Profile picture for jinglealltheway

Charged $395 for appraisal at lock-in signing July 11,2010. Can I get this back?

Never received a GFE or appraisal; lock-in expired on refinance;signed lock-in 4 months ago;30%+LTV;priority buyer pre-approved by lender. 
  • November 13 2010 - Austin
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Answers (9)

Best Answer

You may have a case.  Brokers and Banks are no longer allowed to charge upfront fees for anything but credit report expenses.  You have not supplied enough information to really know what is going on here.  Why did it take all these months?  Lenders are a little slow but even on a refinance it typically only takes about a month get get the loan closed.

You also do not mention if the appraisal was ever completed?  If so and the loan was turned down for some reason (which doesn't seem to be the case with your loan details) than you cannot receive a refund.  Appraisers are 3rd parties and they get paid when they go out and do their job.  In many cases if your LTV is around 30-40% and appraisal may not even be required.

If you would like to share some more information on what happened we can give you some better answers to your questions.



  • November 13 2010
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As I said earlier in this post - something is wrong with your loan or your lender is incompetent. In addition to that, they are violating government mandated disclosures and procedures to be followed. I would bet your rate is expired by now. If not, someone is going to get clobbered with extension fees. But rate seems a moot point since your loan never seems to close anyway. 

Mortgage rates are either as good if not better than when you started this loan process several months ago. Cut your losses at the $395 appraisal fee, (receipt says origination charge...this is a major issue), and find yourself a highly competent mortgage banker here on Zillow.com that lends in Texas.  

 
  • November 14 2010
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Profile picture for jinglealltheway
7-15-2010-I first met with Mortgage consultant--a national bank.(Austin, Texas)
Credit report was pulled( 776;782;733) I told consultant I wanted to refinance--original loan 6.75% 30year fixed--new home purchased 6-26-06 with 20% down payment.  At the time, I did not know or was I informed Freddie Mac owns loan & this bank is the loan server.  I was steered towards the Home Affordable Program.  I received PriorityBuyer papers that day.  I gave copies of w-2 2008 & 2009; SS card; Drivers license; last 2 months pay stubs; copy of property tax 2010 appraisal; copy of house insurance. I was told to start process, he need $395. for appraisal.  Credit card receipt says "Origination Charge Deposit".  Mortgage consultant showed me GFE with charges.  When I questioned some of the charges, his response was, "Oh, we'll take care of that later, you know I'm going to take care of you."  I have requested GFE and  list of closing costs multiple times. A few days later, I delivered copy of original survey and faxed copy of original note as requested.  In Sept., I asked about appraisal.  I was told that a "drive-by" was done.  I have never received a copy.  Since, beginning of October, I recevied e-mails stating "ready to close" to which I would respond that I needed a listing of closing costs.Finally 11-10-received e-mail with final Hud.
Original loan amount of 86,188 (July)--I've made 4 payments since then.  New loan amount 91,320.00 plus addition cash of 1467.22. 
  • November 13 2010
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You should have received a GFE and TIL and executed an "intent to proceed".  Lenders should not and can not accept an appraisal or application fee unless you have been given these forms, 3 days from application. 

If you paid by Credit Card, I would recommend you dispute with your CC card.  However, it may be too late to dispute with the credit card company due to cc obligations and regulations. 
  • November 13 2010
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It would have been illegal to charge you for an appraisal without giving you a GFE and Truth in Lending disclosure. If you truly did not get these, then you have a course of action against them. 
  • November 13 2010
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One of the forms you sign when completing a formal loan application is a disclosure that tells you about your right to receive a copy of the appraisal. In fact, a common stip from underwriters these days is proof the borrower received a copy of the appraisal. I am also uncertain how you could proceed with a loan and never receive a good faith estimate. 

Big question here - Was your credit pulled? You should have been supplied with a good faith estimate and an intent to proceed disclosure to sign. Was this a national lender?

If required disclosures were not sent you may want to call and ask for the manager. If you ask me something is wrong with the loan and your loan officer doesn't have the courtesy to advise you. Either that or the company you are dealing with are complete idiots. 30% LTV? good credit?   Tell us a bit more such as credit score, debt ratio and where you live, someone here on zillow local to you can help you out....
  • November 13 2010
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That fee was probably to an AMC (Appraisal Management Company) where the actual appraiser got 1/2 that. CALL the AMC and demand a copy. The fee, as others have said, is not refundable unless negotiated as a rebate to you up front by your loan agent.
  • November 13 2010
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An appraiser is independent from the mortgatge company and he gets paid for the job he did just like an inspector because they performed their job.  You don't get reimbursed for the appraisal if the closing doesn't go through.

Naima
  • November 13 2010
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Profile picture for wetdawgs
Appraisal fees usually can't be refunded.   But, you should be able to get a copy of the appraisal.
  • November 13 2010
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