“Stonewood’s attorney acknowledged that many of the clients paid more for the houses than buyers of surrounding properties, but said the prices —- and the resulting mortgages —- were supported by third-party appraisals, including several arranged by the lending institutions.”
This is a lie. The appraisals had to have been fraudulent. The appraisals were ordered by Stonewoods’ mortgage broker. I would love to see some of the appraisals.
I have seen and done some research on some of the properties, and have seen a list of hundreds of the properties in question, and most were sold at prices around $100,000 above fair market value, and in many cases, $100,000 above their active list prices. No lender would loan on a purchase of a property that is $100,000 over list price in a stable to declining market. The appraisals had to have been fraudulently prepared.
