government loans: When Property Flippers Go Bad !! - 03/25/09 11:39 AM
I read about this in our local newspaper, the Charlotte Observer.
The Case of the Property Flipper
A common form of property fraud is a scheme called, "Illegal Property-flipping Scheme". Get this:
Example:
A person posing as a property flipper legally buys a property for $30,000.
The flipper has the property appraised (fraudulently) for $90,000.
The flipper then sells the property for the inflated value of $90,000 to a "straw" buyer (this is an accomplice).
Using the fraudulent appraisal and purchase papers, the accomplice obtains an 80% loan of $72,000. The profit is $42,000.
The home ends up in foreclosure and … (16 comments)