Flipping loan scam... - Posted by Glen SoCal

Posted by CurtNY on February 07, 2002 at 12:17:04:

Hi Heidi,
Although I like your optimism unfortunately I think we’ll have more and more to worry about. Bank & Mortgage Companies are funny creatures, I know I’ve worked in the industry since college (some years ago ;-). They make rules and unfortunately many times the scope is too wide. EX: FHA and investors using 203K, some bad apples took advantage and tried to break the rules, guess what, no more FHA 203K for investors. Personally I don’t think its an issue because its too time consuming with all the paperwork, and creative investors know how to fund deals elswhere but you get the idea. I’m afraid this flipping issue is going to get out of control and create industry wide changes. Again not the end of the world as investors we just find solutions to problems, this is just another problem to get around but will throw many investors used to a certain system for a loop. Well just my 2 cents, best of luck.

CurtNY

Flipping loan scam… - Posted by Glen SoCal

Posted by Glen SoCal on February 06, 2002 at 20:29:54:

I found this article on the ‘Paper and Notes Forum’. It was posted by, Michael Morrongiello with the mention of why flipping is becoming more difficult. I hope he doesn’t mind that I post it here.

www.mortgagedaily.com/ScamInformantSentenced012801.html

Re: Flipping loan scam… - Posted by Heidi W

Posted by Heidi W on February 06, 2002 at 22:54:49:

It’s a shame that a few bad apples can spoil things - and maybe we (investors) should think twice before we refer to our wholesale/retail activity as ‘Flipping.’

However, since I think that most investors are not doing fraudulant transactions designed to scam mortgage companies, rather they are working hard to find good deals and ‘flipping’ them to other investors without illegally inflating property values, strictly to make a profit in an honest American capitalist tradition. Therefore, we shouldn’t have too much to worry about - along as we make the distinction between dirty dealing and honest hard work flipping-clear!

Just my opinion.

Heidi