With the return of home buying for 2013 you can bet there will still be those creative fraudsters out there trying to work the best deal in the home-buying market. Who wouldn’t want to get the best deal for the home you are buying says fraud expert Linda Webb, aka The Fraud Dog.
Well the fraudster “flopper” is also out there lurking in the unsuspecting communities, hoping to find ways to bring the value of the home the scammer is intending to buy, so that several months later the fraudster can flip it for a much larger sum.
Flopping a house means to do damage to the home in order to bring the value of the house down upon sale.
Some examples of the flopping scam-damaging homes are:
- Placing dead bugs and rodents in the home to show insect infestation or termites.
- Mold – Watering the inside of the house then cooking the house with heat so mold will form.
- Damaging the ceiling to make it look like a roof repair
- Putting cracks in the walls so it looks like the house has a foundation problem.
- Putting large holes in the ground to make it look like sink holes.
- Damaging the electrical system to make the house look like a fire hazard.
There are other forms of mortgage fraud, like reverse mortgage fraud scams preying upon the elderly, and debt consolidators preying upon people who are in financial trouble. Even though there has been a lot of reform to the mortgage industry, you can bet the fraudster will continue to morph in order to beat the system says Linda Webb, the fraud.