What Happens When the Real Estate Industry Collapses
In 2009, a nice couple came to me because they felt they had been taken advantage of when they purchased their retirement home in the White Mountains in eastern Arizona. About a year after they purchased their home, they tried to refinance the mortgage. In going through this process, they quickly discovered that there were problems with the original appraisal and that the home was not worth anything close to what they originally paid for it. As such, it was impossible to refinance the loan since the real value of the home was so much less than the outstanding loan amount.
We eventually filled a lawsuit against the original appraiser and the lender. In our lawsuit, we alleged that the appraiser and the lender had negligently misrepresented the value of the home. We sought damages equal to the difference between what my clients borrowed and what was the true value of the home at the time it was purchased.
To make a long story short, we just settled the case with my clients recovering from the appraiser and the lender the full amount of the difference between their original loan and the true value of the home at the time it was purchased. Importantly, we also got the lender and Freddie Mac to agree to permanently modify the loan going forward. As a result, my clients’ loan payments will be reduced by about $600 per month.
If you believe you have been taken advantage of in a real estate transaction, give us a call and we will discuss your case and all of your options.