Flipper Houses

Flipper Houses Flipper Schemes not all flipper houses involved schemes buying a flipper house from an investor who bought a fixer upper and made improvements is common in some neighborhoods the investor. Flipping house flippers have been getting a bad rap recently. During the real estate boom in 2000 to 2005 mortgage brokers and agents were working to closely with crooked investors. What is a Flipper Flipping involved four parties the appraiser an investor or real estate agent a mortgage broker and a new buyer of which all four know each other. Flipper Investor The investor would make a deal with a seller to buy the home at a bargain basement price or pre mortgage foreclosure short sale typically the seller was not really involved in the flipping scheme but was instead a victim. Flipper New Buyer The investor would then pay a few thousand to entice a new buyer to purchase the home at a value much higher than market value. The new buyer typically had a good credit rating but insufficient income. Flipper Appraiser The appraiser then is instructed to appraise the home at its inflated value and present this fake appraisal to the mortgage broker. Flipper Mortgage Broker The mortgage broker packages a loan for the new buyer, relying on state income that a made up income documents, and the deal closed. Flipper Profits The new buyer appraiser mortgage broker and investor then divied up the proceeds among themselves, with the bulk of the profit going into the investors or agents pocket. Flipper Resale The investor then puts the Flipper Houses on the market and sell it to a real buyer,flipping houses letting the new old buyer sign the deed over to the newer buyer. Most times the new new buyer did not show sufficient income neither, however that does not matter because the same mortgage broker qualified the newer buyer. Flipper Foreclosure Homes Usally these foreclosed homes are caused a few months after closing the newer buyer goes into default on their banks home mortgage loan. Most times the original parties are long gone tah tah and the home goes to foreclosure. Long Gone and To Late due to the extents of this type of flipping regulators have cracked down. Appraisals are scrutinized closely now a days and lenders have tightened guidelines for home loans. Today the FBI is closely monitors mortgage fraud and lots of crooks have gone to jail. Flipping over flippers