Posted on: 24th May, 2009 09:39 am
I have several general questions that have stumped me.
1) I keep reading in forums, throughout the internet,"expert" forum posters that say they KNEW in 2005 ( or before) that the market was going to crash to the house prices of today; where people are 100,000+ upside down on their mortgages!
These same " experts " claim that it'll be several years or decades before house prices get up to where they were in 2005-2006.
Either bankers, mortgage brokers and realtors KNEW about the steep decline in prices to come; and were greedy ( and dishonest to customers ) or, they didn't know, and these so-called experts are BS frauds! Which is it?
2) When should we see house prices start to rise again, so those " underwater " can sell and move???
3) Since the bank working with the mortgage company hired the appraiser, why am I, the house buyer stuck with a mortgage that does not even begin to reflect the true value of the house ?
How can this even be legal? ( forgive the slight vent )
Yes, I tried to do everything correctly with eagle eyes, but when the appraisal came back several thousands over the house price; I thought I was getting a good deal. Then only months later ( if that ) the house value dropped like a lead balloon.
I'm not getting where this wasn't dishonest of the mortgage company, realtor and appraiser.
Is there a fix to a dishonest appraisal ?
1) I keep reading in forums, throughout the internet,"expert" forum posters that say they KNEW in 2005 ( or before) that the market was going to crash to the house prices of today; where people are 100,000+ upside down on their mortgages!
These same " experts " claim that it'll be several years or decades before house prices get up to where they were in 2005-2006.
Either bankers, mortgage brokers and realtors KNEW about the steep decline in prices to come; and were greedy ( and dishonest to customers ) or, they didn't know, and these so-called experts are BS frauds! Which is it?
2) When should we see house prices start to rise again, so those " underwater " can sell and move???
3) Since the bank working with the mortgage company hired the appraiser, why am I, the house buyer stuck with a mortgage that does not even begin to reflect the true value of the house ?
How can this even be legal? ( forgive the slight vent )
Yes, I tried to do everything correctly with eagle eyes, but when the appraisal came back several thousands over the house price; I thought I was getting a good deal. Then only months later ( if that ) the house value dropped like a lead balloon.
I'm not getting where this wasn't dishonest of the mortgage company, realtor and appraiser.
Is there a fix to a dishonest appraisal ?
1. Sure there were people who predicted the market would tumble, but not everyone in the industry was thinking that. You cannot paint everyone with the same brush. In addition, our current President and many others pushed banks to offer for sub prime loans so less fortunate people could afford to own their own homes.
2. My personal opinion is that prices will rise whenever unemployment rates become stable.
3. Your home was appraised at the current market value AT THAT TIME. The primary factor in determining the value is the recent sales data in your area of similar style homes. These are called "comps". If soon after your purchase, there was a significant increase in foreclosures, then yes the values will decline. I think this is bad timing and not hanky panky. If the comps come in higher, then the appraised value will be higher. People over paid and drive the prices up.
2. My personal opinion is that prices will rise whenever unemployment rates become stable.
3. Your home was appraised at the current market value AT THAT TIME. The primary factor in determining the value is the recent sales data in your area of similar style homes. These are called "comps". If soon after your purchase, there was a significant increase in foreclosures, then yes the values will decline. I think this is bad timing and not hanky panky. If the comps come in higher, then the appraised value will be higher. People over paid and drive the prices up.