Thread: Help

Originally Posted by kcinvestor

I'll try to make this short. My wife and I bought our house in Jan 2007 for $340K without a realtor (dumb, I know) and was FSBO seller.

I better ignore than statement, otherwise... well... IGNORING...

Originally Posted by kcinvestor

We are now looking to do a short sale and it appears the FMV is now around 250K

Well, you DO know that Mr. Obama has a program out there called Home Affordabily and Stability Act, right? If the house is a hardship, lenders are falling over backwards (well not really, but close) to work with you... They get incentives to create workouts with defaulted homeowners. I'd check it out, if you want to keep your home.

Originally Posted by kcinvestor

-- We live in a nice neighborhood in Kansas City and no way it should have depreciated as much as it did.

You'd be surprized at what some house values have done... Simple economics, when the funds are flowing like they had been... Wait you said you bought in 2007, well, they were not flowing too good then. Hmm.

Originally Posted by kcinvestor

My issue is that the realtor we have now says the price we paid for the home was WAY higher than it should have been

Well, that's why the saying "Buyer beware" is what it is. Besides, you didn't look at other houses? Didn't the price fall "in line" with the others? Or did you buy the first thing you walked into?

Originally Posted by kcinvestor

... and that the appraiser Wells Fargo used for the loan used comps that had no business being used.

Well, you DO know that get three appraisers to find a value of a house, and you will get three different answers. It is all subjective. If the appraiser knows what the house is being sold at, if it is not too much of a stretch, they will make sure that you don't lose the house, and will make sure that the appraisal reflects the value needed. Of course if everything else was going for $200K, and they said that the house was $350K, then you should be concerned... But again, didn't you see what others were going for??

Originally Posted by kcinvestor

She can show appropriate comps that should have been used that would have priced our home closer to 270K

Again, the appraisal is subjective, and IS NOT to be part of the buyer's due diligence. It is not to be used to protect the buyer, unless of course the appraiser fabricated comparables to justify their figures, but if houses sold for $350K, and they were comparable to yours, well... ???

Originally Posted by kcinvestor

What possible action can we take against Wells

If you can prove fraud, you might have a case, other than that...

Originally Posted by kcinvestor

...since we are more than likely going to have a deficiency judgment for the difference of what the house sells for

Well, unless you have a lot of assets, this probably will not happen. The lenders today are not seeking many deficiency judgments, since many homeowners don't have anything of real value. Not to say they can't, and won't... I am just saying that it is a very rare thing (I have never seen any lenders going after one through all my dealings with SS.)

Originally Posted by kcinvestor

I feel the appraiser should have done the right thing and spoken up when she realized the house was not near worth what the contract was written for.

As I stated before, it is not their job to find a way for you to get out of the deal, or renegotiate... That is the INSPECTOR'S job... And again, the appraisal is purely subjective.

Now I am NOT an appraiser, nor a RE agent, I am a RE investor and trainer, and I have been burned a couple of times, throughout my dealings with RE... I guess that is part of dealing with RE. (Just wanted to clarify, so that the reader doesn't think I am trying to protect my profession... I have nothing to do with the creation of appraisals.)

Later!

[FONT=Calibri][SIZE=3]Ask the bank if they will they will allow the short sale and forgive the difference in the amount owed and the amount it sells for. This is very common if it