Attorney General warns of mortgage flipping scheme

OKLAHOMA CITY (AP) -- Attorney General Drew Edmondson is warning Oklahomans about a growing scam called mortgage flipping.<br/><br/>Edmondson says the scheme involves a person selling a home, a buyer and

Thursday, July 7th 2005, 1:32 pm

By: News On 6

OKLAHOMA CITY (AP) -- Attorney General Drew Edmondson is warning Oklahomans about a growing scam called mortgage flipping.

Edmondson says the scheme involves a person selling a home, a buyer and an appraiser and banks, mortgage companies and individuals are being victimized.

He says individuals are victims when they take out a bank loan based on the appraiser's inflated valuation and end up owing the bank more than the property is worth.

Edmondson says banks or mortgage companies are taken advantage of when the buyer takes out a loan based on the appraiser's inflated value. He says the seller then pays off any money on the original loan and the three split the remaining money and leave town, leaving the bank with a home worth much less than the loan amount.