CLAIMS AGAINST APPRAISERS STILL HIGH
With the continued weak real estate market, claims and lawsuits against appraisers remain high. In the first Quarter of 2010, the mortgage industry saw a record level of mortgage related lawsuits, according to MortgageDaily. As the economy remains week, it is no surprise that more lenders and borrowers are looking more closely at the appraisals obtained at the time that their loan or purchase was made to see if the value was inflated. If so, they may have a claim.
An appraiser who does not follow USPAP and other requlations, or makes other material errors in a report, is likely liable for negligent misrepresentation. Under Arizona law, the injured bank or borrower may pursue a claim for damages against the appraiser. Many appraisers carry insurance for such claims.
Our law firm, Berk Law Group, P.C., won the first reported decision allowing a borrower to sue an appraiser for negligent misrepresentation, even though the lender hired the appraiser. We have handled multiple cases against appraisers. If you think that your appraiser made a mistake and want to evaluate pursuing a claim, contact us. We provide aggressive, efficient representation in all types of appraisal and real estate cases.