Q: Is it legal for a lender to change an appraisal on a home after CD has been signed by the seller the day of closing ?
Appraisal was completed and closings docs signed . The title company provided closing date . Closed two days prior to buyers closing . Day after sellers pre close paperwork was signed , the appraisal was flagged contract expired before lender could provide explanation. 12 hours later , lender replaced appraisal with an AVM due to the appraiser not being reached . AVM was 40k less and contract expired . Sellers handed over keys , signed lease on a rental and now face thousands of damages due to canceled contract .
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