Short Sale

Commentary: A Question of Value 

For this week’s editorial, I was thinking about how much press coverage ‘exotics’ get, both in terms of the lax (or at least, poorly understood) underwriting criteria and in terms of how borrowers with these sorts of loans quickly find themselves in deepening water. While justified to a certain extent, the problem of exotics is a drop in the bucket of a much larger, and ultimately more sinister problem: appraisals.