I think lenders are going to start scrutinizing appraisals more as we move forward and may use only specific trusted appraisers. I remember in the mid 90’s a lender wouldn’t accept an appraisal in a purchase I made because they didn’t know him and was afraid he was the realtors buddy (which he was), maybe Bugs can confirm this practice. There was no deception in that deal, but R/E wasn’t going up at the time and they are not in the business of losing money so they felt safer with someone they trusted. Money hasn’t completely tightened but it does so more every day, I think these transactions will become less prevelant. BTW the Murrieta scam was very similar in appearance and it alarmed the reputable realtors enough to refuse to do business with them and to report it. Big cashback at closing, never make a payment, run with the money on someone else’s credit.
