Real Estate Loan Fraud Alert

Valuation loan fraud occurs when any party to the purchase and sale of real estate, including the real estate licensee, misrepresents information about the transaction to the mortgage lender.

To decrease the likelihood that you'll become a party to something illegal (the courts call this "fraud"), note some of the hallmarks of valuation loan fraud:

• Your instincts tell you something just doesn't seem right or the "deal" seems to be too good to be true. Sometimes you'll hear that "we do this all the time."
• The property has been on the market a while but sells for significantly more than the original price.
• The buyer insists on using a specific appraiser.
• Upon the seller asking a question, the lender says "it's fine with me as long as we don't put it writing."
• When attempting to amend a transaction in writing, the lender says "if you must put this in writing, do it in the closing instructions--anything that isn't sent to me."
• An offer is submitted to the sellers with an amendment stating the sellers pay money to the buyer or third party to cover repairs. But the buyer hasn't had the inspection.
• Commissions are calculated based on an amount less than the purchase price indicated on the purchase and sale agreement.

While a transaction with some of these examples may be legal, each situation must be evaluated on its own.

Another particular about mortgage fraud is that if the concession is shown on the HUD-1 settlement statement, there's no fraud. But that's only true when the description on the HUD-1 is accurate.

A Bright Idea!

If you're ready to take the plunge and remodel a bathroom then be certain to keep lighting in mind when planning.

Recessed lighting fixtures may be a popular recent home trend but they may leave the bathroom in a "shadow trap" when illuminating your new room. Focused lighting such as halogen or floodlignts may create unwanted shadows making it appear spooky rather than inviting.

As an alternative choice you may want to use a soft-focused or diffused light fixture and mount it at eye level or just above. Positioning light this way will cause it to shine at your face, not down from above. Other types of light such as decorative or recessed lamps can combat shadows.

However, if you do choose recessed lighting, place the lights close to the mirror and center them above the faucet. A dimmer switch at the vanity helps control the lighting, allowing you to adjust for day and night.

Radon...A Hidden Danger

You've checked everything in plain view--kitchen appliances, floors and windows. Now you're ready to sign a contract, right? Maybe not yet. One of the most important things that should never go unchecked is actually invisible.

Radon is an odorless, colorless and tasteless gas that may be a problem in any home. This radioactive gas comes from the natural breakdown of uranium in soil, rock and water. Radon leaks into homes through cracks or holes in the foundation and can cause lung cancer when inhaled. Any home may have radon--old or new, well-sealed or drafty, with or without a basement.

If you believe your home may have radon, a radon test can provide you with answers. Radon test kits are available through the mail but hiring a qualified radon tester will give you the most accurate results.

If your home tests positive (four picocuries per liter or higher), you'll want to hire a profesisonal to install a vent pipe and fan to filter the gas away from your home. Sealing or caulking openings in the foundation and walls also can reduce the amount of radon entering through the soil.

Before buying or selling a home, it's important to test your house for radon. Especially if your home is located in an area that has known radon risks. If buying, ask the seller for information on any radon-resistance systems in the house and their radon test results.

It's quite easy to test your home for radon and knowing your radon level is worth it--for both buyers and sellers.

Click here for more information on how you can protect your family and home from raqdon.

Homes in Kitsap County, Washington have a lower rate of radon in the United States according to the map on the Environmental Protection Agency website.