Overvalued Appraisal

[hastalavista]

It is this equity that is now missing from the overall equation so that is the "harm" I suffered.

I hear what you are saying. I'm not sure you are missing any equity if debt was swapped using the property as collateral. And, there is no missing equity if it was never there to begin with. But, that would be up to a court to decide.

Good luck!

 

[snowchild]

I hear what you are saying. I'm not sure you are missing any equity if debt was swapped using the property as collateral. And, there is no missing equity if it was never there to begin with. But, that would be up to a court to decide.

Good luck!

Yes if it was never there to begin with, which is why I am questioning the appraisal process which said it was there and which I relied on. If the appraised value was like 50K over/under that would be one thing but 250K is a huge difference. From what I am reading here from all those posting, Quicken knowing that part of the property was being used commercially should not have granted a loan or taken on the commercial side at all. Had that been the case I could have simply had my local bank take on the mortgage albeit at a higher rate and I would not have had to co-mingle debt from the corporation ot me personally. If that had been done then I could have closed the company and sold the property for what it is really worth and not still be in debt over the property and other business debts that I could not pay before it all came crashing down.

Quicken has been very nice to me throughout the process since I stopped paying the mortgage, literally bending over backwards to avoid going to foreclosure .. I have told them that I am not sure that some wrongdoing was not done here and that I had consulted a real estate attorney in Billings. The attorney were not willing to take my case however.

 

[jay trotta]

Yes if it was never there to begin with, which is why I am questioning the appraisal process which said it was there and which I relied on. If the appraised value was like 50K over/under that would be one thing but 250K is a huge difference. From what I am reading here from all those posting, Quicken knowing that part of the property was being used commercially should not have granted a loan or taken on the commercial side at all. Had that been the case I could have simply had my local bank take on the mortgage albeit at a higher rate and I would not have had to co-mingle debt from the corporation ot me personally. If that had been done then I could have closed the company and sold the property for what it is really worth and not still be in debt over the property and other business debts that I could not pay before it all came crashing down.

Quicken has been very nice to me throughout the process since I stopped paying the mortgage, literally bending over backwards to avoid going to foreclosure .. I have told them that I am not sure that some wrongdoing was not done here and that I had consulted a real estate attorney in Billings. The attorney were not willing to take my case however.

A lot of good information has been tossed around (Marion & Dennis), but I have a Question; How does the Mortgage Note Read, a Residential Loan or Commercial Loan ?? Not familiar with your area.

 

[Noreen]

Yes if it was never there to begin with, which is why I am questioning the appraisal process which said it was there and which I relied on. If the appraised value was like 50K over/under that would be one thing but 250K is a huge difference. From what I am reading here from all those posting, Quicken knowing that part of the property was being used commercially should not have granted a loan or taken on the commercial side at all. Had that been the case I could have simply had my local bank take on the mortgage albeit at a higher rate and I would not have had to co-mingle debt from the corporation ot me personally. If that had been done then I could have closed the company and sold the property for what it is really worth and not still be in debt over the property and other business debts that I could not pay before it all came crashing down.

Quicken has been very nice to me throughout the process since I stopped paying the mortgage, literally bending over backwards to avoid going to foreclosure .. I have told them that I am not sure that some wrongdoing was not done here and that I had consulted a real estate attorney in Billings. The attorney were not willing to take my case however.

Consulting an attorney is good but you need a knowledgeable attorney, the attorney generals office is a great place to start as they would know an attorney qualified to handle this technical a case. (Not all attorneys are created equal). Getting the copies of both appraisals is very important, you will have to document your case and the source of the "distorted" valuation if that's the case.

Another factor here is the "Macro/Micro" effect of the different economies at the past origination and the current economy which has led you to today circumstances. When you first originated your debt the country was at nearly totally employed population, today so many people are working three part time jobs to meet their debt obligations. None of us had a crystal ball but the original appraiser would have had to collect sales data to support their opinion, it almost sounds like the sales data at the time was "inflated". None of us can say what originated the source of this opinion.

Good Luck and please keep us posted.

 

[snowchild]

A lot of good information has been tossed around (Marion & Dennis), but I have a Question; How does the Mortgage Note Read, a Residential Loan or Commercial Loan ?? Not familiar with your area.

It is a trust indenture as stated on the mortgage paperwork. It is not commercial and the loan is actually Fannie Mae.

 

[snowchild]

Consulting an attorney is good but you need a knowledgeable attorney, the attorney generals office is a great place to start as they would know an attorney qualified to handle this technical a case. (Not all attorneys are created equal). Getting the copies of both appraisals is very important, you will have to document your case and the source of the "distorted" valuation if that's the case.

Another factor here is the "Macro/Micro" effect of the different economies at the past origination and the current economy which has led you to today circumstances. When you first originated your debt the country was at nearly totally employed population, today so many people are working three part time jobs to meet their debt obligations. None of us had a crystal ball but the original appraiser would have had to collect sales data to support their opinion, it almost sounds like the sales data at the time was "inflated". None of us can say what originated the source of this opinion.

Good Luck and please keep us posted.

Noreen
I have copies of both appraisals, the one done for the construction loan in 2011 and the one by quicken in 2014 and I will in the next week or 2 have a third appraisal from the same company that did the 2011 construction loan. My best guess based on what she told me is it will come in around 450K based on the location. She thinks the quicken appraisal was inflated. In 2014 the Bakken oil field in North Dakota was going strong but so far away from us that it had very little effect on our economy. The local economy has not changed much to my knowledge in the past 3 years and real estate sales are reasonably strong with sales of 400K or less. I doubt that things have changed drastically.

 

[Noreen]

Noreen
I have copies of both appraisals, the one done for the construction loan in 2011 and the one by quicken in 2014 and I will in the next week or 2 have a third appraisal from the same company that did the 2011 construction loan. My best guess based on what she told me is it will come in around 450K based on the location. She thinks the quicken appraisal was inflated. In 2014 the Bakken oil field in North Dakota was going strong but so far away from us that it had very little effect on our economy. The local economy has not changed much to my knowledge in the past 3 years and real estate sales are reasonably strong with sales of 400K or less. I doubt that things have changed drastically.

Glad you went back to the appraisal office your local bank utilizes, they are a known commodity and screened by your local bank. Having an appraiser from so far away would make me question their knowledge of your immediate market area and basis of data collection and comparison. I am not aware of any FNMA residential loan program that will fund a "mixed use" loan so that's why we all are amazed that this got through their strict guidelines. Underwriting should have "strongly" questioned this. It's in your best interest to get a very competent attorney, in my opinion.

 

[snowchild]

Glad you went back to the appraisal office your local bank utilizes, they are a known commodity and screened by your local bank. Having an appraiser from so far away would make me question their knowledge of your immediate market area and basis of data collection and comparison. I am not aware of any FNMA residential loan program that will fund a "mixed use" loan so that's why we all are amazed that this got through their strict guidelines. Underwriting should have "strongly" questioned this. It's in your best interest to get a very competent attorney, in my opinion.

Noreen

Heck, it's not just my opinion but my neighbors and even my local bank manager thinks that something stinks. This could be why Quicken is being very nice to me. I will know more when the new appraisal comes back and I may even get another firm in to do an appraisal as a control piece without telling them anything about this. I will contact the Atty General on Monday and get some names. Fannie Mae does hold our mortgage though, quicken has told me this on more than one occasion. Thanks for the advice

 

[Elliott]

If I had a nickel for every co-borrower who learned what joint and several liability means the hard way.

In the last 10 years I've seen fifty properties where lenders try to work out obligations. Many people found they were in over their head when the market turned. Some workouts are more successful than others, some borrowers are less responsible than others. Having someone act as your legal counsel is the only way to go.

 

[snowchild]

If I had a nickel for every co-borrower who learned what joint and several liability means the hard way.

In the last 10 years I've seen fifty properties where lenders try to work out obligations. Many people found they were in over their head when the market turned. Some workouts are more successful than others, some borrowers are less responsible than others. Having someone act as your legal counsel is the only way to go.

Elliott
I had to look it up.. What would I sue for... the missing equity money? I don't have a lot of funds to secure an attorney, even less one that's worth his salt but at very least this board discussion and the participants have given me some direction and hope that I can get something done.

Thanks for commenting