Citibank Reappraisal

[whosyodaddy]

Anyone gotten their note from Citibank on their "blanket" reappraisal of your property in Walton County. If you were using a credit line to finance your lifestyle, it is over. This is going to be devastation for a lot of folks. Luckily, not for me.

[TooFarTampa]

Could you elaborate? Is Citibank working on behalf of the property appraisers' office? :confused: If you are a Citibank mortgage holder are you getting a letter ...?

[BeachSiO2]

We received a Countrywide notice a while back that our HELOC was closed to future withdrawals. Since we didn't need it and it was a "freebie" when we closed our loan, it didn't matter to us. This reminds me of when SHELLEY used to warn all of us about using our houses as an ATM. Also, I would guess that the "freebie" HELOC at closing has probably hurt more people than it has helped.

[whosyodaddy]

OK,

Here's the deal... I'll change some numbers to protect myself.

My home is in Seagrove (behind Tom Thumb). I refinanced about 18 months ago for a fixed rate. The mortgage is about 275k. The appraisal was about 675k (which at the moment seemed low, but I didn't need it to be high). Citibank gave me a 250k HELOC. In the meantime, I have done some improvements on another home for about 50k.

I received a letter dated last week saying "we are rassessing homes in a declining market". Congratulations, we are cutting you to 50k- which is my current balance.

I called today and went thru a couple of supervisors who couldn't tell me how they arrived at my current limit.

BTW, my new appraised value is $458,000.

Even with some screwed up appraisal, my LTV is 70%.

It doesn't make any sense, other than they are trying to save their butts.

I called the Walton County appraisers office and my house is appraised for more than what they say.

This irratates me more than hurts me. It is going to devestate some people.

[ShallowsNole]

Wow. I'm not in the same boat as many folks down here, as I'm not buying or selling (I hope) and my appraised value is derived primarily from my land and not my house, but Citibank, Countrywide and Bank of America are tripping all over each other trying to loan me money...and the scary part is that I do need a smallish (about $50K) HELOC but don't know who to trust. :confused:

Carry on discussion below - this might be valuable info.

[wrobert]

.and the scary part is that I do need a smallish (about $50K) HELOC but don't know who to trust. :confused:

Carry on discussion below - this might be valuable info.

I don't think you can run a Sheriff's campaign for $50K. And I would never mortgage my house for something like that.:rofl:

[LeannC]

Having read whoyodaddy's story, I can't help but wonder if this isn't taking place in other parts of the country also. We don't have a mortgage on our place in Seagrove, but I do have a HELOC on our primary residence here in Louisville.

We opened the HELOC about 5 years ago and haven't had a balance on it in at least 2 years. We just leave it open because it doesn't cost us anything and it may be needed at some point in the future.

The other day, I got this weird call from the local bank that holds the HELOC (a different bank holds our primary as it was sold on the secondary market). The guy said that he had noticed that our home insurance payment was coming due and he wanted to remind us to pay it. What??? The guy was calling me at 9am on March 19th and the payment wasn't due until March 21st.

It was all I could do to not hang up on the guy. What was that all about? My WTF questions can be summarized as follows.....

1) The guy woke me up!!!
2) We've never missed a payment and we've never had a late payment. Mine and the hubby's credit scores are both about 800.
3) It's a HELOC with no balance on it for at least 2 years.
4) They don't hold the primary mortgage (which also has never had a late payment)
5) Our primary mortgage is a 30 year, fixed that's been in place for six years.
6) We put 20% down and the home is still valued at at least 50% higher than the original purchase price. Our neighborhood is older, urban and I haven't seen any forclosures around us.
7) I own several rental properties. Many have been financed through this bank. None have ever had a late or missed payment.

What gives? I felt like I was being treated like some sort of irresponsible child. Does the guy really need to call me up and remind me to pay a bill that's not due for two days (at 9am)?

By the way, the hubby dropped the payment off at State Farm on the 21st as we have done with every payment for the past 9 years or so. Right on time.

So far, we haven't received any sort of notification that the HELOC is being closed or anything like that. But Whosyodaddy's story makes me think it might be coming.

[ShallowsNole]

I don't think you can run a Sheriff's campaign for $50K. And I would never mortgage my house for something like that.:rofl:

Oh great. Now there is Diet Coke running down my glare screen and everyone turned around to look at me. :whack:

[Franny]

Oh great. Now there is Diet Coke running down my glare screen and everyone turned around to look at me. :whack:

:floor:

[sowalgayboi]

Oh great. Now there is Diet Coke running down my glare screen and everyone turned around to look at me. :whack:

I was gonna whack him for you, but you beat me to it. That sticks not large enough. :biggrin:

[SHELLY]

Anyone gotten their note from Citibank on their "blanket" reappraisal of your property in Walton County. If you were using a credit line to finance your lifestyle, it is over. This is going to be devastation for a lot of folks. Luckily, not for me.


"Heads Up...Disappearing HELOCs"

http://www.sowal.com/bb/showthread.php?t=19826

.

[waterst1]

One of my lenders, also out of state but not Citibank, has ordered reappraisals on every property they have financed for me. I assume they are doing this on much of their portfolio. These "appraisal clearing houses" that these lenders use find the low ball appraisal bidder and that is who they use. Several of mine were done by Coastal Property Consultants, Lyn Wilkinson. The appraisals that this company prepared are so low, I would have laughed except they made my stomach hurt so badly I had to focus on breathing. Ironically, on one of the properties, Coastal's appraisal was 30% lower than an appraisal that a different lender ordered within the same time frame on the same house. Beware if you end up getting stuck with this company because they don't understand comps other than square feet. Shelly, from the best I can tell, they didn't give me an extra nickel for the granite counter tops. I'm still in shock not to mention pi---d off. :bang:

[SHELLY]

Shelly, from the best I can tell, they didn't give me an extra nickel for the granite counter tops.

:blink:

And your point is.....? :idontno:


.

[John R]

waterst1, can you not order your own appraisals and turn them in to your lender to show the disparity? this looks like one case where the buyer awarded the job to the 'highest'(appraisal company) bidder. oh wait, kind of like our county govt...

[Smiling JOe]

appraisals are not an exact science and even with plenty of sales to use for comps, if you get three appraisals from three different people, you will have three different opinions of value. In a market like we currently have, with so few sales to use as comps, the variance between the three different appraisers will likely be exaggerated, depending on what they use for comps.