ok i am speaking on behalf of my best freind. He owns a townhouse for 3 years. He took out a home equity line of credit last year. He had to use every penny to pay off some debts, before this he was getting killed with payments and could not make ends meet. The bank called him up and offered that line of credit program to him. They told him that he has 70k in equity. his first loan is 137 so his property value was 207. Now he has to sell his house, he is moving to a diffrent city and the appraised value is now 185. he was like WOW why this diffrence now it was valued at 207 last year. The realitor told him it was not, the value was at 180. so he has this diffrence now any suggestion what he should do. he is getting very worked up with this.
2006-08-07 15:54:14 · 6 answers · asked by steph g 1 in Business & Finance ➔ Renting & Real Estate
Can you say predatory lending??? This is the stuff that makes me sick, being a loan officer myself. There is a great amount of work that your friend has to do at this point. Selling his house is NOT one of them.
He first needs to find the copy of the appraisal that he received when he opened his home equity line. Once he does that, he then needs to have a conversation with the loan officer which took care of this loan and explain to him/her what has happened; that is if the loan officer even works at the same place. Then he needs to contact the appraiser who gave him this value when he opened hte line. Again...he needs to have a conversation with this appraiser. He then will need to call the current lender that holds the line of credit and explain the situation to them as well. All the while when doing this, he needs to be as professional as possible, but straight and to the point and be ready to hear a bunch of excuses.
He will then need to file reports with the Better Business Bureau, the local Division of Finacial Institutions (or the state depat. that takes care of policing the real estate and mortgage industry for your state and be ready to take legal action against ALL OF THEM, if this needs to be done.
This is a very hard thing to get out of since a mortgage is in fact a legal binding contract, and ignorance is no excuse on either side. Some things that he will want to be sure of: Did he look over the papaerwork well when he opened the loan? Is this 2nd mortgage a program which he borrowed over 100% equity on his home? Did the mortgage company disclose EVERYTHING correctly?
Also, if he doesn't get anywhere, then tell him to call his local news stations and tell them what happened. As I hate the liberal media, this may very well open some doors for him automatically if they happened to run the story, adn trust me...they will.
I am sorry your friend has to go through this. One thing to remember, always make sure that your loan officer discloses everything...PERIOD. Good luck!
2006-08-07 16:44:27 · answer #1 · answered by Kaz 3 · 0⤊ 0⤋
He needs to investigate the appraiser. Was the high appraisal done by the banks appraiser? If so that's their fault and they need to help him.
2006-08-07 16:03:45 · answer #2 · answered by jeffrey k 3 · 0⤊ 0⤋
Tell your friend to contact the state's Dept. of Banking and ask them to investigate if the lender committed fraud.
2006-08-07 16:29:08 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Get the opinion of second realtor or have it appraised.
2006-08-11 11:13:08 · answer #4 · answered by drlasage 2 · 0⤊ 0⤋
Do a "short sale" for the highest offer.
Regards
2006-08-07 17:33:16 · answer #5 · answered by Anonymous · 0⤊ 0⤋
might need to hirer a lawyer to look into this situation.
2006-08-07 16:32:48 · answer #6 · answered by Anonymous · 0⤊ 0⤋