I am applying for a Refi. Bank lowered appraised valu that the appraiser had come up with (which means I get less cash out). Can they do this?

Asked by Tleatherbarrow, Buffalo, NY Fri Apr 1, 2011

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Tleatherbarrow’s answer
Tleatherbarr…, Home Owner, Buffalo, NY
Fri Apr 1, 2011
Andrea Mills - you didn't answer the question. I am not ignorant. I know it's the banks money. And they will make lots of my money if they make the loan. I am pretty sure that's the way it works. The ability to refi is, I think, based upon ability to pay, not on luck. Thanks for your posting.
2 votes
Lew Corcoran, Agent, Easton, MA
Fri Apr 1, 2011
Banks and mortgage lenders can't arbitrarily lower the appraised value. However, banks and mortgage lenders are ultimately responsible for the appraiser's report on the value, condition, and marketability of the property. If there is something in the appraisal report that is of concern, the underwriter is supposed to go back to the appraiser and ask for clarification.
0 votes
Anna M Brocco, Agent, Williston Park, NY
Fri Apr 1, 2011
Yes, unfortunately they can....
0 votes
, ,
Fri Apr 1, 2011
Yes, this can happen to you, & as Joe said, it is happening to many refinance loans. If you are having a major issue with the valuation & you are using one of the huge mega-banks, you may want to seek out a local mortgage bank whose only source of income is from the successful funding of home loans.

Good luck,

Roswell Moore, CMPS
Certified Mortgage Planner
480-422-5095 direct

We are a Direct Lender, Mortgage Bank where we originate, process, underwrite and fund, in-house, FHA (w/a 580 score), 203k, VA, USDA, Jumbo, Conventional, loans to Canadians, Australians & other Foreign Nationals, on time.
0 votes
Andrea Mills, Agent, Sebring, FL
Fri Apr 1, 2011
You have to keep in mind that it is the bank's money that you are borrowing (your cashout). You are lucky you are able to re-fi to begin with. Many other homeowner's are in much worse shape.
0 votes
Joe Sorrenti…, , Buffalo, NY
Fri Apr 1, 2011
It's happening to a lot of people, not just you. Also, many people are having difficulty refinancing because the threshold for acceptable credit scores are higher for not only lenders but also Mortgage Insurance companies (PMI) and many people cannot qualiy to refinance the house they are living in. Try going to a BANK that is local based. If you have to borrow money, they select the appraiser not you.
0 votes
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