Over appraisal

What is the name of your state? Pa. I took out a mortgage about five years ago and just tried to refinance. The mortgage appraised my house at 246,000.00 and my loan was for 184,000.00. I went to the bank (CITI) and asked to have it refinanced but the new appraisal was only 139,000.00. I am stuck. How could they have made the laon in the first place and now change. I have made improvements to the house (put a bathroom in the basement and finished off two rooms in the basement, put new siding on the house and added a garage. Is there anything I can do for them loaning me money for a home they now say isn't at that market price. The market has gone up in my area and I have had other appraisals with about the same result. My thinking is they should have investigated before giving me the loan for more than the place is worth. What can I do. Thank you.

Originally Posted by gmoore

What is the name of your state? Pa. I took out a mortgage about five years ago and just tried to refinance. The mortgage appraised my house at 246,000.00 and my loan was for 184,000.00. I went to the bank (CITI) and asked to have it refinanced but the new appraisal was only 139,000.00. I am stuck. How could they have made the laon in the first place and now change. I have made improvements to the house (put a bathroom in the basement and finished off two rooms in the basement, put new siding on the house and added a garage. Is there anything I can do for them loaning me money for a home they now say isn't at that market price. The market has gone up in my area and I have had other appraisals with about the same result. My thinking is they should have investigated before giving me the loan for more than the place is worth. What can I do. Thank you.

By comparison to the other homes in your neighborhood, maybe your house is now a pile of crap five years later? Who knows?

Did you have a legal question?

IAAL

[panzertanker]

Originally Posted by gmoore

What can I do. Thank you.

Keep your current mortgage.

CITI is not responsible for the volatile market...

[panzertanker]

Originally Posted by LawIsFun!

By comparison to the other homes in your neighborhood, maybe your house is now a pile of crap five years later? Who knows?

Did you have a legal question?

IAAL

IAAL,
Did you know that trailers can appraise for 246K???

Originally Posted by panzertanker

IAAL,
Did you know that trailers can appraise for 246K???

Yes, but only if they have basements.

IAAL

[panzertanker]

Originally Posted by LawIsFun!

Yes, but only if they have basements.

IAAL

And 6 wheels. The 4 wheel ones only get around 150K...

[ice5146]

How many appraisals have you had come in at 139k and when where they done?

Home are appreciating in value in PA, not depreciating. As far as you putting a bedroom or bathroom in your basement, well that doesn't give any weight to the comps that must be used on your appraisal. The rooms below grade do not count in number of bedrooms and bathrooms that the appraiser uses to compare w/ other homes in similar room count, age, style, and sq footage above grade.

Now it absolutely makes no sense whatsoever that your value can come in at 246k five years ago, before your improvements, and depreciate 56% in that five years.

Do you have a manufactured or mobile home on a perm foundation? Perhaps if this is the case, your home could have depreciated but I hardly think this is the case since the value was 246k five years ago.

Didn't it raise a flag in your eyes that you were given such a large loan amount when maybe the Fair Market Value of your property was only in the low 100's as opposed to 1/2 Mil??

[45Frank]

You're bank may have used a lazy company. It's happened to me. I after paying up front couldn't get the paperwork from the appraser. After a second appraisal all was well and fair with comps thatwere close to mine demand the appraisal. Afterwards I found out that the person used old appraisals from people in his office some two years old. His excuse after many letters was well the tax office in his town was only open one evening per month. Never did get my refund as promised by his parent company, he was a sub.