Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
How do you guys protect yourself from lenders that fail to move files through underwriting in a timely fashion? I have had loans slip past lock periods in the past where the lender held my appraisal hostage after they goofed up and missed the lock date on the loan. This seems to be quite common when rates rise in the interim and borrowers have already paid for appraisals. It is especially troublesome for purchases, but I have had similar problems with refinances too. I know that banks are busy, but it is reckless and unscrupulous to hold someone’s appraisal hostage if they screw up and don’t issue the loan in time for the lock period.
Is there really any remedy for this problem other than to do due diligence on the lender? It seems the cards are stacked against the borrower in these scenarios. I guess having a fallback lender to lock jump is okay too, but they can’t use the appraisal you paid for in most cases.
Real Estate Broker · Fort Pierce, FL · Member since 2009 · 221 posts · 95 votes
15y
Originally posted by Darryl Dahlen:
Unless things have changed, the lender is not holding the appraisal hostage as it is theirs, not yours. I know that doesn't seem fair since it is the borrower who almost always pays to have it done, but it is almost always done in the name of the lender. That makes it their appraisal, not the borrowers.
But, at least now with the SAFE Act, the borrower can request a copy (in writing) of the appraisal and the lender must provide one within a certain timeframe.
Altus, OK · Member since 2008 · 2k+ posts · 690 votes
15y
You know viewing this thread from my iPod I could have sworn that the thread title said "protecting from underwears slipping past lock period". I was going too see how drunk Bryan got but glad to see it was a mistake and Bryan sober :mrgreen: