Original Loan & Refinance was based on lower square footage. We are trying to modify the home & the bank appraised..
the home at its current square footage 2,800 sq. feet for the loan mod. but I realized when the mod came back at Negative LTV that the original loan was based on the previous square footage of 1,649. This loan was taken out when prices were over priced in 2007 and the loan is still more then what they appraised the home at with the 2,800 square footage. Since the original loan and subsequent refi was based on the lower square footage shouldn't the mod be based on this as well and not what it is today? It would benefit us if they did use the lower square footage as we would definitely get a Postive LTV then. The tax assessor's office still has the square footage at the lower square footage as well. We aren't selling the property or anything like this so this hasn't been updated and hasn't affected the taxes. Also .. Prop. 13 is in effect anyhow. Please, if you know, please let me know as soon as possible. Thank you! by johanna_lopez627 from Los Alamitos, California. Oct 22nd 2013
Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,249 contributions
My understanding is that you are trying for a loan modification. Any determinations by your lender would likely be based on a current appraisal/assessment of the property value, but whether they will do an actual appraisal or use the information they already have on file will likely depend on their internal policies and procedures. Be careful, if you don't provide complete info or in anyway mislead them about the property it potentially could be considered mortgage "fraud" - not worth it! Get legal advice if needed, or check with a local HUD/FHA mortgage default counseling agency for help. Good Luck!
Mike Silkworth (msilkw_195_870)
#29 ranked lender in Michigan - 531 contributions
It should be based on the current square footage and value. It is critical (as stated by PhilDu) that you do not "misrepresent" any information in the process. If they base it on the status from the original loan it benefits you. If you made the improvements with cash (making your LTV higher) it would be the same as paying down the balance of your loan. In that situation, your modification would be based on your current balance. Remember you entered into the original mortgage committing to the terms at that time.
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
Any consideration given you by the lender for loan modification purposes would be for the property in it's "Current State".. and since it is actually 2800 SF, then you cannot force them to lower it's valuation because of a typo.. Also, since the new SF is not reflected in your tax assessor's office, there's a good probability that the additional square footage was done without permits.. since permits are done with shared information with the county, the county would know about the additional square footage and would have added it, and then reassessed the property, in turn, raising your taxes.. Prop 13 does not exempt you from increased taxes because of additions, only against "Across the board" tax hikes..I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com
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