Even Contra Costa Short Sales see fraud and ‘funny business’

Even Contra Costa Short Sales see fraud and ‘funny business’

There’s no magic formula to short sale success, in fact, they’re pretty straight forward these days with mostly predictable guidelines and timelines. Yet we’re constantly finding people with the “solution” to all your problems.  Here is a recent short sale alert from our California Association of Realtors.  Be very careful when someone comes to you with a “new” idea.  Or an idea so innovative you wonder why everyone isn’t doing it. There may be a reason.

Tip of the Week: Straw buyers for short sales
Recently, a business model surfaced that purported to help homeowners stay in their homes by allowing straw buyers to purchase the homes via short sale, with the understanding that the buyers would allow the former owners to live in the property as renters after the sale closed. Some even included a promise to sell or deed the property back to the former owner. After investigating these transactions, DRE found that the lenders would never have agreed to the short sales had they known the former owners were going to be living in the home and paying rent to the new buyers. This led to disciplinary action against the agents involved for misrepresentation to a lender and/or fraud.

Source: California Association of Realtors

Many lenders will have you sign their own short sale addendum stating the terms of their approval. Read any short sale approval and addendum from your bank, CAREFULLY. Many have very strict rules on whether or not an owner can stay to occupy the home following closing. But even more, are you SURE that all facts are being disclosed to your lender? Would your lender have agreed to the short sale if they knew all the facts? If not, this is a HUGE red flag and can have you , and your agent, on the hook for mortgage fraud.  Tread lightly and really it’s not worth trying to “game” the system or deceive your lender.

Search Contra Costa Short Sales – NEW listings

Catherine Myers
Windermere Bay Area Properties
Walnut Creek, CA
DRE 01337828 

Concord Ca, Clayton Ca  – serving Contra Costa County homes for sale, short sales and all your real estate needs.

Contact:
925-683-2125

By |2012-06-28T01:36:46+00:00June 28th, 2012|Featured Posts, Short Sales|0 Comments

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Catherine Myers

Real Estate Broker

Catherine Myers is a licensed real estate broker located in Walnut Creek, CA. Catherine has been serving the real estate needs of buyers, sellers and investors of the Contra Costa area since 2002. Catherine has always had an entrepreneurial hard working spirit and real estate allows the convergence of her love of helping people and the pragmatic approach of seeing dreams realized.

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