Unexpectedly low appraisals can happen for a number of reasons, especially when foreclosures, short sales and other distressed properties abound.
Joanna Zimring Towne thought refinancing her Altadena home would be
When Zimring Towne and husband Andrew Towne, a 48-year-old
television lighting technician, bought the two-bedroom home for $535,000 in
2006, the appraiser valued it at about $600,000.
During the November 2011
inspection, Towne walked around the property with the appraiser. The couple were
being charged $500 by the management company that employed the appraiser, but
they considered it a minor sacrifice, hoping to reduce their mortgage rate to
3.25% from 6.9%.
Then the valuation report arrived a few days later, and
hope turned to anger.
Joanna Zimring (Irfan Khan, Los Angeles Times)