Legal Question in Real Estate Law in Wisconsin

Buying Home from Appraised Value Vs. Listing

Is anything illegal with buying a

home for the CURRENT appraised

value of property,

done by a licensed appraiser

not taking the MLS listing price into

consideration, then negotiating with

the seller

for a price they are willing to take.

Example $ 400,000 appraised

value, seller will take $ 350,000.

.house listed for $ 380,000. The $

50,000 is listed on the HUD as a

''payment '' to a third party not

associated with the buyer

whereby the funds will be used to

upgrade the property.


Asked on 7/02/09, 3:07 pm

2 Answers from Attorneys
Thomas Moens Moens Law Offices, Chartered

Re: Buying Home from Appraised Value Vs. Listing

The fact that you are surrounding the word payment with quotation marks indicates to me that you intend that the payment will not go to the third party shown on the HUD-1. If that is the case, you would be committing mortgage fraud, with penalties in the neighborhood of 30 years in prison and a $1,000,000 fine.

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Answered on 7/02/09, 3:54 pm

Re: Buying Home from Appraised Value Vs. Listing

There is nothing illegal about using the appraised value, there is something illegal with falsifying a HUD statement.

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Answered on 7/02/09, 5:37 pm


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