Definition of Appraisal fraud:
Use of an inaccurate appraisal to affect the sale or purchase of a home, by raising the selling price, altering the perceived collateral value of a purchase, or falsely qualifying for more favorable financing. Appraisal fraud may be committed by appraisers presenting false data, or by homeowners altering honest appraisals.
Appraisal fraud is one of the most common types of mortgage fraud, which happens when an appraiser (or a buyer or seller) artificially inflate (or deflate) the value of a property so that it diverges significantly from the fair market value. The overstated value obtained through appraisal fraud is commonly used to:.
Appraisal fraud is a form of mortgage fraud, whereby the value of a home is deliberately appraised at an inflated amount, well above its fair market value (FMV). Appraisal fraud can occur when an appraiser is in on the scam, and dishonestly overstates the value of the property. It can also occur when the homeowner, seller, or purchaser physically alters an "honest" appraisal using methods such as digital editing or bribery of certain officials.
How to use Appraisal fraud in a sentence?
- An appraisal is meant to be an assessment of a home to determine the fair market value. .
- Appraisal fraud is the intentional inflation of the appraised value of a home. .
- Appraisal fraud is a form of mortgage fraud that is generally used to either get the seller a better market price or help a buyer get financing or preferable refinancing. .
Meaning of Appraisal fraud & Appraisal fraud Definition