Problem
The owner of a business faces foreclosure and auction of his property if the bank loan is not paid-out be the end of December. The owner gets an appraisal undertaken (without advising the appraiser of the crisis he faces) that shows the market value is $2,000,000. The loan is $1,800,000. The owner feels that this is a good position and that the bank should be paid out fully. What is the major flaw with his thinking?