Profile picture for nlily

Mortgage lender caught mistake day before closing

My husband and I should have closed on our home yesterday, but we were informed by our real estate agent that someone in the mortgage company looked at the wrong number for the appraisal of our home.  They looked at the replacement value instead of the appraised value, which is too low.  We cannot go much lower on our price, maybe $1,000, but we are cutting it close.  We heard the news the evening before closing, as we were packing up our moving truck.  We should have moved to our new home yesterday.  We have 2 small boys, a 3 year old and a 1 year old, and we were trying to make this move as easy as possible for them.  We were told we should have receive a response shortly, but we called the next morning only to find our situation was ignored by the lender.

I do not know the details, but our real estate agent believes that the commitment letter is vague enough so they can get out of it.  She looked up new comparables to give to the appraiser.  I don't know if will help at all at this point.
We also feel that our appraisal is too low.  The appraiser did a very rush job, they actually ran from room to room making measurements and taking pictures.   

Any advice would be greatly appreciated!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
December 14 2013 - Town of Sheboygan
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (6)

I am sorry to hear you and your family had to go through this situation.  Please do follow through with filing complaints against the lender and the appraiser.  Also you might search online for some places to post reviews for them and share your experience.  It may help some other family in the future.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 14
I read your post and was appalled that something like this could happen.  I do hope you follow through with a complaint regarding the appraisal and the banking commission.

The loan processor should have caught it.  The underwriter should have caught it before clear to close was issued.

If mistakes were made in the appraisal and you can get another appraiser to confirm them - you can file a complaint with the state licensing commission.

Even in my market I see appraisers running rough shod over the market.  It matters not what the buyer, seller or real estate agents feel a property is worth - the appraiser controls the market place.

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 09
Profile picture for nlily
Thanks for the responses.  We ended up going way lower than we would have liked.  We were already packed and we wanted to be done with it.  Our real estate agent was of no help but she ended up without her commission due to the continuous errors.

We were able to see the appraisal and it was full of misinformation. I intend on filing a complaint.  

Thank you again, it really was an all around bad experience!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 08
I hope this worked out for you. This was a HUGE mistake on the lender's part. This means both the Loan Officer and Underwriter read the appraisal the wrong way. Not only do you need an expert Real Estate Agent, but you need an expert Loan Officer. This should have been caught the day the appraisal came back. 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 08
Always work with an expert REALTOR who will protect your best interest. I'd ask my agent why we accepted an offer with a "vauge" commitment letter in the first place. Your purchase contract should be reviewed by an attorney to see what options you have at this point.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 08
First of all I am very sorry you have to experience this. It has to be incredibly stressful and frustrating. Typically any commitment letters or pre-approvals are subject to an adequate appraised value. The other frustrating this is that no matter how much the lender may want to help you out by contacting the appraiser the law states that they cannot. The Realtor on the other hand can. If the buyers still want to move forward at the agreed price even with the lower appraised value, they may be able to consider a larger down payment which may make their loan approvable. They could consider receive a gift from someone to make that down payment. This could however change their application to a point where it would require additional underwriting.

Good Luck!!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 08
 
Related Questions
Mortgage lender caught mistake day before closing
Profile picture for Cindy Craig
Latest answer by Cindy Craig
January 14 | 6 answers
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 1217 Main Ave, Sheboygan, WI Home For Sale
    1217 Main Ave, Sheboygan, WI 53083

     For Sale: $49,500

    • Beds: 2
    • Sqft: 1261
    • Baths: 1.0
    • Lot: 5000
  2. 90 Lincoln Ave, Sheboygan, WI Home For Sale
    90 Lincoln Ave, Sheboygan, WI 53081

     For Sale: $70,000

    • Beds: 2
    • Sqft: 2080
    • Baths: 1.0
    • Lot: 130680
  3. 2902 S 22nd St, Sheboygan, WI Home For Sale
    2902 S 22nd St, Sheboygan, WI 53081

     For Sale: $79,900

    • Beds: 3
    • Sqft: 936
    • Baths: 1.0
    • Lot: 6600