COLORADO SPRINGS, Colo. - One Mountain Shadows homeowner tells me about the home refinance black hole that he is living in because of the post Waldo Canyon fire world. Bill's home is standing with virtually no major or significant damage. I'm not giving out his last name or where he lives because he and others in this area of Colorado Springs have already gone through enough.
Bill told me about his home refinance nightmare. He said he started the process to get a new loan in mid July to cash in on low interest rates. At the end of September, he was finally told that he would not get an appraisal. That no decision put his refinance on hold. Bill told me about the whole range of emotions he's been feeling since the no decision, "Dismay, shock and really frustrated. Primarily because it took so long for the insurance companies to come back and say no."
I called in Licensed Mortgage Originator Jay Garvens to get a better handle on what's going on with Bill's situation. He told me that appraisers are nervous to set home values in the Mountain Shadows neighborhood after the Waldo Canyon fire. The reason is because if they get it wrong, they worry about losing their license. Garvens says it's a two pronged solution to get a handle on the home value problem in Mountain Shadows. Garvens says once the first post Waldo Canyon fire is sold in the Mountain Shadows area it'll give appraisers a standard to use to set home values in the neighborhood. Garvens also believes, "We know there is something established for home values in an area following a hurricane or natural disasters. We need to find it and apply it to fires because Arizona, Colorado and New Mexico are the leading states when it comes to fire destruction."
Garvens thinks when it comes to the reticence of appraisers to set Mountain Shadows home values, "You have to have one brave appraiser who will step forward like we've done many times before."
Jay Garens told Bill, "We're not going to stop until we find you an answer. I think there is a real good chance to get your house appraised."