Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
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I owned a property in South Carolina that foreclosed this year.  It is a Ginn property and many believe there was fraud.  I have an attorney looking at the case as we speak which is a possible class action.  When I received a copy of the appraisal, the lot was comped to other lots that were under contract but did not yet sell.  It also stated that the value of the property is increased because of a $20,000 golf membership and 2 years of HOA fees ($12,000).  The lots in this area were purchased for $235,000 and are foreclosing 2 years later at $50,000.  I bought a lot in a golf course area (which shows on our opening info packet map).  The golf course was never extended into our area, yet it is appraised as a lot in a golf course area.  Does anyone have any idea on how I should pursue this inflated appraisal?  There is nothing in the area that the value could have comped to.

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Stephen
If the broker chose the appraiser, you can bet it was inflated.  Every broker has a pet appraiser he's used for years because that appraiser will give any value and condition needed to make the deal work.  This is the root cause of the financial debacle.

First, file a complaint with the state appraisal agency.  They might investigate it, they might not.  Their primary function is to sell licenses, and they won't investigate an appraiser unless they can get a substantial return in the form of fines.

I am a former appraiser and unless it was disclosed that no comparables were found in the immediate area, and that comparables used were x distance from the subject property, it is fraudulent.  If, in the addendum, the appraiser didn't disclose that comps were pending sales, it''s fraud.

Ask any questions you like.
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