Saxon Mortgage Services Saxon Mortgage Services over appraised my home Ft Worth Texas

You're lucky your difference is only $17,000. Had I pulled out all my equity when I refinanced 1 year ago, I would be looking at a $60,000 difference. Yes, just last May, my home was appraised at $60,000 more than it is worth today. And yes, the appraisal done last year was a true appraisal for last year. It wasn't over-appraised, it's just not worth that much this year.

To top it off, it looks like you refinanced in August, 2005. In August, 2005, my home would have appraised at $100,000 more than it is worth today. It has dropped around 30% in value since 2005.

What if your home only appraised for $120,000 when you refinanced? You would have gotten $17,000 less.

Good thing you got the money and weren't one of those who actually purchased at the higher prices and really lost.

This indeed seems to be the trend.

I was taught decades ago to NEVER, EVER pull out ALL the equity in real property when you refinance. A home is an investment and it's only worth what someone else is WILLING to pay to purchase it. The housing market DOES fluctuate and when you refinance for the full value (pull all equity) you do not have a cushion for when the market takes a down turn.

It's unfortunate, but you pulled all your equity out, went with a "interest only" and now you are indeed stuck. It was a poor financial decision - you motive was admirable, but it was a poor financial investment move on your part.

I can think of only 3 things to do at this point that might help.

1 is to sell the home and cut your losses. I know this isn't a pleasant idea, but that's much better than going into foreclosure. You could purchase a smaller, less expensive home or rent a small appartment until your back on your financial feet again.

2 is to see if your daughter can obtain some student loans to partially reimburse you for the cash you shelled out for her to go to college and you could use that money to get out from the deficit that would be from selling the home. Then you might be able to immediately turn around and invest in a smaller, less expensive home.

3. Consult with a mortgage expert/financial planner to determine if there might be some other options for you.

Good luck.

How is this saxons fault??? its nobody but the risk of buying a home. market goes up and down. its not that the property was over appraised, its just that since then the market has dropped and propertys are losing value.

Your house was appraised correctly in the past, problem is with interest only loans, you only pay interest- not principal. So you didn't pay a cent towards the equity in your home. In those two years, the entire US has seen declines in property values. Since you chose a very risky loan, your home value went down but your loan did not... this is nobody's fault. It's just the market and there's nothing that can be done until values start rising again in a year or two.