Smokey Bear
Elite Member
- Joined
- Dec 8, 2004
- Professional Status
- Certified Residential Appraiser
- State
- California
The lender STILL has an issue of unclean hands and/or laches since they didn't do their due diligence. AND, the loans went bad because the owner quit paying, not because they were overvalued. At best, they could recover the difference between the apprised value and the market value as of the effective date of the original appraisal.
Sounds like bad lending practices all around.
Sounds like bad lending practices all around.