Overvalued Appraisal

[Elliott]

Snowchild said,

"What was also sent was the paperwork on the SBA loan for the business that a local bank was leaning a portion of the property on with a UCC filing. When the loan was funded the SBA loan was paid off by quicken loans.
It is possible that the loan was approved based on the income of the business as a whole."

Isn't it hard to make a case against the appraisal if the loan was based on the income generated from the business?

 

[Ken Masla]

It is possible that the loan was approved based on the income of the business as a whole.

Is this what you think or is this what your lawyer is suggesting?

 

[Michigan CG]

Deleted

 

[Michigan CG]

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

Sure it is but the use of the 4,000 is supposed to be fully disclosed. Hiding the manufacturing aspect of the property is not allowed and many appraisers have done this. There is a basis for my guess as it is not uncommon. Why appraisers would do this is beyond my comprehension.

The loan was for 400K and our income at that time was only 47K yr gross each which means that we would have each had a 75% Debt to Income ratio

I was kind of on your side until you posted this. Why would you agree to a loan like that? You had no ability to repay it.

 

[techbiker]

I was kind of on your side until you posted this. Why would you agree to a loan like that? You had no ability to repay it.

I'm sure it was a cash flow decision. Agreeing to this loan allowed her to take advantage of a lower interest rate and pay off a couple higher-interest loans.