This is the first in a series of articles dealing with the identification and prevention of potential claims in the closing process. Our company has noted an ever increasing number of inquiries from closing attorneys in which they are being asked to disguise, camouflage, or misstate the true nature of the transaction. Perhaps an innocent motive underlies some of these requests, but fundamentally there is nothing right about manipulating loan documentation to make the transaction seem to be something it is not. Moreover, the settlement agent may be exposing him or herself to federal criminal sanctions.
The following article dealing with "FLIP" transactions is reprinted here with the permission of its author, Lynn W. Wilburn of Houston, Texas. Mr. Williams is the principal of Lynn W. Wilburn Investigations, Inc. He is a seasoned private investigator who has long term experience in working with the title insurance industry in the resolution of fraud related claims. What Mr. Wilburn has written is important for you to read and Investors Title thanks him for his generous cooperation.