• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Help with sneaky borrower and builder...

Status
Not open for further replies.
A whole new report is really a cloning of the original report or retyping the original, establishing a new effective date, changing a comp maybe, updating photos, changing some adjustments likely and charging a full fee. And we keep asking ourselves why lenders want to get rid of appraisers.
 
A whole new report is really a cloning of the original report or retyping the original, establishing a new effective date, changing a comp maybe, updating photos, changing some adjustments likely and charging a full fee. And we keep asking ourselves why lenders want to get rid of appraisers.

That's exactly what I'd do except with a nice discount.
 
calotz --

The Builder and Buyer intend(ed) to defraud the investor, so there really isn't anything you can do to extricate yourself from the situation or make things better, without becoming complicit.

Because you are at this point and know all of this information, instead of doing anything further with the appraisal per se, I would submit the 442 with all the known information on it.

Let the chips fall. OTHERWISE, everybody's going to blame you.

OR, a 442 exactly as you see it with photos to support it is all that's necessary, if you want to take the easy way out. THEN, stand your ground and let the parties fight it out.

Good luck.
 
The 442 with photos and all that is missing was submitted yesterday, before I knew that they were trying to defraud the lender. At the time, I just thought that the builder was behind and escrowing the funds would take care of the issue and allow for the timely close, lender permitting.

Today, after my 442 busted their little scheme, they revised the contract to eliminate the items that were incomplete. The lender now wants to know the value without these items.

I decided to complete a new URAR as it won't take much more time than an update and will cover me better. The time consuming part will be gridding the new comps. I really didn't think that anyone would consider me complicit to the attempted fraud since I'm the one that exposed it. You're never safe, are you?

Sure hope they close on time :twisted: as you know it will be my fault if they don't 8O

Thanks all for the help
 
Good job :!: Somewhere down the line, some lender-investor may appreciate your professionalism.
 
Of course, on this NEW appraisal, you are going to mention that this is a superseding appraisal, and how much the former appraisal was for and when and done by you. Right?

The only way they can avoid this situation is for them to hire a new appraiser, which they certainly ought to be smart enough to figure out is the way to go. A new appraisal by a new appraiser with no knowledge of the situation..

In order to get home free, I assume that you would be correspondingly lower in EMV after having adjusted for the new comps and deducting for the the missing items.

If the EMV is the same as the original, just adjusting for the market, it would be hard for an auditor to agree with your value, after having seen the 442 and escrow amounts DONE by you.
 
I did the new URAR with a new EMV and disclosed all reports (original URAR for preconstruction and 442, both of which this lender has). The lender seems to care less about the attempted fraud and more about a corrected EMV. I don't know for sure that the lender knows that there was an attempt at fraud, the more I think about it. They were probably given the same story that I was originally given, that they "ran out of time" to complete. I did not disclose the attempted fraud as I had no proof, only second hand knowledge passed along because the broker and I wouldn't look the other way. I didn't want the builder and borrower to deny it and try to sue me for slander/libel. I just stated the facts: no deck, no patio, no sprinkler, no value.

If I had played the game, I bet these things never would have been done. That house would have looked nice with the $15k in furniture that they probably already picked out! :wink:
That door to nowhere from the breakfast room with the 10ft drop sure is a doozy!
 
If they close on that, it should satisfy the transaction. With disclosure and the lender initiating it, it will take care of itself.

Patio doors that go nowhere are very common. Some lenders require a lock, which can be a simple as a block screwed into the top track to prevent teh door from opening more than 3" inches.

The new furniture with the $15,000 may have come out your own pocket, if the Builder and Buyer had postitioned you just right.

Have you ever seen one of those really big jars of Vaseline? They ain't just for baby's butt anymore!
 
just did a $800K subject too..(looking for 1mill.)
builder charging homeowner $20,000 to move sales trailer.(vacant lot)??what??

and I believe it cuz it was on the cost sheet submitted to me...
seems very high to me,,,value missed by a tad anyway, they gave me comps but not the comps which they built and sold, across the street and next door...(when I asked them about them they knew nothing about those sales??)


the beat goes on..
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-2025, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Back
Top