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Lending Tree Complaint - Way Off Property Appraisals Interfering With Loans

Review by slydog on 2010-07-25
IRVINE, CALIFORNIA -- Property appraisals being used by Lending Tree for some reason are way, way, off. Much too low. This interferes with getting a loan.

I was approved for a loan by Lending Tree "subject to" an appraisal. When the appraisal came in it used "comparables" in different neighborhoods that weren't comparable to my house. High value properties in my neighborhood were for some reason excluded from the appraisal. If the appraisal is right, my property has depreciated about 60% since 2002. In a very solid neighborhood. And I don't live in one of the problem states or cities. I have gotten 5 appraisals going back 10 years that say that the Lending Tree appraisal is way off, even assuming a fairly high level of property value declines in the last 2 years. But even worse, the house two doors down from mine, which is very similar, sold 3 months ago for 60% over what the Lending Tree appraisal says my house is worth. But Lending Tree won't use this almost perfect comparable because of "market conditions" (market conditions for 3 months??) and because the "comparables" in its appraisal are a month or two more recent. In other words, they won't use a perfect comparable that's only 3 months old but will use a "comparable" half a mile away in a very different neighborhood???? And they aren't concerned that a perfect, real comparable that's 3 months old is 60% over their appraisal? What's going on here?
Comments:5 Replies - Latest reply on 2012-09-11
Posted by NofriendofAX on 2010-07-25:
I understand your feelings. I work in the world of foreclosure (not that I'm bragging). When I receive a BPO (Broker Price Option). It provides a listing of homes within a certain radius. So, yes that could play a factor in the overall price of any property. I myself see homes that were valued at $300,000 a few years ago are now worth $75,000. It's happening everywhere, it's truly unfortunate. The housing market is currently in the toilet, but I don't need to tell anyone that - they see that on the news almost daily. Bottom line you might think this company is giving you a bunch of b.s. but its what happening to a lot of folks out there. Sorry I couldn't provide more encouraging information.
Posted by Ytropious on 2010-07-25:
"If the appraisal is right, my property has depreciated about 60% since 2002." In a lot of instances, this is unfortunately the case. It sucks for sellers, but it's great for buyers. As a first time home buyer I'm pretty glad I got my house for a steal, half of what it used to be worth.
Posted by Anonymous on 2010-07-25:
The bottom line is that it's Lending Trees money and they can use whatever criteria they want, except in regaurd to race, age, etc., etc.,
Posted by Helpful on 2010-07-25:
The solution is really rather simple. If you don't agree with Lending Tree's appraisal, higher an independent appraiser to reappraise the home. Be prepared to accept his/her appraisal though. If the amounts are significantly different, you have a foundation to complain on.
Posted by Martha on 2012-09-11:
Can you tell me the name of the Appraisal Company? I have my suspicions about them!

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