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Old 07-15-2009, 03:24 PM
 
392 posts, read 1,455,338 times
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Quote:
Originally Posted by Pfhtex View Post
Can you convert to an FHA refinance? Meaning, does your lender also do Gov't loans? If so, you might be able to proceed and still get a great loan at a much higher "loan to value."
This is a good idea
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Old 07-20-2009, 10:01 AM
 
1,615 posts, read 3,294,175 times
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Quote:
Originally Posted by shahtech View Post
Today I learnt that my home was appraised at 375K. It is 40K lower than what I had expected. I know that the market is bad, but in Long Island (NY),

-Shahtech
LOL, Where have you been!?!
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Old 07-24-2009, 10:21 AM
 
3 posts, read 4,907 times
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Similar situation where online lender approved loan at a certain value, but when appraisal came in lower they sent letter saying they could not approve loan at initial value, but they approved loan at lower value. So know I need to bring 20k to the closing or back out of loan at a cost of $350. Considering they changed the loan amount based on the appraisal and sent a letter saying they cannot loan my the initial amount, if a reevaluation of the appraisal does not work do I have any way of getting out of paying the $350 fee.
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Old 07-24-2009, 10:35 AM
 
Location: OK
2,765 posts, read 6,812,904 times
Reputation: 1951
Quote:
Originally Posted by jmat1234 View Post
Similar situation where online lender approved loan at a certain value, but when appraisal came in lower they sent letter saying they could not approve loan at initial value, but they approved loan at lower value. So know I need to bring 20k to the closing or back out of loan at a cost of $350. Considering they changed the loan amount based on the appraisal and sent a letter saying they cannot loan my the initial amount, if a reevaluation of the appraisal does not work do I have any way of getting out of paying the $350 fee.
You can surely try. But realize you will run the risk of being charged with theft of services.

The appraiser did his/her job. Not only did the appraiser ensure that the lender wasn't loaning too much money, but the appraiser ensured that you are not upside down in your mortgage.

Why do you think the appraiser does not need to get paid?
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Old 07-24-2009, 11:25 AM
 
3 posts, read 4,907 times
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Quote:
Originally Posted by Schousse View Post
You can surely try. But realize you will run the risk of being charged with theft of services.

The appraiser did his/her job. Not only did the appraiser ensure that the lender wasn't loaning too much money, but the appraiser ensured that you are not upside down in your mortgage.

Why do you think the appraiser does not need to get paid?
It is not that I think the appraiser should not get paid, the problem I have is with the lender. I would not have entered into process if I knew they would change the loan amount(or rate, etc). I am merely looking for info or opinion, since all prior experience was that the requested amount was granted and everything went smoothly. Is this a usual practice where the lender changes something and you are stuck with what they change or the cost incurred preparing the loan?

It is also not an issue of being upside down, it is an issue that the lender will only approve a refi loan amount @ 75% LTV.
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Old 07-24-2009, 12:09 PM
 
Location: Denver, CO
1,888 posts, read 4,311,454 times
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Quote:
Originally Posted by pocketspc View Post
How did you get a lender/bank to give you a refinance without an appraisal? My home is now under valued, and I need to get a lower rate, before March '10, when my Wells Fargo rate goes to 11%. Please someone, advise me.
Pardon my ignorance, but how does that rate change work? I was under the impression that rates adjust based on LIBOR, which could be low or high. Sorry I have a fixed loan, I don't know much about ARMs. My officemate has an ARM and they just got adjusted in May to something like 3.5%, which I thought was pretty good.
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Old 07-25-2009, 09:38 AM
 
Location: MID ATLANTIC
8,183 posts, read 20,195,299 times
Reputation: 9418
I am continually amazed at the public's perception. I read recently in a recent poll, 87% of the participants felt homes in the USA have lost value. However, only 12% thought their homes were one of those homes. What does that say?

Interest rates and cash to close are both based on the Loan-to-Value. If you tell a lender your home is worth "x" and it comes in at "y," it's not the lender's fault. But if the value is lower, the rate will most likely increase. Again, not the lender's fault. And, what most homeowners do not realize, we cannot call our appraisers and ask, "hey, what do you think 123 Any Street will appraise for?" Not legal. Once an appraiser opens their mouth to discuss value, they have issued an appraisal. An opinion of value that had best be backed up by research.

You should be on the phone, calling your real estate agent, and asking what sales in your neighborhood are doing. Don't ignore the short sales and foreclosures, especially if they are dominant......because they are now your market. Check out your real estate assessment. Most of the sales I have seen have been under the assessed value!

Your lender only offers a 75% LTV? Is there a second trust you are trying to roll in? Different situations do require a 75% max LTV, (The second trust changes your refinance to a "cash-out" transaction).

Unfortunately, no one can guarantee your value before you order an appraisal. And the appraisal must come from a dis-interested 3rd party. It's a cost of doing business in mortgages. Chances are, no other bank will accept the appraisal performed for the other lender. If the work performed by the appraiser shows gross incompetence, you may have a case. However, you will have to spend money to get any money back - an outside appraisal proving why the other appraisal is poor workmanship. But remember, an appraisal is nothing more than an opinion of value, there will have to be errors throughout the report.

I'm sorry if this sounds harsh, but as an honest loan officer in the industry for over 30 years working for various banks, it's starting to get old hearing how everyone's problems are everyone else's fault and the homeowner has zero accountability.
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Old 07-25-2009, 10:29 AM
 
Location: OK
2,765 posts, read 6,812,904 times
Reputation: 1951
I have a real problem with those polls. Real estate is not a commodity, so values are localized.

Here in OK, by and large, values are strong and increasing. Values iin places like Detroit are down the toilet.

So ....... when I see a headline like "home values dropped again ......" my eyes glaze over and I stop reading.

Smartmoney .... as a mortgage professional, what is your opinion of the HVCC?


Wait .... don't answer that here ..... I'll start another thread.
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Old 07-25-2009, 10:53 AM
 
Location: Pawnee Nation
7,525 posts, read 15,471,417 times
Reputation: 7048
I actually like that kind of poll because it provides perceptions of trends and facts.......not actual figures and facts, just the perception. It's like the perception of Senators and representatives.......everybody hates Senators and Representatives and thinks they are all crooks....except their own......and those they keep reelecting.

But the 87% that think houses are over priced is one of the reasons we are still in depression/recession. No one is buying a house that is over priced. In Oklahoma people think the economy is still strong, so people are willing to buy so builders are willing to build.
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Old 07-25-2009, 10:39 PM
 
Location: MID ATLANTIC
8,183 posts, read 20,195,299 times
Reputation: 9418
I am amazed when homeowners are presented with the facts, they refuse to believe "their" home could have possibly lost that much value. LOL, I even heard a fellow loan officer say her neighborhood was in pretty good shape, very little value had been lost.....We are in one of the top 20 declining markets in the county.....One local community made network news for about a month running......and her home wasn't affected? *Sigh.
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