Mortgage re-fi attempt is stymied

[jayjohnson600]

I started a re-fi for my place to get in some of the big deferred maintenance, since valuations are up, rates still low, and I wanted to address the maintenance before it becomes a problem(roof/pool/etc). So, I just found out that the appraisal is going to put a stymie on the refi.

The appraiser said that "the highest and best use of the property is to re-plat the property and divide the house and guest house". So his appraisal report says the valuation is "pending a re-plat". The appraiser said that he cannot provide a appraisal for the property "as is", because it's not the highest and best use of the property. Citing he cannot take responsibility of an appraisal "as is" because it is not the property's highest and best use.

This effectively kills the refi, because the re-fi company can only approve a re-fi on an "as-is" appraisal.

So, while I am disappointed and a bit bewildered, I also cannot disagree that the highest and best use of my property is to divide it in two plats, because that will add some significant bucks to the total value. Only problem is, that's not what I want to do right now. I only want to re-fi the property as-is.

The appraiser will not give an "as is" appraisal, and the re-fi company will not accept anything other than an "as is" appraisal.
And wouldn't you know, the appraiser is contracted by the re-fi company.

Re-plat of the property will end up being north of $5grand, add in the city fees, plus more money depending on how much scrutiny I get for code spec, and the process will take months plus the time it takes to address any code issues.
Oh, and after all that gets done, my taxes will be higher with the new valuations covering 2 separate properties. Then the re-fi will be on a higher rate because 1 of the properties will not be a primary residence and 2 discrete properties will not qualify as a single family residence

Any advice?
Will other property appraisers pull this "highest and best use" ploy?

[talisman]

Sounds like a fucking scam, honestly.

[blandnuts]

Yeah, I agree with talisman. Can't use anyone else?

[03mustangdude]

Whoever you had appraise your property I hope you kept the license number, I would submit a complaint for pulling that shit. They go by the property lines not by some imaginary line that could come later.

[talisman]

Whoever you had appraise your property I hope you kept the license number, I would submit a complaint for pulling that shit. They go by the property lines not by some imaginary line that could come later.

Exactly what I was thinking reading that. Doesn't make the least bit of sense, but maybe someone with more experience in real estate knows more. I've never heard of that happening to anyone before.

[diablo rojo]

That definitely sounds sketchy.

[houstondallas]

Call Marty. He just did a refi for us last week. Dude was amazing. This is the second time we have used him. I refer him to everyone we know. Honest dudes are hard to find these days, he's as good as they come.

[yellowstang]

Check into that HARP refi program. We did it last year and saved I think almost 3% off the original loan, and I had ZERO cost! No fees, no nothing!

Plus, you get to basically skip a month of payments, or maybe 2 depending on how quick it processes. We just saved it and applied it to the new loan once it went thru.

[SVT Lurch]

Highest and best use is a factor the appraiser must account for in their report. If the property doesn't meet that use, it is a justified reason to do an appraisal "subject to" the cause. 99% of lenders require the appraisal to be done "as is" so that part is legitimate. However, there are rebuttal processes that can be explored. That said, that's the first time I've ever heard of a replat being required.

Who did the appraisal? Was your property originally two pieces of land that were platted together? Are you in a rural area that is becoming more urban?

A copy of the license is included in the appraisal report.

HARP is primarily for higher LTV loans or people that would not qualify otherwise.

"Skipping" a payment happens with any refinance because mortgage interest is paid in arrears so you're just paying the first month's rent at closing and then you start payments the next full month (close July, first payment due September 1st).

[yellowstang]

Highest and best use is a factor the appraiser must account for in their report. If the property doesn't meet that use, it is a justified reason to do an appraisal "subject to" the cause. 99% of lenders require the appraisal to be done "as is" so that part is legitimate. However, there are rebuttal processes that can be explored. That said, that's the first time I've ever heard of a replat being required.

Who did the appraisal? Was your property originally two pieces of land that were platted together? Are you in a rural area that is becoming more urban?

A copy of the license is included in the appraisal report.

HARP is primarily for higher LTV loans or people that would not qualify otherwise.

"Skipping" a payment happens with any refinance because mortgage interest is paid in arrears so you're just paying the first month's rent at closing and then you start payments the next full month (close July, first payment due September 1st).

We could easily qualify for a Refi, but Citi kept sending us stuff about HARP (original loan with them), so we did it, and we are not LTV and both have excellent credit.

[SVT Lurch]

We could easily qualify for a Refi, but Citi kept sending us stuff about HARP (original loan with them), so we did it, and we are not LTV and both have excellent credit.

Which is why I said primarily. Most people in your situation would not qualify for HARP.