Lender Seasoning Leaves a Bad Taste
by William Bronchick
There has been a lot of negative press and misinformation lately about double-closings. Many people have been indicted recently under what the press has called "Property Flipping Scams." Uninformed lenders, real estate agents and title companies will tell you that double-closings are now illegal. In fact, they are nothing of the sort.
The so-called property-flipping schemes work as follows: unscrupulous investors buy cheap, run-down properties in mostly low-income neighborhoods. They do shoddy renovations to the properties and sell them to unsophisticated buyers at inflated prices. In most cases, the investor, appraiser and mortgage broker conspire by submitting fraudulent loan documents and a bogus appraisal. T...
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