Posted by David Krulac on February 08, 2007 at 22:51:12:
I use a mortgage broker, who has access to many lenders even ones not lending here, or without offices here. Some of the lenders, I’ve never heard of.
There’s a FNMA mortgage limit of 10 per individual, 20 per married couple (if titled seperately). The mortgage broker found 2 lenders who would lender more than 20 mortgages, Suntrust and Greenpoint.
investors and inflated appraisals - Posted by marie
Posted by marie on February 07, 2007 at 13:46:26:
What are the problems associated with investors buying new homes and infalting the appraisal value? The deal is to buy the home at the builders asking price, inflate the appraisal by 20%, thus acquiring a loan at 20% greater than the value of the home, then finding a lease-to-own buyer. Has anyone ever been involved in this? Good or bad deal? What are the ramifications?
Re: investors and inflated appraisals - Posted by David Krulac
Posted by David Krulac on February 07, 2007 at 22:27:29:
can you say loan fraud, can you say fed pen?
and its all so un-necessary. there is 100% investor NOO financing available.
who is culpable? Investor or Appraiser? - Posted by Justin
Posted by Justin on February 07, 2007 at 20:11:45:
anybody?
Re: investors and inflated appraisals - Posted by Kristine-CA
Posted by Kristine-CA on February 07, 2007 at 19:13:04:
Just how do you inflate this appraisal? Pay the appraiser under the
table to give the lender a different number? Work in colusion with a
lender and an appraiser? You can’t “inflate” an appraisal legally. It’s
lying, it’s fraud
Do you mean something else, perhaps? I don’t even understand the
stragegy.
Re: investors and inflated appraisals - Posted by Werealtydo
Posted by Werealtydo on February 07, 2007 at 18:16:45:
You probably didn’t state that right. You probably meant buying preconstruction deals at a certain point during the building period(before it is completed, thus the low price) then holding the property until a specified building term, and finally selling it to the public. There are many variations of this going on all across the country. There is a ton of money to be made and lost, just becareful and don’t do anything illegal or against your morals.
Happy investing
Re: investors and inflated appraisals - Posted by Bill H
Posted by Bill H on February 07, 2007 at 16:21:35:
ABSOLUTELY the BEST way I know of to find out that your cell number will have nothing to do with a phone.
Good Luck,
Bill H
Re: investors and inflated appraisals - Posted by Sgt.Sausage
Posted by Sgt.Sausage on February 07, 2007 at 16:11:35:
==>What are the problems associated …
The problem? It’s loan fraud.
Re: investors and inflated appraisals - Posted by Dave(Wa)
Posted by Dave(Wa) on February 07, 2007 at 13:48:33:
Two words: “LOAN FRAUD”
Re: investors and inflated appraisals - Posted by Wayne-NC
Posted by Wayne-NC on February 08, 2007 at 11:39:04:
“There is 100% investor NOO financing available.”
I believe that to be on the appraised value or purchase price, whichever is lower. That ofcourse is until the title is seasoned for 6 months or so more or less. Please correct me (with great hope) if I am wrong. Preferably with the name of a lender(s). Thanks.
Re: who is culpable? Investor or Appraiser? - Posted by Natalie-VA
Posted by Natalie-VA on February 08, 2007 at 17:49:06:
Anyone who is involved with the transaction that is aware of the fraud. That could be the appraiser, the buyer, the seller, the real estate agent(s), the loan officer, the underwriter, the settlement agent, etc.
–Natalie
Re: investors and inflated appraisals - Posted by Marie
Posted by Marie on February 08, 2007 at 13:00:58:
I also don’t understand the strategy. I can only assume this “investor” is paying someone under the table to give him the appraisal he wants. I have my lawyer looking at the paperwork, but in the meantime I wanted to hear if anyone knew of this kind of strategy, whether there was a legal version or not. From the strong responses I am getting I assume there is not a legal way of looking at this.
Thanks for all the help.
Re: investors and inflated appraisals - Posted by ski
Posted by ski on February 07, 2007 at 19:33:22:
Know an “investor” who did just that. He would pay the appraiser to inflate the appraisal and refi for the balance. He would try, sucessfully, to obtain a loan at the inflated price and “cash out” at the colosing table. Too bad that the values were so inflated that he couldn’t make the mortgage payment with the rental income. I made a ton of money picking up his oops. I short saled 4 of his seven properties.