• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Another Countrywide Fiasco?

Status
Not open for further replies.

William K

Thread Starter
Senior Member
Joined
Sep 21, 2007
Professional Status
Certified Residential Appraiser
State
Illinois
Just got off the phone with one of my commercial bank clients who sell some loans to Countrywide. Seems Countrywide has begun sending out notices to Borrowers who have home equity lines with Checks that they can write to access the line of credit. The letters basically state STOP using your checks as your property value has declined and you do not have enough equity to cover the line of credit!

Question #1) Did Countrywide perform appraisals on these homes to determine they have lost value?

Question #2) Is Countrywide now going to help these borrowers clear up what now may reflect as a negative on these consumers credit reports?

Question #3) Has anyone else heard of this and has anyone performed any appraisals for a borrower to provide to Countrywide to support that the value in their home has not decreased as Countrywide has stated?
 

Mike Boyd

Elite Member
Joined
Jan 18, 2002
Professional Status
Retired Appraiser
State
California
Not me!........These equity lines of credit may have been originated several years ago....before the bubble busted.
 

johnnyboge

Freshman Member
Joined
Mar 27, 2007
Professional Status
Certified Residential Appraiser
State
Pennsylvania

c w d

Senior Member
Joined
Oct 2, 2006
Professional Status
General Public
State
Florida
I saw these "checks" go out right after the first round of sub-prime lenders went under. At the time I thought it was an irresponsible move on the part of Countrywide. Now I know it was.
 

ZZGAMAZZ

Senior Member
Joined
Jul 23, 2007
Professional Status
Certified Residential Appraiser
State
California
A pal of mine recently told me that he got one of the letters that effectively cancelled the equity line of credit that he's been using conservatively for approx 3 years...no appraisal of which he was aware...
 
Last edited:

Mark K

Senior Member
Joined
Jan 27, 2004
Professional Status
Certified Residential Appraiser
State
Indiana
I'm more inclined to think that the checks probably aren't any good.

CW and some other lenders probably don't have the cash to back up the credit lines they've issued and they can't find any investors stupid enough to buy their paper.

I'll bet the "falling house values" is just the cover story.
 

Hamlet

Elite Member
Joined
Aug 14, 2006
Professional Status
Certified Residential Appraiser
State
Ohio
Now wouldn't that be a hoot if everyone's equity line checks started bouncing.
 

Ray Miller

Elite Member
Joined
Feb 20, 2002
Professional Status
Licensed Appraiser
State
Wisconsin
I'm more inclined to think that the checks probably aren't any good.

CW and some other lenders probably don't have the cash to back up the credit lines they've issued and they can't find any investors stupid enough to buy their paper.

I'll bet the "falling house values" is just the cover story.


I would think that they have spent this money to cover there butts. Now they need to cut off the credit.
 

JRS at OBX

Elite Member
Joined
Jun 13, 2006
Professional Status
Certified Residential Appraiser
State
North Carolina
About a year ago CW was still offering me a 50K equity line with no appraisal or a no cost refi with no appraisal!

Like I would let a landsafe appraiser in my house anyway. :rof: :new_2gunsfiring_v1:
 

TJSum

Elite Member
Joined
Nov 12, 2007
Professional Status
Certified Residential Appraiser
State
Maryland
From the articles I read they use AVM's to monitor the values.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks