Question

Ted's property is in foreclosure, but he has some equity in his property. An investor suggests that she and Ted enter into a sales contract for a substantially higher price than the investor would actually pay. The investor pockets the cash and allows the house to be foreclosed on. What sort of scheme is this

Answer 1

Based on the given information the sort of scheme is: Equity skimming.

What is Equity skimming?

Equity skimming can be defined as the way in which an investor defraud or steal a person property equity  because the property is in foreclosure.

Since the investor pockets the cash he received from Ted and allow the house to be foreclosed the investor is engaging in what is called  equity  skimming which is fraudulent acts.

Inconclusion  the sort of scheme is: Equity skimming.

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