DIYbanter - View Single Post

In article ,
says...
On 8 May 2005 08:48:29 -0700, someone wrote:

Were you unaware that you can obtain a home equity line of credit
without having any actual equity in the home? In my state you can get
this based solely on an appraisal.

Uhh - tautlogy here? No, you CAN'T get an "equity" line unless the
bank beleives that you have equity in your house. Which is
demonstrated to them by an appraisal. Which could be wrong.

Or even intentionally inflated by the lender so they can get away
with lending to customers who otherwise wouldn't qualify.

There are plenty of appraisers out there who know how to make an
appraisal meet loan requirements, irrespective of the fair market
value of a property, and plenty of lenders who know and value these
appraisers since it lets them make more loans.

--
is Joshua Putnam
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