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 the bank is left with a $72,000 mortgage on a property only worth $30,000. It's left with a "bad loan" of $42,000.
If the loan is FHA- the government absorbs the loss.
UNBELIEVABLE!!
This is the first I'm hearing of this.
Good, decent people are having a hard enough time obtaining a loan or keeping their homes.
Then, we have scum like this who don't care about the next guy. Don't they realize what they're doing is hurting all of us? Or do they just not care?!
I'm a strong believer in Karma.
I know they will get what's coming to them!
And I can't wait!
Realtor
The Suddreth Group
980-254-7263
Comments(16)