The main aim of this Field Study Project is to examine the risks associated with the use of residential real estate as collateral for mortgage financing in the SEE region. A comparative study of three countries in the area is presented: Bulgaria, Romania and Serbia. A general overview of the macroeconomic, financial and real estate environment is provided, followed by more specific analysis of two major risk anchors: the risks stemming from the legal framework regarding the ownership regime and foreclosure procedures in the mentioned countries; and the risks arising from the valuation of residential real estate ‘per se’. The risk of misevaluation, as appearing for financial institutions operating in the region derives primarily from the absence of regulated valuation standards and best practices, together with the scarcity and lack of reliability of data for providing accurate valuation results. The present study examines the methodologies and practices employed by the European Valuation Standards, as well as the level of compliance of each country. Finally, the empirical application of the described methodologies is supplied through a linear multiple regression analysis with data retrieved from unofficial sources from each country, aiming to examine the feasibility and accuracy of the proposed practices.