Help!!! Suspect fraud in valuation

mr.broderick

meanmachine wrote:

I clocked the GMAC website.

No sign of interest rates, but the phrase "innovative mortgages" is telling.

The anger from this one seller is scary. Imagine a whole nation of cranky homeowners should the market actually tank?

Jeez. It would be like something from The Triffids, but with violent property "investors" lashing out, rather than supersized plants.

property investors? does that include me buying a home for my family?

magyar

mr.broderick wrote:

property investors? does that include me buying a home for my family?

Probably not, to be honest. If you're a homeowner looking to either move up the ladder or stay put then property price reduction is a good thing (assuming it's not too much that you end up with negative equity).

Property prices tend to move in percentages, rather than absolute amounts, so it's generally good for house movers. (But bad for the economy as a whole, so be careful what you wish for!)

sandyinvent

If, as you say, similar properties were selling for "much" less at the same time, you may want to check with a governing body that (may or may not) regulate chartered surveyors, rics being the body that springs to mind.

Further, your solicitor should have smelled a rat (if one was there) and noted the earlier selling price, and perhaps made some further investigations.

IIRC the surveyors are obliged to the mortgage company, so if your (the bank's) property really is worth that much less, the bank might not be too happy. See how they feel about it.

You could always declare yourself bankcrupt and start again...

Rachman_2

silvercar wrote:

Please remember, "Please be nice to all MoneySavers. There’s no such thing as a stupid question, and even if you disagree courtesy helps. "

I expressed my sympathy, then I was being nice to all moneysavers by pointing out, don't do this.

In any event, let's get real and look at the numbers,

EA is telling her it's worth £215K - she paid £250K, that's give or take a 15% reduction. It's not £78K or a third... id 15% really a major fall - given the fact she bought at the peak..... by the same token, should all the sellers who sold up in 2001 and got less than half what the properties were 'worth' in 2004 be suing the estate agent for undervaluing. It's a nonsense game, is it not ?

Plus, imagine she had bought a newbuild executive rabbit hutch in say Newcastle, Nottingham, Manchester, Epsom, name your place - come resale people are finding they are losing money - surprise surprise. Losing £30K is nothing compared to a lot of these (as is starting to show in the resale stats and repossession figures).

I also note that the OP suggests that property's about making money..... - which is a lot of what's wrong with Britain today - it's got to go up, it's my pension, someone on the tely told me.....etc..... from what she's posted so far it's clear she's been ridiculously financially imprudent - when you buy, do you believe anyone except your own eyes and ears ......

Silvercar, I also liked your comment about her having bought it, because she needed somewhere to live fast, on one interpretation, she certainly did and on the other, it's a ridiculous comment - you don't commit £250K (almost all of debt) in a rush and buy somewhere because you need somewhere to live - that's part of why she got where she is (and why lots of other people will be in the same mess).

Being blunt, I have no doubt at all that the OP fell for the idea of it's gone up a lot recently, it'll keep going up, I'll get £350K back for it easy in 2 years - that will pay off my spending... - that's what my cynicism does....

kaya

the puzzling thing is how a mortgage lender lent out £230kish on a house that was only worth £178k?, Dont Mortgage lenders do there own checks on property values before lending? How did they lend out more than they knew they could possibly recoup in the event of a mishap? The only fraudulant activities i can see are towards the mortgage company due to the false valuation used to get the loan, its not in there interest to lend you more than the value of the property

Greed

Doozergirl wrote:

Oh please. Have enough people told her that now? Can we try to do some good?

This poor woman is likely to be scared off this website for good and maybe find herself in even worse circumstances when there are many, many people here who will give their time and positive energy to help her find that 'lightbulb' moment. But apparantly, she's arrived on the wrong board. This is the House Prices etc... where we obviously all have more financial security than we do compassion. :mad:

I like to think we pride ourself as a community here, not a judging panel. But if we are judging people then I suggest that you are quick to learn about this community

Here's Doozergirl's good and compassionate reply to my thread about the 18 year cycle of house price rises and falls.

Doozergirl wrote:

Please tell me the truth about Diana's death. And JFK too if you know.

Ta :A

david29dpo

interesting titbit from my solicitor friend, if a house has been sold within six months, the solicitor has to tell the buyer and lender if there is a big difference in price, and explained to both if necessary.

Dumyat

Is it not a case of buyer beware. I dont think there is fraud there. surely if you are buying a house you research what the going rate is in that area? there are plenty websites to check the sale price of a house.
its only because you have been caught out that you seem to be looking for someone to blame. if the situation had been reversed then you would be rubbing your hands in glee. its a lesson to us all. buying a house is not always a win win deal.

meanmachine_2

A lot of forum members seem keen to express compassion for those who have stupidly taken on vast amounts of debt, often with dodgy lenders in the blind belief that property only ever goes up in value.

And yet, those of us who warn about the market and refuse to play the game have opprobrium heaped on us, are called scaremongers and are constantly belittled.

Rank and utter hypocrisy.

As others have pointed out, shouldn't those who sold a property for, say, 10K back in the 1970s be compensated for financial and emotional distress?

Get real.

Property is a HIGH risk investment.

abaxas

meanmachine wrote:

A lot of forum members seem keen to express compassion for those who have stupidly taken on vast amounts of debt, often with dodgy lenders in the blind belief that property only ever goes up in value.

And yet, those of us who warn about the market and refuse to play the game have opprobrium heaped on us, are called scaremongers and are constantly belittled.

Rank and utter hypocrisy.

As others have pointed out, shouldn't those who sold a property for, say, 10K back in the 1970s be compensated for financial and emotional distress?

Get real.

Property is a HIGH risk investment.

You cant say that!

Repeat 'Houses only ever go up in value' 1000 times.
Then 'It's different this time' 10000 times.
Finally rewatch all your recorded episodes of 'location,location,location'.

You'll be back to normal soon.