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    Investors who realize they have bought a property that will never be worth what they owe on it, may continue to make payments for months or even years in order to preserve the

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    There is a type of investor fraud in which an unsuspecting Real Estate investor believes he is buying a property worth a certain amount, when in reality the property is worth much less. This places the investor in a hopelessly upside down situation, owing more money than the property will ever be worth.

    The primary way that this type of scheme is enabled is by the use of a "bogus" appraisal that over-inflates the value of the property. Once the investor has closed the deal, there is virtually nothing he or she can do to avoid the consequences of having put a 300% Loan To Value mortgage on an investment property.

    This basically means that the investor will owe too much to be able to cash flow the property as a rental, and there's no possible way that he or she will ever sell the property for enough to cover the mortgage payoff. This essentially leaves one with a bankruptcy/foreclosure, "take-your-pick" financial situation.

    Investors who realize they have bought a property that will never be worth what they owe on it, may continue to make payments for months or even years in order to preserve thei

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    y upside down situation, owing more money than the property will ever be worth.

    The primary way that this type of scheme is enabled is by the use of a "bogus" appraisal that over-inflates the value of the property. Once the investor has closed the deal, there is virtually nothing he or she can do to avoid the consequences of having put a 300% Loan To Value mortgage on an investment property.

    This basically means that the investor will owe too much to be able to cash flow the property as a rental, and there's no possible way that he or she will ever sell the property for enough to cover the mortgage payoff. This essentially leaves one with a bankruptcy/foreclosure, "take-your-pick" financial situation.

    Investors who realize they have bought a property that will never be worth what they owe on it, may continue to make payments for months or even years in order to preserve the

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    the investor has closed the deal, there is virtually nothing he or she can do to avoid the consequences of having put a 300% Loan To Value mortgage on an investment property.

    This basically means that the investor will owe too much to be able to cash flow the property as a rental, and there's no possible way that he or she will ever sell the property for enough to cover the mortgage payoff. This essentially leaves one with a bankruptcy/foreclosure, "take-your-pick" financial situation.

    Investors who realize they have bought a property that will never be worth what they owe on it, may continue to make payments for months or even years in order to preserve the

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    e too much to be able to cash flow the property as a rental, and there's no possible way that he or she will ever sell the property for enough to cover the mortgage payoff. This essentially leaves one with a bankruptcy/foreclosure, "take-your-pick" financial situation.

    Investors who realize they have bought a property that will never be worth what they owe on it, may continue to make payments for months or even years in order to preserve the

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    osure, "take-your-pick" financial situation.

    Investors who realize they have bought a property that will never be worth what they owe on it, may continue to make payments for months or even years in order to preserve their excellent credit rating. However, once the damage is done, this is essentially throwing good money after bad. Given that this is one of the worst scenarios an investor could ever experience, it behooves each one of us to take the necessary time to carefully examine the appraisal for the property that we are about to purchase, BEFORE we purchase it.

    Since this type of fraud is dependent upon an over-inflated appraised value, an appraisal with incorrect or deliberately misleading market information will be necessary to perpetrate this fraud. Therefore if a prudent investor is careful to take the time to examine the appraisal prior to closing, or better yet, have their own appraiser do an independent appraisal, one could avoid this scenario completely. In a nutshell, it is potential investing suicide to accept an appraisal at face value without verifying for yourself the information in

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