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Is flipping homes illegal?

Posted on: 20th Jan, 2006 01:10 am
I am interested in flipping homes but I have read that this is illegal. Is there something wrong in flipping homes?
I don’t think it is illegal until and unless what you are doing is honest and open to all.

Zeal_Deal
Posted on: 20th Jan, 2006 01:14 am
Hi Ani,

Welcome to MortgageFit Forums.

He is right, there is nothing wrong in buying an undervalued home, fixing it up and then again selling it at a higher price. You don’t even have to live in that place.

But if a property is appraised at a higher value and then it is quickly sold in the market then it is illegal. This process is also known as flipping which is a kind predatory lending practice.

God Bless You.

Thanks,
Samantha
Posted on: 20th Jan, 2006 01:25 am
thanks for the information samantha and zeal_deal, it has eased off lot of my tensions.

Ani
Posted on: 20th Jan, 2006 01:32 am
definitely not illegal, but lenders are hesitant to lend on flipped properties, as the question of true value is always in the back of their minds, as is the recent incidence of flips that have defaulted. one must be extremely careful in any case, whether being the flipper or the flippee.
Posted on: 21st Dec, 2009 08:15 am
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