Someone told me there is a new law coming in October. If you are in mortgage default, then an appraiser will come out and appraise your property. Then you will have a new mortgage based on the new appraisal, which in my case and many others, will be substantially less than my original. And the missed payments will be figured in. I can not find any info on this or even find out if it is true, if anyone can help, it would be appreciated. I am at ground zero in southwest Florida where homes are worth half of what they were in 2005. And businesses are closing at a rapid rate. Many of my neighbors have left. My friend said I have the best looking lawn on my street, I said, that's because I am the only one left. Thanks

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Originally Posted by Sleeve

Someone told me there is a new law coming in October. If you are in mortgage default, then an appraiser will come out and appraise your property. Then you will have a new mortgage based on the new appraisal, which in my case and many others, will be substantially less than my original. And the missed payments will be figured in. I can not find any info on this or even find out if it is true, if anyone can help, it would be appreciated. I am at ground zero in southwest florida where homes are worth half of what they were in 2005. And businesses are closing at a rapid rate. Many of my neighbors have left. My friend said I have the best looking lawn on my street, I said, thats because I am the only one left. Thanks

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I have never heard of this - it was posted a few weeks ago and at that time it was not true and was addressed on one of the "myth" sites.

At this point no one knows WHAT the Federal Government is going to do about the mortgage crisis.

I have a problem believing the bank - which holds a mortgage in one dollar amount - is going to say, "Okay, it's not worth that much. We'll take less." But then you never know.

I also don't know how fair this would be to people who put down large down payments, had smaller mortgages and, therefore, can "keep up" with the payments.

Again - so far it appears to be a myth.

NO such law, you can not merely make a lender lose their value of the mortgage merely because of lower property values.

and of course I don't think people would want it to work the other way, the mortgage company can come in and get a new value and make you owe more money??

No, there is no such laws.