You've heard of "flipping" houses, well now there's "flopping." While the first was speculative, this one is outright fraud.
"Flipping" refers to when home values were rising so fast and the market was so hot that you could buy a house, slap on some new paint and fix up the yard and throw down some marble countertops and turn it around and sell it for a tidy profit.
Now that the bubble has burst and people are trying to offload all these houses, one of the ways they are doing it is in a "short sale" where the bank agrees to allow the house to be sold for less than the value of the mortgage. Doing so lets them avoid the costly foreclosure process and gets the bad loan off their books.
But what "floppers" are doing is pay a crooked appraiser to say that the house is worth even less than its real current market value. They then have a "straw purchaser" buy it, and then they turn around and sell it for what it's really worth.
The Federal Financial Crimes Enforcement Network (FinCEN) recently released a report indicating that mortgage fraud suspicious activity reports rose 7% in the first half of 2010, the terms "short sale" and "broker price opinion" showing up 827 times and 41 times, respectively.
THE TAKEAWAY: What this means for homeowners is that banks are making it harder to do short sales, preferring to instead go for foreclosure, even when it costs them more money. Several cases have come out where the bank has insisted that the short sale price was too low to allow the sale to go through, only to turn around and try sell the house at auction for less than what the short sale price was.
What you can do if your short sale is initially declined is try to convince the bank that the "auctionable cash-price," the price they can sell the house for at auction, is lower than what they think. Submit in one big packet at once any interior deficiencies, renovation costs, or engineering reports that you think will make the case. Include several different contractor estimates and bids and broker price opinions to help make your case.
For more information on preventing foreclosure, check out this Consumer Reports article.
Mortgage Fraud Suspicious Activity Reports Rise 7 Percent Increase in the First Half of 2010 [FINCEN.gov]Wary lenders denying short sales [Boston] (Thanks to chiieddy!)
SIGTARP Quarterly Report to Congress April 20, 2010 (PDF) [SIGTARP.gov]
Short Sale Denied; Advice to make Bank Reconsider? [ths.gardenweb]
Obama is history!
Obama was always a one term show!
any political strategist knows few black candidates win statewide re-elections, no black candidates wins re-election win he or she pisses off their liberal base.
Obama was always a Clarence Thomas Clone, Obama knew that a black conservatives never would win the White House, so he done a Reagan, “ACTED” like he was a Democrat. (Reagan acted like he was a President, History will say Reagan started the decline of the USA)
The MSM final act with OBAMA is to make sure no real Democrats primary this clown! (the games have already begun, listen closely, Obama always beats Palin, does Obama beat Romney? NO!!!)
the target of the intelligent left should be the 23 democrat senators up for re-election in 2012! Why? it is very simple, these Senators want to win re-election, (the intelligent left must get ahead of the KABUKI game, Obama is old news, attack the 23 Dems up for re-election in 2012! and you may force them to dump OBAMA)
The left must tie OBAMA around the necks of all these Senators up for re-election! Obama is already TOXIC, make him NUCLEAR WASTE and the Dem Senators will force a primary of OBAMA!
Listed below is the OBAMA necklace that all Dems Senator must wear in 2012
1st Obama endorses the Bush agenda of spying on and killing americans
2nd Obama attacks Unions (the F! the UAW moment screams republican)
3rd Obama double downs on Bush Wars, (now they are Obama wars)
4th Obama attacks Teacher Unions (teacher unions now hate OBAMA)
5th Obama does not attack the Banks? he bails them out? (sorta like what the GOP does)
6th Obama passes the Bob Dole Health Care Bill (Bob Dole is a republican)
7th Obama kills the Public Option
8Th Obama kills Drug Importation
9Th Obama APPOINTS an insurance executive to manage his health care Bill
10th Obama does not APPOINT Dawn Johnsen
11th Obama hand picks the cat food commission to destroy Social Security
12th Obama supports Blanche Lincoln, a candidate who hates Unions, and has no chance of winning
13 Guantanomo still open for business
14.Patriot Act renewed
15. renditions continue
16. Bernanke reappointed
17. Americans targeted for assassination
18 Obama is all for sending more USA jobs off shore
19 Obama is for tax cuts for the RICH!
20. Obama and the TSA porno Scandal
21 Obama freezes federal wages for 2 years
22. OBAMA TARP Funds for Legal Services for Foreclosure Victims Blocked By Treasury
23. Obama lowers estate tax for the rich
24. Obama tax bill of 2010 GUTS Social Security
25. Obama wants WikiLeaks Assange charged with espionage.
26 Obama Fake Net Neutrality Caves to AT&T,Comcast
Coming in 2012
Gas prices above $4.00 close to $5.00 a gallon (this will end OBAMA)
Mass un-employment!
99ers living on main street (Homeless at an all time high)
social security cuts
the MSM will scream how Obama is un-beatable, if you believe that garbage, go visit Santa Clause in the North Pole and telling him hello from all of us! :)
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