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    11142012 – Flopping anyone? The latest scam in Mortgage Fraud…

    If you have not heard of “flopping”, don’t panic, most people have not. That “most people” includes those in my industry of real estate as well.

    It is a technique or a strategy that is used by a person to motivate the “owner – bank” into making a quick sale.  That “person” is typically a jilted property owner.  They spread around urine, shut all of the doors and windows and leave the heater on for days.  They even paint ceilings in order to make them look like they are water damaged.  Got Mold? – they get black and silver paint – mix them and go to town with cigarette/cigar ashes on top to give a “dangerous spore like” appearance.

    We have seen empty bags of concrete or quick set being placed upstairs in some residences, giving the appearance the previous owner poured these into the upstairs property drains.  If proven to be true – that is a HUGE expense because the home needs to be fully plumed   More of an issue when the original plumbing ran through the inside of the slab – imagine that!!!

    Not only does “flopping” equate to a quick sale, it is a way of buying a property at way less than Fair Market Value.  A single owner(alone), would not be able to complete the Flopping Strategy.

    We have seen the same sorts of games at vehicle auctions with the Police Department.  Watching as some of the “buyers” would purposely mess with the engines and wires in order to “turn off “the competition.

    There has to be others involved – included in most cases are a real estate agent.  The owner needs to do their research as to the foreclosure and auction process.  Once they become savvy in their operational knowledge, they are all set to spread the seeds of this Fraudulent game.

    There are many fail safes in place that attempt to curtail this type of illegal activity – one of them is Jail.  But, placing jail aside, most agents are not going to bet their license on the hopes of making some coin and hopefully getting away with it.  However, from a seller’s perspective, if their bank was not willing to help them with a loan modification or principal reduction, some view this as if it’s payback to their lender.

    Be safe – when you walk into a property for purchase and it seems to be “staged” in a bad way – you may want to get a home inspector to have a look under the hood.  Maybe not with a full blown home inspection – but a 15 min to “have a look”, kick the tires and listen to the engine.  It may be that the home you want to buy is being staged so the act of “Flopping” can be committed.

    A Savvy Real Estate expert will be able to see through most of the “flopping staging” of a home.   Be Safe – hire experts and make sure you are sitting down in a Real Estate briefing before you look at the first home that is for sale.

    Have a Great Day – Talk soon.

    This is the newest real estate listing for sale in the City of Newhall CA.  Newhall is located inside of the Santa Clarita Valley and is central to most everything the SCV has to offer.  Let us know when you are ready to get a ‘leg up’ on your “buyer competition’.

    [idx-listings city=”Newhall” statuses=”1″ propertytypes=”513″ orderby=”DateAdded” orderdir=”DESC” count=”1″ showlargerphotos=”true”]

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