If the property is a HUD home and you are getting an FHA loan, then the appraisal should already be complete as it was done by HUD to set the sales price. If it is conventional, the other answers have been correct - some mistake is being made by the bank/lender. Fortunately, HUD usually refunds the first $375 fee for the first 15 day extension as long as you close. You'll need to pay the fee with a cashiers check, but again, it should be refunded at closing. We're closing purchases of HUD homes in less than 30 days right now with our in house underwriting, so I would be inquiring with the loan originator's manager to find out what is going on.