House officially listed... need some prayers!

[Brew12]

Update to anyone curious (I don't really have anyone else to vent to:

Appraisal came in low, lower than the tax assessment which for Indiana is absolutely unheard of. Most appraise and sell quite a bit higher than. My home is 4.5 years old and in exemplary shape.

Really, really unfortunate. Praying the deal is not dead, but it doesn't look good at all. Prayers, folks. We may be at square one and wasted all of this time and money.

Praying for ya! Really hope it works out.

Appraisals here have been all over the board. We had 2 appraisals done early in 2015 and the 2 appraisals came in over 20% different. That is why our mortgage company required 2 of them. Now they take the average to try and smooth out the variations.

 

[Eva Rose]

Praying for your family! Hope everything will work out in the best way possible and quickly!

 

[easternreefer]

get another appraisal.. my parents just had to have two done on there house 8,000 difference in a very depressed area.

 

[4FordFamily]

Praying for ya! Really hope it works out.

Appraisals here have been all over the board. We had 2 appraisals done early in 2015 and the 2 appraisals came in over 20% different. That is why our mortgage company required 2 of them. Now they take the average to try and smooth out the variations.

I actually do reverse mortgages for homes between $1,000,000 and $25,000,000 in value (the more savvy people use them as financial tools to grow net estate values believe it or not) (so I work in the industry and have other mortgage experience too)-- these require two appraisals.

This is a true story, I had one come back at $2,000,000, and the second (25 days later on the nose) returned at $1,125,000. There was NO course of action we had to use the lesser of the two. The appraiser didn't care about the other appraisal and our hands were tied. That's almost an 80% difference. It's really sad how no one is accountable anymore, someone was wrong... very wrong.

Anyway, appraisers don't typically change their values-- I found some serious issues with this appraisal but I've rebutted probably 200 appraisals in my day and won ONCE. I told that client to go buy a lotto ticket! Haha. I've had situations where thousands of square feet vanish, and they won't rectify it!

Yeah not been a fun day for me. All I can do is have faith God has a plan for me and things work themselves out. Everything else that went bad today just proves that tomorrow will be a better day! Thanks everyone for the kind words. Thanks for listening to be complain I'm usually pretty stable but this has been a rollercoaster...

 

[4FordFamily]

get another appraisal.. my parents just had to have two done on there house 8,000 difference in a very depressed area.

Unfortunately we can't, ever since the housing market crisis it's all independent. A lender nor borrower can simply request another if they don't like the first, and if I order another on my own accord it cannot be used, by law. I understand why independent appraisal management companies were set up (the problem I describe above), but feel that this lack of accountability swung the pendulum too far the other direction.

Thanks for the suggestion though, in the past it was very strong advice!

 

[Brew12]

Unfortunately we can't, ever since the housing market crisis it's all independent. A lender nor borrower can simply request another if they don't like the first, and if I order another on my own accord it cannot be used, by law. I understand why independent appraisal management companies were set up (the problem I describe above), but feel that this lack of accountability swung the pendulum too far the other direction.

Thanks for the suggestion though, in the past it was very strong advice!

Yup, the new rules really stink if you need a FHA loan, or use a lender that standardized on FHA requirements. It is so hard to prove that you are requesting a second appraisal because it is wrong instead of your just not being happy with the price. And their are legal issues if you can't make a very solid case.
That is why our lender stated the 2 appraisal policy and clearly set out the terms that they would use the average before the appraisals were done.

I know why the laws were changed to where they are now but still.....

 

[4FordFamily]

Yup, the new rules really stink if you need a FHA loan, or use a lender that standardized on FHA requirements. It is so hard to prove that you are requesting a second appraisal because it is wrong instead of your just not being happy with the price. And their are legal issues if you can't make a very solid case.
That is why our lender stated the 2 appraisal policy and clearly set out the terms that they would use the average before the appraisals were done.

I know why the laws were changed to where they are now but still.....

Yeah, not sure who your lender was, but I suspect they were small, too. If we tried that policy, we would be investigated for discrimination on the grounds that it would disadvantage people that cannot afford two appraisals. We have so many loans die because of stuff appraisers put in reports (in fairness, some of it is justified) -- but giving two people the chance at killing a deal with verbiage like "affects the marketability" or "adverse impact" or "subject to these repairs" and any number of things, if we invoiced all of these appraisals our financials would look horrendous!

It sounds like a good idea though, but I'm sure being a large lender we would get hammered haha.

I too understand why this was created but the best practice lies somewhere in the middle (as is commonly the case).

 

[easternreefer]

Unfortunately we can't, ever since the housing market crisis it's all independent. A lender nor borrower can simply request another if they don't like the first, and if I order another on my own accord it cannot be used, by law. I understand why independent appraisal management companies were set up (the problem I describe above), but feel that this lack of accountability swung the pendulum too far the other direction.

Thanks for the suggestion though, in the past it was very strong advice!

had no idea the law changed that much.. we are building a home right now.. builder has it until a traditional close.. but it is stressful. somehow my builder missed a half bath in the house and we are getting that straightened out as we speak.. that half bath is huge.. we wont appraise without it guaranteed.

 

[4FordFamily]

had no idea the law changed that much.. we are building a home right now.. builder has it until a traditional close.. but it is stressful. somehow my builder missed a half bath in the house and we are getting that straightened out as we speak.. that half bath is huge.. we wont appraise without it guaranteed.

Yeah, it's always something, isn't it?

I hope it works out well! Prayers!

 

[domination2580]

Yeah, it's always something, isn't it?

I hope it works out well! Prayers!

Best of luck friend! Call me sometime!

 

[ReeferBob]

Appraisals are the biggest scam in the Mortgage industry. My condolences.

 

[4FordFamily]

Appraisals are the biggest scam in the Mortgage industry. My condolences.

Many times I agree with you. Many appraisers do a great job, in fairness. But AMC's are starving them.

 

[tcarter1936]

Any good news yet!

 

[4FordFamily]

Despite the low appraisal blues, the house sold today for over the appraised value (horrible appraisal). I am now officially homeless (but living with my father for 4 months) while my house is built.

Concrete poured!

 

[4FordFamily]

Any good news yet!

Yup sorry didn't see your post!

 

[tcarter1936]

Despite the low appraisal blues, the house sold today for over the appraised value (horrible appraisal). I am now officially homeless (but living with my father for 4 months) while my house is built.

Concrete poured!

Great news glad things are looking up I just hope there's a floor drain in there somewhere lol

 

[Brew12]

Despite the low appraisal blues, the house sold today for over the appraised value (horrible appraisal). I am now officially homeless (but living with my father for 4 months) while my house is built.

Concrete poured!

Congrats!

I just hope there's a floor drain in there somewhere lol

Speaking of drains.. the city planners must have known he was buying the lot. They put the street drain right in front of his future house!

 

[Cherub]

congrats

 

[Montu]

Despite the low appraisal blues, the house sold today for over the appraised value (horrible appraisal). I am now officially homeless (but living with my father for 4 months) while my house is built.

Concrete poured!

It's Okay!

When I moved from CA to AZ we sold our home before our new home was anywhere near being finished, we threw most things out and put everything else in a pods container and rented a fully furnished place for 3 months (delivery date of our new home)...well at the end of the 3 months our new build was still 3 months from completion and we did not have an option to extend our rental...having 2 big dogs we literally had no where to stay (we knew no one in the state)...luckily my brother in law was looking for a place to buy near us, so we helped him close very fast on his condo in exchange for him letting us stay there.

 

[Eva Rose]

Congrats to you & your family! 4 months will pass quickly.