Legal Question in Real Estate Law in Iowa

Appraisal Fees Wrongly Charged to Borrower

We recently applied for a new mortgage loan through a mortgage company. The mortgage company offered no fees for Appraisal, Title Search, etc. We signed a Good Faith Estimate claiming $0 appraisal fees. Mortgage company ordered necessary appraisals. At last minute, mortgage company wanted to change mortgage product because they could no longer produce the product we desired (80/15/5) due to insufficient comparable properties. We decided to find another mortgage company that could meet our request. Now, original mortgage company won't pay for the appraisals they ordered. The appraisal company is now threatening to put a lien on our home. How do we get the appraisal company off our back and send them after the mortgage company who contracted with the appraisal company for the appraisal order?


Asked on 6/08/06, 11:21 am

1 Answer from Attorneys
Thomas Moens Moens Law Offices, Chartered

Re: Appraisal Fees Wrongly Charged to Borrower

If the lender ordered the appraisal, then the lender is responsible for the appraiser's fee, UNLESS you signed something saying you would pay it. The only way the appraiser can put a lien against your home is to sue you AND win. If they sue you, you will need to respond in the time specified, otherwise, they will win by default.

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Answered on 6/08/06, 11:53 am


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