Mortgage Lending: 7.5.1 Overview
Property flipping scams involve speculators who buy dilapidated or just older residential properties at low prices and resell them to unsophisticated first time home buyers at huge markups.538 Sometimes these scams involve new construction, with a home builder selling first-time homebuyers overpriced, poorly constructed homes or undeveloped lots in a subdivision.539 Buyers are persuaded to enter into purchase agreements only after the seller has promised to make necessary or agreed upon repa