A well-researched piece in BrickUnderground finds that buyers and sellers have been fudging sales prices increasingly to avoid board turndowns.
Approximately one in 10 co-op sales are recorded at misleadingly high prices to appease boards defending their property values, the Web site reports on the basis of its interviews with several lawyers and a mortgage broker cited in the post.
The process is somewhat convoluted, but the housing market’s plunge after the collapse of Lehman Brothers on Sept. 15, 2008 renewed interest in faking contract prices with the knowledge of all concerned parties, BrickUnderground says.
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