Wednesday, June 27, 2007

Three Colorado Appraisers Lose Licenses

Julie M. O’Gorman, Loveland, Colorado, grossly overvalued eight properties, most of which were in the Greeley, Colorado area. These eight properties are the subject of charges previously filed against O’Gorman.  The Colorado Department of Real Estate’s emergency suspension of O’Gorman‘s appraiser license was precipitated by her appraisal of the Los Leones Ranches in Walsenburg, Colorado for a conservation easement.

Conservation easement valuation requires specialized expertise which the Board asserted O’Gorman did not have. A conservation easement is a legal agreement which prevents the development of a parcel of land to protect natural resources. Conservation easements entitle a landowner to significant state and federal tax credits based upon the appraised value of the land. The greater the valuation, the greater the tax benefit to the property owners.

Albert Fajt, Pueblo, Colorado, also had his license permanently revoked and a fine of $46,000 imposed. The Board filed charges against Fajt on October 26, 2006 alleging 113 violations of Colorado law. The Board asserted that Fajt overvalued 13 properties in the Pueblo, Colorado area by as much as 75%. In addition, Fajt failed to disclose seller concessions and cash provided to buyers at closing. Fajt agreed to permanently surrender his license in exchange for the Board staying $36,000 of the fine. Should Fajt attempt to reapply for licensure, the remaining $36,000 will automatically and immediately become due.

In a separate case, the Board alleged appraiser James Esters, Pueblo, Colorado overvalued eight Pueblo, Colorado properties. The Board assessed a $24,000 fine. Esters agreed to permanently surrender his appraiser license and pay $7,500, the balance of the fine becoming due should he attempt to reapply for licensure.

Overvaluing property contributes to the state’s rising foreclosure rate. “We will aggressively pursue appraisers who demonstrate a pattern of overvaluing properties,” said Erin Toll, Director of the Division of Real Estate. “We will be taking a particularly close look at valuations in Greeley and Pueblo, counties with extremely high foreclosure rates.”

mortgage fraud

1. Julie M O’Gorman runs FRRECI.com She trains her multi-office staff to appraise properties just like herself.  I would be interested to know of the status of her business, and fellow overvaluating appraiser staff.

   Posted by  on  07/11  at  06:01 AM

2. Hello. Have you heard of the “money merge account” as a way to pay down a 30 year mortgage in 10-12 years? As touted by United First Financial of Utah and other brokers (CMG), $3500 buys you a computer program that manages your HELOC so that all deposits pay down your mortgage as long as you keep the equity loan at zero.
   If you Google the term on financial message boards, you’ll notice the word scam appears, but if you dig deeper, it seems to be a serious program. I’ve asked a few bankers and brokers, but they’ve never heard of this method. Any thoughts on this?
   Thanks for a reply.
   hgoldie

   Posted by  on  07/28  at  01:58 PM

3. If you’re interested in news about mortgage fraud, as well as news and analysis about the mortgage meltdown, check out our blog: The Fox Real Estate Report at 1031netex.wordpress.com.

   Thanks.

   Posted by  on  04/20  at  02:58 PM