This research shows that mortgage fraud can cause an upward bias on sale prices and subsequently on assessment values and property taxes. The current crisis surrounding mortgage fraud and assessment values is almost assuredly underestimated, in that much mortgage fraud goes undetected. As a result, the assessment profession should join its resources with those of real estate and law enforcement groups within communities to help stem the neighborhood effects of mortgage fraud.
Subprime mortgage loans
Carswell, A. T. (2009). Effects of mortgage fraud on property tax assessments. Journal of Property Tax Assessment & Administration, 6(2), 5-17. Retrieved from https://researchexchange.iaao.org/jptaa/vol6/iss2/1