Refinance attempt uncovers appraisal shocker

Law of the Land

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In 2005, Shahin and Nasila Edalatdju contracted to buy four Chicago condominium units from developer American Invsco, contingent on the Edalatdjus' ability to obtain financing for the purchases.Under Invsco's 2-2-2 Lease Program, Invsco guaranteed the Edalatdjus sufficient monthly rental income to cover their debt service and other costs of owning the units for the first two years of ownership, according to court documents. Also under the program, Invsco directed the Edalatdjus to Guaranteed Rate Inc. (GRI) for financing. GRI rendered its financing of the units contingent upon each unit being appraised at the purchase price, and retained appraiser Lazer to appraise the units. The appraisals came in satisfactorily and all four loans and purchase transactions closed. When the Edalatdjus sought to refinance the units in 2007, GRI refused and took more than two months to provide the Edalatdjus with the copies of the appraisal reports they requested, claiming they were lost, co...