Some Unscrupulous Real Estate Operators Employ 'Reverse Staging' Tactic To Beef Up Profits When Running Short Sale Flopping Conspiracies

A recent story from Northern California NPR/PBS-affiliated TV & radio station KQED on mortgage fraud had this excerpt describing a growing real estate fraud - short sale "flopping":

• Flopping: In one widely publicized case, a homeowner spread possum urine around the house, turned up the heat and closed all the windows for a few days. Why?
  
  The seller wanted to convince a bank’s appraiser the house wasn’t worth as much as it actually was ahead of a short sale. The bank is already accepting a write-down of the property's value, but the fake evidence drops the price tag even lower.
  
  The impression of reduced value can be gained with less aromatic strategies than urine, like ripping out ceiling fans or air conditioning. Think of it as “reverse staging.” The seller unloads the home for the discounted price to an accomplice, who can then clean it up and flip it for a quick gain. The real estate agent is typically in on this conspiracy, too. Average take: $55,000.

Source: Mortgage Fraud in California a Game of Whac-A-Mole for Law Enforcement.