We closed our homeloan on a home we built 3 months ago and final appraisal was$245,000 which is what it needed to be around for approval since we were borrowing $190,000. we already owned the land prior to building. After closing we went to refinance with a different company who approved us at the lower rate only one thing was wrong...the appraisal came in at $160,000. Needless to say we were shocked since apparently our home depreciated $85,000 in 3 months!! after reviewing original appraisal we found many misrepresentations of supposed home values used for comparisons, as well as an inflated value of our land already owned and when I contacted lender they said that agent was fired for questionable practices and that was that. Soon after they sold my loan to another company which was also shocking since this bank bragged about how they dont sell their loans off. can i sue for this or what? what type of lawyer? Any help would be great
2007-10-19 11:52:58 · 4 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
The first things I would do is contact your attorney general's office and see if there have been any complaints on the people you originally worked with like the builders, appraisal company, and I'm assuming it was a mortgage broker but it might have been the lender also. The attorney general's office will also be very helpful on recommending what to do and they may even investigate it or may know of a class action suit to join in on.
Unfortunately, you are not the only one this happens to. It seems there's usually more than one person involved in the transaction to make this fraud stuff go through unnoticed, like a mortgage broker and an appraiser being related as an example.
Other information to gather would be estimates on building your home versus the ending figure. Maybe find out about other homes the builder has done. One of the "guilty parties" would be the appraiser if it was indeed "fixed".
I would even show a 3rd appraiser the two appraisals and see what they say. A lot of times also they have a lot to say which might help.
Good luck!
2007-10-19 13:04:44 · answer #1 · answered by gogo7 4 · 1⤊ 0⤋
Although that does seem to be an extreme case of devaluement the price and or worth of homes have been dropping dramatically mostly in CA, FL, NV, MI etc. If the assessments where based on 6-12 months ago before the downturn and credit crunch most likely speculatively they where correct or at least close to it. Many places have yes in the last few months have had a decrease in prices or worth of 25% and expect another decrease of at least 10% to follow. Loans are bought and sold all the time Although they might claim it is rare, it still happens. Again the market has moved south quickly and will continue to because of depreciating values in a market that is in the middle of correction, and will continue as such for at least the next 18 months. Sorry but that is the market right now.
2007-10-19 12:30:23 · answer #2 · answered by Pengy 7 · 0⤊ 1⤋
Yes, it appears you do have a case since they arrived at their approval with what looks to be knowingly fraudulent data. Now you are in a mortgage that you cannot refinance and you may end up not being able to afford. I don't know which kind of attorney to contact, but try a consumer protection lawyer. If that isn't right, they can guide you from there.
Best of luck!
2007-10-19 12:18:08 · answer #3 · answered by Mary T 2 · 0⤊ 1⤋
It sounds more like you should be suing the APPRAISER for fraud. The lending company was a VICTIM of fraud by the agent and the appraiser.
2007-10-19 14:39:59 · answer #4 · answered by STEVEN F 7 · 0⤊ 1⤋
How did your lender defraud you? You got the loan you wanted. If they have sold the loan off, the loan buyer is the one who has been defrauded.
2007-10-19 11:57:39 · answer #5 · answered by Anonymous · 2⤊ 2⤋