If I authorized a mortgage broker to charge a refinancing appraisal to my credit card, must I pay if I did not get the loan?

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If I authorized a mortgage broker to charge a refinancing appraisal to my credit card, must I pay if I did not get the loan?

I was trying to refinance after 18 months of buying a condo. According to the appraisal the condo worth dropped by $33,000, so I was considered under water. The good faith estimate said the settlement charges, of which the appraisal is a listed one, are shown if you are approved for the loan, which I was not.

Asked on March 31, 2012 under Real Estate Law, Illinois

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

Yes, you are required to pay for the refinancing apprisal that you wanted even if you did not get the loan that you wanted. the reason is that others relied on your request and did services that warrant compensation for. Just because market conditions changed where you did not get the loan you wanted does not absolve you of paying what is due. It is part of the "costs of doing business".


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