Bank Frustration

[G-Man]

Looking to refi investment property so we went with a bank we've been with for 15 yrs and have a nice sum of money parked in.  We provided all of the  documents they wanted, then provided them all again as some expired while sitting on someone's desk.  We finally got it rolling again and the bank sent over an appraiser whose said the house was worth $450,000.  All is good says the bank and we wait.  We called and left messages, nothing.  Then we get a form letter saying that the application has expired.  We pressed for a reason that never came, but they actually came across and refunded the appraisal fee and offered us to start all over, which we did (why, I dodn't know).  We go through everything again and this time the appraisal comes back at $360,000 (different appraiser).  $90,000 less, 2 months later???  My bro-in-law, who was in real-estate for a bit said we shouldn't accept it.  We shouldn't let them devalue the house.  We called the appraiser and questioned this.  He came up with absolute non-sense and told US to find out what other houses sold for.  He's telling us to do his job.

No credit issues at all, recently paid off home equity loan with same bank, paid off car loan with same bank, paid off 2 other car loans, 2 present current mortgages on 2 houses, no credit card debt, additional income on the house in question, and we're the ones getting played with.  Go figure.

[musclehead]

Looking to refi investment property so we went with a bank we've been with for 15 yrs and have a nice sum of money parked in.  We provided all of the  documents they wanted, then provided them all again as some expired while sitting on someone's desk.  We finally got it rolling again and the bank sent over an appraiser whose said the house was worth $450,000.  All is good says the bank and we wait.  We called and left messages, nothing.  Then we get a form letter saying that the application has expired.  We pressed for a reason that never came, but they actually came across and refunded the appraisal fee and offered us to start all over, which we did (why, I dodn't know).  We go through everything again and this time the appraisal comes back at $360,000 (different appraiser).  $90,000 less, 2 months later???  My bro-in-law, who was in real-estate for a bit said we shouldn't accept it.  We shouldn't let them devalue the house.  We called the appraiser and questioned this.  He came up with absolute non-sense and told US to find out what other houses sold for.  He's telling us to do his job.

No credit issues at all, recently paid off home equity loan with same bank, paid off car loan with same bank, paid off 2 other car loans, 2 present current mortgages on 2 houses, no credit card debt, additional income on the house in question, and we're the ones getting played with.  Go figure.

dodd-franks?
I went to quicken and they told me the only ones who can help me is chase (current note holder) and I should ask for tarp 2.0 from freddie

[fudgie]

A $450k house is a mansion over here. 

[ricoman]

actually the appraiser is not telling you to do his job.
When you challenge an appraisal it is your duty to prove him wrong.
Were either appraisers local? Most lenders participate in appraisal programs where the appraiser used is selected from a list and is, more often than not, from outside the area. This results from when appraisers were pressured into (or got slipped a few bucks) to make a really good value for someone.
If the reduced appraisal doesn't effect your loan amount it isn't an issue.

[Robert]

You are not allowed to question the appraiser by the new banking rules. I know because I just had my house refinanced and the questions and paperwork was unbelievable. I wish my dr gave me such a good exam. But they also appraised the house low. The property they sighted was not even in our neighborhood and in fact was not in as good a area. When I wanted to question the bank or the appraiser they said they cant discuss it. WTH? It really does not matter because you are not selling the house. But it does if the amount refinanced comes within 80 percent of the loan value. My own personal opinion is the rates are still low and the banks are waiting for the rates to go up. They want to do as few as possible refi's now because of the loss later.

[f6john]

    Crazy thing happened to me a little over a year ago. I was in my local bank, BB&T, and the bank manager walks up to me and asks if I would like a review of my mortgage to see if he could save me some money!!! I had the time so, I said sure. I had refinanced my home some years ago and I saved some money even though it cost some out of pocket expenses. The guy pulls my file and starts punching his calculator and then informs me he can shave my rate by 2.25% and get this, no closing costs. Had to pay for a redundant title search and the appraisal. $360.00 out of pocket, what a deal. I still haven't figured out why a bank would voluntarily make such an offer.


     That got me to thinking about another note I had on a piece of rental property. I was paying 8% on that note and it was an adjustable rate 15 year deal with rate reviews every 5 years. I realized that two 5 year anniversaries had passed and I never had any correspondence about them. Long story short, the rate should have been adjusted down twice and they had to credit my note for a little under $5 grand which shortened my payments by 9 months. Get to burn that note this coming February.

[Kep]

Similar thing happened to me..1 year after we bought our home , bank called and asked if we would considered re-financing in order to lower our rate and save some $$. I asked why and they said they do that so customers don't go elsewhere to re-finance.