Overappraisal is not legal and some double closings

.Dan Stockman writes an interesting article on flipping. Flipping is when you buy for example the Pizza Hut owner's home for $3 million dollars but it is worth $40 million dollars. We would wonder why the Pizza Hut man would sell his house valued at $40 million, but we would agree that the buyer definitely got a good deal.

Matter of fact, we would not be too surprised if the buyer turned around and resold the house after discovering that the house is worth $40 million for $20 million or even the $40 millions and we would agree that the buyer made some money in this deal..flipping.

But the one that gives us a moment pause is when a house worth only $2,000 is brought for $10,000 but appraised for $40,000. This is not the same as the Pizza Man house because the Pizza Man has a huge amount of wealth in it when the second house has no wealth to begin with. So in the second example, the first buyer is willing to pay the $10,000 for the worthless property. Why because the buyer knows that the appraised price is not $2,000 but $40,000.

This $2,000 home was divided up for a profit of $38,000 by two individuals. The last buyer without knowldege has a home lacking in truth in lending that is only worth $2,000. This information was not shared with the last buyer, by the seller or lender that the house was overvalued..illegal fiipping. The loan was for more than the value of the property and the lender should have made sure several different appraisal confirmed that the house was really $40,000 or they were as responsible as the seller in deceptive lending. Call it by what ever name, flipping, it was fraud if the property was overvalued or over assessed and the information was never shared with the buyer.

Illegal flipping of over assessed home with information not shared with buyers is what has happened to many families in Fort Wayne, supported by our elected officials..go read the books.

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Where is Attorney General Stephens Carter on this? Why is Attorney General Carter not investigating and charging elected official with fraud? Home owners or business owners are embarrassed that they were robbed by people they trusted to give them a fair deal. This just made these crooks fat cats and smug in going for bigger deals.

Can we say Southtown mall. The Mayor Graham Richard used eminent domain to steal the property of Whichard to sell to another buyer. That buyer is holding the land to sell at a high price. What did Whichard get about $4.5 million dollars for property that would be appraised at a higher value without any improvement? Now ask yourself the question? Is this not flipping? You bet it is, but the city official calls it saving the tax payers dollars when it sold the property under the market value.

The city not only overtaxed the citizen, (but likes to say them are saving the taxpayer dollars )in the over assessing of property during the 2002 property reassessment but it also entered the real estate business to take advantage of the over assessment. Millions of dollars stolen from the taxpayer, explains why we see an outgoing smiling Mayor Dick.

U.S. Attorney for the Southern District of Indiana Susan Brooks’ office was handling so many mortgage fraud cases in the Indianapolis area that she set up a task force, bringing together federal prosecutors, the FBI, the Internal Revenue Service, the U.S. Postal Service Inspector’s Office and the U.S. Department of Housing and Urban Development’s Inspector General.

Some folks need to contact those folks in the morning!

In Cleveland, a grand jury has indicted 59 defendants on 269 charges of racketeering, forgery and theft in a $3 million mortgage scheme involving 38 properties. The ringleaders in that case are accused of using false information to get mortgages.

Don't forget to check out the mortgage fraud blog. And a little disclaimer this is in no way legal advice.