How to Prevent Your Southeast Michigan Real Estate from becoming a “Flop”
Posted in Southeast Michigan Short Sales by Michigan Real Estate Expert on May 12th, 2011 Flopping is a short sale scam in which investors hire brokers to assess southeast Michigan real estate for less than its market value and convince lenders to sell the home for far less than market value. Then, the investors quickly turn around and sell the property for a profit to a buyer they already have lined up.
This type of “flopping” is on the rise, and it is costing lenders millions of dollars. The greater the losses for lenders, the more difficult it becomes to make new mortgage loans available.
Here are the basics you need to know to prevent your southeast Michigan real estate from becoming a southeast Michigan short sale flop:
What makes flopping a scam?
The crime is in the fact that the lender was not made aware of the other, better offers. Instead of the lender getting a higher price for the southeast Michigan real estate, the difference in the short sale price and the resale price is divided between those involved in the flop.
Can I get tied up in this flopping mess and not even know it?
In most cases, the homeowner has no idea that this illegal activity is going on. However, in some cases, the homeowners themselves can be part of the southeast Michigan short sale scam. That is, the broker involved in the flop convinces the homeowner it is a faster way out of the present situation or that it is a way they can get a few thousand dollars to help with expenses. Brokers involved in flopping scams are not going to tell the homeowner that it is illegal.
How can I protect myself from a short sale flopping scam?
The best way to protect yourself from this type of scam is by educating yourself. Most importantly, make sure you are dealing with an honest real estate agent. Interview agents before choosing one, get referrals and references and don’t be afraid to ask questions. Remember this is your financial obligation.
Are you behind on your mortgage and thinking about a short sale? As a Certified Distressed Property Expert and attorney, I can help you navigate a Southeast Michigan short sale to keep you from making a terrible mistake. Give me a call today at 248-514-2640 or email me at info@NorthWoodwardHomes.com.
Lee Morof
Associate Broker/Certified Distressed Property Expert/Attorney
RE/MAX Showcase Homes, Birmingham, Michigan
Call: 248-514-2640
info@NorthWoodwardHomes.com
www.NorthWoodwardHomes.com
