Posted by Howard on June 20, 2000 at 19:05:58:
What do you mean what about OJ?
(i just had to do it)
I have used inflated appraisals, what should I do? - Posted by John Haroon
Posted by John Haroon on June 20, 2000 at 16:55:58:
I am s note broker. I was using an appraiser who just got convicted of creating inflated appraisals. He lost his job. I used him 2 times. I am worried that he may have inflated my appraisals. And I might get in trouble by his appraisal. I sold my notes to a PRIVATE INVESTMENT company. I am wondering does PRIVATE INVESTMENT companies end up with Fannie Mae, and Freddie Mac…because I hear they investigate all the appraisals. And if my appraisal was infact inflated, what should I do?
Re: Are you in New Jersey? - Posted by NJDave
Posted by NJDave on June 21, 2000 at 15:49:37:
We had an epidemic of inflated appraisals and illegal property ‘flipping’ designed to defraud institutional lenders. Included in the ‘bad bunch’ were two attorneys, appraisers, several mortgage brokers, straw buyers, and an agent in a high profile real estate brokerage…
Involving hundreds of property transactions (appraisals, mortgage applications, etc.)
Re: I have used inflated appraisals, what should I do? - Posted by CarolFLUT
Posted by CarolFLUT on June 21, 2000 at 07:32:47:
Somehow this is sounding silly to me. At this point you are spending time worrying about what isn’t.
first, based on your knowledge of the market, are your appraisals reasonable and defensible? If you are not sure, as a Broker to pull comps for you. THEN worry about whether or not there is a problem!
Re: I have used inflated appraisals, what should I do? - Posted by JPiper
Posted by JPiper on June 20, 2000 at 22:20:42:
It’s not a crime if someone appraises your property too high. It’s not even a crime if you knew someone appraised your property too high.
What becomes a crime is when you give a kickback, payoff, etc for an appraisal to come in at a certain number. It becomes a crime when you’re in cahoots with the appraiser for both his gain and yours.
By the way, I doubt this appraiser was “convicted” of appraising too high. Appraising too high makes him stupid…and being stupid is not a crime. Chances are, there was a repeated pattern of high appraisals which a few parties received in return for some type of kickback to the appraiser. Just my guess.
JPiper
Re: I have used inflated appraisals, what should I do? - Posted by The Donald
Posted by The Donald on June 20, 2000 at 21:58:25:
CYA - co-operate in full with the US Attorney and your local district attorney, and you’ll be fine when the time comes.
Otherwise, don’t worry about it.
Re: I have used inflated appraisals, what should I do? - Posted by SCook85
Posted by SCook85 on June 20, 2000 at 18:53:59:
Two things that you really need to keep in mind.
First did you know the appraisals were inflated? Second, are the notes paying?
If the notes are being paid upon, it is much less likely that an investigatin will take place. It usually isn’t until a problem occurs before people begin delving into this type of information.
If you were aware that these appraisals were inflated, shame on you for using them. If you were not, it is pretty hard for an innocent person to get charged with anything.
Steve