That will typically generate a response from the PM to negotiate a settlement and avoid an investigation.

@Melanie P.1) The caseworker is supposed to approve all HAP contract amounts, but otherwise, who is realistically going to take the time to investigate and how are they going to prove it?

The FBI is who investigates and goes after mortgage fraud.

You don't want them to just be financially qualified but you failed to investigate how they treated their past two apartments. 

Reporting by concerned neighbors can be done anonymously online, which will prompt an investigation. 

I did further investigation and it is my theory that their website was purchased so that it looks like they have an online presence since the early 2010s, and the extreme lack of online information on this company makes it very suspect.

Before I order a second appraisal, I would investigate an alternative lender.  

This is a great place to learn and further investigate investing in real estate.

Investigate what (if any) additional fees that they charge for handling evictions, and find out whether they go to small-claims themselves, or hire an attorney.

A less then full investigation may result in one thinking that the house and or the house and tennis court lots were what was being sold.As I later found out, a newbie tax lien investor thought they were getting a great bargain by outbidding other misinformed investors and paying the back taxes, legal fees, and an additional $34,000 (overage) which the county forwarded to me.