Has anyone ever sued USDA for not approving the appraisal of a home?

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We were approved for a usda loan over 9 weeks ago. We signed the contract on the home, had inspection done, appraisal done and after MANY weeks of waiting and causing the owners much heart ache the appraisal was denied. The house does have a pool, but there are 1000’s of cases where usda loans money for homes with pools. Our paperwork was send to and through about 10 people and with no reason provided- it was finally denied. How does an appraisal get denied? That should be fault of the appraisor, right?

2 comments to Has anyone ever sued USDA for not approving the appraisal of a home?

  • Landlord  says:

    I doubt you can sue them for this. They are refusing to give you money. You have no loss, just none of their money.

  • Appraiser guy  says:

    You are so far off base it ridiculous. The appraiser has nothing to do with the approval of your loan. The appraisal was performed per the lender guidelines and HUD guideline that they must follow. The appraiser just reports the condition of the property, condition of the market. The appraisal did not get denied, that is just a story they are telling you. It could of been the lack of comparables or how far the comparables were from the subject property. If the CLIENT is a lender and the lack of market data will require the use of comparable sales that do not fall within the lender’s desired criteria (date of sale, distance from subject property, etc.), the lender may, after review of the appraisal, reject the property for mortgage purposes based on the lack of sufficient supporting market data. The purposes of appraisasl are to evaluate the subject’s market, the physical characteristics of the improvements, including the observable physical condition, and provide an opinion of market value. The appraisal and the appraisal report must be prepared in accordance with the Uniform Standards of Professional Appraisal Practice and associated Advisory Opinions as required by both Federal and State regulations, which state that: “Employment and/or compensation for this appraisal or any future or anticipated appraisals is not conditioned on any agreement or understanding, written or otherwise, that the appraiser will report (or present analysis supporting) a predetermined specific value, a predetermined minimum value, a range or direction in value, a value that favors the cause of any party, or the attainment of a specific result or occurrence of a specific subsequent event (such as approval of a pending mortgage loan application). The appraiser’s opinion of value may not be to the expectation of the CLIENT (or the borrower, if applicable). The appraiser is not attempting to provide the highest value possible or any prior estimated value. The appraiser will report only market value, which is defined as the most probable value that a willing buyer, not under any undue pressure to buy, will pay and a willing seller, not under any undue pressure to sell, will accept after a reasonable exposure to the market. There is no one you can sue, its the lenders decision only as to if the property meets their guidelines.

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