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Debate House Prices


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Oops I committed mortgage fraud...

Interesting thread over at the fool regarding mortgage fraud and these dodgy 'incentives' that desperate sellers and developers have been utilising.

http://www.fool.co.uk/news/property-home/mortgages/2008/06/25/oops-i-committed-mortgage-fraud.aspx?source=uemfoleml0010038

Although you might be able to get away with this kind of desperate action, there's a lot at stake. In fact, you could face trial, a criminal record, and even imprisonment. Hence, if your house isn't selling for whatever reason, then clearly the price isn't right in today's market. Sadly, unless all participants agree to take a haircut, then your sale could fall through and the upward chain collapses.

This real-life drama and thousands like it are being played out in estate agents across the country.
Nevertheless, when times are hard, the only sensible option is to cut the price in order to do the deal. Any artificial manoeuvres are likely to fail, leaving you back to square one, so the best thing is to be honest and play it straight. Accidentally or otherwise, you don't want to commit mortgage fraud, do you?

The author, Cliff, has a vested interest in price drops in so far as he's a STR. He does declare this fact often, unlike perhaps some of the VIs we see in the regular press.

'Deposit paid' and 'cashback' deals are a rip, just go in for a honest to god reduction and be done with it. Sensible lending criteria have been missing from the mortgage market for years, now that they've made a welcome return - don't try circumventing them!

Comments

  • Generali
    Generali Posts: 36,411 Forumite
    10,000 Posts Combo Breaker
    It's a great piece.
  • John_Pierpoint
    John_Pierpoint Posts: 8,401 Forumite
    Part of the Furniture 1,000 Posts
    The Government gets extra tax from fiddling the price upwards; no wonder they don't want to police the transactions.

    It is good to know that the tricks of the second hand car salesman are being used to sell houses to people with inadiquate deposits.
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