Lender was aware the appraisal was complete fraud. They went into bankruptcy and sold the loan to another. As they were aware the property was not close to the loan value, does the new mortgage holder have recourse togo back to lender , can I get this lowered on the balance. New lender it seems should be able to get an adjustment.
2007-07-27 01:23:39 · 5 answers · asked by Stephene O 1 in Business & Finance ➔ Renting & Real Estate
The new lender that bought the loan is going to hold you to the value that it was appraised at. When you refinanced you should have taken them to task on this if you were aware that it was bogus. You are stuck.
2007-07-27 01:32:41 · answer #1 · answered by Anonymous · 1⤊ 0⤋
First, how do you KNOW that the lender that did the loan knew the appraisal was fraud?
If I am in Virginia and I am underwriting loans and get an appraisal from Texas...I pull a supplemental report that confirms the area of value...how do you figure the lender knew the appraisal was fraud?
Do you KNOW the previous lender went into bankruptcy? Or do you just think that because they sold the loan? Selling loans is extremely common and how many lenders make their money.
You would have to get an appraiser to state that at the TIME the appraisal was done, it was so far out of the ballpark of being reasonable...and you need to file a complaint with the banking commission of your state as well as the appraisal board that licenses the appraiser.
However, you will have to pay another appraiser as evidence of your claim.
PS: If you did a cash-out refinance and the value of your home does not support the payoff so you can either sell your home or refinance again....that does NOT automatically equal fraud. Not all real estate maintains value, and sometimes it goes down....just ask people in California...some of who have seen their homes go down in value as much as $100K in the last year.
2007-07-27 09:52:06 · answer #2 · answered by Expert8675309 7 · 0⤊ 0⤋
Probably not. Bankruptcy is the Kiss of Death. Even if Lender #2 has a claim against Lender #1, it will have to get in line at the bankruptcy court for it, and bankruptcy means your debts are higher than your assets anyway.
You might try contacting the appraiser, and if you can't reach a settlement with the appraiser, contact the state agency that licenses them and file a complaint there.
2007-07-27 09:01:22 · answer #3 · answered by AnOrdinaryGuy 5 · 0⤊ 0⤋
No, you cannot get anything lowered on the balance. You DID sign the loan agreement, did you not ? You DID get the money from the lender, did you not ?
The new lender merely took over the financial obligation/responsibility of the former. Nothing changes in the dollar department.
If you got 'over financed', you got the benefit of the money and you are expected to repay it according to the terms of the agreement which you signed.
2007-07-27 10:34:55 · answer #4 · answered by acermill 7 · 1⤊ 0⤋
I don't know if I understand your concern. Is it because you just don't agree with the estimate of value? Is it not possible in today's real estate market, that your home isn't worth what it was 2 years ago. Have you had foreclosures in your neighborhood? When you speak of fraud, please know what that legally means. If the appraiser just did a poor job, it isn't necessarily fraud. And it isn't fraud especially if you don't agree with the value.
2007-07-27 08:38:48 · answer #5 · answered by Alterfemego 7 · 1⤊ 0⤋