Home Buying in Camarillo>Question Details

TEAM KOMAR, Real Estate Pro in Camarillo, CA

Has anyone run into double appraisals required by law for Conventional buyers if home has not met 6-month seasoning requirement for flippers.

Asked by TEAM KOMAR, Camarillo, CA Sun May 5, 2013

Quicken loans had a sale price appraisal at $560K on Cipres Ave and even though we had a solid appraisal for $560K, they said the law required another appraisal, which actually came in at $570K.

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3
First mistake Quicken loans. That could not have been your Realtor's choice.
Get a real lender. Two appraisals for conventional on a flip is BS. FHA yes, conventional no.
2 votes Thank Flag Link Sun May 5, 2013
Laura, Yes, I THOUGHT so. Thank you! Quicken did end up closing for us, and on time, but my associate said that seems "fishy". But direct lenders, I have horror stories with starting with Bank of America, they are HORRIBLE
so your danged if you do, and ..... Take Care, Ray

Appreciate it Laura.
Flag Sun May 5, 2013
Sometimes if you have a 100% increase between the original price and the "flip" price, within 6 months, you will be required to get a second appraisal. I'm not sure of Quicken's guidelines, but I do know that we have at least one investor who will make this requirement.

Most other flip requirements pertain to the first 90 days.

I hope this helps, but please let me know if not.

Rob Spinosa
rspinosa@rpm-mtg.com
2 votes Thank Flag Link Sun May 5, 2013
Rob, Thank you! I understand that, and that makes sense, but the investor paid $382,500, in August for the home. Had $80,000 in receipts for improvements and listed it in April for $549K, we offered $560K to outbid several other offers that were presented. so it was no where near 100%. BUT, Quicken Loans said that it is not their requirement, it is a NEW FEDERAL LAW by the US government since the melt-down in 2007-08. QUICKEN did charge my buyers in April who agreed to pay it over $1,000 in appraisal fees alone. I do not think this is a new federal law, but I am calling CAR legal department on Monday. Thanks Rob. Good Luck in Mill Valley, CA
Flag Sun May 5, 2013
I think Laura is correct, FHA requires it and the underwriter is maybe confused for one thing it is only 90 days they require it not 6 months. It is not a legal requirement that is for sure.
0 votes Thank Flag Link Tue May 7, 2013
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