Fraud Involving Home Value Appraisals

HNW Business Law, Fraudulent Transfer Litigation

By: Fredrick P. Niemann, Esq., a New Jersey Law on Fraud Attorney Home Appraisal Fraud Joseph and Kimberli bought a building lot in a subdivision and then engaged an architect and a contractor to design and build the home of their dreams on it.  The lot and finished home together would cost them about $731,000. They borrowed most of the sales price from a bank, which sought and obtained an appraisal from an appraiser regularly used by the bank.  Conveniently enough, the appraisal came in at about $731,000 when conducted under both a cost approach and a sales comparison approach. After the couple had been in their new house about a year, Kimberli lost her job and the couple went …