Is over appraising a home by 30k against the law?

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Ok i live in MN and we refinanced our home about 2 years ago, we were approached by a company with this deal telling us that we have 50k in equity in our townhome, we decided to refinance to pay off medical bills, and our car loan. into a 1 mortgage. Well my company gave me a offer to move to denver next year so we are looking at selling or home talked to a realitor and now find that we are 40k. We told him about our refinance and what they found the appraisal is at, he researched that and found that to be false, looking more into this mess they charged a bunch of bogus fees that made that closing fees around 12k. Any one have head of this .

4 Comments
  1. Reply
    todd c
    January 28, 2011 at 4:37 am

    No you are screwed, you cannot do anything about it. You agreed to borrow that!!!!!!!!!!! THERE IS NO LAW FOR STUPID PEOPLE< YOU SHOULD KNOW THAT< WHAT YOUR HOME WAS WORTH

  2. Reply
    snagelfritz
    January 28, 2011 at 4:54 am

    I not sure, but, if you have the papers so you have proof, you may want to talk to a Lawyer and see what can be done. Actually you may talk to the State Prosecutor, he supposed to work for the people!!!!!! This could be considered extortion!
    What they did was lie to you to get you to obtain a loan that is less than the house worth in hopes you default. You were mislead into believing something that was not true. But, it be a drawn out process. Appraisers will have to testify as to the actual worth and their appraiser give his reasons and you not sure how it turn out.

  3. Reply
    mycornerofbrickheaven
    January 28, 2011 at 5:32 am

    Unfortunately, I run into people in similar situations several times a month. In my opinion it is a clear cut case of predatory lending but I don’t know that there is anything you can do about it. If you had known enough to check into this company at the time you might well have found a line a mile long of people who had already been screwed by them.

    The housing market has been so strong the last few years. Appriasers had the comparable properties available to them to inflate the value of a home if they were asked to by a lender. Now the market has cooled off and just won’t support these inflated numbers.

    My best advice to you would be to go into your current bank and talk to them about your situation. You might be able to get a personal loan to cover the difference between what you can get for the house and what you owe. Remember, you will have another year to build up equity before you’re actually moving so the picture may look at least a little better when the time comes to sell.

    Aside from that your only other option will be to rent the property out until the value is high enough for you to sell.

    Good luck!

  4. Reply
    yolandajdukes
    January 28, 2011 at 5:45 am

    I don’t think you should be at fault or have to pay back the money the appraiser should have to. Because apperently the appaisal was o.k. or if i was not the lender should have had a field review on the appraisal.

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