Friday, June 13, 2008

Flipping properties now "allowed" to help liquidate mounting foreclosures

Government suspends property-flipping rule - Jun. 13, 2008

I am not a big fan of government control - and here is a perfect example. Legislation was introduced to 'restrict' flipping [a symptom of the fraud occurring in the mortgage markets]. Now the government realizes that it "needs" flipping to liquidate mounting foreclosures.

If I am adding value, then flipping is legit. If I am just inflating prices and paying an appraiser to bring the value in - that's fraud - and legislating "flipping" will never be able to legislate morality.


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