This is a mess of a story so bear with me.
I bought a house in January 2024 that was a dump, got it for $540k. I spent 18 months updating it before moving into it. I put 3% down.
End of 2025, I petitioned to drop PMI. I paid for a BPO, they estimated the value to be $670k. They dropped PMI.
February 2026, I apply for a refi to lower my rate. I’m told I qualify for an appraisal waiver, they estimate the property to be valued at $650k. I signed the waiver. We closed over 2 weeks ago.
A few days ago, some man is snooping around my house, calling and texting me about getting in touch with him about details of my house for an appraisal. I reach out to my loan officer, he knows nothing about this. He asks his team, nobody knows anything about this. They tell me it’s likely a scam and to ignore it.
Later that day, they learn that there is in fact a request from the lending company to this appraiser to do a drive by appraisal. However, this appraiser used the MLS listing photos from before I rehabbed the house to determine his valuation, which came back with less than 24 hours turn around time at $570k.
This is $100k below the BPO valuation, and $80k below what the lender originally estimated. Now it looks like I have less than 10% equity in the home, which means I’m supposed to have PMI.
The loan officer (a friend of mine) is very upset about all of this, he was upset they sent a drive by appraiser without telling me or anybody. Apparently this all stems from underwriting dropping the ball. They’ve not been able to sell my debt since closing on the loan because there’s no appraisal in place.
Loan officer has very politely and kindly asked if I will do a full appraisal at no cost to me. He is confident it will appraise at or above $650k but he told me even if it doesn’t, the lender will be on the hook for any expenses to make the loan conforming (rate buy down or lump sum advance payment on PMI).
How the hell does this happen? Has anybody heard of this or been in this situation? Ultimately, I have the loan and they cannot modify it at this point. It was explained to me that I basically am very lucky and I slid into a loan that I possibly would not have otherwise qualified for. Which is insane and is giving 2008 all over again.
Lender requesting appraisal for a loan I closed on 2 weeks ago
byu/rizzo1717 inRealEstate
Posted by rizzo1717
7 Comments
Sounds like a whole lotta “not my problem” for you
The only relevant lesson from this experience is to never use this lender again
People make mistakes. I guess it’s up to you if you want to help them.
They want to sell the loan and can’t because of that defect. You can do them a favor and do the appraisal (or not) but there’s nothing they can do to add that PMI back on. Worst case for the lender is that it underappraised still and they have to lose money selling it as a “scratch and dent” defective mortgage.
It happens because someone dropped the ball.
You said it yourself
Just hire your own appraiser or use one that’s approved by the lender
Having a recent appraisal is always handy
If the lender can screw you by lowballing the appraisal ,they will ,
Absolutely not your problem. They messed up their underwriting process. You already closed. Speak to a RE lawyer for peace of mind if you’d like, but this is an easy “no” imo.
Yeah, if you’re done with your loan and you’re a happy camper, go tell them to pound sand. Not your problem.