schoolteach LSU Fan Baton Rouge Member since Oct 2011 23 posts
(Posted on 1/7/13 at 9:51 am)
My buddy is building a home and his mortgage LO do an apprasial on his house before it was being built. The LO did a "subject to" apprasial. The apprasial was done on Sept 28th and the slab was not even poured until October 5th.
My buddy has since decided to switch loan officers because his other would never call him back or answer emails. The old LO is now billing him for the cost of the apprasial. He did sign a paper saying he was on the hook for the apprasial if he did not go through with the loan.
Does this sound normal? What would happend if he just didnt pay it?
GFunk LSU Fan Denham Springs Member since Feb 2011 8865 posts Online
re: Home Apprasial (Posted on 1/7/13 at 9:59 am to schoolteach)
Well the appraisal got done, and someone paid for it. Usually appraisals are done in the name of a lender.
In my time in the industry, our company allowed us to go "on the hook" for one appraisal per month in that situation. In other words, someone could take a free ride once a month on us.
I rarely if ever used it. I simply required the potential borrower to pay the appraisal. That's the safest thing possible.
I parted ways with customers from time to time, and every time, I advised them that whomever they landed with, usually an appraiser will put the appraisal itself in another lender's name, but they will charge a fee for that. Sometimes I saw them as high as $150, but your mileage may vary.