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Closed FHA loans

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MARYMCKENNA

Freshman Member
Joined
May 27, 2003
Professional Status
Licensed Appraiser
State
Arizona
Has anyone noticed that the majority of FHA loans closing in high foreclosure areas are closing above listing price? and when the agents are asked about it, they respond they had several offers on the property, which may be true, then the others come right out and say the sales price was raised to cover the sellers contribution to closing costs...needless to say I am boiling mad at this......and yes I intend on reporting every deal I come across where the agent tells me this. When I got into this business in 1992, I was told by an instructor "if we don't police our own, no one else will"...it has stuck in my mind ever since.
 

AppraizinAZ

Junior Member
Joined
Dec 31, 2006
Professional Status
Certified Residential Appraiser
State
Arizona
Yes I have just had this happen..it was an FHA purchase of a bank owned property, it appraised $8K higher than the sales price...I then received a request from the loan officer to put in the sales concessions. I told her there were none as per unexecuted contract....then I was faxed a "new" contract with the 8K in seller contributions...hmmmmm

I now ask for an executed contract. Methinks they knew it would appraise higher and were waiting the appraisal.
 

CindyR

Senior Member
Joined
Oct 26, 2003
Professional Status
Certified Residential Appraiser
State
Arizona
To whom are you reporting these? I've seen a lot of FHA stuff lately and OMG Ameridream is Back! I've also talked to some agents who say they are listing REO's really low and they probably really do have lots of offers. ANd I have come across several of the "just add it in" variety. I am also apalled by the number of REO properties going FHA and ignoring most all of the important FHA requirements. "AS IS - FIX UP" just does not fit in the FHA rules I know and love.
 

MARYMCKENNA

Freshman Member
Joined
May 27, 2003
Professional Status
Licensed Appraiser
State
Arizona
an unexecuted contract? then an executed one? i would definitely put that in the report and see if anyone is even reading the report. unbelievable....the HUD oig...office of inspector general likes to see odd happenings...you can just fax to them or email them as well as mortgagefraudwatchlist..i have made some complaints to the attorney general and never here back from them...the fbi may be another good one, more difficult to track down where to complain to though....i try and not use these sales, but some areas are pretty scarce with sold comparables these days....
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
Contact the investigators at the Arizona Department of Financial Instiutions. http://www.azdfi.gov/FraudLine/Intro.htm By the way you can also file a complaint against a lender who has not paid their bill at this same agency. Keep an eye on the paper--there are over 200 indictments coming down the pike this month regarding fraud.
 

Tudor

Member
Joined
Aug 15, 2006
Professional Status
Certified Residential Appraiser
State
Arizona
Lately, anytime I see the sales price higher then the list price, then I adjust dollar for dollar the difference. If the Agent decides to tell me the truth (what ever that is) then I will go with that amount and state the source.

Ameridream was wonderfull, someone was always mad at me with those deals.
 

Karl

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Arizona
Here's a Hint as to WHO to report these findings to. HINT: FHA is NOT going to know about this IF no one reports it to them. Another Hint: Brad Packs @ HUD is a very GOOD person.

OKAY I hope with the assistance of these hints many will fiqure out who to mention these things to.

Also some Banks actually want the TRUTH now cause they MAY loose there FHA status & in todays market this would not be good, So maybe you MIGHT want to contact the banks investigators.
 
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