5/20/2005

Property Flippers Beware

US Bank Home Mortgage is now carrying on with what HUD started in 2003--namely, no loan funding for properties where the seller in a conventional home purchase has held title for less than 90 days. And Freddie Mac last October started property valuation warnings on potentially fraudulent loans. Property flipping is considered growing threat and could lead to financial losses--US Bank says it is "a threat to the integrity of the residential real estate industry", in a memo this week, according to Inman News. These transactions can involve false appraisals, which can lead to a false inflation of selling prices. If you are considering a purchase or sale in the near future, take these remarks into consideration, or ask your Realtor to give you assistance with a little research and advice.

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