Am I legally obligated to pay for a 2nd appraisal if the refi was not granted?

Most likely you are. There are some cases in FHA loans where you as the borrower can't pay for the second appraisal but it does not sound like this fits your situation because it would have been very clear that you would not be paying for a second appraisal.

If you got denied from one lender, and your broker is transferring your loan to another lender, it's up to that lender to decide if they will accept a transferred appraisal. If they don't, then a new appraisal will be necessary... and it will be a cost to you.. However your lender should have a better idea as to whether or not you will get approved.. for most lenders, we won't order the appraisal until we know for sure we can get you approved.. I'm confused why your broker didn't wait... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

my question for you to ask your lender, why was a second appriasal ordered if you were not totally approved?

Loaded question! Who ordered the second appraisal? Was if the same lender or a different lender? Why was it ordered? Did you agree to pay for the appraisal in the application/disclosure paperwork you signed? OR, are you being asked to pay for a second appraisal; that has not been ordered. The same Why question applies. Here are some generic answers. I have never heard of a "required" second appraisal on a refinance. That said, I am aware of circumstances where the value of the first appraisal was not sufficient to complete the refinance without the borrower coming to escrow with a large sum to avoid PMI. We became aware of a couple of recent sales that were "Pending" at the time of the appraisal, and therefore were not used in determining the appraised value. Waiting less than 30 days for the pending transactions to close escrow and re-appraising increased the lendable value over $30,000 and resulted in the borrower needing to come to escrow with no money. Here the borrower was made aware, and agreed to pay for the second appraisal. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in California and Arizona ~ www.LoansA2z.com 888-889-9950

Sorry, forgot to add that you getting denied the loan has nothing to do with paying for or not paying for the appraisal.

-Most Lender will not allow transferring appraisal with conventional loans, however if it is an FHA appraisal that typically stays with the property so you may be able to transfer in that case. With out knowing the exact circumstances it is difficult to advise you, did you just not get the value you where looking for ? Feel free to contact me personally if you would like.

Really depends on the details, was the 2nd appraisal required by the same lender then they did not approve the application? If so, Linda has a good question, why did they request a 2nd appraisal? It's possible they aren't comfortable with the value or condition of the property. Legal obligation is a question for your attorney - they probably can't make you pay for it if you aren't closing on the loan.

It depends on why it was needed. If the first came in low and they think it was a bad appraisal and the second gives you an opportunity for more accurate appraisal to get you the value to complete the transaction - then the lender would have to disclose it to you and they would be allowed to charge you. If it is a requirement of the loan they should have know about when you made application and didn't disclose it, they they can NOT charge you.This can be confusing, because in a purchase transaction - if the home requires two appraisals, the buyer is only allowed to pay for one.