Help!!! Suspect fraud in valuation

Helen_Samuels

Hi,

Please I need urgent advice from all you knowledgeable people here please. I have been going through the thread for a while and don't think my problem has been discussed.

I bought a property in september 2004 and I was a total novice when I bought it, din't know about houseprices.co.uk and don't think one could search prices on land registry website then.

The summary of my story is that I suspect a FRAUD IN THE VALUATION OF THE PROPERTY. I think the estate agents colided with the valuer to value the property high. The problem now is I am in great financial difficulties and even on arreas on my mortgage and so have decided to sell the property but cannot even sell it for the price I bought it 2.5 years ago. I bought the property for 250,000 and I took an interest only 95% mortgage and it is now being valued for 210,000 - 215,000.

On learning about mouseprices.co.uk, I checked and the property I bought for 250,000 in september 2004 was sold for 178,000 in june 2004!!! I think even if work was done or so on the property, it couldn't have had a value of 72k extra in 3 months, 250,000 was also not the value of similar properties in the area at the time.

I am now very desperate to sell the property and may have to sell at 220k or as much as I can get as my arreas and thus balance are escalating seriously , but this will mean the bank will start chasing me for about 30k (250k balance cos of charges on defaults and missed pyts).

I am now contemplating arranging with the bank to accept whatever I get from the sale and make arrangement to be paying the balance but I also think I will have to challenge the valuer as to how that figure of 250k was arrived at in 2004 when no property in the area was sold at that price. The valuers details is not on the valuation report I got so planning to ask the mortgage lender to provide me with this, hope they will.

I REALLY NEED ADVICE AND SUGGESTIONS PLEASE. THANKS

lynzpower

Honestly?

I dont think theres any fraud as you put it here. Anyone can ask whatever they want for thier house. If you have gone into the contract ot buy it, and handed your money over to the bank, you pays you money you takes your chance.

I dont think you can blame the valuers or the vendors estate agent that you bought a property you are struggling to finance, surely its your issue on how to manage your own budget

I dont know much about this, and im sorry my post isnt more positive but I hope someone with more expeirence of this comes along soon for you

magyar

I agree with Lynzpower, I'm afraid. Firstly, although the difference seems large, it's within the sort of house price rises we've seen in certain areas, so it would have been hard for a valuer to disagree with a certain price.

Secondly, in this instance the valuer is really working for the mortgage provider, to ensure that the house is really worth what they say it is; not you (although of course, you get the information too). The mortgage company will lose out if you default, so it's in their interest, too.

Again, I'm sorry for the situation you're in, but it's hard to see how you can get much mileage from the fraudulent valuation theory.

Helen_Samuels

Thanks lynzpower , I appreciate your view. But my argument is that I believe valuation figure is based on how much similar properties in the area have sold for, as at that time, no property in that area and not even the exact one I bought, was sold for £250,000 or close, the exact one I bought was sold for £178k three months earlier so I just want to know how the valuer arrived at the 250k figure.

I appreciate the fact that it is true I am struggling now and everyone is in property biz to make money, my argument is not against the seller for fixing a price to sel his property but against the valuer.

WestonDave

I'm afraid your hopes are pretty thin here.

Firstly the valuer was right in one sense - a house is worth what someone is willing to pay for it, and in this case you were willing to pay what he put in his report!

Secondly and potentially more seriously the valuation report is done for the lender not the borrower. Its sole purpose is to advice the lender whether the property is worth enough to risk its money lending against. Out of courtesy many lenders give their customer a copy of the report but some don't even do that. My guess is that even if the valuation was fundamentally wrong, you have little claim simply because there was no contract between you and the valuer to provide a competant valuation service. The lender on the other hand may well have a claim but that's little consolation to you.

Possibly your only route to some kind of outcome is if you can identify who did it, to complain to them and threaten to complain to their professional body/indemnity insurers but given you are talking about needing £30k I can't see anyone offering you that just to shut you up!

Sorry that is undoubtedly not what you wanted to hear.

Markyt

The valuer must have provided comparison properties to justify the valuation. go back to the original report (the bank will have it if you don't) and see how they stack up. You may need to explain there is a dispute before you can see them. If there are no comparisons, or they are wildly out, ie nothing like the proprty you bought, then you may be able to argue the case further.

lynzpower

Helen

Where do you believe the fraud took place?

Lynz

Markyt

WestonDave wrote:

I'm afraid your hopes are pretty thin here.


Secondly and potentially more seriously the valuation report is done for the lender not the borrower. Its sole purpose is to advice the lender whether the property is worth enough to risk its money lending against.

Correct. The lender needs to know that, in case of a default, they will get back the money they have lent on it, ie that the property is worth what the buyer thought it was. If the property obviously wasn't worth that amount, and the lender reposseses, they may be interested in asking the valuer how they came to that valuation and how they are out of pocket as a result.

Helen_Samuels

thanks, will do just that and see where it leads, I hope it leads somewhere and if not, at least I can't just keep quiet about my discovery, no matter how late it is.

Helen_Samuels

I think it may be between the seller's estate agent and the valuer.

Helen_Samuels

well. I am very happy for them to reposses the property anyway, but they won't even get their money back cos it's valued for less than they lent me, the only problem is that is will destroy my credit rating even further.