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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2 Responses to “Recourse for bad appraisal?”

  1. Landlord says:

    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.

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Related results on Recourse for bad appraisal?

  1. Client #3 - During the inspection bad siding, broken door jams and damaged walls are documented. Sellers agrees to repairs but the type of repair person and timing of the repairs is not specified in the response. ... Due to the non-specific wording buyer has little recourse but complete the repairs at their own expense. Client # 4 - Gorgeouse hillside home with garage that is cut into a below ground space. Seller had moved all excess belongings into garage to show home. ...

  1. If your home's appraised value has fallen to the point where you have little or no home equity, the only way you can do this is by paying off some of your existing mortgage. Investment prices have recovered much more quickly than real estate ... If you have investment assets, the recourse mortgage debt incurred by walking away from the home will be larger than the cost of paying down your existing mortgage to the point where you have equity. Other Factors In Behind Thrift ...

  1. And we won't have bankrupcies like other nations because we have recourse loans and banks are so well regulated here and CMHC is doing all they can to make homes more affordable. ..... and todays appraisals? If you thought -$100K was a low ball offer 2 years ago, why are you in here crying now about not being able to ? (one thing is always left out of these cry me a river letters? is your Ocean front paid off or are you eyeballs deep into a second or third, ...