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Message
Update --- Mortgage underwriter doesn't agree with appraisal
Posted on 5/28/16 at 10:42 am
Posted on 5/28/16 at 10:42 am
My buyers' mortgage underwriter thinks the appraisal on my home is too high and now they're requesting a review of the appraisal. My realtor submitted statements and information to back up why the appraisal is correct but they're wondering why a certain home in the subdivision (which sold in December 2015) isn't included on the appraisal. It sold for considerably less than all other homes in the subdivision in the last few years.
The realtor told me he thought it was just a formality on the underwriter's part and that it should be resolved after he submitted the info that he did. However, it's been almost a week now and still no word. Closing is set for right around the corner and now I'm thinking that's going to be pushed back.
Has anyone ever had to deal with this situation before? If so, what's the process and how long does this typically take? I'm getting very anxious.
UPDATE ---
My buyers' lender is now requesting a field review of the appraisal. They're concerned because a home in the subdivision sold for considerably less than others have in December.
Does anyone have experience with field reviews? How long do they take? Does the appraiser reviewing the original appraisal typically agree with it or do they decide to be a dick and change it?
The realtor told me he thought it was just a formality on the underwriter's part and that it should be resolved after he submitted the info that he did. However, it's been almost a week now and still no word. Closing is set for right around the corner and now I'm thinking that's going to be pushed back.
Has anyone ever had to deal with this situation before? If so, what's the process and how long does this typically take? I'm getting very anxious.
UPDATE ---
My buyers' lender is now requesting a field review of the appraisal. They're concerned because a home in the subdivision sold for considerably less than others have in December.
Does anyone have experience with field reviews? How long do they take? Does the appraiser reviewing the original appraisal typically agree with it or do they decide to be a dick and change it?
This post was edited on 6/4/16 at 4:15 am
8
Posted on 5/28/16 at 10:59 am to TDsngumbo
Stay on the underwriter. Especially if its through a national bank. The underwriter probably has several other apps they're are working on
Posted on 5/28/16 at 11:15 am to LSU6262
quote:
The underwriter probably has several other apps they're are working on
This. 1 week is nothing for businesses who handle high volume paper pushing, especially during a week like this where a lot of people are taking vacation time.
Posted on 5/28/16 at 1:00 pm to TDsngumbo
quote:
which sold in December 2015
Can't speak for your market, but anything over 90 days old in my market is irrelevant. If appraiser has enough comps to justify price from last 90 days, that 2015 sale is irrelevant.
Posted on 5/28/16 at 1:27 pm to ItNeverRains
That's a shitty situation.
This post was edited on 5/28/16 at 1:29 pm
Posted on 5/28/16 at 11:00 pm to TDsngumbo
fricking underwriters. I asked one a few weeks ago why they ask for tax returns when they have no clue how to read them. She didn't have a response.
Posted on 5/28/16 at 11:10 pm to SippyCup
They see the same comps your appraiser does. The UW needs an explanation as to why it wasn't used. They're busy so they haven't responded to that request your team replied with.
It's a minor hiccup. Either that or it's an UW that thinks they're an appraiser.
Ran into an issue on a cash out refi where the home appraised for the value we needed, yet the UW kept asking for specific comps that were-literally-on the same side of the railroad tracks in the customers neighborhood.
Kept wondering why until I talked to the appraiser and realized that in the town in question-which is in the five parish Metro BR Area-the "other side of the tracks," literally means the other side of the tracks.
My customers property was on the wrong side where the comps supported shite value. The comps used-on the right side so to speak-were beautiful. They could see it on their end but I had no access to comps and didn't realize it until my appraiser let me know.
From there on I tried to do more background work with my profit partners to determine if factors like that impacted my properties. Not always easy when they aren't close. But shite happens.
It's a minor hiccup. Either that or it's an UW that thinks they're an appraiser.
Ran into an issue on a cash out refi where the home appraised for the value we needed, yet the UW kept asking for specific comps that were-literally-on the same side of the railroad tracks in the customers neighborhood.
Kept wondering why until I talked to the appraiser and realized that in the town in question-which is in the five parish Metro BR Area-the "other side of the tracks," literally means the other side of the tracks.
My customers property was on the wrong side where the comps supported shite value. The comps used-on the right side so to speak-were beautiful. They could see it on their end but I had no access to comps and didn't realize it until my appraiser let me know.
From there on I tried to do more background work with my profit partners to determine if factors like that impacted my properties. Not always easy when they aren't close. But shite happens.
Posted on 5/29/16 at 7:25 am to SippyCup
quote:
fricking underwriters. I asked one a few weeks ago why they ask for tax returns when they have no clue how to read them. She didn't have a response.
My closing attorney at times will ask for blue ink signature on prepared tax statements just to confirm its valid since everyone files electronically. It another line of confirmation/protection, not a big deal IMO in today's climate.
Posted on 5/29/16 at 7:48 am to ItNeverRains
How many Comps were included on the appraisal? 3 or 6? Were all the comps newer than the Dec 2015?
It's nice to see someone actually doing a job and not paper pushing. If the appraiser used say 2 comps since Dec 2015 and 4
Comps before that then I could see it being wrong. But if there were 6 houses sold since then in your neighborhood that's ridiculous. Unless you live in a large subdivision comps are tough. Where I live are a bunch of smaller neighborhoods and prices fluctuate greatly between them.
It's nice to see someone actually doing a job and not paper pushing. If the appraiser used say 2 comps since Dec 2015 and 4
Comps before that then I could see it being wrong. But if there were 6 houses sold since then in your neighborhood that's ridiculous. Unless you live in a large subdivision comps are tough. Where I live are a bunch of smaller neighborhoods and prices fluctuate greatly between them.
Posted on 5/29/16 at 8:38 am to GFunk
quote:
They see the same comps your appraiser does. The UW needs an explanation as to why it wasn't used.
This is interesting. I had no idea that an underwriter would independently pull comps.
I mean, what's the point of hiring (at buyer's cost) an appraisal? That just slows down the process. If the underwriter is going to pull their own comps and then come up with their own number, then just cut the appraisal out. It's a waste.
Unless, the underwriter is just checking boxes on a form, and really has no interest in contesting the number.
Posted on 5/29/16 at 8:39 am to TDsngumbo
I am truly hoping I do not have to buy another house for a long, long, long time. This house we are in, we purchased with the intent of paying it off.
Posted on 5/29/16 at 9:18 pm to LSUFanHouston
Do you know how many free real estate websites are available with recent sale information on them? Zillow for example?
Posted on 5/30/16 at 6:08 am to LSUFanHouston
This is interesting. I had no idea that an underwriter would independently pull comps.
The underwriter is not pulling them per se. There are dozens of "fraud guard" programs that lenders use now, that will run the address and include comps. It is not as effective as a local appraisal but can raise some questions. Most if not all investors use these, so the lenders are starting to as well. The report itself runs the borrower for credit risk, his employment history and for potential fraud and watchlist hits as well as a SSN that has any red flags (issue date, duplicate, error). The report will also tell the UW about any comps in the are. They can simply compare with the appraisal. That sounds like what this is, and the UW is asking why did you not use this comp as well. It is sort of like an AVM, but not used to make the lending decision, just used as a guide, and a head start to any potential issues an investor might have with the loan.
The underwriter is not pulling them per se. There are dozens of "fraud guard" programs that lenders use now, that will run the address and include comps. It is not as effective as a local appraisal but can raise some questions. Most if not all investors use these, so the lenders are starting to as well. The report itself runs the borrower for credit risk, his employment history and for potential fraud and watchlist hits as well as a SSN that has any red flags (issue date, duplicate, error). The report will also tell the UW about any comps in the are. They can simply compare with the appraisal. That sounds like what this is, and the UW is asking why did you not use this comp as well. It is sort of like an AVM, but not used to make the lending decision, just used as a guide, and a head start to any potential issues an investor might have with the loan.
Posted on 5/31/16 at 6:34 am to GFunk
(no message)
This post was edited on 5/31/16 at 12:34 pm
Posted on 5/31/16 at 6:48 am to poops_at_parties
quote:
The lack of info from them and my realtor is unacceptable. I know they're busy but they can't just leave me hanging in the dark here.
Their money is NONE of your realtors business, they should have NO info in regards to mortgage underwriting.
This post was edited on 5/31/16 at 6:50 am
Posted on 5/31/16 at 12:58 pm to ItNeverRains
In my experience, this could be nothing or a real deal killer. There could be several reasons why they asked about the comp. Anything from Zillow or some other site showing the sale and on the surface it could be an issue. Your appraiser if he has no fraud issues could justify it, but I found when you get to this stage appraisers that there is a relationship will help you, but with these staffing services, you may not get one to do the work to fix it. There could be other issues and the appraisal is just one and an easy way to turn down a loan that may have high negatives but still qualifies. If it is a local bank, I would say no big deal. If it is a national lender or a broker who is shopping it to a big lender, you could have issues. Too many variables. Your loan officer is probably in the dark same as you are.
You really don't want your realtor that involved in the financing. Think of it this way. If you are buying, the underwriter is trying to protect you from overpaying, if you are selling, well you may be over-valued.
Definitely would need more information and if you are buying, I would want to know why you are so gung-ho to overpay?
You really don't want your realtor that involved in the financing. Think of it this way. If you are buying, the underwriter is trying to protect you from overpaying, if you are selling, well you may be over-valued.
Definitely would need more information and if you are buying, I would want to know why you are so gung-ho to overpay?
Posted on 5/31/16 at 1:15 pm to TDsngumbo
Get on your loan officer's arse. Get your realtor to get on the loan officer's arse and threaten to not have his clients come to him. I'm serious. Worked for me. The loan officer can make things happen with underwriting. Don't listen to people here who say otherwise. I know for a fact. My situation was not related to an appraisal - I had an underwriter who was requiring all sorts of garbage from an employer that wasn't going to be resolved in time for us to close. Started calling and yelling, it got taken care of and the need for said paperwork was rescinded. You have to be pushy and mean and an awful person to get anything done anymore. Sucks, but that's modern life.
Posted on 5/31/16 at 1:47 pm to GFunk
quote:
Do you know how many free real estate websites are available with recent sale information on them? Zillow for example?
I was always told those were not at all reliable when determining comparable for an appraisal.
Posted on 5/31/16 at 2:24 pm to Cooter Davenport
quote:
You have to be pushy and mean and an awful person to get anything done anymore. Sucks, but that's modern life.
Yeah, that's not true at all.
Posted on 5/31/16 at 9:49 pm to Cooter Davenport
quote:
Cooter Davenport
quote:
Get on your loan officer's arse. Get your realtor to get on the loan officer's arse and threaten to not have his clients come to him. I'm serious. Worked for me. The loan officer can make things happen with underwriting. Don't listen to people here who say otherwise. I know for a fact. My situation was not related to an appraisal - I had an underwriter who was requiring all sorts of garbage from an employer that wasn't going to be resolved in time for us to close. Started calling and yelling, it got taken care of and the need for said paperwork was rescinded. You have to be pushy and mean and an awful person to get anything done anymore. Sucks, but that's modern life.
Print this out, crumple it up and the next time someone asks you for business advice, immediately stuff it into your mouth. Trust me, it's the best move for you and your reputation here.
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