am lost and felt like i have been lied too by my mortage company. In 04 we bought a townhome for 184k had 2 loans, 1 for 140k that is a ARM and other for 45k. august of 05 we were approached by Countrywide that has our 1st loan telling us we have a value of 230k 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 195k, 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 230k when i took out the HELOC should have been 193k?
2007-03-12 07:06:16 · 4 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
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 230k. All the comparable sales were between 191-195. 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. The used a AVM so no actuall appairser came out.
2007-03-12 07:07:40 · update #1
You cannot hold them responsible for the appraisal. Two years ago the real estate market was a much different place. Real estate is not static, it's dynamic, meaning the prices and situations are always changing.
You took out a 2nd line of credit at your own risk. You were not mislead. It's still credit, you still pay it back but a lot of people think it's "free" money because it's on the equity of the primary home. The problem is, if your housing value drops, like yours did, you find yourself in the situation you are in now. A lot of people are in that boat and a lot of people are losing their house. Some lenders took advantage of it, but bottom line, it is the borrower who needs to know the fine print for any financial transaction especially if their house is on the line.
2007-03-12 07:51:08 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Sadly, I've seen this question on this very board a few times now-- all by CountryWide!!
There's really not much you can do at all outside hiring a lawywer and suing-- heck, try doing a class action at this point since i've seen your EXACT scenario a few times on this board alone.. Most lenders wont touch the loan becuase its over the value. I'd get a statement from the appraiser, and a strongly worded letter from a lawyer. Maybe you can force countrywide to finance all 3 of your laons into one low interest one OR you'll sue in court. ... a lawyer would probably jump right on board with you for this one since you've done your homework!!
If possible you'll have to sit tight until the market increases and you pay down the balance.
You got screwed on the 1st being an arm, which royally sucks, and there's almost nothing you can do with it since you cant refi.
2007-03-12 07:27:59 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Yes they can. You should have refinanced the 1st and 2nd at that time since all was purchase money. You would have been at or about 80% ltv. Then if wanted done a closed end second for the cash. An AVM is acceptable in the market place and saves the cost of an appraisal. No you were not screwed by them just misinformed by your lender.
2007-03-12 07:15:32 · answer #3 · answered by golferwhoworks 7 · 0⤊ 0⤋
How many times are you going to ask this question? No it is not fair of them to do this, but you will have a tough time winning that battle.
2007-03-12 12:26:05 · answer #4 · answered by frankie b 5 · 0⤊ 0⤋