Short Sale possible insurance fraud (appraisal, agent, mortgage companies, company)
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We are in the process of purchasing a short sale. We found out from our insurance agent that their were two claims on the house. One for 15K one for 12K. We had checked the permit office and only one permit was pulled. They had some damage on the roof that it leaked. We are going forward on the short sale and will close in a few weeks. My question is their any claim we can file or file a insurance fraud if they got money to fix the damage and it never got repaired?
We are in the process of purchasing a short sale. We found out from our insurance agent that their were two claims on the house. One for 15K one for 12K. We had checked the permit office and only one permit was pulled. They had some damage on the roof that it leaked. We are going forward on the short sale and will close in a few weeks. My question is their any claim we can file or file a insurance fraud if they got money to fix the damage and it never got repaired?
How do you know the other claim was for something that would require a building permit?
I would say the answer to your questions are No and No.
I don't see any evidence on repairs being done. The roof wasn't done proper and had a leak that damaged the inside. i suspect that the claim was to fix it that it was never done. I just don't want to pay for a repair that they got compensated on and didn't do the work. I don't know what work you can do on a house for 12K and not pull permit now days.
You have a home inspector right? And your bank will be ordering an appraisal, if you're getting a mortgage. You should pay what you think the house is worth, in the condition it is in currently. You're not going to be able to do anything about them possibly not fixing the roof but pocketing the repair money.
I would ask the owner. Usually the insurance check is payable to both the owner and the mortgage company. I have had mortgage companies refuse to send back after signing, and apply insurance proceeds to past due amount.
The last one had a hole in the roof and the negotiator wanted to kick it out of the short sale because they we not delinquent and could not understand why the house was not eligible for financing.
If it is not in their box it might as well be in outer space.
You have a home inspector right? And your bank will be ordering an appraisal, if you're getting a mortgage. You should pay what you think the house is worth, in the condition it is in currently. You're not going to be able to do anything about them possibly not fixing the roof but pocketing the repair money.
Yea if it is fraud I want to report it. I know we won't get anything. Plus they won't tell us anything anyway. Talked to our agent and sounds like he can find out what the claim was for. If they didn't use the money for fixing something we have to pay to fix. Plan to call the fraud agency with their insurance company. Things like this is why rates are so high. I know we won't see a dime of it. But they shouldn't be getting free money
Yea if it is fraud I want to report it. I know we won't get anything. Plus they won't tell us anything anyway. Talked to our agent and sounds like he can find out what the claim was for. If they didn't use the money for fixing something we have to pay to fix. Plan to call the fraud agency with their insurance company. Things like this is why rates are so high. I know we won't see a dime of it. But they shouldn't be getting free money
The thing I'm disagreeing with is that if you pay to fix the roof, you will be paying to fix something that you've already "paid for" in the purchase price of the house. If it needs roof repairs done now, before you buy it, that should somewhat reduce what the house is currently worth.
It looks like you can report others' insurance fraud here:
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