Borrowers & Lenders – Preventing Lawsuits Together

Lenders, on the other hand, have similar expectations of borrowers, although many borrowers believe, for reasons unknown, that they themselves are not necessarily burdened by the necessities of honesty. A case in point is that it is the borrower’s responsibility to have a current (and realistic) appraisal of the collateral property ready to share with the lender. If the borrower misrepresents the value of the collateral (usually by an over-estimate), then the lender cannot be expected to proceed with the closing of the loan. Even more obnoxious, such an action may very well result in lawsuits, complaints, or accusations of fraud.

How to avoid such an eventuality? Simply remember that misrepresentation will cause little more than legal entanglements, disappointment, and dissatisfaction.