Fraud accusations

kingstreet

If the valuation is revised as it was set in error, the question of selling an asset for below its market value disappears and the indemnity insurance issue goes with it.

paso11

holly_hobby wrote: »

To put it in a nutshell ...

The purchase price is 265k not 285k - on which she wants a mge of 230k - this is where the confusion has come from, she has put down the marketed price i.e 285k instead of the agreed purchase price of 265K.

As it stands i.e 285k on 230k, it would appear that the Vendor is doing a gifted deposit of 20k - which is not permitted, and in fact not the case.

So, she needs to contact the lender and tell them the mis-understanding and that the pch price is 265k NOT 285k, the valuation will obv support the reduced selling price, if it has already valued up at 285k (which will have been the noted pch price on the mge app).

Obv the LTV will now increase as its 230/265, so this may affect qualification for the product already chosen, to which she may lose any booking/reservation fee.

The Sol. although ham fisted, has actually done his job, and spotted the abnomality in the figs - although his manner could be improved upon I dare say (but it sounds as though he's gone into a panic, without thinking through what the plausible explanation for the discrepency may be .... learning curve for all I think !)

Hope this helps

Holly x

I thought buyers and seller are the ones who panic!

An abnormality is one thing, going off on one and accusing your own client of fraud and being untrustworthy is another.

He was hired as a professional and hasn't exactly acted like one. Like I said he has managed to derail the transaction.

bobsyourteapots

haras_nosirrah wrote: »

I have never known a lender val come in at higher than the purchase price so my assumption comes from the valuations coming back at 285k. If the buyer was putting down a 35k deposit on a 265k house it would be 86% ltv and high rates. On a 285k purchasr price her 55k deposit would be 80% ltv. I might be wrong but it seems the most plausible reason for the solicitors reaction. Maybe the op can clarify

Well you clearly haven't dealt with many mortgages.
I often see valuations where the valuer says it is worth an extra X amount than they are paying for it. They are independent so they don't lose or gain anything.

kingstreet

bobsyourteapots wrote: »

Well you clearly haven't dealt with many mortgages.
I often see valuations where the valuer says it is worth an extra X amount than they are paying for it. They are independent so they don't lose or gain anything.

I must say in 28 years, I've only seen a handful of cases where the mortgage report and valuation figure was higher than the given purchase price and I think the highest of them was no more than £3k more.

holly_hobby

kingstreet wrote: »

I must say in 28 years, I've only seen a handful of cases where the mortgage report and valuation figure was higher than the given purchase price and I think the highest of them was no more than £3k more.

I agree .... in fact I've never seen it (but I am a bit shy of 28 yrs svc !)

H x

bobsyourteapots

kingstreet wrote: »

I must say in 28 years, I've only seen a handful of cases where the mortgage report and valuation figure was higher than the given purchase price and I think the highest of them was no more than £3k more.

really? as an underwriter I always end up with the ones that are upvalued! its always an awkward call trying to explain to the customer that its knocked their product out not because its worth less but worth more lol

holly_hobby

Well it wouldn't really be awkward as a lesser LTV means they would qualify for a lower pay rate (albeit they may lose any res fee for a switch).

What a breath of fresh air, as you must be one of the only UW's I've even known, who will speak directly to Clients, even us Profs normally have (or in my now case had) to go/mediate via our BDMs and only in a blue moon do you ever get to nail one down on a one-to-one !

Your lenders Clients and brokers are very lucky ... and they'll now be alot of envious peeps !

H