If I asked the builder what the value was and if the market had changed and they advised me that the house was worth more than what I was paying, yet when asked why the appraisal didn't have the high value was advised they can only go off pruchase contract which was 7/05 value. Lender and builder were the same in az. Any ideas - the house is worth less than the mortgage. HELP, help.
2007-06-15 07:30:11 · 9 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
no. you have no recourse. unfortunately you are in a buyer beware type of situation. you are in the same boat as thousands of others in the country. at the time you bought, home prices were just beginning their cooling phase. the good news for you, is that it will be over soon. hang in there, give it time, and you will soon have equity in your home (it will probably take another year or two).
2007-06-15 07:36:30 · answer #1 · answered by Anonymous · 0⤊ 1⤋
The appraisal from 7/05 is a more accurate value than a bunch of builders standing around drinking coffee. The appraiser is trained and licensed to give an accurate value for a home. A builder builds a home. Who do you think knows more about the value? But that was the value 2 years ago, not today.
The info given to you is way, way off, in fact you were lied to. The appraisal from 7/05 is completely useless. Values change all the time. Any new lender you used for a refi would require a new appraisal to get an accurate current value.
Sounds to me like the builder (and apparently his lender friend) have screwed you over. No really, you have been had. You appear to be in an upside down loan. I'd say you have some recourse. Gather all the documents for this loan and hire an attorney. I hate attorneys but this may be the only way to go.
2007-06-15 14:42:46 · answer #2 · answered by thinking-guru 4 · 0⤊ 0⤋
Sorry for being scammed. Builders have iron-clad documentation in your purchase agreement and deeds that clearly state that they do not make any claims on the valuation of the homes they build and subsequently sale through real estate agents. Most state laws are written to protect the real estate broker and the builder/developer in this case. The only way you would be able to sue, is if they made written/documented claims regarding your homes' value. Just because the home sold at a certain price and you were able to receive an appraisal & mortgage to support that are not grounds for a law suit. The best thing to do now is to stay in your home or lease it out to cover your debt. DO not put any more money into the home (upgrades, improvements, etc) until the values level off. Arizona hit it's plateau last year and it takes three to five years for it to come around again. A warning to all, never never buy a home from a builder, using their suggested appraiser and lender. You have the right to use whomever you want. All of those people in the same deal only works against you.
2007-06-15 14:41:53 · answer #3 · answered by DetroitLady 1 · 0⤊ 0⤋
There has been a bit of a slump in the housing market across the nation. Arizona has been hit, but not as hard. The answer would just depend on why you are getting it appraised. If it is so you can sit around a drink beer with your Friends and say my house is worth 100k more than I paid for it. Not an issue.
If you are trying to sell it, you have different options. You can get a real appraisal from some one other than the builder.
Don't sell it and rent it out. The worst that happens is you have to cover the payment on occasion. Remember 8 thousand people move to Arizona every day. Sit on it and wait for it to get to that 350 K price
If you are trying to refi to get out of an ARM. get that real appraisal. Talk to your bank, not the mortgage company and see what is available.
Check out zwillow. Great site to get a bird's eye view of home values in your area
2007-06-15 14:46:58 · answer #4 · answered by Anonymous · 0⤊ 0⤋
You have no recourse. You can try contacting an attorney, but I venture you will get the same answers you are getting in this forum. You signed all the documentation willingly, and are only now realizing your error.
Of course, you are far from alone in having your property worth less than the value of your mortgage. That has happened in many locations around the nation, where buyers took 100% LTV financing, or close to it, and then the housing market values collapsed.
Your options are to hang on until the market improves and you get back to having a mortgage which is less than market value of the property, or letting it go to foreclosure. I recommend the former.
2007-06-15 15:20:43 · answer #5 · answered by acermill 7 · 0⤊ 0⤋
Oh come on. You were gullible enough to trust him even though you had an independent appraisal with a much lower value and now you're trying to blame someone else?
If the house was worth $450,000 now, would you be willing to split the increase with the builder? That's what I thought.
2007-06-15 14:43:42 · answer #6 · answered by Oh Boy! 5 · 1⤊ 0⤋
An important reason to do your own due diligence. Don't buy before an appraisal is one. And don't borrow from the builder! Wait and hope the market improves.
2007-06-15 14:34:30 · answer #7 · answered by merrybodner 6 · 0⤊ 0⤋
What agent did you use to buy your new build?
Most buyer's don't realize the people working in the new home sub-division WORKS FOR THE SELLER!
If you go into any new home sub-division without an agent with you on the first visit, you're representing yourself.
It does NOT cost any extra to bring your own representation on new homes.
Many agents will rebate 1% of the purchase price back to the buyer at close to help out with funishing the home. I do.
Terry Smith
http://www.Welcome2Arizona.com
2007-06-16 13:25:09 · answer #8 · answered by Terry S 5 · 0⤊ 0⤋
I would go to the department of banking and finance in AZ and complain. If the loan docs were not in order you may have a case. On the residential side there are a lot more safegards for borrower, but if it was a commercial deal you may have less recorse. Sounds like you got stiffed.
2007-06-15 14:39:30 · answer #9 · answered by John N 1 · 0⤊ 1⤋