Sales being lost as lenders adopt much tougher rules for homes' worth
WASHINGTON — Aaron and Beth Stiner are renters, but not by choice and not because they can't afford to buy a house. They had a move-up home in Phoenix selected and good credit scores. They even had buyers lined up for the home they were selling. Then they entered appraisal hell.
The first appraisal on their chosen home came in at $295,000, a figure that both the Stiners and the sellers agreed upon. The lender didn't like it, and ordered up a second appraisal. Based on comparable homes that were in a different neighborhood, the new appraisal came in $25,000 lower — too low to allow the loan to go through.
They switched lenders and got another appraisal that, at $290,000, would have allowed the deal to go through. Their new lender was skeptical, and ordered up another appraisal. At the same time, the home they were selling was appraised three times, with each subsequent valuation falling.
Four months later, the Stiners and their buyer both gave up. Together, they were out $1,600 for seven appraisals. "As a result, we are now renting our home out, and renting the home we wanted to buy," says Beth. "We were frustrated and we weren't going to keep doling out cash for new appraisals. It felt like a game."
But not a fun game. There are problems in appraisal land that transcend weak housing markets and debt-ridden borrowers, and that are causing home buyers and would-be refinancers to miss out on low rates and dream houses.
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7 comments:
Don't use the idiot from Trice appraisals I thinks it's Hayley...terrible.
What is it with Trice, we are very dissatisfied with them as well.
The problem is with the help! incompetent.
I just had Keith denston from trice do an apraisal and he was fantastic.
What consumers need to know is that the underwriter can slash the appraiser's estimate of value. As an appraiser I can assure you that we DO NOT have the last word.
In Maryland the lender chooses the appraiser. I have financed 3 houses this year and was not able to choose the appraiser on either.
BTW a young man I know was trying to buy a house with over 20% down, 720 credit score and steady job. Turned down.....lack of credit history.
In this town I would use McCain he never ripped me off like Trice's tramp!
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