Heres the Jist!
I purchased a Rental Property (A Duplex) in Feb. '05. I recently went to refinance the property into a lower fixed rate mortgage. And was notifided by the appraiser that the property had a legal, but non-conforming use. Because of that I was denied the refinance and am currently stuck in a bad Adjustable rate note. But, that is only the start.
What the non-conforming use means is that if the building was ever destroyed by more than 60% of its value by fire or whatever. It would have to be rebuilt as a single family home. For this reason the colaterall would change in the eyes of the finance company and that is why they wouldn't finance it. I have talked to several other companies and have gotten the same answer. So, I am stuck with a property that can't be financed.
We have found that the original appraiser marked the property a legal zoning use on his appraisal and that is why I was able to obtain financing in the first place. I am currently trying to bring a suit against him and his E&) insurance, but the problem is proving damages. The house appraised just a hair above the original apprisal, but that doen;t take into account the marketablity of the property. Who would buy a duplex as an investment and pay cash knowing that they could never get cash out of the property because on the lack of financing avialbe.
Options (as I see them)
1. Make the E&O company purchase the property from me and make it as if I never purchased the property. (I like this but I should be compensated for my trouble and loss of a decent investment property)
2. Sue them for the cost to turn the dwelling into a single family unit to conform with the city zoning use. (The property is a good $ generator as a two-family dwelling)
3. Make them give me the 30 yr fixed mortgage and compensate me for the loss of investment.
In any investment you are looking for a small cash flow year-to-year and a large appreciation of value when sold (20 + yrs)
WHAT ARE MY DEMAGES?
I purchased a Rental Property (A Duplex) in Feb. '05. I recently went to refinance the property into a lower fixed rate mortgage. And was notifided by the appraiser that the property had a legal, but non-conforming use. Because of that I was denied the refinance and am currently stuck in a bad Adjustable rate note. But, that is only the start.
What the non-conforming use means is that if the building was ever destroyed by more than 60% of its value by fire or whatever. It would have to be rebuilt as a single family home. For this reason the colaterall would change in the eyes of the finance company and that is why they wouldn't finance it. I have talked to several other companies and have gotten the same answer. So, I am stuck with a property that can't be financed.
We have found that the original appraiser marked the property a legal zoning use on his appraisal and that is why I was able to obtain financing in the first place. I am currently trying to bring a suit against him and his E&) insurance, but the problem is proving damages. The house appraised just a hair above the original apprisal, but that doen;t take into account the marketablity of the property. Who would buy a duplex as an investment and pay cash knowing that they could never get cash out of the property because on the lack of financing avialbe.
Options (as I see them)
1. Make the E&O company purchase the property from me and make it as if I never purchased the property. (I like this but I should be compensated for my trouble and loss of a decent investment property)
2. Sue them for the cost to turn the dwelling into a single family unit to conform with the city zoning use. (The property is a good $ generator as a two-family dwelling)
3. Make them give me the 30 yr fixed mortgage and compensate me for the loss of investment.
In any investment you are looking for a small cash flow year-to-year and a large appreciation of value when sold (20 + yrs)
WHAT ARE MY DEMAGES?
