Mon May 2, 2011
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