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She thinks it's INSULTING, but...? |
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Can a landlord charge $1600 in damages after she already took our $1500 deposit? |
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As a seller, can I back out of a real estate deal if a contract is not yet signed? |
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Need help in dealing with dishonest real estate agent-what to do!? |
| Hi-I have a question...we had been renting a house for about two years when the landlord suddenly decided to sell it. He gave us a choice of buying it which we decided against because the home has ... |
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I let my property via a letting agent? |
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Council reckon my home under right to buy is worth £95000,its like house that jack built,can they do this? |
| the bloke over the road bought a simalar property 2bedroom semi for £45000 2years ago under the same scheme.i just think they are trying to swindle me.they told me that i could bring in my own ... |
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GA_metroman | Is this mortgage fraud? |
There's a builder in my town who offers something called a 'home trade program'. Just like trading cars, they buy your house when you buy theirs. That's not the part in question. They'll pay several thousand more for your house than it's worth if they need to so that you can afford to buy their higher priced homes. I do know that there are legal limits to where you can get cash to put into a house, and that it has to be disclosed (like a gift from a parent or something). And that the builder couldn't just give you $25,000 to use to purchase his house. so is it basically the same thing to pay you $25,000 extra for your house?
The other side of the story is that the houses you buy from them are overpriced about $25,000 (compared to other houses in the neighborhood). Additional Details I have a friend who works for an appraiser. She says that her boss knows that the appraisals that are done only use their houses as comps, and not others in the area that would show lower values. I wanted to go ahead, but my real estate agent said that when people go to re-sell the new home they bought, then they can't get what they paid. I guess if you were given $25,000 more for your house, you didn't really pay an extra $25,000... but it still seems like it somehow. |
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Yanswersmonitorsarenazis
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Equity from your existing home is a perfectly legitimate source of downpayment for your next home. Assuming that sale was legit.
Could this be considered fraud? Yep. Maybe not directly, but indirectly, the builder is giving you a significant inducement to buy their property. That $25K should be deducted from the new home's sales price, since it's really just fluff money being transferred back and forth.
And yes, it's likely that you'll end up underwater on the new home for a few years, since that $25K really isn't there as an actual value.
It's generally acceptable to have the builder buy your home at fair market value, however. That won't get you the downpayment you need for their place though, it doesn't sound like. |
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wanabe30
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This seems shady at best. For one they need to resell your house to make money and 2 the bank won't lend you more then the home you are buying is worth. Even with a downpayment (which seems to be coming from the builder) you are over extending yourself i think. I would check into this further. |
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ed
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Lenders want to know if the buyer has borrowed money for the down. That's a no no.
About the price, you have it figured out. It's not illegal.
Homes, new or otherwise must be appraised for a loan. Appraisers will always appraise up to the selling price.
It's called Innovative Selling. LOL.
It's done in autos all the time. Hike the trade, hike the new price. |
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shamieya
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There is not legal limit on where the money could come from. Some lenders have guidelines about where the money is coming from. Some don't. Doesn't matter to you unless it matters to your lender. |
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Vince M
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There is no legal limit on how much a buyer wants to offer for a home. After all, any seller, in any situation will want the most he can get for it. During the housing boom of the nineties, houses sold for much more than asking prices when several parties showed and interest in the same house.
As you said, the builder can't "usually" just give you a gift of 25 grand, so he just pays you more for the house he is buying from you.
I'd be interested in seeing the documentation that locks you into buying his homes after selling yours. It really does NOT sound like that good a deal, since you have to pay for an upgraded house, supposedly $25,000 dollars worth of upgrade, PLUS the overprice figure of an additional $25,000. Doesn't that add up to 50 grand more that you will have to eventually repay? |
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Casie
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They are trying to artificially inflate the values, a lot of buiilders have been doing this. It records at the high price, to try to influence prices.
It's a shady transaction to be involved with. The loan may not be made because of this. The appraisal on the house would reveal this to the lender, who should not go through with the deal. BUT, a lot of lenders are shady too!
I wouldn't support the shady builder by buying his house. Look elsewhere. |
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jake@home
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Pretty Slick,first off his house is marked up 25k,then he sugar coats a bad deal by giving you a extra 25k on your house, which in return you give right back to him. plus then he owns the house that you just gave away,assuming that all the money you receive goes into your new house.so the bank cuts him a check on your new house where he is free and clear, your stuck in a 40 year mortgage probably upped by 200k ,because of interest, taxes and insurance. plus,plus,plus now he sells your old house and keeps all the money, which you know he is marking up,probably 50 to 75k.Best advice,, stay were your at,get free and clear of the mortgage, then you have the buying power to get what you really want !!! |
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Alterfemego
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My gut is telling me - something isn't quite right. And from the other answers that you received, I think you know the answer. I'd walk away. |
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ThatGuy!
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I think you answered your own question by saying the homes would be overpriced by $25000.
Seems to me he's trying to push the purchase price up for those who don't have homes to trade. This may falsely increase values allowing him to take out larger mortgages than he otherwise would on homes he recieves in trade.
Something fishy is going on. |
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Sahara
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I don't know if its fraud but it sounds like they are desperate to sell those overpriced homes. I say, no way. Walk away. |
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