I'm having some trouble with this one, and wondering if this request for a THIRD appraisal may be illegal.  

Scenario.  I represent the Seller, who I sold this REO property to a few months back, as an investment property.  Client is a full-time contractor/investor who likes to by, bust his tail and checkbook for a few weeks and does a masterful job at turning a sow's ear into a silk purse. 

The house sold in two days from the date of listing.  It sold for more than 100% over the most recent purchase price (what my client paid). 

So, we have two FHA issues:

!) Seasoning - the offer and closing cannot occur prior to 91 days from the last transfer date. 

2) The purchase price requires to appraisals, because it's less than 180 days since the purchase and the sale price exceeds 100% increase in value.

Today, the lender notified the Buyer's agent that the property would be subjected to another appraisal, #3.  

Here are my problems with this:

First off, right away, I told the Buyer's agent that though my seller had agreed to pay up to $4,000 for the Buyer's CC's, this is not a usual and customary fee, and they should expect that someone else will need to pick up the tab on this $350 charge because it won't be my seller.

Second, they expect an extention of another day, without any compensation.

But third, and this is the part that I'm most concerned about -- this request for another appraisal; it's not required, supposedly, by FHA, so why is this transaction being singled out for discrimination, or at least exceptional scrutiny?   What are they going to do, keep sending out appraisers until they get one that gives them the number they want to hear?  

Has anyone had this experience lately?   I did get the Buyer's LO to agree to foot the bill for the 3rd appraisal, but I'm curious to see if anyone else has run into this lately.  Seems like it could be illegal, unless it's uniformly applied to ALL loan applications with purchases that meet this unique scenario.