Module 8 Flashcards
Excessive selling/lending activity for the purpose of generating fees and commissions
Churning
A get rich quick scheme using multiple loan applications submitted to various lenders without disclosing the intent to purchase other properties
Chunking
A fraudster forges a deed transfer of a satisfaction of lien and then obtains new liens on the property
Equity theft
Fraud that involves a homeowner who is deceived into signing over title to the property with the belief that he or she will be able to remain in the house as a renter and eventually repurchase it over time
Foreclosure rescue scam
A type of fraud when a property is refinanced or resold immediately after purchase for an artificially inflated value
Property flipping
A person who is used to buy property in order to conceal the actual owner
Straw Buyer
Taking buyer to or away from any neighborhood-based on any of the protected categories and Fair Housing – race, color, religion, national origin, sex, familial status, or handicap – also called channeling
Steering
Causing panic selling by homeowners – also called panic peddling
Blockbusting
Any facts about a property that might influence the decision of a purchaser
Material facts
A hidden structural defect presumably resulting from faulty construction, known to the seller, but not to the purchaser, and not readily discoverable by inspection
Latent/hidden facts
Any property where there has been a murder, alleged haunting, or in the vicinity of the residence of a known sexual offender
Stigmatized
A person who is used to buy the property in order to conceal the actual owner
The Straw Buyer
Commission is found in the
listing agreement
Blockbusting is also known as
Panic Peddling
An event has affected desirability
Stigmatized Properties
