Question:

What exactly is mortgage fraud flipping?

Answer:

Beside a lucrative endeavor, real estate flipping can be a mortgage fraud. Property flipping is easily done with houses in cheap neighborhoods and uninformed buyers. One could just get a house below market value, overprice it and sell it to someone short of cash for down payment. Offer them low rates, zero down payment and some cash on top and they'll be hooked. The problem is that they will be taking a loan that exceeds the property worth by the modest 20-30 percent in the least and as much as twice the property market value for greedy flippers and this is illegal.

Don't practise illegal mortgage flipping and don't allow someone do it to yourself!

Common flipping scenarios can vary widely, but generally include overpricing, luring rates plus no closing costs and naïve buyers in order to take place. This scam is easy to spot by the regulatory examination when an independent evaluation is ordered. 


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