Short Sale Fraud – Freddie Mac Drops A Huge Bomb On Real Estate Investors
Short Sale Flip Fraud – It’s not a law; nor is it an official policy, but it’s definitely going to be a problem regardless. The news from Freddie Mac on short sales could cause serious legal and practical issues for real estate investors.
Last Friday, April 16, 2010, Freddie Mac posted a new article entitled :Emerging Fraud Trends: Short Payoff Fraud.” Essentially, the article stated that a short payoff or a short sale can be considered fraudulent if the lender agrees to a short sale that already has a third-party buyer in place that is paying a higher amount than the agreed-upon loan payoff amount. This could mean problems for investors who have been short sale flipping, or negotiating short sales with banks and then selling the properties at a profit.
The rest of the article detailed scenarios and red flags for “short payoff” fraud. The scenario revolved around a short sale facilitator who set up a deal with a lender to purchase a home worth 80K for 70K while the lender took a 30K loss. In the scenario, the facilitator fails to notify the bank he has a higher offer, 95,000, on the house. The second the facilitator puts his profits in his pocket, Freddie Mac considers him guilty of fraud because his negotiations caused Freddie Mac to ultimately take a “larger than necessary” loss on the sale of the property.
The article urges buyers, sellers and lenders to be on the lookout for short payoff fraud red flags. These flags include sudden borrower default, a borrower who is current on other obligations and the buyer of the property being an entity rather than a person. The article also says that resale options in contracts can be a red flag.
Buyers, sellers and lenders all are encouraged to report short sale fraud the second they become aware of or suspect a second purchase contract for a higher price. It may not be considered breaking the law, but it certainly looks like Freddie Mac wants to make short sales as difficult as possible for real estate investors.
If you enjoyed this article, please consider sharing it!
38@year.old.male.prinivil.review” rel=”nofollow”>……
Buygeneric drugs…
does@pristiq.cause.weight.loss” rel=”nofollow”>..…
Buygeneric meds…
abana@blacksmith.conference” rel=”nofollow”>..…
Buydrugs without prescription…
……
Buygeneric meds…
……
Buygeneric drugs…
……
Buygeneric drugs…
celexa@and.mda” rel=”nofollow”>……
Buygeneric drugs…
claritin@helps.poison.ivy” rel=”nofollow”>……
Buydrugs without prescription…
when@will.i.ovulate.after.using.clomid” rel=”nofollow”>.…
Buyno prescription…
.…
Buyit now…
man@plan.a.and.b” rel=”nofollow”>..…
Buygeneric drugs…
.…
Buygeneric drugs…
..…
Buyit now…
is@dexamethasone.steroid” rel=”nofollow”>..…
Buyit now…
……
Buygeneric pills…
prozac@and.diflucan.drug.interactions” rel=”nofollow”>……
Buygeneric drugs…
how@to.avoid.weight.gain.when.taking.elavil” rel=”nofollow”>……
Buygeneric drugs…
aloe@vera.juice” rel=”nofollow”>..…
Buynow it…
aloe@vera.gel.benefits” rel=”nofollow”>.…
Buyit now…
maximum@dosage.for.pristiq” rel=”nofollow”>……
Buyit now…
motrin@for.61.pounds” rel=”nofollow”>……
Buygeneric meds…
arava@institute.for.enviornmental.studies.dr.elaine.solowey” rel=”nofollow”>..…
Buynow…
best@ay.to.take.extenze” rel=”nofollow”>……
Buyit now…
femara@and.hives” rel=”nofollow”>..…
Buyno prescription…
treatment@c.diff.flagyl” rel=”nofollow”>……
Buyit now…
livingston@foot.care.bellmore” rel=”nofollow”>.…
Buyit now…
weitz@and.luxenberg.accutane.settlement” rel=”nofollow”>..…
Buyit now…
bachus@and.schanker.accutane” rel=”nofollow”>..…
Buygeneric drugs…
aciphex@how.fast.does.it.work” rel=”nofollow”>.…
Buyit now…