What can we do if we disagree with the value that our mortgage company has put on our house?

Get Legal Help Today

 Secured with SHA-256 Encryption

What can we do if we disagree with the value that our mortgage company has put on our house?

We recently looked into refinancing our house, which we bought for $225,000 over 6 years ago. The mortgage company, through which we were trying to refinance, used their own appraiser and gave us a value of $206,500 about 6 months ago. Our county assessor arrived at a value over $260,000, which we protested and it was lowered to $229,500. Upon further protesting that value, they said it could not be lowered any further and this was an accurate estimate. We strongly suspect that the mortgage company low-balled the value since a value higher, closer to the county-assessed value, would remove our PMI (property mortgage insurance). Do we have any legal recourse that would make them give a more realistic estimate?

Asked on November 6, 2015 under Real Estate Law, Alabama

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

No, there really is no legal recourse to force a mortgage company to substitute a different appraisal value. They don't have to loan to anyone--it's voluntary for banks, etc. to be in the mortgage business. Since it's voluntary for them, they can determine to use their own appraisers--it's their free choice--and no one can force them to use a different appraiser or appraisal. If a consummer doesn't like a bank's approach to their loan, the recourse is to go to a different bank to refinance and look to get a different or better deal.
Why are you assuming the bank low-balled you, by the way? Isn't it equally plausible that the county is high-balling you to get a larger tax assessment out of you?


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption