Consumer complaint received 2025-09-23 00:00:00
Product: Mortgage — FHA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — Negative impact of inaccurate appraisal
Company: CrossCountry Mortgage LLC
State: TX

Complaint narrative:
XXXX. Property Purchase XX/XX/XXXX Closing Date I purchased the property located for {$490000.00} At closing, I was provided standard disclosures, including a septic system disclosure, survey, and appraisal report. 

The seller certified in Section B ( XXXX ) of the septic system disclosure that there were no known issues with the septic system. 

I also obtained a home warranty at closing, which gave me confidence that any unexpected repair issues could be addressed. 

XXXX. Appraisal and Comparative Market Analysis XXXX XXXX XXXX Issues Prior to XX/XX/XXXX Pre-closing A Comparative Market Analysis XXXX XXXX XXXX and an appraisal were completed on the property. 

Discrepancies between XXXX and appraisal : The XXXX incorrectly stated that the property included a swimming pool, which does not exist. 

The appraisal report explicitly noted that the property survey was not reviewed, meaning the appraiser was unaware of actual property boundaries.

Without reviewing the survey, the appraiser based valuation largely on cosmetic appearance and recent updates without assessing their functionality or legal concerns. 

These errors directly impacted the appraised value and my understanding of the propertys actual condition and layout. 

XXXX. Sellers Concealment of Septic System Issues Prior to XX/XX/XXXX Before closing The seller completed Section B ( XXXX ) of the septic system disclosure, certifying no known septic issues. 

However, XXXX amendments were later discovered : XXXX explicitly acknowledging septic system problems. 

Amendment to Remove Septic Repair removing those repairs prior to closing. 

These documents prove the seller knew of serious septic issues but misrepresented this information during the sale. 

XXXX. Post-Closing Discovery Home Warranty & Access Issues Shortly after closing Attempt to use home warranty When I attempted to initiate repairs under my home warranty, the owner of the adjacent property informed me that : The septic system encroaches on his land, and no work can be performed on it without his permission. 

This critical limitation was not disclosed at closing, and the survey provided at closing failed to identify the location of the septic system. 

As a result, I unknowingly purchased a property with a non-functional and inaccessible septic system. 

XXXX. XXXX of XXXX XXXX XXXX XXXX XXXX, upon further investigation I learned that the potable water well serving my home is physically located on the adjacent property and is legally owned by the neighboring landowner, not me. 

This means : My home has no independent water source. 

The neighboring landowner controls access to the well and could cut off water service at any time. 

This was never disclosed during the transaction and represents a significant legal and functional defect. 

XXXX. Evidence of Sellers Knowledge Conversations with adjacent property owners Post-closing Both adjacent landowners informed me that they had multiple conversations with the seller, XXXX XXXX, prior to the sale about : The septic system encroachment. 

The water well ownership issue. 

This confirms that the seller knowingly and deliberately withheld material facts about the property. 

XXXX. Short Sale Attempt and Mortgage Company Misrepresentation XXXX Financial impact worsens Due to these undisclosed defects and the propertys severely diminished value, I was forced to pursue a short sale. 

The mortgage company delayed the process repeatedly. 

XX/XX/XXXX False statement by mortgage company I received a letter dated XX/XX/XXXX, stating that my short sale was denied on XX/XX/XXXX, and that I had been notified at that time. 

This statement is false I was never notified of the denial prior to receiving this letter. 

This misrepresentation caused unnecessary delays and further financial harm. 

Summary of XXXX Defects XXXX XXXX XXXX falsely claimed no known issues in disclosure. 

XXXX is located partially on adjacent property ; repairs can not legally be performed without neighbors consent. 

Encroachment was not shown on the survey provided at closing. 

XXXX XXXX XXXX well serving the property is located on adjacent property and legally owned by neighbor, giving them full control over access to potable water. 

Survey and Appraisal Deficiencies Appraisal failed to review the survey. 

Property boundaries were misunderstood. 

Valuation relied on cosmetic factors rather than functional and legal concerns. 

Sellers Fraudulent Misrepresentation Amendments prove seller was aware of septic issues. 

Adjacent property owners confirm seller discussed these defects with them prior to sale. 

Legal and Financial Impact The undisclosed defects render the property functionally compromised and unmarketable without significant legal and physical remediation. 

These issues directly caused : Diminished property value, making resale impossible at market rate. 

Forced short sale, leading to financial loss. 

Ongoing risk of losing potable water supply due to well ownership issue. 

Mortgage company delays, compounded by their false statements, worsening financial harm.

Company response to consumer: Closed with explanation