inflated appraisals Tag

26 Apr Inflated Appraisals

Inflated appraisals are one ofthe many abuses ofpredatory lending. Lenders and brokers earn more from higher loans, which are based on inflated appraisals, because of thecommissions, fees, and interest.Even the borrower benefits in the short term from borrowing more than otherwise would be, or should be, available. But things can go south in a hurry. Consider this: A borrower sues on a loan based on an inflated appraisal, perhaps to defend against a foreclosure. Here's the cross examination: - "Did you borrow the money?" "Yes." - "Did you want to borrow the money?" "Yes." - "Did you spend the money?" "Yes." - "Were you happy to borrow the money? "Yes." - "Would you have borrowed more if it were available?" "Yes." - "Then, what are you complaining about?" "???" But another examination would go this way:
Read More