I found a property i liked very much. The owner of the property suggested that i use the lender they used whom they did a lot of business with, Earth Mortgage.
They had their approved appriaser come out and appriase the property at a value of 1.35 Million for the home and only 19 acres.
I then obtained an email from the sellers wife where she had told the appraiser the home needed to appraise for the above amount as my offer was approximately 1.2M.
I then learned that only 4 months prior to going into contract they had just purchased the home for $855,000 for 21 Acres. The owner owned the adjacent property and took two acres and put it with that acerage. Earth Mortage had already loaned the home owner/flipper over 1.1M on the property.
I then ordered two more independent appraisals one came back at $850,000 and the other at $900,000, i forwarded them to Earth Mortgage who refused to give them any validity and wanted to move forward on the loan for 1.2M.
I guess since they had already obtained loans for 1.1M how could they sell it for the real appraised value?
The land owner had hopes of subdividing the land and put my contract under his planned community name but guess what, those plans were denied and there is no such property under my contracted address.
Earth Mortgage facilitated the sellers with the fraudlent appraisal, over looking the real appaisals only to make a loan and sale.
So this property was bought for 855,000 then appraised at 1.35 million. The adjacent property was bought for 425,000 last year and was just re appraised at $750,000. Either these are the smartest real estate investors and loan officers, the luckiest or very shady.
I paid for three appraisals on this property and the loan fees and the earnest money and have not received one penny returned.
We will be in litigation.
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