Legal Question in Real Estate Law in Virginia

Mortgage

Hello. We bought a House in VA in Dec 2007 for 386.000(new construction) In Sep 2007, it was appraised for $530.000. We financing with 5/1 Arm loan and paying PMI. Our loan company told us that we could not finance it without paying PMI. Other words, we have to buy it first and then refinance it, to remove PMI. Is that correct? In Mar 2008 we did appraisal with a same loan company, it came $398.000. In about 6 months, they dropped the price on appraisal by $132.000. At that time, we were locked at the very lowest rate (5.1%) and we were told that- we do not have enough equity. Do you see a fraud in this situation? Thank you.


Asked on 8/27/08, 12:18 pm

1 Answer from Attorneys
Michael Hendrickson Law Office Michael E. Hendrickson

Re: Mortgage

Yes, as to the removal of PMI(Private Mortgage Insurance).

No, I do not see any likely fraud in the scenrio you've described, given the countrywide tumble in residential property values linked to the well-publicized mortgage crisis in general.

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Answered on 8/27/08, 12:55 pm


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