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09/05/2008 11:29:18 AM · #1 |
Am I being scammed?
Do I have any recourse?
We just renewed our mortgage. We also applied to get a secured line of credit based on our home's appreciation. The banker told me there might be a $450 fee for an appraisal, but she has done so many that it might not be necessary.
During our meeting to renew, we got a hard sell for life (and etc) insurance. We didn't buy.
The next day, it turned out the appraisal was necessary, I said OK.
The appraiser showed up half an hour ago. Walked around the main floor and took a foew photos. Asked if the roof or any windows had been replaced in the last five years, and that was it. She didn't even got upstairs, or downstairs.
My wife said to her, "This is such a scam." The appraiser replied, "The bank gets their money one way or another."
I've just left a message on our banker's voicemail to have her call me back.
WTF? At least the appraiser could put on a show.
Oh yeah, and when asked about seeing up/downstairs, the appraiser said she gets all the info she needs from a website...
Message edited by author 2008-09-05 11:30:42.
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09/05/2008 11:32:21 AM · #2 |
If it looks like a duck, and quacks like a duck...
Can you still back out of the credit line. Takes your business and walk? |
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09/05/2008 11:37:09 AM · #3 |
The first bank I approached for a mortgage on a brand spanking new house, wanted to do an appraisal and they only brought this up when I went in to sign the final papers. They were also saying that since the house wasn't covered by the Provincial New Home Warranty program ( it is under another one) that it didn't have a warranty at all.
I walked from that one. I got a much better rate from the bank the real estate agent recommended anyway.
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09/05/2008 11:37:19 AM · #4 |
Originally posted by shutterpuppy:
If it looks like a duck, and quacks like a duck...
Can you still back out of the credit line. Takes your business and walk? |
Mortgage is signed & done. We NEED the credit line ASAP, regardless of bogus fees.
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09/05/2008 11:48:07 AM · #5 |
Originally posted by Strikeslip:
Originally posted by shutterpuppy:
If it looks like a duck, and quacks like a duck...
Can you still back out of the credit line. Takes your business and walk? |
Mortgage is signed & done. We NEED the credit line ASAP, regardless of bogus fees. |
Doesn't the appraisal done at the time the mortgage was done count for anything? How long ago was the mortgage renewed? $450 seems a little steep for an appraisal fee to begin with.
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09/05/2008 11:58:27 AM · #6 |
Originally posted by cpanaioti:
Originally posted by Strikeslip:
Originally posted by shutterpuppy:
If it looks like a duck, and quacks like a duck...
Can you still back out of the credit line. Takes your business and walk? |
Mortgage is signed & done. We NEED the credit line ASAP, regardless of bogus fees. |
Doesn't the appraisal done at the time the mortgage was done count for anything? How long ago was the mortgage renewed? $450 seems a little steep for an appraisal fee to begin with. |
My thoughts too. We originally got this mortgage three years ago, after moving from another house where we had a mortgage for ten years, all at the same bank (TD). So the original appraisal shouldn't be all that stale, but what do I know? We are in one of the most desirable neighborhoods in the city, our previous house only a few blocks away sold at more than double what we bought it for ten years prior, with no renovations.
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09/05/2008 12:24:15 PM · #7 |
I would be demanding a copy of the appraisal report! Im in a mood lately where I trust very few and IMO that almost sounded like the appraiser is a friend of the banker and they are looking for a quick bonus maybe... I could be really reaching but I would still demand a copy of the report and if refused say ok, walk out and go straight to the top most person in the bank and calmly explain your "concerns" of the banks practices and if that fails Im sure they mite change their mind if you mention the media ;)
-dave
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09/05/2008 12:44:26 PM · #8 |
We all view things in a different manner, but for what it's worth I would have asked for a line of credit (LOC) that was in keeping with the most recent appraisal, namely the one that was done some 3 years ago.
Oh, in passing, I don't know about your bank, but the one I deal with has this rule about an LOC, that being that if you don't use it... you lose it.
Hope this helps you a bit.
Ray |
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09/05/2008 12:50:13 PM · #9 |
You paid for the appraisal......get a copy.
It's one of those stupid things......the lender pretty much has the right to demand you have the property appraised, but since you paid for it, I'm pretty sure they have to give you a full itemized appraisal breakdown, *including* the market analysis that helped establish the price. Check your local legislation/governances......I know you don't live near me, so YMMV.....8>)
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09/05/2008 01:08:57 PM · #10 |
Originally posted by Strikeslip:
Originally posted by cpanaioti:
Originally posted by Strikeslip:
Originally posted by shutterpuppy:
If it looks like a duck, and quacks like a duck...
Can you still back out of the credit line. Takes your business and walk? |
Mortgage is signed & done. We NEED the credit line ASAP, regardless of bogus fees. |
Doesn't the appraisal done at the time the mortgage was done count for anything? How long ago was the mortgage renewed? $450 seems a little steep for an appraisal fee to begin with. |
My thoughts too. We originally got this mortgage three years ago, after moving from another house where we had a mortgage for ten years, all at the same bank (TD). So the original appraisal shouldn't be all that stale, but what do I know? We are in one of the most desirable neighborhoods in the city, our previous house only a few blocks away sold at more than double what we bought it for ten years prior, with no renovations. |
Funny, that's the same bank that wanted to appraise a brand spanking new house.
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09/05/2008 01:09:47 PM · #11 |
Originally posted by Strikeslip:
Originally posted by shutterpuppy:
If it looks like a duck, and quacks like a duck...
Can you still back out of the credit line. Takes your business and walk? |
Mortgage is signed & done. We NEED the credit line ASAP, regardless of bogus fees. |
I smell a new camera on the way :) |
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09/05/2008 01:27:54 PM · #12 |
Originally posted by Strikeslip:
We originally got this mortgage three years ago, after moving from another house where we had a mortgage for ten years, all at the same bank (TD). |
TD sucks. Seven years ago they wanted a thirty-five percent freaking down payment on a mortgage. I told them to blow. Twenty-five percent wasn't good enough?! So I went elsewhere, gave my money to a credit union. Five years later I renewed at ING Direct. THAT was the best decision ever. The only thing I had to do was fill out an online application and mortgage transfer documents, and about two weeks later my mortgage was renewed and transferred with nary a phone call. The only call I had with them was when my mortgage rep (I have a mortgage rep?) called to tell me the transfer was complete. It was the best banking experience I've ever had.
Also, TD holds on to your money like grim death. I had to wrestle a lousy $2000 hold away from them for deposited cheques as though the money was gestating inside of them or something. "Banking can be this easy". Please.
Edit: With ING Direct, it was a "drive-by" appraisal, so we didn't have to be home. Also, they waive the fee once your mortgage is approved, so our appraisal didn't cost us anything.
Message edited by author 2008-09-05 13:49:07. |
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09/05/2008 01:41:50 PM · #13 |
They were great when I was a new customer but after that they don't really care.
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09/05/2008 01:43:21 PM · #14 |
Originally posted by cpanaioti:
They were great when I was a new customer but after that they don't really care. |
Unfortunately most banks are like that :(
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09/05/2008 02:07:47 PM · #15 |
Originally posted by dknourek:
Originally posted by cpanaioti:
They were great when I was a new customer but after that they don't really care. |
Unfortunately most banks are like that :( |
So far so good with Scotia. Even on renewal they were good. I guess as long as keep a balance on my LOC they're happy.
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09/05/2008 02:14:16 PM · #16 |
| Did the appraisal come with a free tube of lube? |
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09/05/2008 02:54:43 PM · #17 |
I just had my house appraised. The guy went to both floors, took some pics, and that was it. He didnt really look around at anything he just wanted pics of the rooms. He was gone in about 5-10 minutes. He told me he would get the stuff from the inetrnet and base it off the market and home sales in my neighborhood. Lucky you that yours appraised because mine didnt.
It appraised for a $1000 less then what I paid because the housing market sucks so bad. I've owned my house for 2 yrs and it's not good when it goes down. I'm also in a prime location. So they told me i could only refinance if i had the 1000.00 plus 5000.00 for closing costs. It would have saved me 200.00 a month. DAMN ECONOMY!
my rants over... |
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09/05/2008 02:57:03 PM · #18 |
| Yeah, the appraisal/loan thing is such a scam 90% of the time. That was one of the things that went wrong in the mortgage crisis. Crooked appraisers would inflate the value of a property, allowing the borrower and the bank to have a loan agrteement for more than the property was really worth. |
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09/06/2008 12:50:37 PM · #19 |
Originally posted by Spazmo99:
Yeah, the appraisal/loan thing is such a scam 90% of the time. That was one of the things that went wrong in the mortgage crisis. Crooked appraisers would inflate the value of a property, allowing the borrower and the bank to have a loan agrteement for more than the property was really worth. |
Couldn't agree more, real estate appraisal is such a racket! Been through buying 3 homes over my lifetime and talked to plenty of friends during their purchases, always thought it was peculiar that the appraisal ALWAYS came in 2-5K above asking price, never much more and never less. After all, banks can't sell mortgages if the appraisal doesn't come through, it was all collusion and now they are reaping the "benefit" of those business practices. Never fear though, the government is coming with a nifty bailout for them...
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09/06/2008 02:16:12 PM · #20 |
In today's market an appraisal isn't good for more than about 30 days. I've seen things in the past 6 months or so that were never the norm.
100% of the time a house would appraise for or slightly above the sales price (by like $2000). Not now. Not anymore. Not even new ones. My BIL made on offer on a house outside Youngstown Ohio, $225k. Appraised at $195k. Yeah, WAY below the sales price - and it's 95% the same as what he was selling in Indiana for $240.
My MIL sold and bought a house this year as well - again, everyone had to come into both houses - appraisers never would go in a house, just drive by and take photos of it and 3 to 5 comparable properties. Now they go in. Same for insurance on houses - i've NEVER heard of an insurance agent wanting to go into a house before they'd insure it - but now they won't issue a policy without a tour.
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