thedynasty1998;562517 wrote:Catastrophe? Not sure if that's the word I would use. Although yes, it's bad.
If it's a scam, why don't you report it to the AG's office? Who does the financing? A bank? Then it has to appraise? The builder? Well they must have some confidence in their products if they are financing the homes themselves.
Because it's legal. Just because it's misleading doesn't make it illegal. But I've never met a buyer of one of those condos who didn't feel duped after I explained why their condo wasn't worth $300,000 or more when they had just "paid" $300,000 on paper.
The appraiser that doesn't adjust for a concession of $25,000 is doing an illegal appraisal, but must get caught doing it and the banks didn't care because they were giving out loans like candy. If the builder is financing then they simply have a finance company which is part of a bigger lender.
When I appraised them, I would hit them below $275,000 a month after they bought it for $300,000 and explain why. Of course their loan died and they couldn't refi.
There was a condo place in Texas that was giving away a $40,000 Cadillac with the purchase of the condo. Same thing - they re-sold for about $40,000 less on the market after the initial purchase.
