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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?


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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.
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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 [...]

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