Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP
Posting-Version: version B 2.10.3 4.3bsd-beta 6/6/85; site amdahl.UUCP
Path: utzoo!linus!decvax!decwrl!amdcad!amdahl!muth
From: muth@amdahl.UUCP (John A. Muth)
Newsgroups: net.invest,net.consumers
Subject: Re: Re: "No Money Down" (Other People's Money) Scam
Message-ID: <2491@amdahl.UUCP>
Date: Mon, 6-Jan-86 16:37:57 EST
Article-I.D.: amdahl.2491
Posted: Mon Jan  6 16:37:57 1986
Date-Received: Wed, 8-Jan-86 06:47:03 EST
References: <587@cylixd.UUCP> <312@3comvax.UUCP> <1725@cbosgd.UUCP> <748@wang.UUCP>
Organization: Amdahl Corp, Sunnyvale CA
Lines: 28
Xref: linus net.invest:998 net.consumers:3327
Summary: Real Estate Appraisals

In article <748@wang.UUCP>, rudy@wang.UUCP (Rudy Bazelmans x72609 ms 1989) 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.

My wife is an appraiser. I asked her. Given this situation, the house
would be appraised for $150,000. She has on several occasions been hired
by people in just this situation. When she found out that this is what
they have in mind, she promptly refunded their money and told them to
find another appraiser.

The key to this scam seems to be finding an incompetent or dishonest
appraiser to lie to the bank about the value of the property. If you
can find one (who hasn't already ruined their reputation), it is very
easy to make lots of money. The problem is finding somebody willing
to flush their career down the drain (and possibly find themselves
sued) so you can get rich.

Of course, the standard disclaimer applies.

-- 
John A. Muth           ...!{ihnp4,hplabs,sun,nsc}!amdahl!muth