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. 

http://www.heraldtribune.com/article/20091115/ARTICLE/911151083