FHA field review! I am trying to get a FHA loan. I had my home appraised at 380 k…?
November 5th, 2009 by adminthen fha approved us for the loan, After a few weeks fha submitted some conditions such as a field review of my home and comparables. Review came back 50K less than appraised value. My lender has submitted a rebuttle…Denied!
Now they would like appraiser to validate her comparables. Is there any hope that my 1st appraisal will stand up. If not we are near being upside down….any thoughts???? HELP
the last 2 months home prices have shot down considerably. Just in the area i live, homes have dropped in value between 20 and 50k. This is of course the banks doing as they are unloading all their bank repos right now. For instance. There is a house near me thats 2800 sq ft and they are asking 399k. THere is a bank repo 1 block away thats 3100 sq ft (same builder, and built same year) and the bank is asking 299k. (plus the 3100 sq ft house has a pool and spa!!!) Whos going to sell first do you think? Whatever your house appraised at 2 months ago…its worth less. When NAR comes out with their numbers for this last quarter, everyones going to panic cause they will see what has happened these last few months.
Posted in fha appraisers | 3 Comments »
November 5th, 2009 at 3:02 pm
the last 2 months home prices have shot down considerably. Just in the area i live, homes have dropped in value between 20 and 50k. This is of course the banks doing as they are unloading all their bank repos right now. For instance. There is a house near me thats 2800 sq ft and they are asking 399k. THere is a bank repo 1 block away thats 3100 sq ft (same builder, and built same year) and the bank is asking 299k. (plus the 3100 sq ft house has a pool and spa!!!) Whos going to sell first do you think? Whatever your house appraised at 2 months ago…its worth less. When NAR comes out with their numbers for this last quarter, everyones going to panic cause they will see what has happened these last few months.
References :
November 5th, 2009 at 3:30 pm
This can happen at times. In my current home I had a problem with a low appraisal, But was able to get it raised to the MTG company satisfaction. Some times if you own the biggest home in an area and it happens to be in an area or sub-division where people don’t move often, it can be hard to get comparable. Different lenders have different rules. Some will take only comps in your sub-division and some will allow to use comps in a wider surrounding area. good luck
References :
November 5th, 2009 at 4:07 pm
I think you have the process confused.
The lender underwrites the loan using an underwriter that has been certified as a Direct Endorsement (DE) underwriter, that has been trained and has knowledge of FHA guidelines. FHA agrees to insure the loan as long as it meets their criteria.
When homes are over a certain value (which varies by area), they require not only an appraisal but a field review that VERIFIES the first appraisal. This is NOT the same as a second appraisal.
What the appraiser, who was selected by the LENDER to do a field review (an the loan officer nor the Realtors get an input n who the field reviewers are), has stated that there was no way the first appraiser could have supported the value…$50k is HUGE to be off on a $380K house.
The lender didn’t submit a rebuttle, b/c the lender orders both the appraisal and the field review…it was most likely either one of the Realtors or the loan officer, trying to get the deal to close. Realtors will frequently submit comparables to support the value of the subject property, b/c once in a great while, you have an appraiser that has done a sloppy job.
THAT is why the VALUE was denied. Your loan wasn’t denied.
Why are you upset? Do you realize that this was done FOR YOUR protection? Do you realize that the lender just saved you from closing on a property that was overrpriced?
FHA was designed to also PROTECT buyers.
If the value was cut (which is probably what the underwriter did…issued an approval with a cut in value…which throws the contract back in the seller’s court), then that decision is final.
References :
Realtor….former DE underwriter for FHA/VA