How can I know if I have been the victim of mortgage lender fraud?

If your home is worth less than the appraised value, then, you just might have been the unfortunate victim of mortgage fraud. Mortgage fraud is caused by two basic forms: there’s appraisal scams, and there’s kickbacks.

A lot of property appraisers are being coerced or bribed into stamping a higher value into a property than what it’s actually worth. It goes without saying that this higher value is what you, the consumer, will be paying for if you decide to buy a home. They’re called scams due to the unfortunate reason that not only single unscrupulous appraisers are guilty of this. It is not unheard of, in fact, that two or three separate appraisers might assess the same property’s value at an inflated price due to the pressure exerted on them by lenders and brokers.  It’s sad but true.

Then of course, there’s also bribing involved. Kickbacks to these dishonest people will but naturally cause prices to go up, all with the same effect: you will be paying more for something than its actual value.

Now in case you suspect that you just might be a victim of either appraisal scams or kickbacks, the wisest move will be to hire someone who knows the ropes. Go seek the counsel of a reputable foreclosure attorney. Arm yourself with information; know your legal and financial rights; then ask your lawyer to go over with you your options and possible solutions.