Appraiser

[stepping_up_IHB]

lenders aren't dumb. they know exactly what market price is. they might sell 5-10% below market, but that's about it. even if the listing price is low and a relative makes an offer, the lender is not likely going to approve of the sale if the price is too low.

I beg to differ... lenders thought that they could loan out $726K on this house and not lose. They were and are dumb, aka greedy, aka caught up in a frenzy. There are indeed listing agents pullling fast ones on foreclosures. It's probably not really widespread, but is happening.