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(마이애미 한인) Latest in mortgage fraud: Flopping (마이애미 한인)

(마이애미 한인)

By Les Christie @CNNMoney October 23, 2012: 6:22 AM ET

Flopping is the latest in mortgage fraud, in which sellers actually want as low a price as possible. Then an accomplice can flip the home for a big gain.

(마이애미 한인) NEW YORK (CNNMoney) — Why would anyone spread possum urine around a house, turn up the heat and close all the windows for a few days? Because they’re flopping, of course.

Flopping is the latest in mortgage fraud, in which sellers actually want as low a price as possible.

The scheme works if they are underwater on their mortgage, and their lender agrees to a short-sale, forgiving the difference between the sale price and the amount owed.

The seller unloads the home for the sandbagged price to an accomplice, who can then clean it up and flip it for a quick gain.

Suspicious short sales, ones flipped the same day, accounted for just under 2% of all short-sale transactions in 2011, according to CoreLogic (CLGX). Floppers averaged a 34% gain. The average profit: $55,000.

Related: Buy or rent? 10 major cities

(마이애미 한인) Fraudsters can get away with it because banks are swamped with short sale requests — they have more than tripled in the past three years.

The possum urine trick was an extreme example of the methods used to discourage homebuyers, said Ann Fulmer, a mortgage fraud specialist with Interthinx. “It smelled like a Hazmat site,” she said.

Other tactics: Floppers pull out appliances and take cupboard doors off their hinges. They leave dirty laundry lying around and paint what looks like water damage on the ceilings. They might also invent plumbing or electrical problems, and give appraisers fake repair estimates created by cooperating contractors.

Related: Best places where homes are affordable 

(마이애미 한인) The sellers point out the flaws to legitimate shoppers, and when no one buys, the sellers have a convincing argument to make to the bank, according to Tim Coyle, director in the Financial Services division of LexisNexis Risk Solutions.

They can say: “Look, I’ve tried to move this property for six months and haven’t been able to — we need to lower the price,” said Coyle. “They convince banks that the value of the property has deflated.”

It can be hard to refute bogus damage claims without full investigations, according to Rob Hagberg, associate director of fraud investigation for Freddie Mac.

(마이애미 한인) One flopping scam that relied on heavy repair estimates was repeated several times in the Ogden, Utah area. A group kept claiming houses had been contaminated with residue from crystal meth labs.

“It was the same cast of characters on multiple properties,” said Hagberg.

Noticing the pattern, Freddie Mac investigated and broke up the ring.

The agency solicits help from the public to bust floppers and has a toll free number to report suspicious activity — 1-800-4fraud8. To top of page  

(마이애미 한인)

About jennyformiamihome

성심껏 도와드리겠습니다. 연락주시면 바로 상세히 답변드립니다. Jenny Shin / 신정미 부동산 (Broker's Real Estate) 남부 플로리다 마이애미 지역 한인 부동산 주택매매 렌트 싱글하우스 타운하우스 콘도 브라워드 카운티 마이애미 데이드 카운티 포트로더데일 웨스턴 코랄스프링 도랄 Rent or Buy single house, town house and Condo Miami Dade County / Broward County, fort lauderdale, coral springs, copper city, weston, doral 1398 SW 160TH AVE. SUITE 105 Weston, FL. 33326 Direct : 954-551-0236 Office : 954-384-1616 Fax : 954-697-0447 E-mail : jenny_shin62@hotmail.com

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JENNY SHIN PROFILE


Jenny Shin / 신정미 부동산
(Broker's Real Estate)
1398 SW 160TH AVE. SUITE 105
Weston FL 33326
Direct : 954-551-0236
Office : 954-384-1616
Fax : 954-697-0447
E-mail : jenny_shin62@hotmail.com

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