A house is worth what someone is willing to pay! Plain and simple. Also, most homes are sold at 90-94% of the original sales price. The final agreed upon price is 100K and the orig. price was 106,900. The house appraises for 106,900. What’s the difference? Plus, these lenders that are set up to handle Ameridream and the like, are you trying to tell me that they don’t know what the hell is going on?? Plus, the appraisals are FHA appraisals. Predatory lending has to do with selling someone a loan that the borrower can’t afford, either thru fraudulently documenting income they don’t have or giving them a rate that is higher than they should get. If the borrower qualifies for an FHA loan, where’s the predatory lending happening when you’re giving them a rate that is 3-5% less than they would normally get if they wanted a 100% LTV or CLTV loan, and has a prepayment penalty as opposed to none on FHA, and the sub-prime loan is only fixed for 2 yrs (and usually with a prepay that goes 3 or more yrs with 6 months interest the penalty) where the FHA is a 30 yr fixed???