So-called “retro appraisals” are the latest tool at the disposal of lawyers looking to fight off foreclosure and obtain a favorable loan modification or a short sale for their clients.

“The theory is that the financing was based upon a questionable appraisal which the lender approved without proper oversight,” a RetroAppraisals.com release said.  “Mortgage brokers, real estate agents, and lenders had close contact with appraisers and most appraisal order forms had a line item that asked for the borrower or their agent to write down the value that was needed from the appraiser.”

When Lender’s counsel moves for Summary Judgment, introduction of a Historical Revised Real Estate Appraisal could cause Judges to take a hard look at any Holder in Due Course protection sought by the lender. An obvious reason is a higher court review of the irrefutable factual information contained in the appraisal, could cause such an opinion to be overturned.

Such Historical Review might be able to be used to allege collusion, collaboration, civil theft, and fraud in the inducement and common law fraud. The aforementioned can be a springboard for an attorney’s affirmative defenses and counterclaim for damages – depending upon the state’s rules of civil procedure and the attorney’s experience and creativity.

Steven Greene, co-founder of Retro Appraisals LLC, said in most cases, a look back at the facts using a retro appraisal puts just enough pressure on the bank or lender and their representatives to find solutions rather than face the consequences of their previous actions.

At Home Solution Counselors we completely agree.  In fact, we build a historical view of the value for every case where the Audit shows fishy values.    Bottom line is that a solid audit is critical to success in building a winning cases.

- The Bank Slayer