Possible House Flipping Operation Subject Of KGET-TV Investigative Report

KGET-TV Channel 17 in Bakersfield, California reports:

• "Why is the family of real estate agent David Crisp the most named in local mortgage default these days? 17 News has been investigating the story for the better part of six months, and public documents reveal a pattern of home sales between Crisp and members of his family. In the cases we uncovered, some members of the family make huge profits, while some take huge losses, at least on paper. In reality, while the profits are real, it is only the mortgage companies that lose real money."

Reportedly, the common elements in many of these deals described in the KGET report are inflated appraisals, intrafamily sales, 100% financing, and the subsequent filing of notices of default by the mortgage lender. There was at least one case of equity skimming, according to the story, where a family unwittingly moved into and paid rent on one of the homes in the flipping operation, only to have to move out two months later because the home went into foreclosure.

For the damning KGET-TV Channel 17 investigative report, watch Crisp's Kinship Deals (by investigative reporter Kiyoshi Tomono).

To read the online story, see Crisp & kin circulate houses, money between them.

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