« Given the current mortgage crisis, would it be a good time to persue an FHA loan?
Is it possible to get an FHA home loan in Ohio with FICOs under 620? »

Recourse for bad appraisal?

About a year and a half ago my wife and I bought our first home, we had been renting it from a previous employer of ours and used a lender that he had used before for some of his other rentals. Our credit was such that we could only get a subprime loan. You know the tale. Anyway, loan goes through fine, 255k appraisal and 230k loan, 2yr prepay penalty and fixed for 2yrs at 8.39%. All is excellent, make payments no huge card debt, want to be able to refi within 2yrs. 2 months ago start refi process, everything excellent for FHA loan, credit is excellent, income is excellent, all is in place for loan except appraisal. It comes in at 215k. WHAT!!!!!!!!! So then we question how can that be? We know the market has been terrible but our area has held up pretty excellent. Come to find out, the appraiser had added 5 extra feet on to the end of our house, which added 150 sq feet to the whole house. Our new lender said that place us in a different bracket as far as house size goes so thats why the appraisal came in 40k less. We would have never got the loan otherwise. So now I cant refi because every appraisal now will be with right numbers. Sounds like loan company went above and beyond to make sure this loan went through. Is there anything I can do?


Related Articles

Related FHA and HUD Posts

Tags: , , , , , , , , , , , , , , , , , , , ,
Tags: , , , , , , , , , , , , , , , , , , ,

This entry was posted on Monday, June 29th, 2009 at 1:43 am and is filed under FHA Appraisers. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
Top incoming search terms for this post

2 Responses to “Recourse for bad appraisal?”

  1. Landlord says:
    June 29, 2009 at 1:44 am

    Don’t you read the paper? watch the news? All values are down, your appraisal was not terrible. We are all in the same boat, not a excellent time to refi.

  2. Recourse for bad appraisal? · Real-Estate-Investing.ExplainedOnline.Net says:
    June 29, 2009 at 2:06 am

    [...] Original post by FHA Loan Rates [...]

Leave a Reply

Tags: card debt,  correct numbers,  credit cards,  debt consolidation loans,  diesel rebate,  fha home loan,  fha loan,  fico,  group llc,  how to buy a house with bad credit,  loan company,  loan credit,  lucky break,  mortgage group,  orange county ca,  realestate,  rebate cards,  sales values,  sq feet,  subprime loan, 

Recent Posts:

Refinance to a Low Mortgage Rate in Spring, The Woodlands, Tomball, Conroe, and Houston, Texas
Down Payment Assistance – 99.5% Financing
FHA Manufactured Home Loan – FHA Manufactured Home Financing Is Possible!
Mortgage Rates: Banks Dishing out Higher Mortgage Rates for Bigger Profits – FreeRateUpdate.com
Home Loans and Your Credit Scores

Related results on Recourse for bad appraisal?

  1. Is the 30 Year Mortgage Obsolete? I Think So + Canada's Mortgage ...

    In the United States, we have a mix of recourse and non-recourse laws that vary by state, but even in recourse states, the use of deficiency judgments to attach assets and garnish wages is infrequent. ... Another difference from the U.S. is that when private insurance companies in Canada insure mortgages, they have the authority to approve or reject the property appraisal, and they have strong financial incentives to only approve realistic property appraisals. ...

  1. The Policy of Screwing Prudent Renters to Benefit Loan Owners ...

    That mistake was bad enough, but now our own government is frantically working to repeat this mistake. Rather than doing something corrective, like letting house prices fall, our government is going to extreme lengths to keep the right ones out and ..... Time for people to refinance multiple recourse loans into one single action loan. Now I understand why the stock market went up last week. More free money for the banksters. If they want to leave the US, let them leave. ...

  1. Common Law Bad Faith Actions In Florida And Elsewhere ...

    While insurers are correct that Florida Statute § 624.155 is a potential remedy for bad faith conduct of an insurer, the assertion that a statutory suit is the sole recourse is incorrect. ... faith action to proceed after liability has been determined through a breach of contract action or appraisal. In many states that recognize common law obligations of good faith and fair dealing, an insured may bring an action for bad faith at the same time as a breach of contract. ...