What is a VA Loan Reconsideration of Value?
The Reconsideration of Value (ROV) is the formal process of appealing a low VA appraisal after the appraiser makes their determination.
There is no guarantee the ROV will increase the appraisal, but it at least gives buyers a shot at a higher appraisal value and a successful VA purchase. Talk with your lender about how best to proceed with a Reconsideration of Value.
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Reconsideration of Value Process
The VA recognizes that appraisal mistakes can happen. Value-adding features can be overlooked, or suitable comps may have been left out. Appraisers might have mistakenly calculated square footage or used a comp in the original appraisal that isn’t comparable (maybe recent renovations weren’t known or factored into the equation). Reasons such as these are why the VA set up the Reconsideration of Value process.
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The first part of the process is working with your lender and real estate agent to document the following:
1. Comps or market data that weren’t in the initial appraisal
You can submit up to three recent comparable home sales not included in the original appraisal, which closed before the appraisal report’s effective date. This information needs to be inputted into a Reconsideration of Value grid, and you’ll need to include printouts from the Multiple Listing Service (MLS) for each of the comps. Also, write a brief summary of why these comps are better than the ones used by the VA appraiser.
2. Evidence of errors
Have your agent scrutinize the original appraisal report. Does the report contain faulty information? Were old sales used? Are all comps similar to the subject home in size, age and condition? You’ll need both a narrative summary outlining the perceived problems and evidence to support your claims.
3. A letter from the borrower
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The letter is a written request for the Reconsideration of Value with the borrower’s thoughts on why the appraised value should be increased and what they think the value should be.
The next step is submitting your ROV request to the correct VA Regional Loan Center for review. You’ll work with your loan officer to complete this step of the process.
The final step is waiting on the VA to make a determination. If there ROV fails, you still have a few options.
Source: https://t-tees.com
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