Jean's Blog

Sometimes our friends need help FAST

Posted by Jean

I am so upset. We are supposed to close on our refinance of our house tomorrow and one hour ago I find out that they are asking for a 1007 form from the appraiser. This is a rental house. The bank collected $550.00 from us for the appraisal. I have also been informed that the appraiser is charging more but still under the $550.00 we gave the bank and they are not going to pay him more as he has a contract with them for $50.00 to do the 1007 form. I informed the bank today to pay the man or I would pay him again so we can move forward. What can I do? I what they are doing legal? They also have moved the closing now for almost 60 days saying they cannot find forms we gave them. Please Help!
– Tuscaloosa10

The 1007 form is generally required as part of the appraisal for rental properties – it’s called a Single Family Comparable Rent Schedule, and it’s used by an appraiser to gather data about other rentals in the neighborhood. These would be used as comparables – the appraiser will pull together information about their proximity to your rental property, their leases, monthly rent, and so on and so forth. The bank wants to make sure that the rental income you’re claiming you’ll be able to receive from your property is feasible, because in most cases, rental income is necessary to secure the loan. Most borrowers can’t qualify without it.

So your hands are pretty tied – it seems that this form wasn’t originally ordered by you or your bank, or there was a mistake in the paperwork. The most you can do at this point is put pressure on the appraiser – and the bank – to speed things along. And if this was the bank’s mistake – it sounds like the whole process has been disorganized – I’d make sure they know that you’re not happy. Talk to a supervisor if necessary.