Q: Is it wise to let a bank lender that has a foreclosure action against you get an appraisal for your house?
What is the purpose of them asking for the appraisal.? And will it affect selling the house by the owner before foreclosure?
Will it cause problems with other lenders in the future, if foreclosure is avoided?
A:
Given that there is already a pending foreclosure action, you probably can be compelled to afford the lender the opportunity to conduct an on-site appraisal, with the court's assistance.
The old lawyer who trained me to practice law taught me that it's wise to agree to an adversary's request when the court would probably grant that request from your adversary.
As a general rule, I encourage my debtor clients to procure an appraisal, from a professional suitable and willing to testify in court about his/her appraisal. In the foreclosure case, the value of the property becomes relevant if/when a court is asked to determine any deficiency amount of the foreclosure judgment (within six months after the foreclosure sale).
With regard to lenders in the future, while they may request copies of recent appraisals, most probably any future lender will require its own designated appraiser to do an appraisal as a precondition to lending funds, whether there has been a recent appraisal or not.
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