Any experience with FHA appeals?

Gettysgirl
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Long story short. My husband and I have worked with a builder to build our new home. Our FHA appraisal (pre-build) in the spring came in at $173,000, and that is what we built the home based off of. Our previous lender dropped the ball, and the case # expired. The new lender had to order a new appraisal (the home is finished) which came in at $162,000. They have filed an appeal with FHA asking that the original appraisal be honored, and we are waiting for their response.

Does anyone have experience with FHA appeals? If so, do we have a chance on this coming back in our favor? Thanks!

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December 10 2011 - Mason

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Answers (1)

Bob Willett, "SacRELender"
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Unfortunately FHA probably won't be involved in this process. While there may be different procedures in your market, in my experience this will not be FHA's call. Your lender cannot use the original appraisal in any case as it is no longer valid. You probably will need to direct your appeal through your lender – who will probably then have to appeal through the "Appraisal Management Company" (AMC) that was involved. If you know which AMC was involved you may want to appeal to them directly yourself, but in my experience they typically will only work with the lender that is working with them.

As for your chances, it will really be an issue of how good a job the appraiser did & how interested the appraisal management company is in taking care of this for you. Has the appraisal been reviewed yet? Did they call for a desk review? A field review? What does your loan officer think?