Appraisal fraud is a component of many mortgage fraud schemes. This type of fraud is one of the more sophisticated techniques being used to commit mortgage fraud. As one of the fastest growing financial crimes in U.S. history, counter measurements to mortgage fraud are required. One of these measurements involves targeting the appraisers and verifying the appraisal is accurate.
Fraudulent appraisals are leading to lenders and buyers suffering billions in losses in the U.S. The expansion of the real estate market in recent years, combined with easier access to credit has resulted in additional attention needing to occur to help mitigate risk from appraisals.
How Appraisal Fraud Works:
There are a variety of ways that an appraisal can be fraudulent. This type of scam can occur from a variety of people participating in the fraudulent activity. For example, unscrupulous appraisers can artificially inflate the value of a property so they, along with mortgage brokers, property flippers, real estate agents and attorneys can profit from the higher appraisal. This fraud can also be found in markets where appraisers are pressured to inflate property value estimates.
Importance of Due Diligence:
There are several steps that can help mitigate the risk of appraisal fraud. It begins with working with legitimate lenders and buyers. These lenders and buyers must verify the mortgage originators, real estate professionals and appraisers involved in the real estate transaction. On the surface, this can seem to be a difficult task, but there are industry tools that exist to help with due diligence focused around preventing this type of fraud.
To mitigate the risk caused from a fraudulent appraisal, use the following steps.
1. Appraiser License Verification:
The first step a lender should take is to perform a check on those conducting the appraisal. By completing a professional check and monitoring licenses of appraisers, the lender is conducting due diligence. It is important to verify not only the license, but the states where the appraiser conducts business. Appraisers must be licensed in each state where he or she intends to value a property. To complete the professional check, lenders should look to the services of a company that provides appraiser license verification.
2. Evaluate Mortgage Brokers:
The second step a lender should complete is an evaluation of the mortgage broker involved. Nationally, the majority of mortgage loans originate from mortgage brokers. It is important to understand that the mortgage broker profits from the process of brokering a loan between buyers and lenders. A mortgage brokers gains when a fraudulent appraiser willingly inflates the value of the property, allowing the mortgage broker to make an increased profit.
The fallout from this type of mortgage fraud results in the buyer and lender left to deal with the risk of market fluctuations. These fluctuations can include housing depreciation, financial loss stemming from inflated housing values and an increased rate of mortgage defaults due to the fraudulent appraisal. The way lenders can help mitigate their risk of this fraud is to verify and credential business relationships among potentially risky mortgage brokers.
3. Other License and Professional Qualification Checks:
In the third step, lenders should check the reliability and qualifications of any other real estate professional that is involved in the mortgage process. Individuals that commit fraud often leave identifiable patterns. Before conducting business with a real estate agent, a diligent lender should check the person’s license status. A good protection against fraud is for banking professionals to work with trusted appraisers and real estate professionals that come with positive referrals.
The federal government is collaborating with mortgage entities and lenders to investigate mortgage fraud. In many of these investigations a fraudulent appraisal is at the heart of the investigate instance. Such collaboration also helps mortgage banks identify and potentially avoid various fraud schemes.
Are you one of the millions of Americans under the threat of foreclosure? Mortgage foreclosure appraisal is one thing you might consider to look into as leverage. One of your options before you go into foreclosure is to get a mortgage refinancing and avoid or prevent foreclosure on your property or home. And when you are in the process of mortgage refinancing, the lender may require you to get an appraisal or mortgage foreclosure appraisal before getting your application approved.
It is very important to have a mortgage foreclosure appraisal before you get into the process of foreclosing your property or home. The appraisal is traditionally required by the financial institution or the lender. This method can give the lender or mortgage company leverage over the homeowner or the one foreclosing the property.
This appraisal is needed when you foreclose or try to refinance your mortgage. But if do the appraisal yourself, you will have the chance or opportunity to use the same appraisal deeded to you, and go shopping for another lender or financial institution who can give you a better offer.
Mortgage foreclosures are a scary thing for anybody. But there are things you need to do in order to avoid more problems. Like, do a realistic assessment of your situation. Ask yourself the question; is my financial problem only a temporary one? If it is temporary, then call your lender and ask for forbearance or a repayment plan, the lender might be willing to offer you this plans.
And always pay attention to your mails and phone calls from your lender. Avoiding those calls, mails and emails do not make your problem go away. In fact it will worsen your problem.
Because you have the mortgage foreclosure appraisal with you, assessing the value of your property is a lot easier and you can make a more informed decision on what to do next. You may also have the option of avoiding foreclosure, like selling it before the lender will foreclose your property. Refinancing is another option for you if you want to avoid foreclosure on your home. But beware of second mortgage that is high risk as it may cause your harm than good. Bear in mind that if you have an option of refinancing or taking a second mortgage, your lender will let you know that because they have vested interest in your mortgage.
Armed with the mortgage foreclosure appraisal in your hand, and knowing the dos and donts of foreclosure, you will undoubtedly make best decision on how to deal with your mortgage.
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In real estate markets where the inventory of unsold homes is escalating a common problem occurs. That is sometimes when a deal is struck it can be put at risk by a low appraisal. Meaning that unless the seller lowers their price or the buyer puts more down the sale can be scuttled. What can be done to avoid such a headache? Let’s find out.
Basically appraisals are built from what comparable properties (comps) sold for. Various factors are taken into consideration. Facts about the house to the type of sale was recorded as these can all affect valuation.
Back before the housing bubble burst it was thought pressure was applied to appraisers to “hit the number”. Or come up with an appraisal that justified the selling price and made the deal work. As a result the rules were changed and the appraisers are no longer selected by the broker or lending institution so as to avoid any undue influence on the valuation.
So one reason an appraisal might now come in low is the appraiser doesn’t know the neighborhood.
Another cause of low appraisals is that in a slow real estate market there are fewer comps to compare to which makes it hard to find suitable comps.
Mistakes happen. Which would be the third reason for a low appraisal. In the rush to get the appraisal done, the person may miss something about your house or simply select the wrong comps.
Then what to do to avoid such a predicament? You want to make it easy to come up with a fair valuation. Even if this is a subjective option with nothing to insure it’s 100% accurate. You still want to set the table so the value is the best it can be. Here’s how.
For starters identify appropriate comps yourself. Then try to learn the story behind any that sold for a price lower than they should have. Things like divorce, deferred maintenance, or a short sale perhaps. Make the appraiser aware of these. At the least they may use these as a starting point.
Curb appeal counts with an open house and can influence the appraisal too. Maybe not a lot but any little bit can’t hurt. So have your house prepped as you did during any open house your Realtor held.
What makes your house special? Spell that out to the appraiser to insure these features are taken into consideration. That would be things like upgrades you did or renovations made during the time you owned the house. This action will be appreciated because the appraiser is working under a deadline and this will save them time.
Don’t be afraid to ask to go over the final report looking for material facts in error. It happens. Square footage is wrong. Lot sizes are put down as smaller than they are. The number of bathrooms could be noted incorrectly. Any thing like this may affect the value and indicate another effort is called for.
A faltering market lends itself to problems like low appraisals. Not that you need anything else working against selling your home. But it’s wise to do what you can to head this problem off – before it strikes. Yes real estate appraisals are somewhat subjective. Yes they involve judgements. But you can do things to make sure any appraisal done reflects a fair valuation of your property.
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Business valuations are on the rise for uses other than buying or selling businesses. Business valuations are in fact a critical up front part of any business transaction. When asking A Neumann and Associates, a premiere business broker in New Jersey, business transactions are not the only reason business owners need business valuations. Many business owners can benefit from a business valuation and in many cases a certified valuation is required.
One such case is in a partnership change or split. True market value must be determined in order to split up or process a buyout of ownership. Similarly, in the case of a divorce a business valuation is often mandatory. Many partnership and changes in ownership require the value of the company to be determined.
What about financing, recapitalization and restructuring debt? Any lender is going to want to assess the value of a business, which makes it a requirement in New Jersey to obtain a business valuation as well as all across the nation. Estate planning is another situation were business owners obtain a valuation.
These are only a handful of reasons business owners need a business valuation. One increasing trend is for busines
Items that drive value in a business make a buyer comfortable and confident in a value and their offer. Things like diversity in products, services, suppliers, customers, etc drive value. Low debt, low competition, growth trends, opportunities to improve revenue, products and services offered, lower expenses, etc are all value drivers. There are too many to list and as mentioned they vary by industry and for every company. Improving these value drivers can significantly increase the true market value of a business, so much that the cost to obtain a certified business valuation every year or more is next to nothing, especially when considering the alternatives and potential decreases in value. The benefit can be tremendous.
s owners to obtain a business valuation to get a current snapshot of their business, competition, industry, economy and drivers of value. The information in a business valuation is extremely informative and savvy business owners analyze this information and create strategies around them to improve the value of their business. Many business brokers recommend doing this periodically as the expense of a business valuation is very small compared to the improved value of a business that can result from even the smallest changes. Let’s look at what is included in a business valuation.
There are a number of calculations, no single calculation can determine true market value of a business nor can a bunch of them. Factors such as competition, lending, current market and economy, industry, government, trends, etc are all items that impact value. Similar and recent sales of businesses also impact value. There are also many value drivers. These value drivers are different for every industry and every business.
Who are Maternity photographers?
Tampa Maternity photographers happen to be experts in the sector of portrait photography. Be your interest be in studio sessions or a more private, friendly home setting, a specialist is always there for you.
The objective of Clearwater Maternity Photographers is to provide you with a photograph that will thrill you. The foremost step in realizing this objective is making you, the buyer, comfortable.
Frequently Saint Petersburg Maternity Photographers have a transportable studio for photographing you in your residence. Doing so provides the photographer with a superior sense of your character and what is imperative to you. Even as having the mobile studio set up, a maternity photographer has the chance of observing you in your natural settings. Throughout this time he is also able to get to be more acquainted with you through a peaceful casual conversation. Delicate information which the photographer is collecting consists of things such as whether you happen to be shy / outgoing, daring /reserved, an unassuming /arrogant person. As the time for the photo shoot arrives, he/ or she would be working with such traits for capturing your individuality in the portrait.
All expectant mothers are distinctive individuals. A number of ladies wish for a portrait which captures the outline of her pregnant profile. Further women like it better to be entirely clothed. Still further expectant moms wish for a photograph in the company of her husband and kids & pets. Maternity photographers happen to be specifically trained for using techniques like lighting & shadow for accentuating the thing that makes the profile of an expectant mom beautiful.
Regardless of what your mental picture for your maternity portrait maybe, there will possibly be a photographer for suiting your requirements.
How to find a Maternity photographer who you can afford?
On price being a concern there is no need for giving up hope. In any case, this happens to be a special juncture in your life. Your pregnancy would be ending shortly and your hectic existence as a fresh mom would be starting. Try getting this unique juncture in print. Certainly there happen to be hard to believe fine art photographers charging amounts which you might not be able to afford but there are other options for you.
Try finding maternity photographers who are starting their individual business. They are usually experienced since that have worked as a helper in reputed portrait studios. You gain from such experience. Their charge more reasonable fees compared to established photographers.
Getting the house ready for the appraiser is a big thing in the life of every mortgage seeker. Getting a mortgage or a remortgage requires not only a long line of documents, but also a visit from the appraiser. If you house passes the test, you should manage to gather decent percentage as your mortgage or refinance loan. If your house does not manage to pass muster, your hopes of procuring a large amount shall be futile.
If you are trying to shift to a new house, get ready to see your house get compared to a number of other “comps”. “Comps” is a term used to refer to houses that have a similar value to your own. Most often, the valuation of your house will be dependent on the prices of homes in the neighborhood. So if you are new to the house buying business, it might make sense to shop for a home where the other houses and apartments seem to have a good value.
If you are looking to swap your current mortgage plan for a less expensive one, much would depend on the way in which your house has been taken care of. The appraiser wants to be sure that you shall be a good enough caretaker. So make sure that your house is well turned out. We all know about the power of the first impression. In this case, your house has to make a favorable first impression. This would mean long term expenses. So try and see to it that your home looks as beautiful as ever.
One way to do this would be to get rid of all the junk. A cluttered house generally seems to suggest dirt and messiness. So hide away all the junk and create the illusion of space for the appraiser. An airy house gives off great vibes, and this might influence a good report.
If you like, you could go in for some home improvements before the appraisal becomes due. A paint job might be a good idea, as might getting a new table made. However, see to it that all the renovation work is completed by the time of the appraiser’s visit. Incomplete renovation work might make your house look dirty and it might influence the appraiser to make an unfavorable appraisal.
Whether you are looking for mortgage or a refinance loan or are simply hoping to get a good equity loan, remember that the house needs to make a good impression. Do your best before that appraisal.