Way around deposit?

Please walk very quickly away from this builder. Perhaps it is desperation on his part but there is no reason for you to get involved in his suggestion of fraud. There will be other houses and possibly the same house when you have your deposit saved.
 
Just beacause the builder values the property at €340,000 doesn't mean the bank will.
 
Havana said:
Just beacause the builder values the property at €340,000 doesn't mean the bank will.
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Mmmm, but imagine if ( just hypothetically, you understand) the same auctioneer who is selling these houses for the developer were also on the banks panel of valuers...
 
Vanilla said:
Mmmm, but imagine if ( just hypothetically, you understand) the same auctioneer who is selling these houses for the developer were also on the banks panel of valuers...
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Strictly speaking this shouldn't happen as the appointed valuer should have no connection with the property. But if you're dealing with a bank head office rather than a local branch, it's feasible that the bank wouldn't be aware.
 
Some banks now require the valuer to notify them if there are any incentives involved in the sale e.g 2 years mortgage paid, free car etc. The bank can then discount the property by this much to calculate the true market value.

If the valuer asks the purchaser are there any incentives in this transaction, the purchaser will have to lie to the valuer thus putting him at risk too.
 

If it is valued at a higher price and the builder waives the deposit then it may not be fraud, either way it was a suggestion not an endorsement hence the line 'check with your solicitor'.
 

You say in 12 months that house prices will be less with such certainty I almost believed you actually had a crystal ball.
 
Vanilla said:
Mmmm, but imagine if ( just hypothetically, you understand) the same auctioneer who is selling these houses for the developer were also on the banks panel of valuers...
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You can't value what you are selling it has to be done independently
 
+1 Mr Man.

PTSB do not accept a valuation from an EA who is also the selling agent. As a point of principle, I decline a valuation request when we are also the selling agent.

Most banks also do ask for explicit mention of any incentives offered by the builder.
 
MrMan said:
You say in 12 months that house prices will be less with such certainty I almost believed you actually had a crystal ball.
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I think it is an almost certainity that prices will continue to decline this year, no crystal ball needed. The property market is not an efficient market so all that stuff about not being able to predict prices doesn't apply to it.
 
I think if builder has over 20 units to sell, these will be sold very cheaply by Feb/Mar. I presume if you qualify for a mortgage now of 92% and that you get the property 30k cheaper you may be able to borrow the deposit and still qualify and everything will be legal. As regards your Mam has she looked for assisance in paying her mortgage from the HSE or she should approach MABS or is there no one else in the Family to help her out.
I think you need to offer the builder 30k less than what he is asking now and look to see if you qualify with a short term loan from credit union or personal loan. Remember that ECB are due to reduce rates again next Thurs.
Spin
Financial Advisor
 
Your house purchase is a very important event .... do it right.

Hold off until you can afford it ..... what's suggested is fraud. It could backfire on you.
 
Thanks again for all the replies I got much better advice here than I did in another forum. I was been told in that forum that people like me are the reason the Irish economy is in the ****s!
Anyway, I think we are going to hold off until the new year. I spoke to my Mam last night and she is thinking about selling up in the new year and downsizing so she wouldn't have a mortgage.
Spin would you have anymore information in relation to the HSE helping my Mam pay her mortgage. I looked at the website this morning but I couldn't find information about it. Typical any information that is useful to the people of Ireland is hiden I did find loads of information about hoe you go about making compliants though!

Anyway thanks again!
 
Dollydrops,
Get you Mam to contact her local MABS and they will sort out the assistance she will be entitled to and paperwork.
Spin
 
MrMan said:
If it is valued at a higher price and the builder waives the deposit then it may not be fraud, either way it was a suggestion not an endorsement hence the line 'check with your solicitor'.
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It is not up to the builder to waive the deposit, it is the bank that requires a deposit.

OP, did you include the information that you are paying your mam's mortgage when the bank approved you for the mortgage?
 

My point is that in many circumstances the bank won't know that the valuer is also selling the house. Not saying it's right - just that it's possible, which is what Vanilla was originally asking.
 
dollydrops said:
Thanks again for all the replies I got much better advice here than I did in another forum. I was been told in that forum that people like me are the reason the Irish economy is in the ****s!
Click to expand...

Not far from reality
 
dollydrops said:
Anyway, I think we are going to hold off until the new year. I spoke to my Mam last night and she is thinking about selling up in the new year and downsizing so she wouldn't have a mortgage.
Click to expand...
I think it is important that your Mam stands on her own two feet. Beware of solutions that depend on her selling her property. It is very difficult to sell in the current market, so this could leave you hanging out for another year or two.

Make sure she is getting her full SW entitlements asap.
 
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