Bills Logo

Why is Wells Fargo Ordering an Appraisal on My Property?

Mark Cappel
UpdatedFeb 20, 2024

Why is my bank ordering an appraisal on my property?

I have a commercial building. I am current on the first and delinquent 3 months on the second. Wells Fargo holds the second mortgage and wants to do an appraisal. Is this because they hope to foreclose?

Thanks for the question.

If Wells Fargo holds the second mortgage on your commercial building and you have been making late payments, or have fallen behind, they are likely pursuing some type of action which would include foreclosure proceedings. Before they initiate a foreclosure, they'll want to get a better estimate of the value of the building, so your instinct is likely right, that they are ordering the appraisal in order to pursue the foreclosure process.

At this point, you should contact Wells Fargo directly, if you have not already done so. Since you are current on your first mortgage, you are clearly showing an intent to maintain the property. By contacting Wells Fargo, you'll give yourself an opportunity to explain your situation to them and try to work out some type of modified repayment plan that will allow you to keep the building. If you don't contact them, and their appraisal indicates that there is equity in the property, then they will likely pursue the foreclosure.

Thanks again for your questions and good luck - contact Wells Fargo today!

I hope this information helps you Find. Learn & Save.



The Latest on Mortgage Rates

Mortgage rate fluctuations should come as no surprise. If you are buying a home or refinancing your existing mortgage, it is important to stay informed about the current mortgage rates.

Mortgage rates February 14, 2024
According to Freddie Mac, the 30-year mortgage rate for the week of February 14, 2024 stands at 6.64%. This reflects a 13 basis points increase from the previous week's rate.
Note: A basis point is equal to one-hundredth of one percent (0.01%). In numerical terms, if the mortgage rate changes by 20 basis points, it means the rate has changed by 0.20%.
Additionally, Freddie Mac reports that the 15-year mortgage rate for February 14, 2024 is 6.12%, indicating a 22 basis points increase from last week’s rates.

What does the mortgage rate mean for you?
Mortgage rates play a vital role in determining your monthly payment. Let's take a look at the avergage interest rates (APR) for February 18, 2024 based on Zillow data for borrowers with a high credit score (680-740) in the United States:

  • For a 30-year conventional loan, the interest rate is 7.03%.
  • If you opt for a 15-year conventional loan, the interest rate stands at 6.19%.
    Using the rates mentioned above, a $279,082 30-year-year mortgage would result in a monthly payment of $1,862. On the other hand, a 15-year mortgage would require a monthly payment of approximately $2,384.

Simplify your mortgage journey: Shop around and get pre-approved today!
To make the home-buying or refinancing process a breeze, we highly recommend shopping around for mortgages and getting pre-approved. So, why not Check Out mortgage rates now for the best options available.



BBill, Mar, 2010
Both explanations ring true. Assuming you have a fair deal with the tenant, the income from the lease helps the appraiser and Wells Fargo understand the value of the property. If you are serious about working out a deal with Wells Fargo, disclosing the terms of the lease will demonstrate your earnestness. Withholding the information would be a signal to Wells Fargo that you are unwilling to be reasonable. On the other hand, if Wells Fargo's intentions are nefarious, your disclosing the terms and conditions of the lease will not make a difference in the grand scheme of things.
aadell, Mar, 2010
Thank you so much for your answer to my question regarding appraisal on my commercial bldg. The appraiser called to set appt but asked a concerning question. He wanted to know about our renter in the back since we use only the front for our business and rent the back portion for storage. He is asking for copy of lease and amount we get every month. I do not see the purpose for asking for that information as what does that have to do with appraising the bldg? Are they trying to get that money? We need it toward the monthly mortgage. When I questioned Wells Fargo they claimed there are 3 kinds of appraisals and that info helps determine value. I am skeptical because the appraisers answer was different. He said it was because if someone buys the bldg they need to know about the lease. In yr 2000 it was one year lease and has been month to month ever since. Wells Fargo says they want to work things out but I am really skeptical about what is really going on.