Mortgage company playing games need some advice please?

Question

am lost and felt like i have been lied too by my mortage company. In 04 we bought a townhome for 174k had 2 loans, 1 for 140k that is a ARM and other for 35k. august of 05 we were approached by Countrywide that has our 1st loan telling us we have a value of 220k and you have about 35k in usable equity. We had about 25k in medical debt for my kids hospital bill. They suggested to roll that in with my 35k second. The selling point was to clear those payments to get ready to refinance my 1st which is a ARM to a fixed plan. Now i am getting these rate hikes now have a 10percent on my first and the payments are killing us. I went to countrywide to refinance, check my credit was 700, my income was fine. Then they send out a apparisal,came in at 185k, countrywide told me i cannot do anything. I hired my own appraiser came up with the samething, but he told me the property should have never been appraised at 220k when i took out the HELOC should have been 183k?

we live in a townhome community so all homes are alike. My appraiser that i hired showed me the sales during that time frame that countrywide showed a value of 220k. All the comparable sales were between 181-186. No other lending company will not help us get out of this 1st loan too. I keep trying to talk to Countrywide i find them rude and unhelpfull

Answer 1

Okay, let me get this straight. Countrywide over-lent to you on a second mortgage, which means you cannot refinance your first mortgage because the property doesn't support the vaule and now your ARM is killing you? If I understand that correctly, you MAY have options but you need to get a lawyer. How did they ascertain you had $35K in equity when they approached you about the second mortgage? Did they get a full appraisal at that time? Countrywide does these 'no fee' seconds which APPEAR to be really good but man I have never seen one go so badly like this. Either the appraiser or Countrywide needs to take the hit on this. The appraiser is no doubt covered by errors and omissions insurance, and they created a HUGE error in assigning such a grossly overstated value on your property. This is extremely common for appraisers to do, loan officers are their bread and butter so they do what they have to do. I suggest getting a lawyer and suing the appraiser and Countrywide both. While the appraiser is responsible for his own work, all lenders have quality control review in the form of underwriting and whoever underwrote this loan without a doubt new there was something wrong with this value. They were just looking to push loans through to make a buck and figured since they held your first mortgage as well, their risk was minimal since in the case of foreclosure they would be recieving the entirety of the auction value one way or another. You will no doubt find a lawyer expensive, but your choices are limited and it is your only way out of this. The good news is predatory lending is the new "It" issue for the government nowdays and lenders are getting HAMMERED for this kind of behavior. As a matter of fact this has upset me so much I am going to print this out and take it to work on Monday and talk to my boss about it, I am really sorry you are going through this, I do hope you can get an attorney and save your home.

Answer 2

I am a little confused. I take it that you wanted to move forward with the fixed program that countrywide quoted you with an appraised amount that you could not legitimately attain with your property?

Most lenders use all types of strategies to hook clients. One is to do a simple property value “look up” and compare it to what you took out on your mortgage and try to sell you on the benefits of rolling debt into the equity of your property. These “look ups” are not current to the market. This is the ugly side of lending where they try to get you to commit to the loan in hope that the property appraisal will come back with enough value for the client to do the loan.

Bottom line is you need to get out of that ARM! 2 options, 1. You have just enough equity to be able to refinance your first and second and roll in your closing costs (should not be more then $7K including your tax and insurance reserves) to a fixed rate first and an Interest Only on your second. I know your payment is going to be higher then when you initially purchased your home but it is going to be a heck of a lot lower then the 10% you are at now! 2. If it is more cost effective to roll you medical bills into your mortgage you can do a loan over 100% loan to value(some lenders will go as high as 110% LTV depending on the borrower’s strength) through a mortgage broker. Brokers have access to Lenders that will do loans outside of traditional guidelines. Yes, the rate will be higher, but you need to weigh out what will benefit you the most.
A little tip: NEVER do business with an un-licensed “loan consultant. Make sure they are a licenses mortgage broker. You can verify their license status on your states department of financial services web-site. My reasoning for this is simple. If you have a serious issue with your loan and need to take action against the person doing your loan, what does a un-licensed loan consultant have to loose?? Nothing! Catch my drift?

This web-site has some of the best mortgage info and calculators on the web: http://www.mtgprofessor.com/

Answer 3

Sounds like you originally took a loan for 80%, then a second at 20%. Countrywide, apparently wasn't aware of the 20% loan.

Unfortunately, you have only two choices, sell at a loss or hang tight for a few years until you come out with better appreciation.

GoodLuck!

Answer 4

Countrywide is a "sub prime" lender, well know for their predatory practices which have been well publicized in the media recently.

You are between a rock and a hard place and they have you by the you know what.

Personally, I would stop making mortgage payments and see a good bankruptcy attorney. He could also give you advice on how to deal with Countrywide. If you continue to make the mortgage payments you will only fall further behind on other debt.

Answer 5

at the beginning call national and notice in the event that they are in a position to do an appraisal assessment. different companies have different regulations for value determinations. try a different company and notice in the event that they are in a position to apply your appraisal. sometimes getting an appraisal interior the winter is undesirable because of the fact they are finding at winter sales particularly then summer season whilst expenditures are oftentimes greater. My advice may well be to save around. you have a seven hundred credit and might tutor earnings. Thats super. human beings could be struggling with on your organization as long as your house is somewhat well worth what you assert that's. look on the sales and learn your abode directly to the sq. photos, bedrooms, tub. do not upload on your fee because of the fact of advancements at your residence. lenders are unlikely to grant you lots for advancements. they are finding quickly on the basics of your abode. in addition they could learn the closest abode to yours. So in the journey that your neighbor has the comparable abode and in basic terms offered for 185 then they'll use 185. save around. national isn't the wonderful they only promote lots. good success!

Answer 6

It,s sounds Like they took you for a ride they didn,t care at the time I would get a restate lawyer on them I would and kick some butt I wish you all the luck in work in word

Answer 7

it sounds like you got a "125 loan"......125% of current value. When you take out a loan like this , you are married to the house.

Answer 8

check out the link below, it has lots of information about Predatory Lending and what you can do about it


http://209.85.165.104/search?q=cache:_4gCTjTcKxUJ:www.landy.com/download/genstar/appraiser/appraisal_fraud.pdf+loan+appraisal+fraud&hl=en&ct=clnk&cd=1&gl=us


http://www.hud.gov/offices/hsg/sfh/pred/predlend.cfm