Posted by E O'Donnell on February 23, 1999 at 16:13:19:
About 12 mo ago I made a horrible mistake trying to clean up my
credit and entered into a consolidation loan based on a 6mo ad-justable Libor ARM. With an initial teaser rate, it has quickly escalated to the point where I can't afford the mortgage payment and home prices are stable to declining. When I looked at all the information the loan officer sent I noticed that my appraisal was skyhigh compared to the real value of existing properties--I think the broker did this to place the mortgage and make a sale. The appraisals used comps not even remotely in my neighborhood; in essence, the appraisal came in at a price high enough to get an 80% loan to value when in reality it was a loan for 100% of value.
I'm steamed and feel defrauded and victimized by a slick mortgage company. I don't know if I need a lawyer or if I even have a case.