Financing in 85016>Question Details

Beentaken, Both Buyer and Seller in 85016

I purchase a condo. The developer was offering owner financing @ 5.25% for 33 years. First 3 years are %

Asked by Beentaken, 85016 Wed Jul 1, 2009

only. The condo was purchase for $155K. I had to sign something stating there was no appraisal on the condo. I was told by agents of the developer that condo appraised at that amount. According to the Tax Assessor the appraised value is $51K for 08 and $100,500 for 09. The developer threatened to take another owner to federal court since the owner accused him of predatory lending. The developer stated he can afford great attorneys and we cannot. What can we do? It is legal for a developer is sell properties higher than appraised value since the developer is also the mortage holder?

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This is a PRIME example of why you should NEVER purchase a home without representation. Unfortunately without knowing all the details or seeing the paperwork I cannot advise you in this matter. Your best bet is to contact a good Real Estate Attorney and have them look over the paperwork. You are past where an agent in this forum will be able to assist you. If you would like the name of a good attorney I would be happy to provide you with a name and number.
1 vote Thank Flag Link Wed Jul 1, 2009
Unfortunately, Beentaken, your situation happens more often than you'd think, and that developer has given the rest of us investors--who legitimately like to sell with owner financing--a black-eye.

I agree with the others who recommended that you seek legal council.
0 votes Thank Flag Link Wed Feb 17, 2010
a developer can sell anything he wants as long as he has clearance from the dept of RE re
plans and plots. And he can sell for any price he wishes. To "protect" buyers, about 15 yrs
ago, AZ created "buyer's agency." I am one of those. I only rep buyers.

you did not state whether you bought the condo or not. I am guessing you paid cash for it, or
did a contract for 100% seller carryback. and if so, you want to back out of the sale.

while there was no appraisal, you had every right to hire an appraiser yourself!
0 votes Thank Flag Link Wed Feb 17, 2010
Hi Beentaken,

My husband is a Real Estate Attorney/Real Estate Agent. Please feel free to contact him for legal advice: 480-612-5887 or e-mail him, donniecoats@coatslaw.net.
0 votes Thank Flag Link Tue Sep 29, 2009
Again... you are way deeper than an agent here is going to get into. You need to speak to a Real Estate Attorney.
0 votes Thank Flag Link Wed Jul 1, 2009
The developer employed the real estate agent I worked with. I am not sure if it falls under predatory lender or predatory mortgage serving. A neighbor told me that. The developer runs the HOA and he has not turned it over to the owners. The HOA is required to turn over financials quarterly and all requests have been ignore. Another owner had their unit appraised at $86M last year. We all purchase these units for way over appraised value with the impression the units were appraised at purchase value. The developer is the mortgage holder and controls the HOA. The developer has not been reporting payment history to the 3 major credit bureaus. Most of the owners have less than perfect credit so it seemed like a great opportunity to own and rebuild credit. None of the information was verified on the applications such as employment or income. I believe the developer was unable to sell units and mortgage companies would not approved units for the developers selling prices, so the developer decided to owner financed.



Possible reason why under Predatory Lending:

Unjustified risk-based pricing.

Failure to present the loan price as negotiable.

Servicing agent and securitization abuses
0 votes Thank Flag Link Wed Jul 1, 2009
Beentaken,

What is your agent telling you? Your agent should be able to guide you through the correct process, if you do not have an agent I will strongly advice you to hire an attorney if you feel you have been wronged. I am not sure why you signed something stating that there is no appraisal, you might have renounce to some rights by signing that. Only a lawyer will be able to tell you that. Most agents will not let their clients signed something like that. It is very hard to assist you without having more details and reading your entire contract.

Do you have an arbitration clause on your contract? If so you can use it, although many times the arbitrator has dealings with the developer and rule on their favor most of the times.

Without an appraisal, how do they know that the property appraised? Also remember that the assesors estimated value is typically below the market value, so the property might in fact be worth that. Why do you think they are taking you? What you believed they have done that is considered predatory lending?

Carlos J. Ramirez, PC, ABR, CNE
Associate Broker, HomeSmart -
http://www.SmartAZRealty.com
0 votes Thank Flag Link Wed Jul 1, 2009
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