Seattle Home Inspector's Blog

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Who are we going to "Flip Off" now?

     Back in the days when the market was REALLY HOT, it seems like every-other inspection was for a home that was being "flipped."  They are not very common anymore.  These homes often had their share of issues including, shoddy workmanship and lack of building permits.  The whole idea behind the "flip" I'll flip you for the couch.was to get it back on the market as quickly as possible to maximize profits.  The only thing standing between the flipper with his flip, and the buyer was the lowly home inspector.  We often earned our fee with these houses.

     At the same time this "craze" was going on there was another craze going on---perhaps related----perhaps sort of the same thing.  While people were buying and flipping houses lenders were buying and flipping mortgages.  By all accounts this is not working out too well.  While you might be able to slop a coat of paint on a house,  blow some insulation over the knob & tube wiring and rotting galvanized water pipes, putting a gold frame on a mortgage doesn't mean the house is "actually" worth more----especially now that all the copper wire,  copper pipes and appliances have left the premises.

     It is my understanding that banks were/are able to pretty much "make up" the value of the house and sell the inflated mortgage to whomever will buy it----and then that buyer can do the same.  Am I missing something here?

     I have a "vague" idea of how capitalism works, but is it actually good judgment to allow the sale of mortgages----at least without some "honest" means of establishing "real" value?

Charles Buell  

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Comment balloon 17 commentsCharles Buell • September 29 2008 06:07PM
Who are we going to "Flip Off" now?
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Back in the days when the market was REALLY HOT it seems like every-other inspection was for a home that was being "flipped. " They are not very common anymore. These homes often had their share of issues including, shoddy… more
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