Overvalued Appraisal

[snowchild]

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.

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I put it on zillow and for sale by owner for 9 months. For 3 months I had my google adwords management team link the ads with a nationwide adwords campaign for anyone searching for property in Montana. We got thousands of hits .. no inquiries, not even one! The sale price was $299K .. I would have made up the difference from my own pocket just to be rid of it. I have tried to rent it to local farmers but they already have barns and such. I have tried to rent the home for $500 mth.. no takers. Hunters are only here 2 months of the year and airBnB would only get 1 or 2 stays a year .. not worth the work. Doesn't help to have jerks on the board .. Thanks Marion .. be well .. I am done here

 

[jay trotta]

1st off to come on here you need very thick skin.....kudos to last 51 posts

From the post #50, last line may be the solution; in regards to your attempt at marketing the property for $299 and in regards to the location, with "thousands of hits" and no inquiries it would appear to be a hard sell.

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

Re-read Dennis post, it may be the more applicable information, but you will need an attorney well versed in banking regulatory compliance (Marion suggested a start point)
Good Luck

 

[glenn walker]

Come out to California .. You had no problem taking the money *** Can we hear from or speak with your common law partner and hear his or her side: LOL

 

[Michigan CG]

Some people are mean on here but some questions are going to get mean responses.

Reread what Denis has said, it is the best advice.

They ordered an appraisal and could not find an appraiser to do it.

First of all, we all know that Montana is a rural state. I looked on the ASC website and there are about 350 appraisers listed on the site. Some of those will be duplicates, people with licenses in two states etc. So I am going to GUESS that there are about 275 total active appraisers in your state. Not all will do lending work, not all will do residential work.

My guess is that the AMC (Appraisal Management Company) for Quicken (which has a terrible reputation) could not find anyone willing to work for them. Many appraisers refuse to work for them, myself included.

You say you are about 100 miles west of Plentywood so I looked on the ASC website for appraisers surrounding Glasgowand found in five minutes:

-2 appraisers in Glasgow
-1 in Nashua
-1 in Wolf Point
-1 in Malta
-1 in Harlem
-3 in Havre
-1 in Fort Benton
-1 in Jordan
-1 in Circle
-1 In Belgrade

All of these people might not do Residential but I am guessing some do.

There are at least five banks/lenders in Glasgow and those local banks find appraisers. Why didn't Quicken call them for a list of appraisers who could do your property?

==============================

That being said, I am going to guess that the appraisal misrepresented the the business on the property and the 4,000 SF building. I am going to guess it was called a pole barn and no reference to the manufacturing was noted in the appraisal as that would have been a big red flag to Fannie Mae.

If I had a friend in Montana I would advise them to call the two lenders who look to be very local and ask them who the best review appraiser is in the area. I am guessing at least one of them hires an appraiser to do reviews on occasion. I would then contact that appraiser to do what is called a Standard 3 review of the appraisal from Quicken loans. It might cost you $500-$600 but could be worth it.

 

[Meandering]

If I had a friend in Montana I would advise them to call the two lenders who look to be very local and ask them who the best review appraiser is in the area. I am guessing at least one of them hires an appraiser to do reviews on occasion. I would then contact that appraiser to do what is called a Standard 3 review of the appraisal from Quicken loans. It might cost you $500-$600 but could be worth it.

What would a review of the appraisal do for the borrower?

It won't cancel the loan.
It won't pay off the loan.
It won't help the borrower, who has no standing against the appraiser.
This wasn't a purchase,
it was a refi.
That makes the borrower the property "expert",
not the value expert,
but the property expert,
who should have sounded a warning about any missing manufacturing issue within the appraisal.

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

I was thinking about the many posts Terrel and others have made about their ex partners, and I don't remember a single post in a decade of being here where a woman appraiser made any similar comments about their present or former significant other.

However, it appears the OP is very intelligent and understands many things, so a bit of "we get it" doesn't hurt to help spur on a bit of "get over it you're to smart to let this slow you down".

For the OP, this is not insurmountable, nor the end of the world. A bit of creative thinking and I'm sure you will find another way to make good money and clear up this mess.

.

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[Ms. Janet]

That being said, I am going to guess that the appraisal misrepresented the the business on the property and the 4,000 SF building. I am going to guess it was called a pole barn and no reference to the manufacturing was noted in the appraisal as that would have been a big red flag to Fannie Mae.

There is no basis for that guess. Generally, a mixed use property that is owner occupied is eligible collateral for Fannie Mae.

 

[J Grant]

I skipped a lot of the posts here...short version the sounds like the one who might be responsible would be Quicken Loans, though if the appraiser used poor methodology to produce an inflated value perhaps there is some liability there..none of us can say if your home was over valued at the time, you would need an independent opinion from a competent local area review appraiser for that.

Re Quicken Loans, It was improper of them to ask you for a recommendation for an appraiser then for them to hire that person as the appraiser. A lender or their agent if using an AMC is supposed to choose the appraiser and have a roster of qualified appraisers that they use. . You might want to speak to a RE attorney ; one who understands appraisal issues...

Below from the OP first post

OP- "They ordered an appraisal and could not find an appraiser to do it. They asked me if I knew anyone and after asking around was given the name of an appraisal service in Plentywood MT, some 100 miles to the east of us. I passed the name on to quicken and they hired them. "

 

[Tom D]

i enjoyed this thread quite a bit. thanks for a real life problem situation. lot of good advice to pick from. usually half like you, the other half consider you evil here. again, it was more interesting reading your situation, and the advice given here. more typically the arguments are: should it be a comma, or period, based on the 'USPAP' experts here.

 

[chad hampton]

I feel bad for those of you that work in only rural markets. When I do an appraisal in what I call a "semi-rural" market area, it's really a shot in the dark. There are no good comps and you make a lot of assumptions. Back when I worked in science and engineering, we referred to it as swag - scientific, wild *** guess.

I'm sorry the OP borrowed more than the home was ultimately worth, but it is what it is. I do feel bad with the hands we are sometimes dealt in life. Looks like a wonderful home from the photo.

A lawsuit is a waste of time and money. The appraisal was mostly likely done for the bank. Borrowers are not the client.

 

[PushinValue]

Wow .. I came to get some advice, was beaten to a pulp ... ya'll must know my husband!

It's the internet, what did you expect. Lots of people are grumpy on here.

You asked why get an appraisal? You didn't get an appraisal, the bank did... the purpose was to decide how much to loan you...


Th appraisal business is kinda like the medical field... just because your doctor prescribes your 5 year old adderall (literally a street drug that gets you high) does not mean you should give it to them. Just because your doctor prescribes you oxycotin with unlimited refills because you hurt your knee, does not mean you should take it (even though it says right on the instructions to take when needed for pain).

Doctors/appraisers give opinions, it's up to you to make your own decisions (knowing there are some bad opinions out there)