I’m currently facing foreclosure!
I refinanced about 18 months ago. While originally I was just trying to get out of my expired ARM, my broker convinced me to take money out to pay down some debt, and do some home improvements.
Surprisingly the lenders appraiser came back with a value that was some 50% percent higher than my previous appraisal from 2 years ago.
So I took 85% LTV loan at a high interest rate because of my poor credit. I knew my monthly note would be a struggle, but me and my broker figured after paying down some debt, and make some much needed renovations to the house, that after a year I would be able to refi into a lower interest rate and my homes value would increase as well.
So I followed through paid off some debt did some major improvements to the house, and managed to pay my note on time by the skin of my teeth for a year. Running to a new broker to refi, (since my last broker’s office was out of business) I got qualified for a low interest 30 year FHA loan.
Everything was fine until my appraisal came back some 55% lower than my previous appraisal.
I was shocked and talked with one of the guys in underwriting as well as the appraiser; I even went as far as to send them a copy of my previous appraisal. The end result was they showed me where my current lenders appraiser used bad comps, and also used the wrong school district to get an inflated appraisal.
What are my options?