Consumer complaint received 2020-01-10
Company: United Shore Financial Services, LLC
State: KY
Product: Mortgage
Sub-product: Other type of mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage

Complaint:
On XXXX XXXX XXXX, while living in an apartment, I entered a contract to purchase a home for {$150000.00} with a latest closing date of XX/XX/XXXX. 
The sale price was including concessions of {$3000.00} for the seller to pay towards closing costs and {$1000.00} allowance for repairs needed. I paid for a home inspection and termite inspections on XXXX XXXX which were both favorable. We had agreed on the closing date of XXXX XXXX as the latest My lending XXXX XXXX XXXX with XXXX XXXX, XXXX XXXX XXXX XXXX, XXXX, KY XXXX XXXX ordered an appraisal and the result was received by me on XXXX XXXX. The value on the appraisal was {$140000.00}. XXXX explained that the seller would have to reduce the sale price to adjust for the difference or he could submit a request the appraiser reconsider the value or ad other comps. XXXX suggested the reconsideration saying that the comps used were not appropriate since there were others in the area that were better suited. The seller was not able to adjust the price so I agreed to stay in the contract until I was forced to either give moving notice or renew my current lease on XXXX XXXX. I received a second, and third appraisal report from the same appraiser on XXXX XXXX and XXXX XXXX. Both with the same value. I was of the opinion at this time that the value would not change and because of the date, I was constricted to either find another property or cancel the contract so on XX/XX/XXXX I contacted my realtor and asked for the forms necessary to get my {$2000.00} XXXX money back and release me from the contract and then viewed another property but had still not been formally released from the contract so I was not able to put in an offer and lost the opportunity the next day as another buyer went under contract. XXXX contacted me on XXXX XXXX. and said he had spoken to several other appraisers and they agreed that the first appraisal was way undervalued. He said he would request a second appraiser to evaluate the property and if the value was appropriate, we could extend the closing date and work the deal.. I Told him then that I had to renew my lease by XX/XX/XXXX if we didn't have a deal. He said I should not make a decision on the property based on the first appraisal because in his words it was the worst he had seen. On XX/XX/XXXX I had not heard back from him and renewed my lease. In doing so, I have incurred additional rent costs, the loss of {$400.00} for the inspection and termite inspection and the ability to purchase a home until my lease runs out again. I did receive a second appraisal from Class Valuation, United Wholesale Mortgage XXXX XXXX XXXX XXXX, XXXX, MI XXXX on XXXX XXXX from a different appraiser with a value of {$150000.00}. I have two main problems with this process. First, obviously, if I had received the second appraisal first or in a more timely manner, I would have been moved into my own home. Second, now having two appraisals with a discrepancy of nearly 15 % how would anyone know what is a fair value. Also, knowing the the house was purchased less than two years ago for {$130000.00} and having an average appreciation rate in the area of less that 3 % over the last 5 years, how do you explain a nearly 9 % appreciation rate over the last 2 years. I completed a survey for the appraisal management company, XXXX XXXX and expressed my grievance but have not heard from them or received any kind of justification for the difference in values. There should be some accountability in this process. Also the two appraisal reports were very different in the way the values were calculated as there are no adjustment on the second. It appears to me to be an attempt to artificially inflate the housing market to accommodate the professionals in the industry.

Company response to consumer: Closed with explanation