NEW YORK (CNNMoney) — Why would anyone spread possum urine around a house, turn up the heat and close all the windows for a few days?
Because they’re flopping, of course.
Flopping is the latest in mortgage fraud, in which sellers actually want as low a price as possible.
The scheme works if they are underwater on their mortgage, and their lender agrees to a short-sale, forgiving the difference between the sale price and the amount owed.
The seller unloads the home for the sandbagged price to an accomplice, who can then clean it up and flip it for a quick gain.
Suspicious short sales, ones flipped the same day, accounted for just under 2% of all short-sale transactions in 2011, according to CoreLogic ( ). Floppers averaged a 34% gain. The average profit: $55,000.
http://money.cnn.com/2012/10/23/real_estate/mortgage-fraud-flopping/index.html
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