I have PMI on my mtg. 8 years old. House value 240,000—I owe 97,000 Appraisal was done last week and I sent it to Litton Loan Servicing which is my mtg co. NO Late Payments Ever!!!
They said my appraisal which cost me $350 was no good and would not be honored and I have to order an apppraisal through them. What do I do? This was a certified appraisal by a company that is highly recommended by real estate agents. What is going on here? Who do I call for help?
Is this illegal for them not to take an appraisal. Can I call Consumer Protection in my state?
Well in Florida no one but the mortgage company can now order an appraisal unless you just want one for yourself to know things. Your agent is just an agent, not a mortgage broker and must have led you wrong.
One main reason the housing crisis happened is because of over inflated appraisals. House be worth 200K and they say $300K … Even on a refi now, the bank needs to control the appraisal. In fact in Florida and I would think most states have adapted similar laws, the bank orders the appraisal through a national agencies in which they will send out an appraiser in there network. The appraiser will not have any contact with anyone but the bank directly so it can not be adjusted for the right amount to a refi or purchase. If the appraiser needs some more info then they will contact you and ask for what they need only. They no longer are told how much they need the home to appraise for like they did in the past,
Tom,
Your lender is correct. They will order the appraisal to determine the value in order to remove PMI. It sucks to have to pay for another appraisal, but getting rid of the PMI will get you your money back pretty quickly.
You can also sue the mortgage company in small claims court each month for the amount of the PMI. After a series of default judgments, they will drop it.
tomcrown,
I have been fighting the same PMI removal battle as you have.
If this is your RESIDENCE, you are under the Homeowners’ Protection Act of 1998, put in place under Clinton. You can print the act from the internet, it tells you exactly when and how the PMI MUST come off.
The initial value is calculated from either purchase price or appraisal, whichever was LOWER. What I am learning is that it is the TERM rather than the amount of principal still owed that triggers the automatic removal. This was definitely set up to milk as much money out of the consumer as possible.
I am fighting to get PMI off a little rental house. I am trying to get help from the bank officer directly on this. The lender only sends me form letters. I have SIX form letters now. I am even thinking of moving in there for a few months and making it my residence…
Please let us know if you are successful in getting PMI off, and how you did it. Be sure to quote the Homeowners’ Protection Act.
Furnishedowner
I do not know how much things have changed but in 2007 I had my PMI removed from my primary home because prices skyrocketed and I had over 40% equity then. Was a simple form, and bank ordered appraisal and took about 1 month to complete everything.
I have contacted Litton Loan Co. about the removal and I get" we will call you back" I have contacted them every other day for two weeks and still no one answers me. They always say we have to contact someone else(bullshit) I am getting very frustrated with this pmi crap.
After many calls up there corp. ladder I finally got them to agree to use the appraisal I ordered. So lets see if they take it off next month!!!