Extending the Stay in Limbo

Today we got the news: no mortgage; go back to square one. 

The problem’s not our credit.  New rules require appraisals to assemble a dizzying array of comps to prove the home’s value.  There must be a certain number, within a certain distance, within the last three months, and of the same kind of house. 

In other words, to get a mortgage in the downturn, your appraisal needs to cite many similar recent sales.  If it doesn’t, and people can’t get mortgages, houses will not be sold.   No sales means no comps.  Which means no mortgages.

See “vicious circle.”

Hope is not lost, but it is definitely postponed.  We have to find another lender and re-apply, and get another appraisal.  And hope for the best.  One thing’s certain:  we’re not going to be in our new house this month.

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4 Responses

  1. Oh boy….sorry to hear that….I can only imagine how you must feel. Don’t worry it will work out in the end. Wish I could help!

  2. Hang in there.

  3. a little setback. i hope things work out soon and everything gets settled. sending positive thoughts your way from nyc!

  4. That’s too bad. I would think that everyone would benefit by approving your mortgage. Hope the process goes smoothly on your second try.

    Carol

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