Let me ask you this, did you receive the good faith estimate, TIL, and HUD Booklet in the mail? Did they take the money out of your credit card prior to this? This is also a direct violation of the law. They can only collect a credit report fee prior to providing you disclosures. If they mailed disclosures there is a 3 business day waiting period before they can collect anything else on the 4th business day to allow you time to receive and review the documents. If this is the case, then take your complaint to the Consumer Financial Protection Bureau. If they didn't send you these disclosures, you may want to call them and explain to them that they are in direct violation of Reg Z. It states, "No fee, other than credit report, may be collected nor imposed prior to delivery of TIL and other required disclosures".
@Jayne is your correct answer. Contact the bank..ask to speak to a manager...or dispute the charge on your credit card. You cannot be charged for an appraisal if you do not complete a refinance transaction on your primary residence. Second homes and investment properties do not have the same protections; however.
Remember gang, the banks are NOT YOUR FRIEND! They are there to extract money from you any way they can! You must stand up for yourselves or they will walk all over you. Unless it is in writing you do not owe it. Tell them to take it out of the TARP money YOU have already paid them!
Pick your battles carefully and remember that standing on principle can be VERY expensive. But always stand up for yourself, because the banks are ONLY looking out for themselves.
Sounds like the bank ran an AVM (Automated Value Method) appraisal - these don't cost $400! You should review any paperwork that you signed to determine whether you owe any money. Some lenders do obligate clients to a reimbursement policy; others see this as a cost of doing business. Your answer will be contained in the text of any documents you endorsed.
Steven A. Ornellas, GRI, ABR, e-PRO, CMPS, RE Masters, MBA
REALTORÂ® / Mortgage Banker-Broker / Certified Mortgage Planning Specialist
Steven Anthony Real Estate & Financial Services
Expect Excellence. Get What You Expect.â„¢