Q-I was trying to refi my apartment building with a lender. During the 7 months, I got about 5 loan quotes from this lender along the way and tracked the margin above the index. Right before closing, they spiked the rate higher far higher than their margin. 50% LTV, strong cash flow property, strong borrowers, etc. I decided not to follow through with their loan and went with another lender. The first lender indicated I could use the appraisal if I signed their release. I signed their release and then they said to my new loan agent, since I signed the release, they can’t release the appraisal to the new lender (crazy). I gave this lender $4,500 for the initial deposit, they spiked my loan rate and then would not give the appraisal to the new lender when they said they would. Recourse?

A- The ease of either winning the cost of the appraisal in small claims court or having an attorney convince the first lender to release the appraisal to the second lender will depend on how you made the agreement to release them from liability in exchange for the appraisal- was it a verbal agreement only? That would make it very difficult to prove that they agreed to allow their appraisal to be used by you with another lender.