Is an Inflated Appraisal "Predatory"?

[jcg109]

Hello,

Just curious, and wondering if someone could answer this question:

When I took out my second Mortgage in April 2007 for 30K, my condo was appraised at 530,000. I only just noticed this yesterday. I know for a fact that at no time was my home EVER worth that much. It appears to be an "On line" appraisal. Is this "predatory lending"?

I'm currently in the modification process with my first mortgage (ARM). My feeling with the second, is that I borrowed this $$, and I intend to honor my agreement to pay it back. The loan is fixed rate 20 years at 6.25%, and I'm having no trouble making the payments. However, folks keep telling me that I have a "case" to get the interest frozen, and to consult with an attorney.

Just curious what others think.

[Dan Bailey]

jcg...That is a question for an attorney or experienced forensic auditor. I would dare say that 99% of us had inflated appraisals though. It was/is common practice at the time of the boom to appraise using similar housing/housing in the vicinity to appraise properties.

[Moe Bedard]

When you took out the second mortgage, what was the loan amount for the first at that time? What was the money that you took out used for? Were you specifically requesting 30k?

[cespringer]

Appraisal negligence is about to heat up here in Arizona. A recent court decision, Sage v. Blagg, allows a homeowner to sue the appraiser for their negligence during the appraisal process, regardless of who hired them.

Coming Soon: Open Season on Real Estate Appraisers in Arizona | Foreclosure Industry