Appraisal Fraud: A Need To Sort Out The Victims From The Perps?

April 25, 2005 | Mortgage News Daily
Recently Demos, a New York City based think tank, issued a "briefing paper" titled How Widespread Appraisal Fraud Puts Homeowners at Risk. The introduction to the paper, written by David Callahan says in part: While many U.S. households have benefited from the recent rise in real estate prices, homeowners who have bought at record high prices are vulnerable to a fall in property values that could leave them owing more on their mortgage than their home is worth.
Appraisers have complained for years, decades in fact, about the pressure they state they sometimes get from real estate agents and lenders to bring in a property value that supports the purchase price against which money is to be lent.