Help!!! Suspect fraud in valuation

BobProperty

Helen_Samuels wrote:

..... but cannot even sell it for the price I bought it 2.5 years ago......

Sorry but there isn't a rule that says that you should be able to.

Helen_Samuels wrote:

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..... 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 haven't enough information here. What if the buyer who paid £178k for it was a dealer who was doing a BMV buy (BMV=below market value) off a distressed buyer?
What sort of property is it? Why are you sure it was over-valued compared to others?

BT_man

Helen_Samuels wrote:

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.

And they will still chase you for the money they could not recover....

mjdh1957

Maybe you could take a step back and instead of being desperate to sell and end up with a huge debt to pay back to the mortgage lender, take a look at your overall finances and see how you ended up in this situation.

If you're in serious financial problems, take a look at the Debt-free Wannabe boards, visit the CCCS website and get some advice about managing your debt. Then you might not need to sell up and you could spare yourself a lot of heartache.

I suspect fraud would be impossible to prove and you'd end up with court costs on top of everything else.

Good luck with it anyway!

silvercar

It is going to be difficult to prove fraud. MAybe it was bought as a wreck and refurbished, which would explain why it was quickly re-sold.

Being honest, why did you choose this flat and not any others you saw? You must have thought it reasonable value.

rjm2k1

If they repossess, they can still come after you for the balance I'm afraid.

You mention nothing about the company that gave you a 95% interest only mortgage of 250k when you clearly cannot pay it off, or the fact that you took it up, sorry to say that at the end of the day the fault lies with one person only

I don't know if it's standard practice and it's too late now and possibly irrelevant, but by 2004 the recent sale price would have easily been available on the title register, did your solicitor not mention it?

Hope you get it sorted out.

BT_man

I too hope you get it sorted,
but I am amazed at how anyone can spend a cool QUARTER OF A MILLION without doing a little research first!!!

magyar

Helen_Samuels wrote:

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

Very unlikely. If you assume that the EA was on ~2% commission, then their marginal return on the £78,000 price difference you claim is going to be £1500, which is, what - split 50/50 with the valuer?

Would you risk your professional reputation for £750?

real1314

95% of £250k is £237,500, which would need an income of £59,000 on a 4x multiplier.

How can you get a job earning £59k and still rush into an investment of £250,000 without thinking?
How can you then try to blame other people when it goes "wrong"?

If I buy an apple for 25p but then see another apple for 15p, and try to sell my apple, but am only offered 15p, is the person who sold me my apple a con-man or am I just a fool?

sorry but you have only 1 person to hold to account. Yourself. Stop using this so called "fraud" as a way to get out of this situation and deal with the things that you can change.

magyar

real1314 wrote:

95% of £250k is £237,500, which would need an income of £59,000 on a 4x multiplier.

How can you get a job earning £59k and still rush into an investment of £250,000 without thinking?
How can you then try to blame other people when it goes "wrong"?

If I buy an apple for 25p but then see another apple for 15p, and try to sell my apple, but am only offered 15p, is the person who sold me my apple a con-man or am I just a fool?

sorry but you have only 1 person to hold to account. Yourself. Stop using this so called "fraud" as a way to get out of this situation and deal with the things that you can change.

Agreed. Helen, I know it's hard to hear, but we've all done it - you paid too much for something and unfortunately it's put you in financial problems.

Blaming yourself or anyone else isn't going to help. What will help is pragmatically looking at the problems and working out solutions. And you're in exactly the right place.

Helen_Samuels

real1314 wrote:

95% of £250k is £237,500, which would need an income of £59,000 on a 4x multiplier.

How can you get a job earning £59k and still rush into an investment of £250,000 without thinking?
How can you then try to blame other people when it goes "wrong"?

If I buy an apple for 25p but then see another apple for 15p, and try to sell my apple, but am only offered 15p, is the person who sold me my apple a con-man or am I just a fool?

sorry but you have only 1 person to hold to account. Yourself. Stop using this so called "fraud" as a way to get out of this situation and deal with the things that you can change.

thanks very much wise one for ur very wise advise and insults, highly appreciated!!!

u don't have to tell me i'm a fool, already worked that out and like I said , I was a proper novice but then i'm still to blame in all this but my thinking is just that if someone ( not talking about the seller now) has made that much money off me they should hopefully not be as foolish as me and have invested it and yielded multiple folds over the years and be happy to pay a little back of what they've fraudulently acquired.