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Recourse for Inaccurate, Stupid, Lowball Appraisals

highlands-ranch-home-appraisal-005 Did your property receive an inaccurate appraised value? Were you low-balled? Did the appraiser neglect to take into account home improvements or neighborhood qualities? Was your home value unfairly dragged down by the empty, neglected, foreclosed property down the street? If so, I have good news for you.

For the first time, lenders are now required to disclose to you ALL the information they base their underwriting valuation on, including the appraisal report. But that’s not all. Lenders use much more than the appraisal for their final judgment on a property value.

Common Considerations in Determining Property Value

The following are often used to determine value and loan-to-value ratio:

You now have the right to receive all this information. The law dictates that the lender is to provide it to you “promptly” (however that vague term might be interpreted) after receiving it, and no later than three days before closing.

WARNING: If you sign the waiver form that is included in your initial disclosure packet, then you give permission for the lender not to provide you with this information before closing. So pay attention to what you sign. You can also ask your loan officer where this is in the packet if it’s not clear and obvious to you.

If your property value is inaccurate, unfair, and bogus, you should share the disclosures with your real estate agent and ask for his or her assistance in making a list and including good comparable properties. Then you have the right to dispute the value, using this list. Personally, I’ve found that lists are a more effective and efficient way to get a decision reversed than a long essay-type letter.

I would be interested in hearing about your experience with this new law, so please feel free to email me via my “Ask Carolyn Warren a Question” page in the blue banner at the top.

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