Ok, i am taking a new job out of state in two months and have to start a new job so i am selling my townhome. I sat down with a realitor today and he told me the comps are 185k, now i owe 205k. well a year and a half ago i took out a HELOC for 70k, they said the home was valued at 220k and i took there word for it! I used the money to pay off medical bills, student loans and cc debt. They used a AMV? not a actual appraiser to come up with that market value. I told my relitor about this and he looked up actuall comps at that time and found that they were 183k at the highest at that time. He told me i would have a good case?/any suggestions or heard of this?
2007-02-08 11:44:50 · 3 answers · asked by bryan l 1 in Business & Finance ➔ Renting & Real Estate
You don't have a case. The appraisal is an estimate, not a statement of value. You own the property, not the bank. You chose to borrow against the property. This carries risks. One of those risks is that you will owe more than you borrowed. The bank is not obligated to ensure that this will not happen.
The property is the collateral on a loan, not the determinator of the loan amount. You owe the money. You borrowed the money. You spent the money. You are obligated to repay the money regardless of whether the home value held or not.
The only case you might have is against the Realtor, who is giving you legal advice without a law license. And, in his spare time, he's an appraiser, too. I think you need a license to do that as well.
2007-02-08 12:22:21 · answer #1 · answered by CJKatl 4 · 0⤊ 0⤋
This is common. you could have a case but most likely you wont win. I wish you luck. you may want to ask the bank if they will accept a short sale. the fact that it was a year and a half ago, they will say that property values have dropped, and its not their fault. If you refied 2 months ago i would say you have a solid case.
2007-02-08 11:57:58 · answer #2 · answered by frankie b 5 · 0⤊ 0⤋
Bryan...have you considered a short sale. This is usually the route some investors take for people in your situation. If you'd like I can provide you with a variety of options from a large database of network investors. They are professional and very helpful in the alternatives they can provide for you.
2007-02-08 17:39:11 · answer #3 · answered by ez4realty 1 · 0⤊ 0⤋