Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP
Posting-Version: version B 2.10.3 alpha 5/22/85; site cbosgd.UUCP
Path: utzoo!watmath!clyde!cbosgd!mark
From: mark@cbosgd.UUCP (Mark Horton)
Newsgroups: net.invest,net.consumers
Subject: Re: Re: "No Money Down" (Other People's Money) Scam
Message-ID: <1740@cbosgd.UUCP>
Date: Tue, 7-Jan-86 23:15:35 EST
Article-I.D.: cbosgd.1740
Posted: Tue Jan  7 23:15:35 1986
Date-Received: Wed, 8-Jan-86 06:26:56 EST
References: <587@cylixd.UUCP> <312@3comvax.UUCP> <1725@cbosgd.UUCP> <748@wang.UUCP> <2491@amdahl.UUCP>
Organization: AT&T Bell Laboratories, Columbus, Oh
Lines: 35
Xref: watmath net.invest:999 net.consumers:3779

In article <2491@amdahl.UUCP> muth@amdahl.UUCP (John A. Muth) writes:
>> > Oh yes, he figures on financing the house at 90% of the appraised value
>> > But he just bought the house for $150,000, and the house
>> > is going to have to be appraised for the loan, and if it just sold for
>> > $150,000, the appraisal isn't likely to be for $200,000.
>> 
>> Not true, $150K was the discounted cash price.  It could still be be
>> appraised for $200K.
>
>Only if you can find an incompetent or dishonest appraiser.

I talked this over with my wife, who saw the whole show and remembers
more details than I.  Apparently the advocate of this plan is making
the assumption that the house has ALREADY been appraised for $200,000.
(This limits your choices - how many people get their house officially
appraised before they go to sell it?)  Once you have an appraisal in
hand, I think it's good for some period of time.

For example, we went to refinance our house about a year ago.  We started
the paperwork in January, figuring it would take a month or two and that
interest rates would go down.  We paid our $130 and the house was appraised.
Rates didn't go down, and the deal fell through.  Then, last June, we
decided to go again (rates finally dropped) but, due to a quirk of the
system, the FHA appraisal was good for 6 months, and we HAD NO CHOICE
but to reuse the appraisal.  (We had to get it officially assigned to
the new mortgage company, which was different from the first try.)  We
had actually made some improvements to the house since then, so it might
have appraised for more, but this limited the amount we could refinance.

I'm not sure if these rules still apply for non-FHA financing, or if the
person applying for the loan isn't the same owner who had the original
appraisal done.  Or maybe the advocate has the appraisal done before he
makes the offer for 75% of the appraised value?

	Mark