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 .
A:
Short answer is likely not, but you need to get off line and into an attorneys office in your area asap. There is just no way to say what should be done via this online forum and without reviewing all of the closing paperwork ect.
Good luck,
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