Cash Out Deal Gone Bad
I own a 2 family non-owner occupied duplex valued at 95K in the state of Ohio that I owe about 45K on. I wanted to cash out and get about 30K by refinancing my house. Unfortunately, I was dealing with a strict lending institution that will now only give me 11K. I paid them $500 for the appraisal which they will not release to another institution (although they said that it was for my appraisal). I read somewhere that if I close on the deal and rescind the deal within 3 days, that I can get all of my money back ($500). Is that true? I saw it on CNNFN in regards to home equity loans.
Thanks
DeeJay
Contact an attorney at once. Decide if you want the appraisal. Seems very high for that type of property. Attorney makes demand on your lender for a copy of the appraisal. Or if you wish, he notified the Lender that deal is canceled and asks for return of the earnest money deposit of $500. Then file an action in small claims and with luck you get your money back. Bargain with the attorney going in for the cost of his services. Inform him that he will get all of your representation as you go forward with your career of Real Estate Tycoon. Cheers Lucius
No, you will not get your $500, when you recind it. Read GFE line by line, more likely it says "no refund" in appraisal and credit report fee. Did you apply with a broker or a lender? If you are dealing with a broker, first of all why you are only getting that little money instead of $30,000 that you wanted. Is that your credit score? Is that the appraisal value? Or both? Let him or her explain why. Have the broker check with the other lenders who might give you more.
Have you thought about refinancing the first mortgage with cash out? That is a lot easier than getting a 2nd mortgage.
3 days is true here in WA.
any mtg broker in OH would be able to answer. they could also tell you what it takes to have your file transfered to another broker (quick free call)
a good broker will do this legwork for you to get the loan for themselves.
in WA we are required to send a copy of an appraisal to the borrower, if they paid for it, within 90 days of recieving written request.
i would write a letter to the lender stating that you wish to cancel the transaction and want a copy of the appraisal immediately.
Chip
What's GFE? I wasn't taking out a second loan, I was refinancing my orignal one. I requested a copy of my appraisal, but I need for it to be released to another institution which the appraiser said he can not do. I'm dealing w/ a lender not a broker. My credit scores are about 720 and I have 16% debt ratio. The bank said they would only give me 11K because the appraiser said that my roof looked like it was damaged and my gutters need to be replaced. I told them that's why I'm getting the loan. But, my roof wasn't as bad as the appraiser made it out to be because I just had it inspected 2 months ago and there were no leaks. Anyway, It sounds like a fishy deal because my appraisal came in at 95K, and I owe 45K, but they said I didn't make enough monthly profit. They said that I needed to be at 25%, which I showed them that I was by adding my final Schedule E amount and my building depreciation, not to mention the loan would have reduced my payment from $550 to $426. Sound like they gave me a very wacked out criteria to refuse the loan.
DeeJay,
If you were going to do the repairs anyway maybe you can have a contractor do the repairs and have them paid at closing most contractors will do this I have done this in the past and contractors appear to be very willing to do this. contact the apprasier to see if this would bring the apprasial up where it needs to be. as far as the profit margin I can't answer that
Terry
GFE is good faith estimate. You should have received it within three days of application. This is a federal law. If you paid for the appraisal, you have right to get a copy, but the lender is not required to release it (transfer the appraisal to another lender). The appraiser cannot transfer the appraisal to another lender without the original lender's blessing.
Did you talk to a manager at this bank?
Hey, DeeJay,
Where are you at in OH? I've got a buddy who does refies out of Cinci. Maybe he could help.
Ronnie
You are dealing with a 'conforming' lender!!!!
When you are dealing with investment property, some lenders (especially conforming) will only let you re-fi up to 70%LTV, some will go 80%, but it ain't easy to do. The appraisal is yours, have the attny demand it. You paid for it. They are screwing with you trying to keep you as one of their borrowers. You'll get the appraisal, take it to a 'non-conforming' lender, have them transfer it to them and you'll be fine.
Good luck
Joe
I just thought about something. If you have 720 score, you shouldn't have any problems getting a fixed standalone from National City Equity. Get this. They don't need appraisal at all. That's very good, because it sounds like you have some deferred maintenance on your duplex. A lot of leders order a desk and field review of appraisal. It may not be entirely your broker and appraiser's fault that the appraisal came in lower than what you expected.
With this program, you can go up to 80% LTV. This loan will acually replace your first mortgage, and there is no escrow to worry about. I wish you are in GA, so I could help you. We are a mortgage broker in GA.
Hope this helps.