It’s looking more and more that this sort of under/over valuation of property is the way things are done in banking and real estate. Some of it is practice; some just practical. I know from experience that every home I have ever owned -
1. Is evaluated for tax purposes at a level lower than what I bought it at, and I think that level is baked in.
2. Is INSURED at a level lower than the most likely SELLING price of the house.
3. Is likely to SELL - depending on the market - at a price SIGNIFICANTLY higher than the tax assessment.
That should come as a surprise to no one. And 1 and 3 are numbers I have ZERO control over. And if I succeed in selling it at ten times what I paid for it, it’s not fraud.
What I find exasperating about the Trump case is - all of the transactions were above board, everyone involved knew the numbers, there was no deception and all parties were fine with the outcome. Everything was paid with interest in entirety and the lenders would do business again.
To put it in simplest terms - this was a private transaction between two parties and both sides were fine - and still are.
Part of me still thinks if this were done to me, I’d answer “so? What’s it to you?”.