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Conference 7.286::dcu

Title:	DCU
Notice:	1996 BoD Election results in 1004
Moderator:	CPEEDY::BRADLEY

Created:	Sat Feb 07 1987
Last Modified:	Fri Jun 06 1997
Last Successful Update:	Fri Jun 06 1997
Number of topics:	1041
Total number of notes:	18759

182.0. "Problems with appraisal" by BAGELS::MONDOU () Fri Jun 30 1989 13:27

    I recently closed on a home equity loan with the DCU.
    
    At the closing, I asked if I could have a copy of the
    appraisal, which I did receive.  The appraisal, in my
    opinion, was very poorly done.   My property was incorrectly
    described, a $ 30,000 addition was listed as worth $ 4000,
    etc, etc.  I have written to the DCU and they have called me once
    but no further word.
    
    Seems to me that since I paid for the appraisal, I should
    not have to ask for a copy but should receive the original
    appraisal and a receipt showing the amount I paid.  The
    DCU doesn't agree.   They also said they have not had many complaints
    about the appraisal service, but why should they if the borrower
    is only given a copy of the appraisal on request.  
     
    Anyone else have a similar problem ?

T.R	Title	User	Personal Name	Date	Lines
182.1	All these folks work for the LENDER	ULTRA::KINDEL	Bill Kindel @ BXB1	`Tue Jul 04 1989 12:14`	25
	Re .0: You've tripped over the same concept that dogs ALL real estate financing transactions. That is, the lender orders up a slew of services (lawyers, appraisers, inspectors ...) and passes the costs through to the borrower. All these people work FOR THE LENDER and report back to the lender. The borrower has no rights in the matter. If the borrower refuses to pay for the service, the lender will simply deny the application as incomplete. With regard to you appraisal, as long as it produced a bottom line that justified the line of credit you requested, there's not a problem. As I've mentioned elsewhere, financial institutions don't tend to attract the "best and the brightest" to positions of authority. As a result, they prefer to make binary decisions (if my house is worth $xxx,000 and my income is $yy,000, and my other outstanding debts are $z,000 then will you give me a loan for $ww,000?) rather than arriving at an amount that they WILL loan from the other factors. The moral of the story is, "DON'T OVERESTIMATE THE VALUE OF YOUR HOME!" UNDERestimate it, giving a value that supports your application without being ridiculous. You DON'T want to be in the position where your loan could be denied because you thought the house was worth $5,000 more than the appraiser did. I had a close call in this respect.
182.2	A couple of questions please	USEM::M_MURRAY		`Mon Jul 10 1989 14:43`	10
	I'm in the process of applying for a Home Equity with DCU and will be relying on the appraisal to determine the Credit Line Amount. A couple of questions ? Did the appraisal include recent real estate sales within your neighborhood ? Was the copy of your appraisal thorough, (full description, pictures, etc.,,) or a one page bottom line figure ? I'll make sure I "ask" for a copy. I'm hoping that the appraisal is a complete one in case I decide to sell in the near future.
182.3	additonal info	BAGELS::MONDOU		`Wed Jul 12 1989 13:22`	13
	The appraisal was "complete", in that it did use other homes (comparables), had a complete description. etc. I have had other appraisals in the past and this appears to be similar. That is, it is not a "quick & dirty" for loan purposes only. However, I would caution you to check every detail carefully. The appraiser that did mine could not tell the difference between hollow core doors and six panel doors. Did not know the difference between ceramic and formica. Listed a recent addition valued at $ 30, 000 as costing only $ 4000 to replace. These were some of the major flaws I found. The appraisal was conducted by Property Financial Services, Marlboro.