BAD APPRAISAL OR SCAMMED?

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I recently tried to refinance my home loan. The current lender refused to re-negotiate my interest rate so I checked around. I found a good rate but the lender required upfront fees which I was told would be refundable at closing. Two years ago my property appraised at 250k and i owe 189k. I figured I could swing this deal. Well my recent appraisal came in at 159k. Local mortgage brokers said property values in my area had declined by not more then 21%. I checked the appraisal and found only one property used in the comps was from my neighborhood. I know property values have depreciated but I think I've been scammed by both the appraise and lender.
Any thoughts or commentary would be appreciated.

jameshogg · Posted: Thu Jul 02, 2009 8:39 pm Post subject:

Hi buckeye,

Property values have gone down badly in the recent times which has resulted in upside down mortgages. Most of the borrowers are unable to refinance their property just because their property value is lower than the mortgage they owe.

In your situation, if you feel that you've been scammed by your appraiser and lender, you can contact any other appraiser and check out the value of the property. If you find that your property value is more than the appraised value, you can contact any other lender and look out for a refinance.

Thanks

Jimmymackin · Joined: 17 Aug 2009 Posts: 66 0.43 Dollars($)

Jake,

The lender has a lot more to gain to fund your loan than they do for a few hundred dollars that being collected by the appraiser in the first place...Use free tools like Zillow.com or Realquest.com to find out what other homes have been selling for.

You can also contact a local appraiser to ask he/she about the area, they may be willing to provide insight.

Best of Luck

CArefinance · Joined: 25 Aug 2009 Posts: 2 1.91 Dollars($)

Hey Buckeye Jake,

Even though we are in a declining market 21% is a huge drop, but its happening all across the states. First thing I would do is, ask for a copy of the appraisal in which you paid for. Take look at the comparable sells to see if they are using accurate sales in your area. I know that appraisers and lenders are being very tight on value due to the market.
Also, check to see what typr of loan that you have. You maybe be able to do a streamline refinance. And you might want to check with another lender and or appraiser to get a second opinion if you feel that your are being scammed. Dont let one appraisal stop your quest for a refinance.

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