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I think that my mortgage co. and my Home owners insurance company are giving me the shaft.

I purchased my home last year for $xxx,xxx.00 it appraised for $1000.00 over that. So I got the loan.
Last July my insurance co tells me that they are pulling out of Florida and I will be transfered to a new company. The new Co. increases my rate by $300/year so I go out and find a new company that will lower my rates below the original rates by $75.00/year and provide better coverage. (Florida Farm Bureau ) cool right? not so, FFB valued my house replacement value at $32000.00 less than the purchase price. Which leaves my lot valued at about $32000.00 about the going rate here in the Burg.
I call my mortgage co and ask to transfer insur companies and am told that FFB is only insuring the value of the home and that they need the amount of the loan covered. I go back to FFB and they tell me that they can only cover the replacement value of the house. So I'm out of luck right... I call the new insurance co wondering what they actually cover, get this, They only cover the replacement value of the house. They value my house at $10000.00 more than I paid for the house and lot. All of the companies that I looked at use the same standards to value the houses. The new co that took the transfer was sent the value by the company that left the state and agreed not to ammend the value for at least one year unless the homeowner requests an appraisal. Seems kind of shady. It gets better. A few months ago I tried to get a home equity loan from my mortgage co and they said that my home was bearly worth $20,000 more than I paid for it. That includes the lot. So in short my mortgage co. places my insurance replacement value of my house at $144,000 that does not include the lot value which is ~$32,000.00 totaling $176,000.00
For the equity loan the same mortgage co values the Home AND lot at $155,000.00
I want to know how this can be. When they want money from me the house is worth $176,000.0 When I want money from them its worth $155,000.00


WTF
Neil

exhale
 

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Neil426 said:
WTF
Neil

exhale
X2 :confused:

It always comes out whats better for them, no matter what you are trying to do...

Have you checked USAA? You are a veteran so you should be able to get them I think? Thats who I have and they have been good to us.
 

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TacomaHarry said:
That's why I rent.
Let someone else deal with it and the normal repairs from ware and tear. $$$$$$$
I would rather fix the stuff that breaks and pay my own mortgage any day. I hate the idea of paying someone else's mortgage and paying for thier investment. I do rent now but that is because I can't afford a house being a student and all. There are so many things I would love to do to this house but can't bacause I rent.
 

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Neil, a lot of times for an equity loan, the mortgage company maximum loan is a percentage of the equity in the house. In other words, for an equity loan, they cannot loan you 100% of the equity in your house. For some loan companies, the percentage is around 85%, some are slighltly higher or lower, but usually you cannot get 100% of your equity. So that's my guess as to why they only "value" it at $155k. Let's say you had a $190k outstanding loan balance on a home worth $235k. At the 85% level, they could only give you an equity loan for $10k....85*235 = 200, then 200 - 190 = 10.
 

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91toyota4x4 said:
I would rather fix the stuff that breaks and pay my own mortgage any day. I hate the idea of paying someone else's mortgage and paying for thier investment. I do rent now but that is because I can't afford a house being a student and all. There are so many things I would love to do to this house but can't bacause I rent.
X2!!! The best decision I ever made was buying my house. Sure if something breaks or whatever its my responsibility but thats why I have a renewable home warranty AND homeowners insurance. In the first year I owned my house I made $40K in equity. You will never do that renting. There is NOTHING else besides gambleing or playing the lotto that could ever give me a return like that. When the time comes for me to sell I hope to be walking away with at least $60k which will be much needed when I head back to the west coast! :D
 

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I dont think USAA is issuing new home policies in FL currently.
I have them for all my stuff besides the house and I check once a year to see if they will cover the house. No luck so far.
 
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