Posted by BillW on February 22, 2001 at 15:17:27:
Sam, You need to talk to son again and see what the appraisers reason for the 138K appraisal was. Do some more research in the area to establish the actual value of the property. Ten blocks away could put a house in a different neighborhood with different values. You need to make sure of the value in this particular neighborhood. If the family has refied, then they have cashed out the equity, basically, and there won’t be much in the property. In situations like this, the family will often cash out as much as possible. This is not unusual. What you might think of is why were they only able to cash out 78K? Often, lenders will have a max amount they will loan. If they really had a 138K value, don’t you think they would have cashed out more? I think you’re going to find that this deal is being offered prety close to retail. They are attempting to pay the bills and pocket the difference. Besides, with care facilities and the way they are run, if you have a large equity in your house, they will often require you to sign it over or at least they will ultimately get the money.