Sunday, May 25, 2008
Fraud in Day Light
This is an update to my post back from Saturday, March 29, 2008.
Well, the house was put on the MLS for sale asking $725,000. I called on the second day to the listing agent and was told that the house is in escrow....
The seller (flipper) slapped a coat of paint to the house and was thinking to flip it. So I was thinking that there is now way to sell this painted leaking roof shack for more than what he bought it from the bank just in January for $500,000.
Surprise! I just checked public records and found that indeed a sale was done and a buyer got it for $700,000.
From my good knowledge of the area, there is absolutely no way that a legit appraiser will give $700,000 to this place. There is no chance that any crazy bank will give a loan for this amount unless of course there is some serious down payment. Similar houses in the area are selling for $500,000 range.
Check out websites such as propertyshark.com to find the owner's name.
So far, i haven't seen anyone moving in...the house is still vacant.
My bet, is that this is a straw buyer that does not exist and that the poor bank got jacked. The flipper managed to bailout of the shack with some nice cash...Amazing, only in the US of A.
Give it 4-6 months, and we are going to see a fresh NOD on this one.
And if the bank's people are reading this...look no other place, the robber is the seller, go after him!