In December of 2005, my husband I purchased a home in Rocky Point, NY. At that time, we bought a house, for 199k. It was appraised for this value, and we obtained a mortgage for this home.
Fast forward to 2007, the market falls apart, mainly due to the lack of government supervision of mortgage industry.
Now, here we are, in the year 2011. We are still living in our home. We have made this house, into a home, by investing 150k. And paid all mortgage payments on time.
We figured, since we bought a 200k home and invested 150k into it, there would be enough equity in it, to get a better interest rate. But, instead, we received nothing but 3 months of stress, terrible customer service and a bill for $350 from the bank we applied to(Wells Fargo/Residential Mortgage). Why, because our home was appraised for 181k. And although even the square footage on the appraisal was off by 100 ft, they refused to increase the appraisal.
Wells fargo/Residential Mortgage claims the reason is due to the process changes handed down from the government.
Just 6 years ago, our government sat back and watched the appraisers and mortgage companies, inflate values and give ridiculous mortgage rates. And now, are they standing back and watching as these same people, deflate values and therefore forcing homeowners into paying the same mortgage inflated mortgages rates?
What is our government doing to help those stuck in the mortgage “trap”? Who is looking out for us?
And, I am wondering, are there other North Shore families going through the same process, only to come through spending money on an appraisal, for a mortgage, that most likely the mortgage brokers know we aren’t going to get?