How Flipper Schemes Work in Real Estate

Some of the foreclosures on the market right now got there as a result of flipper schemes.

The crooks involved in flipper schemes often trick themselves into believing that they aren't doing anything wrong, but when you involve a straw buyer or falsify a loan application or make a deal to get cash back under the table, it's against the law. In fact, it's one of the reasons that lenders have tightened guidelines and imposed more stringent policies, which allow fewer and fewer borrowers to qualify for a mortgage.

It's not unusual, for example, for a lender to require a review appraisal at the last minute, just prior to funding. If the second appraiser doesn't jive with the first or comes in lower, that loan may not fund . . . read more about Flipper Schemes.

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