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Why would the bank loan you based on a house you just sold? Either way, bank lenders send appraisers.
by omarchowdhury 8y ago
Why would the bank loan you based on a house you just sold? Either way, bank lenders send appraisers.
- lordnacho 8y agoI don't know why, but sometimes they are not as thorough as they should be with due diligence. Point is in illiquid markets, sometimes there's no price other than what a few people in the consortium have paid to swap stuff amongst each other. Even if you sent an appraiser, he'd have to take traded prices into account.
- isolli 8y agoWell let's see how appraisers fared here [0]: "Intra-family flipping In the past two years, the Soni family essentially created their own market in Santa Ana by flipping enough homes in a small area, said Lackner, the appraisal fraud specialist. In at least three cases, homes flipped from one family member to another – sales later used by appraisers to give credibility to high asking prices for other properties in the area." [0] https://www.ocregister.com/2009/11/12/wamu-loaned-millions-to-oc-home-flippers-with-fraud-history/ https://www.ocregister.com/2009/11/12/wamu-loaned-millions-t...