Those loans are a primary cause to alot of the foreclosures you see today and are not being done. Your best bet is to meet with a local and trusted loan officer who can prequailify you and let you know is available to you.... more
Unfortunately, as I've written in my blog about the new HVCC (Home Valuation Code of Conduct), after the valuation appeal, which you've already done, there is only one action you can take, and that is to take your business to another lender and to start the appraisal process with someone else. While you can always assert problems with the appraisal, the truth is that there is currently no vehicle or mechanism to police the appraisers. The HVCC calls for the formation of a VPI or Valuation Protection Institute, which was supposed to house all of the appraisals completed, to receive consumer complaints, and to check into those complaints, but this was never instituted prior to the May 1 implementation date for the HVCC. It is also the reason that you--as the consumer--have no one who can respond to your complaints about the quality of the appraisal. This is one of the reasons for supporting the new HR 3044 currently making its way through Congress, which will impose an 18 month moratorium on the HVCC.
If you choose to try again with another appraiser make a request of the AMS (Appraisal Management Service) that they assign a local appraiser to complete your appraisal. Unfortunately, we're finding that many of the problems associated with the appraisal begin with the lack of local knowledge by the appraisers who, in many cases, are not familiar with the community. A second issue with HVCC appraisals is the new requirement that the appraiser determine a "trend" for housing prices in the area. This was not something that appraisers had done in the past, so it is not inconceivable that with so many foreclosures across the country, the appraiser's "trend analysis" will tend to be pointed "down" rather than "up."
At this time, the HVCC rules apply only to "conventional loans" with Fannie and Freddie as guarantors or buyers. The HVCC does not apply to jumbo loans or to FHA loans or portfolio loans (without guarantors), so if there are other means to refinancing, you might consider another lender who will not use Fannie or Freddie.
I wish you very good luck and am sorry that you have been victimized by the new appraisal rules, the HVCC.
Grace Morioka, SRES, e-Pro
Area Pro Realty... more
FHA still has a program where the seller pays the buyers closing costs and down payment but it is supposed to go away 3/31/08.
Things are changing daily in the mortgage market, I would suggest you talk to a lender or two. If you would like a referral please let me know.
Michael Doyle Realtor... more