Price of House higher than what is worth

[elpeque]

What is the name of your state? TEXAS

I recentlly bought a house with an adjustable rate mortgage (ARM) originally was set for 3 years and it will go ARM after that...as i try to refinance to get a fix rate i found out that my house is not even worth what i originally paid for...we are talking a brand new house built in 2005..it was profesionally appraised and it came out $20,000 short of what i paid for.

any sugestion?

 

[HomeGuru]

What is the name of your state? TEXAS

I recentlly bought a house with an adjustable rate mortgage (ARM) originally was set for 3 years and it will go ARM after that...as i try to refinance to get a fix rate i found out that my house is not even worth what i originally paid for...we are talking a brand new house built in 2005..it was profesionally appraised and it came out $20,000 short of what i paid for.

any sugestion?

**A: join the millions of other homeowners in the same boat.

 

[scarah]

The housing market has slowed dramatically. Houses were actually selling for too much three years ago and now they are returning to more reasonable prices. This means that many people like yourself that are trying to refi will find that their appraisals will come up short of what they need, especially if you obtained a no money down mortgage.

Talk to the mortgage company. There is some pressure on them to work with their ARM clients because of the number of forclosures.

 

[FlyingRon]

This isn't a new thing either. While it's more of a national issue now, there were always bubbles in the markets over the short term.

 

[HomeGuru]

OP you need to wait until the mortgage term expires to use FHA. Start your investigation now.