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.
Roswell Moore, CMPS
Certified Mortgage Planner
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.