According to the FBI, Reports of mortgage fraud nationwide have tripled since 2003 to nearly 22,000 last year. In the past five years, appraisal fraud has been involved in up to 40 percent of fraudulent mortgage reports, according to the Mortgage Asset Research Institute. This can be a huge problem for home buyers.
The problem occurs when the buyer agrees to purchase property for an inflated price and eventually learns that he will be paying too much. Depending on the degree of fraud, the homeowner stands very little chance of selling the home for as much as he has paid.
Appraisal fraud has led to many foreclosures. One way to avoid fraudulent appraisals is work with an exclusive buyer agent who not only is concerned with your best interest – but who knows the industry and the area where you want to buy.
Category: How to Buy a Home