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by CareyBot

Appraisal inflation – the practice of overvaluing homes – is a growing problem, according to 78 percent of Inman News readers who participated in an informal survey. An Inman News series this month highlighted problems with inflated appraisals. Some appraisers have blamed the problem on pressure from mortgage brokers, loan officers and Realtors to "hit the numbers" required to complete a real estate sale, while other real estate professionals have said that it is up to appraisers to steer clear of such practices. Homeowners whose properties have been overvalued can run a greater risk of overextending themselves financially and defaulting on their loans, and appraisal inflation has also been used to artificially increase prices in mortgage fraud schemes. Inman News asked, "...