Mortgage and Real Estate: 4 Imperative Fraud Tips

There's always a first time for everything, and getting to know Mortgages and Real Estate Frauds is not exceptional. The question in today's ReiVRE: Money Talk- Real Estate is – "What are 4 crucial mortgage and real estate fraud tips?"

4 Imperative Mortgage and Real Estate Fraud Tips

There are many different types of real estate and mortgage fraud. Basically you can identify them as either a fraud to make a profit, or a fraud to get the property. Regardless of which it is a fraud is committed when falsifying of records occur in some way. In this article we will take a look at a few of the different types of real estate and mortgage frauds.

In recent years with the advent of technology and the internet there has been increased focus of privacy and identity theft but this is nothing new. Theft and fraud has always been a constant threat but especially in our society where your credit is everything and everything can be bought on some form of credit. And the largest form of credit most people have is their home mortgage. But what if the mortgage you have is not even yours and on a property you did not know even existed. This is mortgage fraud and it can happen to anyone.

There are many different types of real estate and mortgage fraud. Basically you can identify them as either a fraud to make a profit, or a fraud to get the property. Regardless of which it is a fraud is committed when falsifying of records occur in some way. In this article we will take a look at a few of the different types of real estate and mortgage frauds.

One of the most common types of fraud committed in the real estate and mortgage industry is on the loan application itself. It is not unusual for the applicant to increase their income or lie about their job.

They might even lie about where they got the down payment. It is not unusual for the down payment to actually come from the person selling the home themselves. These are all examples of loan application fraud.

One area where fraud can be committed and is hard to prove is on the appraisal itself. You could have two different appraisals just from the appraiser themselves.

There are so many things that are subject to interpretation on an appraisal. The problem can come because the appraiser themselves feels pressure from the buyer, seller, and the real estate agent trying to come up with a number that satisfies everyone can create a fraud situation.

Today there are so many different levels of credit that it can become imperative to a buyer that they obtain a fake credit report. Trying to clean up their credit report can be the difference in qualifying for mortgage loan or not.

On the loan it self there could be various things that are not true. Another area that can really affect the approval loan is the income level of the applicants. It's not uncommon to list false income and even come up with documents to back that up when in fact, they really are not true. This is creating fraud against the mortgage company.

One thing that is used to document income is tax returns and today these are very easy to forge as well. The Internet makes it simple to go in and doctor your tax returns to come up with a different copy than what was actually sent to the IRS.

There are many other different types of real estate mortgage fraud. Some of these have been flipping situations, equity skimming, and the pretend homeowner loan. Regardless of how it's done real estate and mortgage fraud is illegal, and can be punishable by large fines and prison time.

Credit to our contributor: Aaron Adida- is a mortgage specialist who specializes in construction loan feasibility for ConstructionRenoLoans.com.

Our mission is to provide you all the information you need about Real Estate Investing to make a smart decision.

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- ranci endo

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What is a Real Estate Tax Deduction ?

There's always a first time for everything, and getting real estate tax deduction is not exceptional. The question in today's ReiVRE: Money Talk-Real Estate is – "What can a Real Estate tax deduction do for you?"

Owning a property can help you benefit from the property tax deduction. This can actually be broken down in to several separate advantages. This tax deduction is actually a general deduction encompassing many. Some of the areas that advantages can be taken in that are included in the deduction are listed below.

One area that is included in this tax deduction is any interest paid on your mortgage. This is because the interest you collect on your house is also deductible up to a maximum of $1 million.

Another part of this deduction is what is called fee points, which are points that are associated with a home acquisition mortgage. Because each one is worth 1% this can really add up when it comes to taking advantage of this portion of the deduction.

Something else that is part of this deduction is equity loan interest. This interest that is the amount that you would pay on a home equity loan is only partly deductible, not fully. This part of it has a few regulations that must be followed according to the Internal Revenue Service.

A few other things that can be included in applying for the tax deduction includes home improvement loan interest and the home office deduction. With the home improvement interest you cannot include anything considered a repair. But with the home office deduction you can include any part of your home used for business, and can include repairs.

One thing that is a fairly big part of the deduction is the selling costs. These can include the real estate broker's commissions, title insurance, legal fees, advertising costs, administrative costs, and inspection fees. By taking advantage of this part of the property deduction you can lower your taxable capital gains.

This leads us to the capital gains exclusion that is part of the property tax deduction. If you have lived at your residence for at least two of the last five years then you are excluded from having to pay a capital gains tax. Married who file jointly have a limit of $500,000, while single or married filing single have a limit of $250,000 in the amount than keep in profits from any sale.

A small side note regarding moving and this deduction, is that if you relocate due to your job, you can include deductions related to the cost of this move. This deduction though is not quite as easy to take advantage of because of some of the IRS regulations regarding it.

The fact also that your property tax deduction is completely deductible from your federal income taxes among these other benefits, definitely makes it worth looking into.

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Credit to http://www.easy-tax-deductions.com/

NB: For more valuable information and guideline visit: Real Estate

"You are welcome to give your comment! Do you have anything you'd like to add or challenge about this hot issue? Any bad or good experience lets share. Your contribution will educate and benefit many readers".

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Know the cost to consider when buying a home

There's always a first time for everything, and getting right choice to Buy a home is not exceptional. The question in today's ReiVRE: Money Talk-Real Estate is – "What costs are involved?"

Buying a home is probably the biggest financial decision you will ever make so it is worth taking time to consider whether it is the right choice for you. You will become responsible for all the costs of maintaining the property, including major structural repairs, routine repairs and improvements.

What costs are involved?

You also need to take the following costs into consideration:

1. mortgage repayments
2. mortgage protection insurance for if you fall ill or lose your job
3. life assurance to enable your family to pay off the mortgage if you die
4. contents insurance against the risk of theft, fire, flood or other accidents
5. council tax and water charges
6. gas, electricity, telephone, etc
7. ground rent and service charges may apply

As part of the process of buying a house or flat you may also need to pay for:

1. a solicitor or licensed conveyancer
2. an independent survey
3. the mortgage to be arranged
4. the Land Registry fee
5. Stamp Duty

As a tenant, you may be able to claim housing benefit to help with the rent. As an owner-occupier, you will not receive any housing benefit to help with your mortgage costs. You may be entitled to income support to assist with housing costs, but this is not usually payable for nine months after you first claim it.

If you are elderly and own your home, its value may be taken into account in assessing whether you are eligible for financial help with the costs of residential care.

NB: For more valuable information and guideline visit: Real Estate

"You are welcome to give your comment! Do you have anything you'd like to add or challenge about this hot issue? Any bad or good experience lets share. Your contribution will educate and benefit many readers".

Thank you for reading and comments if any: - ranci endo

If you liked this post, please don't forget to stumble or digg it so even more people can read it and benefit!"

How to Sell Your Property Promptly?

There’s always a first time for everything, and getting to sell your property quickly is not exceptional. The question in today’s ReiVRE: Money Talk-Real Estate is – “How do you sell your property effectively and fast?”

Are you trying to sell your home? Today, the real estate market has become very active again. So if you want to sell your property successfully, you need to get back to the fundamentals. Let us discuss the fundamentals that a property seller must have.

Today, you cannot just put your property in the market and expect it to be sold within a few days. Those glory days are over and you need to get back to the reality. Due to an increased in energy prices and interest rates, sellers cannot expect to just blindly put their homes in the market and expect them to be sold. Sellers need to get back to the fundamentals of selling property.

The number 1 fundamental of selling a property is to get the property in tip top condition. Potential buyers need to fork out a lot of money and therefore they will need to view your property as a dream home. If you present a sloppy and dirty home, no one will ever buy from you. So, put in your best effort by keeping your property clean. If you have a garden, make sure that the plants are alive and manicured. If there is any area in your property that shows wear and tear, it must be cleaned up or repainted. First impression is very important in order to sell a home successfully. Without taking any of these steps, you will risk losing the opportunity to sell away your home.

Once you have make sure that your property is clean and ready to sell, you can now take photographs of the different important areas such as living room, dining room, garden, garage, etc. Then, create a free listing on the Internet to market your property to thousands of potential buyers. The largest pool of buyers is people who relocate from one part of a country to another. So make sure that you do not miss these people out.

When you are writing your real estate listing online, make sure that you present the best of the property that you intend to sell. Figure out what is unique about your home and tell your potential buyers about it. Upload the nice pictures that you have taken onto your listing to make it more attractive. Remember to put down either your agent or your own telephone number for interested parties to contact you.

After you have done all these, it is time to determine the price that you are willing to part your property. Determine the bottom line you are willing to accept and the price that you will list it. When interested parties approach you, do not make them feel that you are desperate to sell your home. Take your time to negotiate. As long as you know your bottom line, you will know the right time to sell your home.

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Credit to property for sale in Singapore ,

NB: For more valuable information and guideline visit: Real Estate

“What’s you comment? Do you have any thing you’d like to add or challenge about this hot issue? Any bad or good experience let us know? Your contribution will educate masses of our readers.

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Knowing the Difference Can Save You a Lot of Time and Money- Are You Pre-Qualified or Pre-Approved?

There’s always a first time for everything, and getting to know the best ways to buy or build a home is not exceptional. The question in today’s Money Talk-Real Estate is –
“Does knowing the differences between pre-qualified or pre approved able to save you your resources?”

Nearly everyone who has wanted to buy or build a home has been told that they need to obtain a "pre-qualification" or a "pre-approval" before making an offer on a property. The problem is that these terms are used interchangeably. This is a big mistake, and understanding the difference could save you a lot of time and money.

Virtually everybody who has ever searched for a mortgage has been asked if they would like to obtain a "pre-qualification" or a "pre-approval." In many cases prospective home buyers are told that they "need" a pre-qualification before they can even make an offer on a home. Typically, this is required by an over-zealous real estate agent. And, unfortunately, that same real estate agent often has no clue whether the submitted pre-approval letter is even worth the piece of paper it's written on.

Here's the problem: the terms "pre-qualification" and "pre-approval" are used interchangeably. This is a big mistake that borrowers, sellers, real estate companies, and even many mortgage originators make.

A pre-qualification is a very basic assessment of a potential borrower's ability to qualify for a mortgage. A good loan officer can "pre-qualify" people in about five minutes over the phone by asking a few simple questions about income, credit, assets and monthly debts.

That's basically it. With this information, assuming the borrower did not lie (either intentionally or unintentionally), you can be pre-qualified for "x" amount of a loan. This is a very basic form of qualification.

However, in the pre-qualification scenario, the loan officer does not conduct a credit check, examine any income or savings documents, or do any of the other things necessary to fully approve someone. A pre-qualification is, therefore, a very basic and unreliable way of assessing someone's true qualifications.

In fact, if someone tells a savvy seller that the potential buyer has just been pre-qualified to purchase the home, that seller will usually ignore the pre-qualification until a real approval has been acquired. Savvy sellers understand the real value of a pre-qualification: zero!

Many potential borrowers and their real estate agents are deceived into thinking they are fully approved because some loan officer has told them they are pre-qualified. Most of the time, this is an innocent mistake, not a deception being perpetrated. But, you should make no mistake about it - a pre-qualification is not a pre-approval.

When you are serious about buying or building a new home (and only when you are serious) you should make the effort to obtain a full pre-approval for your loan. This means finding a competent mortgage professional, who you trust, and providing all of the necessary information he or she needs to determine your eligibility.

For an accurate pre-approval, you should provide your loan officer the following information:

* your social security number for a credit check,
* your pay stubs, W-2's and possibly full tax returns for income documentation,
* bank and asset statements for verification of liquid and retirement savings,
* and any other information that is requested to obtain a full picture of your credit worthiness.

A pre-approval should essentially be a full approval, prior to final underwriting - if you have provided complete and accurate information.

A word of caution: when beginning the loan shopping process, DO NOT give out your social security number to anyone. Only do this once you are ready to proceed and have made your decision on whom you will work with.

DO NOT let a loan officer bully you into giving out this information for any reason. If they cannot discuss their programs without your social security number, you should immediately look elsewhere - you are not dealing with a competent professional.

It is not necessary to run your credit report in the early stages of shopping as long as you know your credit scores, monthly income and debts. You need to know your credit scores and should run a quality credit report on yourself prior to beginning shopping.

If you provide accurate information to your mortgage lender, you can be assured that the pre-approval is valid. However, please remember that this still does not guarantee you will get the loan to buy or build the house you want. Why? - Because at this early stage you have only been approved as a borrower and not the borrower for that specific property. At this stage, no information is available about the property or home to be built.

If the appraisal on the home is not satisfactory or the title search shows there are existing liens on the property, it does not matter how qualified you are as a borrower. Your loan will not gain final approval unless both you and the property are acceptable. Many people fail to understand this distinction. A pre-approval is certainly better than a pre-qualification, but it still does not guarantee final underwriting approval.

With construction loans, understanding the pre-approval process is even more important than when buying an existing home. When buying an existing home, an acceptable appraisal is usually a foregone conclusion since the home is already there and being sold on the open market. But, with new construction, the appraisal and the construction budget become integral parts of your overall loan application. To best protect yourself, you need to fully understand the appraisal process and how it relates to new construction. Your loan officer should be able to assist you and answer any questions. With this knowledge you will be able to better estimate the future value of the home you wish to build, and move through the pre-approval process with ease.

The best course you can take as a borrower is to a) understand your own qualifications, including accurately knowing your credit score, b) do verbal pre-qualifications with a narrowed-down list of potential lenders (tell them your credit scores but do not allow them to run a credit report), and c) when ready, choose one professional who offers the best program for your needs. Only then should you do a full pre-approval.

Once you do a full pre-approval with a loan professional, you should be fully committed to working with that person. Choose the right loan program and the right professional. And, your loan experience will be a smooth and pleasant one.

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Credit to Chris Esposito provides owner-builder construction financing nationwide through his Owner Builder 101 program. Visit www.OwnerBuilder101.com to get all the information you need to be a successful owner-builder, saving tens of thousands

NB: For more real estate valuable information and guideline visit: Real Estate

“What’s you comment? Do you have any thing you’d like to add or challenge about this hot issue? Any bad or good experience let us know? Your contribution will educate masses of our readers.

Thank you for reading: -ranci endo

If you liked this post, please don’t forget to stumble or digg it so even more people can read it and benefit!”