Question by Alex h: am i responsible for an appraisal when i decline my house loan?
Can anyone help. I was going to do two home loans. one one good faith estimate there was a fee for appraisal and on the other one there was no appraisal fee. 2 appraisals were done on the properties one for each house. I had paid nothing to this point. Everything came in, and the fees where about 3,000 more than I was quoted, so i denied the loans. Am I still responsible for the appraisals. If I am am i responsible for both or just one since one good faith estimate did not include it initially in the details. Also I had told the loan officer that if the fees changed i was not going to do the loan. but now the loan officer quit his job and the broker wants me to pay the appraisal fee. I did not sign any papers except for them to check my credit. Am I obligated to pay. I feel that they lied to me, with the fees. Can anyone help who has gone through this?
Best answer:
Answer by The Rabbi
This is a mess. The best thing is for you to find a broker who will work with you, if you still want the loans, and can use the appraisal. Work it out and do the honorable thing. Sometimes you can be right and still lose.
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{ 3 comments… read them below or add one }
“every” time you do a home or land deal you need to have an attorney. Because (it seems) you don’t have an attorney you’ve come to us with legal questions. I suspect that either you get an attorney or a realtor involved in your dealings and ask all the questions of them.
Anything you do that’s considered “good faith” is like a contract. If the appraisal was needed to get a loan then someone is responsible for that appraisal.
I don’t understand why you would turn something down if it depended on only $ 3,000, but then, I’m not in your shoes.
Yes. The good faith estimate is an ESTIMATE. They don’t cover everything. Where is your Buyer Agent? They should have been talking you through this step by step. You should have accepted because this is a normal happening and your agent should have prepared you for this. What has your agent been doing? Sleeping? They should never have let you screw this up this badly. I think you need to have a long chat with them. This is REALLY unprofessional. It’s agents like this that give us all a bad name.
Yes, you are obligated to pay for the appraisal. The appraiser will bill the broker BUT the broker will probably come after you….and they will have a right to do so because the appraisal was for properties that YOU intended to purchase. Unfortunately, good faith estimates are exactly that. Just estimates. There is no way that anyone can give you an exact number of what your closing costs will be. However, if any of the broker’s fees have changed since your initial good faith estimate i.e. origination, processing, administration, then you may have a leg to stand on and demand that they lower those fees and honor the original good faith estimate. You’ll at least get closer to what was originally quoted. If the loan officer didn’t include fees such as correct pre-paid interest, taxes, impounds, title fees then that’s the culprit and there’s really nothing the broker can do to change those fees.
Hope this helps!
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