Florida's real estate market today has been so attractive to buyers because of its greatly marked downed prices for its Cape Coral
lots for sale and other properties. Aside from this, the market has incredibly low interest rates and thousands of properties on foreclosures ready to be sold to home buyers waiting to jump at opportunities to buy their dream houses at perfect bargains. However this kind of status in the real estate market could mean a looming crash in the market. This is not at all unfounded because real estate history tells you about the common practices and sceanarios in the market that have lead to a crash in future generations.
Some of the dubious practices due to the current state of the real estate market are downright scheaming and fraudulent. The major culprits of these fraudulent acts are the property flippers. What they do is take properties on short sales at prices way below what common home buyers are willing to shell out. They then persuade banks to sell these properties to investors at prices that are below market standards. When these properties are in the hands of the investors, the prices are then flipped to higher market prices so that the investors and flippers can share with the profits. As part of the scheaming process, investors are being helped by so-called credit improvement companies in terms of balances in their bank accounts to show banks and lenders that they have the financial capacity.Although the accounts are in fact true, their ownership to the actual loan applicants are not.
Applicants who pay for the service are assigned account names but are not allowed to have access to the money. Thus these accounts become in effeci dubious sub accounts and so when mortgage underwriters check for the veracity of these accounts, they will get the name of the loan applicant. Investors can go as low as lying to banks and lenders that they are going to be the principal dwellers of the property just so they can avail of the staggeringly low intert rates and down payments that the lenders offer to their real clients.
Another type of fraud that comes as one of the signs of the times are borrowers that falsifying their W-2 and other records to be able to comply to the thresholds given by lenders in terms of debt and income.Because of these fraudulent practices of the times, mortgage lenders have used anti fraud devices to help identify fraud. They have also employed the help of important databases such as credit bureau data, loan application database to reduse the risk of fraud. These software can help verify the number of residence records as well as loan applications to other lenders among others. Since Florida is high in the list of fraudulent, real estate practices, it is best to be thorough in the process of choosing from the lists of lots and properties in the area.