Thursday, March 11, 2010

Flipping and Flopping

The FBI recently added short sale flipping, dubbed "flopping" by some mortgage fraud experts, to its list of recognized real estate fraud.

Voltron says: Flopping relies on the use of "Broker Price Opinions" or BPOs to lowball the short sale price. They can then do a "classic" flip using a typically inflated appraisal.  None of this would be possible if the banks would use rent to establish the value of the house.

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