My question involves a mortgage in the state of: Virginia
Mortgage loan officer told me my appraisal was fine and then 6 weeks later said it was not, I was under water.
Started fha 203k refi renovation loan. Loan officer told me the appraisal came in ok. 6 weeks later after underwriting required me to get a engineers report she tells me the appraisal was not ok. She missed it and underwriting just caught it. According to "as is" value I am underwater on my current loan. She said I needed $8300 cash out. I told her I could get that from 401k. I did the 401k loan and then she said oh no you need $12800 cash out. I have several questions. First of all I'm not doing the $12800 cash out loan especially with this loan officer. I feel they should be responsible for the cost of the engineers report and any processing or interest costs from my 401K loan. Second my credit score is 740, I have no late payments on my current fha mortgage. Is there a program to help me get out from under water on my current loan? My tax assessed value is 126,100, my loan payoff is 113,500 and my as is appraisal is at 105,000. The renovation cost with contingency fund is 44,400. Also, my after improvements, appraisal was 151,000.
What liability, if any, do they have for my expenses incurred after the appraisal was completed?