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Agent2Agent in 89011 : Real Estate Advice

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Activity 1
Fri Dec 24, 2010
James Gordon ABR SFR SRS answered:
Eleana I am glad you asked. This is one of the things that the FBI is looking for in invetigating mortgage fraud. It is a practice known as flopping and will trigger a FBI review of the transaction.

Flopping, Short Sales, and Broker Price Opinions

Perpetrators are conducting short sale property flipping schemes using distressed properties of homeowners who are unemployed or facing foreclosure. The perpetrators collude with appraisers or real estate agents to undervalue the property using an appraisal or a broker price opinion to further manipulate the price down (the flop) to increase their profit margin when they later flip the property.68 They negotiate a short sale with the bank or lender, purchase the property at the reduced price and flip it to a pre-selected buyer at a much higher price.

Here is a link to the FBI mortgage fraud page.
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