Mortgage fraud keeps growing as foreclosures head to auction and banks agree to more short sales.
The FBI lists the top schemes as auction fraud and short-sale fraud called flopping. In auction fraud a group of investors agree not to bid against each other in order to obtain a property at below market value. In a flop an investor buys a short sale under market value with help from a corrupt real estate agent or appraiser and sells it to another buyer for a profit.
You can read the full article here:http://www.investors.com/news/real-estate/real-estate-fraud-up-amid-foreclosures/