Inflatted appraisal.

[Patricia Pearson]

8O 18 months ago our house was appraised for 152,000 later we found that it is worth only about 109,000.. ugh! also it took us 6 months to get a copy of the appraisal and when we did it was poor quality.
But on reading it we found that the appraiser listed things in the house that were not in my house. like two full baths. disposal system. and wooden fence in the back yard. none of this true. now we find we can not sell or refinance to get out from under the finance company that hired this guy. (I am sure he did not do this just because). and we are two old to live long enought to pay it down to get it where we can sell. so I guess we will lose the house.
Is there a chance we could fight this thing. or just do as one lawyer said and just walk away.
Thanks in advance..

 

[TEL2002]

Patricia,

Several other postings, similar to yours, have been posted here over the last few months. Read these old postings in the archives. Much good advice was given. If your home has been truly given a highly inflated appraisal, these are the kind of guys that ethical appraisers want out of the business.

 

[Mountain Man]

Don’t know where you are located :?: , but if it is really as bad as you say, do us ALL a favor and file a complaint with the real estate commission or appraisers board in your state. Many states have a web site which you can download or print the forms needed. They are usually a page or two, and they may request a COPY of the report in question. Now for the bad news :arrow: ....they investigate every complaint received, but it may take at least a year or two. But please do ask for an investigation if it is warranted.

My next question is how many attorneys have you consulted? Get some more opinions, but you may have to shell out some $$ to start a lawsuit. Also be prepared to pay a reputable appraiser to do a review on the appraisal, :idea: heck .... include the review in your complaint to the state.

Now for some hard leasons learned. If you decide to walk and let the lender foreclose, the lender may come after YOU for a deficiency judgment :!: Granted, bankruptcy may delay the problem, but it will not be a cure. It will haunt you for at least 7-10 years, and could pop up later in the future just before you plan to close your next home a decade later. Remember, that deficiency that was never paid? 8O

Please seek some financial counseling, legal advise, and even marriage counseling (this can be REALLY straining in a family). 8)

 

[Terry Russell]

Don’t walk away. If the finance company won’t listen to you and you owe more than it is worth, just stop making payments. Do not move out. You can live there for 18 months minimum probably longer. Be sure of all your facts and mail copies of the appraisal and all other financial data to the Secretary of State, Attorney General, Dept. of Commerce HUD, and also to your local newspaper.
See if you can find an idependent appraiser to re-appraise your house effective date being the inflated appraisal date.
Before doing any of this be sure of all the circumstances. Especially how you determined the lower value. Good Luck!
Terry

 

[larryhaskell]

Patricia:

Try and find out who currently holds the note for your loan. Your loan was probably sold in the secondary market. This means to a bank or a company like Fannie Mae or Freddie Mac. Make the current holder of your loan aware of your concerns. They are the ones who will be holding the bag if you walk away which I hope you don't. If Fannie Mae or Freddie Mac has your loan, let them know. They hold the lender responsible for the quality of appraisals. If you have an FHA loan contact the Department of Housing & Urban Development (HUD). If you live in an area where you have reasonable access to your federal legislators I would call them as well. This may be a case of predatory lending. You do have options but you will have to be aggressive. If you contact an attorney, make sure they have experience in real estate and are familiar with administrative law. Be persistent, remember the squeaky wheel theory. Good luck and please let us know how this turns out.

 

[Patricia Pearson]

 

[Mike Garrett RAA]

Please consult your attorney. If the appraisal was as bad as you indicate there are remedies for you. Much good advice as to contacking HUD if FHA loan, VA if a VA loan, and Fannie Mae, if conventional sold into the secondary market.

I wish you well.