Fraud sucks. Especially when you’re the patsy. This term is huge when it comes to protecting YOU in the homebuying process.
Appraisal fraud occurs when a house is overvalued by an appraiser in a fraudulent manner. So, if an appraiser comes to you with a bright idea of lying to the bank about how much a home is worth...likely with the intent of "allowing you" to get that $422,000 mortgage which you can't really afford...appraisal fraud is about to be committed.
And it happens in the other direction as well. YOU want your current home to be valued as LOW as possible because your taxes are 1.3% of its value each year and the lower the appraised price, well, the less you pay in taxes.
Often appraisal fraud is occurring under your radar. You might not know that the appraiser is doing anything wrong. After all, it might seem brilliant to mark up the price on your home when you refinance, or if you want to buy it and flip it. Any scheme to inflate numbers is shady. If you do it, the consequences often involve stripes. Vertical ones in a jail. Hope they are slimming on you.
Related or Semi-related Video
Finance: What is a second mortgage?4 Views
Finance allah shmoop What is a second mortgage Okay you
know what a first mortgages it's otherwise cleverly named what
is called it is called oh yeah Mortgage it's Just
a loan on a house You paid four hundred grand
for this baby Hundred grand down two hundred fifty grand
in a first mortgage And they're still fifty grand You
owe well where's that fifty large coming from the bank
wouldn't loan you any more on a first mortgage that
was costing you six percent a year Tio you know
to rent that money So you had to get a
second mortgage which should things go awry and you become
a statistic Well that's it's fully behind the first mortgage
in the priority stack of payback So in a bankruptcy
situation the first mortgage first what's called a first mortgage
get it fully paid along with any fees associated with
it and back interest accrued and any other things that
are associated with that first mortgage it stands in line
first in priority Then any cash leftover gets attributed to
that second mortgage So not surprisingly second mortgage money costs
a lot more to rent then first mortgage money because
the risk of non payment in a bad situation is
meaningful E higher especially when the borrowed does this for 00:01:25.136 --> [endTime] a living
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