A fraudulent property flip is a scheme in which individuals, businesses, and/or straw borrowers, buy and sell properties among themselves to artificially inflate the value of the property.
Best practices for fraud prevention:
Reverse mortgage fraud involves a scheme using a reverse mortgage loan to defraud a financial institution by stripping legitimate or fictitious equity from the collateral property.
Guard against this type of fraud by:
Straw borrowers are often recruited from such housing and then used by the perpetrators to meet borrower age requirements in the program.
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