Overvalued Appraisal

[Meandering]

Not for nothing but,

If the loan is being held by Fannie, and is now in default,

Most likely, Fannie is going to look to "put back" to Quicken,
as your property does not sound like property Fannie wants in it's residential loan programs.


If the loan gets "put back" to Quicken,
They won't be so nice to you, anymore.


My best advice, is sit down with the District Attorney. Much will depend on the REO laws in your state, judicial or not.

There is no appraiser you can sue, who will pay off your loan. Forget that.

There is no way to "save" the property, if, you already got a loan mod and defaulted on that too.

To me, you're going to have a really hard time proving you "relied" on an appraisal for a residential loan, knowing full well you had a manufacturing facility on site. I think you'll be barking up a dead tree.


You need to be in save mode, not liability mode at this point.


.

 

[snowchild]

Not for nothing but,

If the loan is being held by Fannie, and is now in default,

Most likely, Fannie is going to look to "put back" to Quicken,
as your property does not sound like property Fannie wants in it's residential loan programs.


If the loan gets "put back" to Quicken,
They won't be so nice to you, anymore.


My best advice, is sit down with the District Attorney. Much will depend on the REO laws in your state, judicial or not.

There is no appraiser you can sue, who will pay off your loan. Forget that.

There is no way to "save" the property, if, you already got a loan mod and defaulted on that too.

To me, you're going to have a really hard time proving you "relied" on an appraisal for a residential loan, knowing full well you had a manufacturing facility on site. I think you'll be barking up a dead tree.


You need to be in save mode, not liability mode at this point.


.

Marion

I am in save mode. I am making the required loan refi mortgage payments and I am not in default at this time nor am I likely to be. My business has picked up and I am moving forward. I have 2 more refi mod payments to make and Quicken told me they will report my loan as current and move all the back debt to the back of the mortgage term. I have returned to the property and here I stay till I die or sell for something more than I owe.

All the same for that, I don't feel very happy about losing what I was "led to believe" was 250K of equity that suddenly went away. That was not my fault. I Didn't self appraise. I relied on the opinion of a "professional appraisal" and a mortgage banker in my dealings. Having said that I have to agree with you that getting an attorney to do anything is a long shot. Seems people can sue for everything these days but it's not been my experience. Even when I have something to sue for like with my ex bringing down the company, finding an attorney to help is bloody impossible.

 

[Meandering]

Marion

I am in save mode. I am making the required loan refi mortgage payments and I am not in default at this time nor am I likely to be. My business has picked up and I am moving forward. I have 2 more refi mod payments to make and Quicken told me they will report my loan as current and move all the back debt to the back of the mortgage term. I have returned to the property and here I stay till I die or sell for something more than I owe.

All the same for that, I don't feel very happy about losing what I was "led to believe" was 250K of equity that suddenly went away. That was not my fault. I Didn't self appraise. I relied on the opinion of a "professional appraisal" and a mortgage banker in my dealings. Having said that I have to agree with you that getting an attorney to do anything is a long shot. Seems people can sue for everything these days but it's not been my experience. Even when I have something to sue for like with my ex bringing down the company, finding an attorney to help is bloody impossible.

Love is blind,
but financing and business is not.
Key person insurance exists for a reason.
And don't be too upset.....
Me, and a bunch of people here, have had SOBs in the past and can relate to a lot of what you're saying.
Do-Do happens, it's ttime to get past it and take responsibility.

So what's the fix?

You could stay in place and finish off the modified loan,
Or,
Have you consulted a commercial appraiser, to get a value on the property based on it's commercial aspect?
It may be worth more as a commercial property with a residence than the other way round.

The oil play may not be close, but are there things they need you could be manufacturing for them or securing manufacturing contracts that would make the business portion of the property more valuable than as a consumer driven internet supplier?

You had an SBA loan, have you been to their classes and sought their help to connect with other manufacturing companies that can outsource parts to you?

Is your manufacturing tooling sufficient to open a portion as a job shop taking inventions of others for proto-typing?

Walmart, and some other big box retailers have local programs to sell local goods. Have you knocked on their doors to increase your business income?

Lots can be done,

But looking for someone to blame, without taking responsibility for your hand in it all, will get you no where and stuck where you are for a very long time.


.

 

[snowchild]

Love is blind,
but financing and business is not.
Key person insurance exists for a reason.
And don't be too upset.....
Me, and a bunch of people here, have had SOBs in the past and can relate to a lot of what you're saying.
Do-Do happens, it's ttime to get past it and take responsibility.

So what's the fix?

You could stay in place and finish off the modified loan,
Or,
Have you consulted a commercial appraiser, to get a value on the property based on it's commercial aspect?
It may be worth more as a commercial property with a residence than the other way round.

The oil play may not be close, but are there things they need you could be manufacturing for them or securing manufacturing contracts that would make the business portion of the property more valuable than as a consumer driven internet supplier?

You had an SBA loan, have you been to their classes and sought their help to connect with other manufacturing companies that can outsource parts to you?

Is your manufacturing tooling sufficient to open a portion as a job shop taking inventions of others for proto-typing?

Walmart, and some other big box retailers have local programs to sell local goods. Have you knocked on their doors to increase your business income?

Lots can be done,

But looking for someone to blame, without taking responsibility for your hand in it all, will get you no where and stuck where you are for a very long time.


.

Gee Marion .. It must be summer in your neck of the woods. I am 66yo ... I don't plan to be working and paying a 2100 mth mortgage to term .. I would be 106 yo! My credit is shot due to the 7 missed mortgage payments. Every other obligation I had is current, even the one I owe to chase bank for 100K from the business before he walked. I will never likely pay that off. I cannot borrow anything for the company albeit that it is 17 years in business, has a great D&B report and I have all this "equity" . I cannot loan even a commercial lease on equipment I will need to move snow on the property come winter. All the equipment is gone, sold at auction to pay the local bank after he left with my share of the loot. The nearest WalMart is 250 miles away. The oil field is closed down. The property is 50 miles out of town... it is hardly a commercial property. The nearest "city" is 400 miles in any direction and the nearest freeway is 150 miles. Since the internet business is a non contractural distributorship I cannot even sell it and pay off its debts and keep anything for me.. oh yes I have tried.

I am not looking to blame, I am looking at what options I "may" have. There is a difference. I am floating on an iceberg in the atlantic, looking at all the possibilities that may be available. Why do you think I walked away last October .. to be selfish? No I moved away because I was looking down the wrong end of a 45 and I needed to get my head straight. I would have liked to not come back but with $600 mth in retirement benefits, no credit and only the distributorship of my current internet business to keep me afloat I didn't fancy living under a bridge after bankruptcy.

Seriously, I know you mean well but in this case you have to walk a mile in my moccasins ..

 

[Elliott]

Oh great, now the thread has turned misandristic. All those men who have been financially sc rewed over by women, raiser your hand.

 

[snowchild]

Oh great, now the thread has turned misandristic. All those men who have been financially sc rewed over by women, raiser your hand.

View attachment 32621

bite me

 

[JTip]

The extra money went to pay off loans of higher interest on the business which was paying down a 200K SBA loan which in turn, the local bank held a UCC filing on the business property.

It looks like you utilized the additional funds to prevent certain business failure.

Now that you can't pay your mortgage, which you agreed to the terms and eliminated high interest loans, you want to blame the appraiser because you can't afford the monthly payment. The 'missing equity' was simply a low interest loan to get you (and your previous husband) out of financial ruins.
Regardless of the appraisal error, which I believe there was one, the lender decided, based on your prior credit and substantial income, to loan you the money. If Facebook didn't exist you would have never found this forum and gladly paid your mortgage without question.

Only in America......

 

[Meandering]

Gee Marion .. It must be summer in your neck of the woods. I am 66yo ... I don't plan to be working and paying a 2100 mth mortgage to term .. I would be 106 yo! My credit is shot due to the 7 missed mortgage payments. Every other obligation I had is current, even the one I owe to chase bank for 100K from the business before he walked. I will never likely pay that off. I cannot borrow anything for the company albeit that it is 17 years in business, has a great D&B report and I have all this "equity" . I cannot loan even a commercial lease on equipment I will need to move snow on the property come winter. All the equipment is gone, sold at auction to pay the local bank after he left with my share of the loot. The nearest WalMart is 250 miles away. The oil field is closed down. The property is 50 miles out of town... it is hardly a commercial property. The nearest "city" is 400 miles in any direction and the nearest freeway is 150 miles. Since the internet business is a non contractural distributorship I cannot even sell it and pay off its debts and keep anything for me.. oh yes I have tried.

I am not looking to blame, I am looking at what options I "may" have. There is a difference. I am floating on an iceberg in the atlantic, looking at all the possibilities that may be available. Why do you think I walked away last October .. to be selfish? No I moved away because I was looking down the wrong end of a 45 and I needed to get my head straight. I would have liked to not come back but with $600 mth in retirement benefits, no credit and only the distributorship of my current internet business to keep me afloat I didn't fancy living under a bridge after bankruptcy.

Seriously, I know you mean well but in this case you have to walk a mile in my moccasins ..

So some of my suggestions will not work for you, based on information you did not previously share. No biggie, and not the end of the world. You got me by a few years, but not many, and yes it is summer here, and yes it snows here to. Still not the end of the world.

So you sold the equipment, doesn't matter to the value of the property as a commercial operation as opposed to a residential property. Equipment is not real estate. You need the value of the real estate to be more than the loan amount. Something must exist in your neck fo the woods where the remaining buildings that are not the house contribute to the value more than neighborhood barns. Even hunters and trappers need a space to dry pelts, but with a commercial building, they may be able to process there also.

As you note, I'm not in your neck of the woods. You are the property owner and the expert on the area and the property. Put your good brain to work to find a use for your property that is more than just a house.

Even if you list it for sale on the internet at more than what's owed, Sell up that there is a manufacturing building, but no equipment. At least you'll get market reaction and not the opinion who some residential appraiser 100 miles away.

.

 

[snowchild]

It looks like you utilized the additional funds to prevent certain business failure.

Now that you can't pay your mortgage, which you agreed to the terms and eliminated high interest loans, you want to blame the appraiser because you can't afford the monthly payment. The 'missing equity' was simply a low interest loan to get you (and your previous husband) out of financial ruins.
Regardless of the appraisal error, which I believe there was one, the lender decided, based on your prior credit and substantial income, to loan you the money. If Facebook didn't exist you would have never found this forum and gladly paid your mortgage without question.

Only in America......

wrong .. next!

 

[JTip]

One more thought:

I believe that Quicken and the appraiser were wrong, both guilty of questionable business practices.

But, on your end, you secured a low interest loan which you financially qualified for and got you out of hot water.

I do not see how you should benefit by the errors, if any, of the bank and appraiser as you made out with the best deal possible, however shady it was.

My advice: Quit paying your mortgage and walk away. In a couple of years you will be able to buy a house again.