Saturday, May 09, 2009
Customers finally bite back
Las vegas sun: Customers sue KB Home, allege rigged appraisals, inflated prices
Representatives of the plaintiffs allege that KB Home, Countrywide and LandSafe Appraisal Services conspired over a three-year period to sell 14,000 homes in Nevada and Arizona with rigged appraisals that overvalued the homes by tens of thousands of dollars.
In two KB Home subdivisions cited in the complaint, sampled appraisals were inflated by about $82,200 per property, the lawsuit alleges.
“Even if we used a more conservative $20,000 per property, this alleged scheme would add $280 million in ill-gotten profits in KB’s pockets,” said Rob Carey, an attorney representing the homeowners.
Posted by mark @ 11:27 AM (494 views) Add Comment
2 Comments
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1. japanese uncle said...
The 'customer' still had a choice whether to buy or not.
2. crunchy said...
JU, today one's stupitity is always someone elses fault.
There is money to be made out of this stupidity. It is only then that people become smart.
Hindsight is always 20/20.