The Machine

The Machine

In March of this year, we decided to refinance our house.  We didn’t realize we were stepping into a well rehearsed money eating machine.

The appraisal came back too low to refinance the house.  We accepted the decision as one of those facts of life until....

The County Assessor assessed our house at approximately $30,000 more than the appraisal we had received just several months before.  

We protested the assessment, which was lowered slightly.

In the meantime, we contacted our existing bank (Wells Fargo) about refinancing since the interest rate was now about 1.5% our existing loan rate.  Of course, Wells Fargo played all kinds of games to avoid refinancing, including not returning our phone calls etc., so I gave up.

Shortly before the appeal final date, I checked “Zillow.com” and was shocked to find the value of the house was estimated at $20,000 below our original appraisal, so I filed an appeal to the Board of Equalization.

Several months later, I received a Notice to appear before the Board of Equalization.  I went to their offices, a converted house, and, with a 10 a.m. appointment, was finally heard at about noon.

When my time came, I bought up my Appraisal and the Zillow.com estimate.  I was shocked when the members of the Board of Appraisal basically laughed at my “certified Appraisal”  and reaffirmed the original Assessment.  This, after watching the Board of Equalization reduce Assessments on the basis of “comparable values” (NOT Appraisals).  The Board basically said the Appraisal wasn’t correct since the Appraiser didn’t demonstrate how the comparable values were used to set the value of my house.  (If I understood correctly, this meant my house was actually worth $30,000 more than the “refinancing Appraisal”, which meant I actually should have qualified for a refinancing, saving about $300 per month!

So, actually I was happy, since I thought the Refinancing Appraisal would be corrected and I would qualify for a refinancing loan at even lower than the original refinancing rate.

I called the Loan Officer at the Bank and advised her of the “incorrect” appraisal and asked how I got it corrected.

Of course, she advised they have a “rotation list” of Appraisers and the Bank HAS to take the appraiser who pops out, regardless of whether she is competent or not.  They are absolutely barred from asking an appraisal be adjusted! This may sound good, but it means I wasted $400 on an incompetent Appraisal without any recourse.  Not only was I out $400, since the Board of Equalization laughed at the Appraisal, I am also out another $200 in taxes that either aren’t justified if the Appraisal is correct or I am out several hundred dollars per month due to an incompetent appraisal.  

The Bank representative advised me my only option was to pay another $400 for an “Appraisal” by another “appraiser by lottery” and we could be cheated out of another $400.

I feel like we are caught in a machine system that benefits the other parties while the consumer gets taken.  Being out $400 without  any chance of appeal (and then having the Board of Equalization basically say the appraisal is incorrect and still have no chance of appeal) is simply not right!

I don’t know what I am going to do yet, except I will appeal to the State Board of Equalization and try to get the Appraiser to explain why the Board of Equalization made the decision that his appraisal was incorrect.

I’ll keep you advised.