"House Flopping"

[flip_it_fast]

Ever hear of "House Flopping"? Not me until now.

House flopping is when all parties involved who have a stake in the property (sellers, owners, lenders) under appraise and come in below fair market value for quick sales.

Essentially, low appraisals enable a below-market sale, which then allows the buyer to quickly resell the property at a higher price and pocket the proceeds. Whether the appraiser is in on the fraud or is simply pressured into a low valuation, the end result is the same. House-flopping can be especially problematic when short-sales are involved. What should be a reasonable way out for underwater homeowners becomes prohibitively complicated when banks are unable to trust the appraiser to establish a property's current value. Suspicious banks simply don't agree to short sales.

Just what we need, more fraud in the housing market!

Of all the loans evaluated last year one-third of them were found guilty of some kind of fraud dealing with appraisals or valuations. Thats a huge portion of all loans!

[homealone]

Apparently these people don't care what they are doing to this country!! If they are caught doing this stuff they seriously need to be forced to pay back or some how make amends for their actions.

This crap is not fair to those house flippers who follow the rules and take the real risks.

[flip_it_fast]

I agree with you. Like I said, we don't need these kinds of things. They only make what has been a bad situation even worse.

I am glad that they have caught a lot of the scammers but I fear they have a way to go. People will scam up until the minute they get caught. If they have founnd a way to make a quick buck they are going to make the most of their opportunity. Let's hope they all get caught.