Is it legal for my bank to raise the original appraisal value? 2 Answers as of July 28, 2011We have been "fighting" with CHASE for over a year now, to get a FAIR modification...with NO success! We have gotten nothing but the run-around from them and have been assigned at least 6 or 7 "case" managers. So when this happens it seems like they are NOT given any information we have sent in the past. I go to my account on CHASE regularly and I noticed something very interesting...thus my question. They have the original loan date correct, but they increased the ORIGINAL APPRAISAL VALUE....is this legal? Because in reality, their numbers are "off" by at least $45-50 K.
The Law Offices of Mark Wm. Hofgard, Esq. | Mark Hofgard
Your situation is not unlike millions of Americans fighting to save their homes. There is no "right to modification," but there are duties that loan servicers must abide by. On the appraisal question, it would be important to know when the new appraisal value was assigned to the property (at closing or later?), and obtain a copy of the original appraisal. Colorado's Prohibited Mortgage Practices Act spells out certain circumstances under which lenders, mortgage brokers, and mortgage originators may be found liable. Among the prohibited acts is: To knowingly and with intent to defraud present, cause to be presented, or prepare with knowledge or belief that it will be presented to or by a lender or an agent thereof any written statement or information in support of an application for a mortgage loan that he or she knows to contain false information concerning any fact material thereto or if he or she knowingly and with intent to defraud or mislead conceals information concerning any fact material thereto . C.R.S. 38-40-105(1)(c). Note that prohibited acts violations may only be asserted against original parties. If the original lender has assigned or sold your loan, this act will not apply.
Answer Applies to: Colorado