Wendy buys an investment property that needs some fixing up. A few months later, after making no imp...

Question

Wendy buys an investment property that needs some fixing up. A few months later, after making no improvements, she changes her mind and decides to sell it. The market in her area is so hot, she is able to sell the property for $25,000 more than she paid without changing a thing. Wendy pockets her profit and moves on. Is this mortgage fraud? Why or why not?

Poker Exams Expert · Accepted Answer

No, because she did not use an inflated appraisal or a straw buyer. The property increased in value legitimately.

User · Answer

Yes, because Wendy bought and sold the property within the same tax year for different amounts.

User · Answer

No, because Wendy waited a few months to flip the property. It's only fraudulent if a property is flipped within a month of purchase.

User · Answer

Yes, because Wendy sold the property for more than she paid without making any improvements.

No, because she did not use an inflated appraisal or a straw buyer. The property increased in value legitimately.

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