On the other hand, when a property is bought below market and immediately sold at profit with the help of a corrupt appraiser who "verifies" that the value of the property is actually double the initial purchase amount, mortgage fraud is indicated.

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As a prospective purchaser or seller, the investor may feel that the property has more or less risk than the appraiser.

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Generally, an appraiser with knowledge of the area and type of property is required.

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In a BPO a real estate broker, not an appraiser, uses their familiarity with the local market to estimate a property's value.

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The purchase price reflected Mr. Erbey's documented cost basis in the property and was within the market value range provided by an independent third-party appraiser.

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