Posted on: 28th Jul, 2010 09:02 pm
we had owner financing for a townhouse for 1 year with a great or what i thought was a great deal. we put $50k down and 80% of the4 rent went to the principle for the first 6 months and 50% went to principle for the other 6 months.
after the year was up, i arranged with a local bank to finance the townhome.
they sent an appraiser and he came out and appraised the property at $330k
now a year and half later i wish to refinance to get a much better interest rate.
i went to a large mortgage company and they were happy with everything until they sent another appraiser and he marked it to $305k and then i went to another lending company paying another appraisal fee and that was at $301k. i was furious.
i tried it one more time and went with the third lending company and another appraisal and it came back with 270k. i showed the last appraiser the original appraisal for $330k and they both used the same comps and he told me that with no question the original appraiser was so off and it was obvious that he used fraud and had to be told by the bank to make it over 325k and he made it 330k. the comps he used were so inflated and i already made a formal complaint to the state where the first appraiser is licensed and insured. i am waiting to hear from the state.
can i sue the original appraiser and the bank as i am sure they were in on it together. i already contacted the bank and the loan officer i had spoke with the last appraiser and partially agreed that something is not right.
i would have never bought the townhouse if i knew it was worth only 270-300k, i feel i am ripped off for 40-60k and someone should have to pay.
now i can not get a loan at the great interest rate. my credit is excellent, my work history is the same for 25 years and the only reason i would be denied is due to the appraisal. i can not come up with more than 20k in cash to go forward.
what is your thoughts please.....
after the year was up, i arranged with a local bank to finance the townhome.
they sent an appraiser and he came out and appraised the property at $330k
now a year and half later i wish to refinance to get a much better interest rate.
i went to a large mortgage company and they were happy with everything until they sent another appraiser and he marked it to $305k and then i went to another lending company paying another appraisal fee and that was at $301k. i was furious.
i tried it one more time and went with the third lending company and another appraisal and it came back with 270k. i showed the last appraiser the original appraisal for $330k and they both used the same comps and he told me that with no question the original appraiser was so off and it was obvious that he used fraud and had to be told by the bank to make it over 325k and he made it 330k. the comps he used were so inflated and i already made a formal complaint to the state where the first appraiser is licensed and insured. i am waiting to hear from the state.
can i sue the original appraiser and the bank as i am sure they were in on it together. i already contacted the bank and the loan officer i had spoke with the last appraiser and partially agreed that something is not right.
i would have never bought the townhouse if i knew it was worth only 270-300k, i feel i am ripped off for 40-60k and someone should have to pay.
now i can not get a loan at the great interest rate. my credit is excellent, my work history is the same for 25 years and the only reason i would be denied is due to the appraisal. i can not come up with more than 20k in cash to go forward.
what is your thoughts please.....
You seem to have difficulty understanding "appreciation" and "depreciation". Have you opened a newspaper in the last year? Have you turned on CNN?
Also, appraisals are "an opinion of value" with the key word being "opinion". No 2 appraisals will be the same even when done on the same day by 2 different people. Again, this is why it's an "opinion" of value. If you actually found an appraiser that would pick apart another appraiser's "opinion" and go so far as to call it fraud, then that's the appraiser that you should be worried about!
Yes, you can sue anyone you like, but no, you will not win. To complain that your home depreciated a year later and actually want to sue, is ridiculous.
If you have such great credit, why were you in a lease / purchase option anyway?
Also, appraisals are "an opinion of value" with the key word being "opinion". No 2 appraisals will be the same even when done on the same day by 2 different people. Again, this is why it's an "opinion" of value. If you actually found an appraiser that would pick apart another appraiser's "opinion" and go so far as to call it fraud, then that's the appraiser that you should be worried about!
Yes, you can sue anyone you like, but no, you will not win. To complain that your home depreciated a year later and actually want to sue, is ridiculous.
If you have such great credit, why were you in a lease / purchase option anyway?
It appears that you have four appraisers with four different opinions. Who is to say which one is correct?
I can understand your frustration as I have given plenty of bad news myself over the past few years. The problem, as Mr. Denny pointed out, will be proving fraud. In order to prove fraud, you will have to prove beyond reasonable doubt that there was an intent to mislead. This is the only way you will win a lawsuit against the appraiser. Just because you disagree with their opinion of value is not sufficient.
I am sorry this is probably not the information you wanted to hear.
I can understand your frustration as I have given plenty of bad news myself over the past few years. The problem, as Mr. Denny pointed out, will be proving fraud. In order to prove fraud, you will have to prove beyond reasonable doubt that there was an intent to mislead. This is the only way you will win a lawsuit against the appraiser. Just because you disagree with their opinion of value is not sufficient.
I am sorry this is probably not the information you wanted to hear.
I understand what both you gentleman are saying, the major point that I must stress is that the same comps on the first appraisal were used on the 4th appraisal. They are so far off the wall that it is too obvious. I do appreciate the last appraiser for his honesty and advice. I understand that using 4 appraisers will have 4 different answers including a small percentage off...not over $60k off.
I have already filed my complaint with the State and they already turned it over to an investigator so obviously they see the trumped up figures.
The honest appraisers are commendable, the ones that play the games with the bank make you people look bad.
On another note... it is amazing that when the 3rd loan company did an appraisal review on their end they came up with a much lower figure than the already low appraisal. From 300,900 to 270,000 The bottom line is none of the other town houses here sold higher than 280,000 and how conveinent that the sale was 325k and my loan was for 261,000 and the original appraisal was 330k
The bottom line gentlemen is 4 appraisals are so low compared to the original and our region is one of the highest in employment and housing market is excellent.
Thanks
ps. On Mr. Denny's last comment "If you have such great credit, why were you in a lease / purchase option anyway?"
I was going through a divorce at the time, plus the owner made a better deal than any bank as he charged me $1800/month with 80% going straight to the principle...quite a good deal.
I have already filed my complaint with the State and they already turned it over to an investigator so obviously they see the trumped up figures.
The honest appraisers are commendable, the ones that play the games with the bank make you people look bad.
On another note... it is amazing that when the 3rd loan company did an appraisal review on their end they came up with a much lower figure than the already low appraisal. From 300,900 to 270,000 The bottom line is none of the other town houses here sold higher than 280,000 and how conveinent that the sale was 325k and my loan was for 261,000 and the original appraisal was 330k
The bottom line gentlemen is 4 appraisals are so low compared to the original and our region is one of the highest in employment and housing market is excellent.
Thanks
ps. On Mr. Denny's last comment "If you have such great credit, why were you in a lease / purchase option anyway?"
I was going through a divorce at the time, plus the owner made a better deal than any bank as he charged me $1800/month with 80% going straight to the principle...quite a good deal.