Hard Money lender INFLATED APPRAISAL

[Carlos Garcia]

I worked with a wholesaler that has a subsidiary lending company. I used them and I paid for a ARV appraisal to determine the amount borrowed. It looks like the appraisal was inflated for more than $40k on 2 properties that I bought to FLIP. I called the lender and ask if they used an AMC and said that they used an individual appraiser. I lost over $40k on one of the properties already. How and who should I go after?

[JD Martin]

Quote from @Carlos Garcia:

I worked with a wholesaler that has a subsidiary lending company. I used them and I paid for a ARV appraisal to determine the amount borrowed. It looks like the appraisal was inflated for more than $40k on 2 properties that I bought to FLIP. I called the lender and ask if they used an AMC and said that they used an individual appraiser. I lost over $40k on one of the properties already. How and who should I go after?

Probably nobody. Appraisals aren't guarantees of market value, so unless you can prove some kind of fraud here you're going to be out of luck. This is going to be a hard and expensive lesson, but you probably won't do it again!