Financing in Lawrenceville>Question Details

Jadabug4, Home Buyer in Lawrenceville, GA

When do you pay for your appraisal?

Asked by Jadabug4, Lawrenceville, GA Thu Jun 26, 2008

I found a house and my mortgage broker told me she would hold off ordering my appraisal until after my inspection just in case. Well the inspection did not go good so I cancelled during my due dilligence period I called the mortgage lady told her to cancel the appraisal. She did and then processed my check anyway I may be wrong but cancel means cancel the payment as well to me because I have not even found a house well because I did not know she was going to process the check that she had by the way for over 3 weeks and it just got processed yesterday my account was hit with overdraft fees because I didnot transfer money from my saving account . Would you asked to be reimburse for overdraft fees?

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Here is, I belive, the relevant statute in Georgia:

7-1-1013. Prohibition of certain acts.
(5) Fail to account for or deliver to any person any personal property obtained in connection with a
mortgage loan such as money, funds, deposit, check, draft, mortgage, or other document or thing of value
which has come into the possession of the mortgage lender or broker and which is not the property of the
mortgage lender or broker, or which the mortgage lender or broker is not in law or at equity entitled to
retain;

Call up the broker, read that paragraph, ask for a refund of the appraisal fee and reimibursement of your overdraft fees, or offer to call this number 770-986-5036 which goes to Sandra Sheley, the Director of Mortgage Supervision for the State of Georgia, for clarification from the State on the broker's obligations to you to refund a cancelled thrid party fee for services not performed.
1 vote Thank Flag Link Thu Jun 26, 2008
up front. most appraisers wont conduct the appraisal without being paid first. appraisal will be ordered when you apply for a mortgage after the contract is finalized
0 votes Thank Flag Link Wed Dec 14, 2011
If the appraisal was not done, then yes would in fact go after the reimburse for all of it. Did you speak with the lender directly after the fact? Start there first, may have been a simple mistake,
Best of luck!
Web Reference: http://www.torilawson.com
0 votes Thank Flag Link Tue Jul 1, 2008
Great answer Deep River!

I would go after the money and the overdraft.

This could be a simple mistake, but if the appraisal order was placed and they did it you may be out of luck.

If they charged you then ask them where your copy of the appraisal is.
0 votes Thank Flag Link Thu Jun 26, 2008
The check was only for the appraisal I have paid everything else already. We are in GA. I think what makes me so mad is she told me she was cancelling the appraisal and then holds the check for 3 weeks so in my mind I thought the check would not be processed because she never specified that it would which would not have been a problem I would have just left the funds available. I have never had overdraft fees before in my life this is extremely nerve wracking and I was walking around yesterday with $300.00 cash my husband asked me to deposit. All she had to do was say something.
0 votes Thank Flag Link Thu Jun 26, 2008
the price of appraisals in the Massachusetts area run between $300-375.
0 votes Thank Flag Link Thu Jun 26, 2008
If your check was only to cover you appraisal fees and this was not done after all then you should get your money back, and about your over draft fees it will be up to you if you want them to pay as well since you did not authorize the cashing of the check.

Good luck..
0 votes Thank Flag Link Thu Jun 26, 2008
First question is what state?

Most states require a mortgage broker to hold payments for third parties in a separate escrow account. That way the money is there to be paid out to the third party or (in your case) refunded upon cancellation. The deposit into the escrow account should have been made immediately, and you should have been informed of the rules in your state governing such fees.

Visit your state's web site and the agency that governs mortgage brokers. There will be info about your rights in the event a broker fails to refund a third party payment after cancellation.

I doubt you'd be able to recover overdraft fees unless you can apply a little heat to the broker to reimburse you. I most certainly would ask. In Florida the broker would have some explaining to do to the regulatory folks in Tallahassee.

The wisest course for the broker would be to make you whole (ie reimburse the appraisal fee AND your overdraft fees) and apologize.
0 votes Thank Flag Link Thu Jun 26, 2008
Was the check specifically for the appraisal? If so, I would ask for the overdraft fee to be reimbursed.
Web Reference: http://www.cindihagley.com
0 votes Thank Flag Link Thu Jun 26, 2008
Cindi Hagley, Real Estate Pro in Pleasanton, CA
MVP'08
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