As flipping homes becomes more and more popular (following the onset of several hit telivsion shows – “Flip This House” and “Designed To Sell”) there has been growing concerns for the legality of this practices. In reality – flipping properties has gone on since real property existed. In recent years – illegal flipping schemes have cropped up and have tarnished the flipping process.
Illegal flipping schemes are no more than loan fraud. Lenders, Agents, and investors working together to inflate the value of a property several times pulling the equity and letting the property foreclose.
Flipping is not the illegal practice – the loan fraud is. To combat this – certain loan programs now require a “Seasoning Period.” Seasoning is up to 6 months between the purchase and sale of a property – eliminating the possibility of this particular type of loan fraud. Specific programs that require this “Seasoning Period” are FHA, Wholesaling and low down payment programs – according to FlippingHomes.com.
If you are interested in finding a home to flip, fix up or to keep as a rental propety in Spokane – give me a call 990-7653.