My question involves real estate located in the State of: IN maybe OH too.
I was am working with my parents who are getting close to being foreclosed on. After asking them a few questions I asked how much the re-fi'd their home for and the appraisal done at the time. The amount sounded absurd to me. I asked if they had the appraisal done by the county tax assessor the same year to compare. As I suspected the county assessment (39K) was about half of what the mortgage appraisers appraisal was (77K). 15 yr fixed rate with a 60k balloon payment. I just can't believe they did this.
Is this fraudulent appraisal or sub-prime lending re-fi for more than the house is really worth, or are there different appraisal criteria between mortgage company's and tax assessors process of appraisal. I would think that both would be largely based on "fair" market value of the home and property.
Also, my parents live in this house in IN but the mortgage co. is in OH. The paperwork says the contract is governed by OH law. So if they foreclose on a property in IN that is financed in OH does it matter if IN is a deficiency state or if OH is a deficiency state? I am confused now. Need Help!