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The appraisals is to protect them not you, and i would of had them pay for it. If you can get a fixed rate get it. The first thing one need to do when they find there self in a hole is to stop digging.
Best of luck.
You don’t say where you live, but the market has changed. Sometimes an appraiser will look at recent trends and appraise accordingly. For instance, say similar houses were selling for $182k 18 months ago, but two months before that, they had been selling for only $162k. That shows a growth trend, and it was helpful to you at the time to appraise your home based on that growth trend.
Now, house prices are falling in most markets. The same trending applies, only in reverse.
That being said, lenders are still hungry because home sales have slowed, so shop around. Also, ask a Realtor to come do a Fair Market Value assessment of your home and see how his/her suggested listing price compares with the new appraisal. That will give you some idea of whether the appraiser is on the up and up.
You know the the house market went down right? And your lender probably back them made the price higher so they can get your business.I would check with a Real state lawyer but not from town, find someone out side your town. I`m a Proud owner of several real estates.
As an appraiser here is a few tips. First when you took out an equity line there was no appraisal done, they looked at comps in the computer and gave a base value (no fee involved). You next did a refi where they must have an official appraisal done and it indicated a lower value than the computer based value. This is the major problem with computer based values; they don’t give a specific value to a property. When you did your own research you found comps in the 180k range. This is really the fault of the bank for allowing you to borrow more than the value of your property. There is no real recourse because you accepted the line of credit and they agreed to it; you have to repay the line of credit asap or let it go into foreclosure.
the simple answer to your question is, that over 1.5 year ago your area you live loose some value on the property and right now you will get less money for your townhouse, then 1.5 year ago. in most states appraisal report is valid for 6 mth and there is nothing illegal in here.
The whole market is responsible. You are experiencing what a lot of the country is going through. Hang in. The market will shift back again and you will see appreciation in time. Real Estate is a commodity just like anything else. You bought in a "feeding frenzy" and it’s over. Time will cause a recovery.
Why are you so quick to want to blame someone?
Please note that appraised value for residential real estate is based on the market. Even if other similar units may have sold for lower than the appraised value of your home, it could weel be that your unit was in better condition than most etc…there are so many factors that affect the final adjustments made to comparables….
Also, pls. note that this has been the problem with a lot of ARM loans….while interest rates are climbing, LTV is deteriorating because when most of these properties were value, the market was overheated. There are many other people in the same boat as you….even worse are those who paid a heck of a lot more for a property that is worth less today……