I was just informed that as a part of the underwriting process, they have issues with the appraisal, and now have changed the value to $360,00 - which actually puts us under water!
Here's what I got from them:
I'm rather livid. I already paid for an appraisal, so now I have to pay again because it was blown?Just wanted to let you know that we had an issue with your appraisal. As a Fannie Mae/Freddie Mac product, we need to do a review on all appraisals that we receive. Please see attached.
The results of your review from the underwriter are noted below:
“Unfortunately, have a significant value issue for this file. I just received the Value Escalation (VRR) from Redbell and they lowered the value significantly. Even though our value was putting us at 68% LTV, the value cut with multiple negative findings put the value under our loan amount on this. The complete report is attached. The review also states that two of the comps in the URAR have extensive facilities for raising horses which was not disclosed on the report and making them undesirable comparables to subject and inflated subject market value. With these concerns and the high SSR score our only real alternative to proceed would be to go with a field review for the support. Of course, no assurance that would support value.”
Because it came back so much lower than initially estimated, in order to proceed, we will need to order what is called a Field Review to confirm the value.
A field review is when a second appraiser goes out to the property to verify the work of the previous appraiser. I can’t guarantee that the value will change based on the field review but it is the best option to proceed at this time. The cost for this field review is $355.
Can we go ahead and order this to keep your loan moving in a timely manner?
Should I just walk away from this and find another lender?
I used this lender as a result of going through a screening process at mortgagprofessor.com. Things have gone smoothly until now