I had an appraisal done with my home and it was for a bank. It didnt work out and I have another bank that has a good rate and accepted me on my appraisal quote from the other bank. The problem is; my appraisal was done 2 weeks ago and was using a high comp that was almost a year old. Now the new bank said we can use the appraisal done 2 weeks ago and have it transferred and its a go. The appraiser said it is no longer leagal to do that and would need to do another appraisal. That high comp is no longer available and now the value is down 20 grand which puts me out of the 80 20 rule. In Massachusetts is there any legal way to use an appraisal from 1 bank for another if all parties agree?
2006-12-08 06:39:48 · 7 answers · asked by vandy 1 in Business & Finance ➔ Renting & Real Estate
One poster stated the you purchased the appraisal and you can do whatever you want with it. That is not entirely true, whoever orders the appraisal, which is usually the lender, is the owner of the appraisal regardless of whoever paid for the appraisal.
Therfore if you were to go to another bank the original lender would have to sign a release to the new bank in order for them to use the appraisal. 99.99% of lenders will not release the appraisal to another lender. If you had a copy of the appraisal and gave it to the new lender it would be no good because the client name would appear as the original lender and the new bank would not legally be able to utilize the appraisal.
According to USPAP (Uniform Standards of Professional Appraisal Practices) The ethics and confideniality rule does not allow the appriser to 'reassign' the original appraisal. It is not a trick by appraisers to make more money. It is illegal!
Unless you are in a Rural area an appraiser should not go back 12 months to find a comparable - sounds like the appraiser may have been chasing a number and this might be why the first bank didn't want to go through with the loan.
2006-12-09 13:39:29 · answer #1 · answered by greenshirt 2 · 0⤊ 0⤋
The appraisal was performed for the 1st bank, the appraiser's client (Intended User). Without permission to release the appraisal from the client the appraiser is unable to release the appraisal. It is possible with everyone's permission to release the appraisal to a different company with everyone's acceptance. If the client does not release the appraisal (in writing), a new appraisal can be ordered, but it will have a new effective date and the appraiser will have to come back out again for a re-inspection. Please note****Even though the appraisal from 2 weeks ago had a high comparable it is very likely that an underwriter will question that particular comparable due to its high value and the length of time since it sold and asked for an additional comparable or two to affirm the higher value.
2006-12-09 00:33:41 · answer #2 · answered by jennstreyckmans 1 · 0⤊ 0⤋
If the new bank is willing to accept the appraisal, then I would not worry about it. They are the ones accepting the risk if you fail to pay them. If it is good for them, then it should be good for everyone else. I think the appraiser is trying to make some extra money. I would not pay the same appraiser to do an appraisal after you just paid him to do one 2 weeks ago. If he used the wrong comp then it is his responsibility, not yours.
2006-12-08 14:48:26 · answer #3 · answered by Flyby 6 · 0⤊ 0⤋
It really depends on the appraiser. The BANK hires an appraiser to determine the value of a property to protect its interets. No one wants to loan you 100k on a property thats worth 75k.
It is now illegal for an appraiser to transfer an appraisal from one bank to the next. (Why I don't know) Usually they charge you a small fee, 100.00 bucks, and just type the new banks name is. They really dont need to do a new appraisal but its how appraisers make money I guess.
2006-12-08 16:37:01 · answer #4 · answered by Michel D 2 · 0⤊ 0⤋
I think the appraiser is trying to pull a fast one on you. You paid for an appraisal, its yours to do as you want. If the new bank is willing to accept it, there really is no problem. Sounds like the appraiser wants more money.
2006-12-08 15:19:43 · answer #5 · answered by AJ 7 · 0⤊ 0⤋
Yes in some cases you can. It depends on the new bank, and if they will consider the first appraisal company legit.
2006-12-08 14:47:46 · answer #6 · answered by ihatecankles 3 · 0⤊ 0⤋
You have to ask your new bank if they will accept it. Reasons are: accredited appraiser and being withing a specific time frame. If its too old they can reject it.
2006-12-08 15:11:24 · answer #7 · answered by madrax 3 · 0⤊ 0⤋