Property Flipping Huds Failure To Curb Mortgage Fraud

Author : Dana M. Cohen
Publisher :
ISBN 13 :
Total Pages : 43 pages
Book Rating : 4.:/5 (435 download)

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Download or read book Illegal Flipping and Neighborhood Inequality written by Dana M. Cohen and published by . This book was released on 2009 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract: Recently there has been extensive research on the changing face of inequality in the U.S. housing market. Initially, the expansion of mortgage loaning to subprime borrowers was seen as an equalizing opportunity for people with tarnished credit records or those susceptible to discrimination to own a home. Instead, many people without enough income and the proper credentials to own a home are able take out a hefty mortgage that they cannot afford and subsequently lose their homes. In addition, it has opened opportunities for inexperienced home buyers to become targets for predatory loans. However, there is yet another consequence resulting from the relaxed lending practices which has received much less attention. Recently, there has been an increase of fraudulent activity detected which is not directly aimed at cheating the borrower. This fraud-for-profit scheme involves a wide range of illegal activities which intentionally leads to the foreclosure of properties, devastates neighborhoods, and defrauds banking institutions. The neighborhood blight is severe and has negative consequences for residents such as an inability to sell their property, a rise in crime, and unfounded property valuation increases. My research examines the gap in neighborhood inequality research dealing with the fraudulent property flipping form of mortgage fraud through a case study of Slavic Village in Cleveland, Ohio. I examine the prevalence and process of illegal flipping in Slavic Village using federal and local government data, and conduct systematic neighborhood observation of the contribution of flipping to neighborhood deterioration.