I’m surprised no one posted this here yet…
Link to article:
I have to be honest, I think this “Fraud” talk is crap. In a nutshell, all it says is that it considers it fraudulent when an investor withholds information from the lender that would have affected the lender’s decision to accept a short payoff. That’s it. It then uses a case study of an A-B B-C transaction where the B-C sale is NOT disclosed as an example of possible fraud.
I don’t see how this is any different from what lenders expect today. Hiding information about your B-C deal when it would impact the lender’s decision has always been frowned upon,and not just by Freddie Mac.
Even more humerous is the suggestions for mitigation Freddie Mac makes. The article literally says that they should “be sure to read all documentation surrounding a short payoff offer”. What a novel idea!
I think this whole thing is way out of proportion. Not to mention, it’s not federal law, it’s just a guideline that one GSE is bringing to the forefront.
I wrote a bigger blog post about this as well with some more analysis, but it’s a good topic of conversation for here…
WOW.....and to think I actually posted a question about this very same topic 2 days ago(when should my shortsale be marketed to my endbuyer?) So I guess it boils down to we should all not even disclose to the lender that we are gonna resell the property for a profit. But that we should just go ahead and do all the footwork for them, and just pass C buyer right on over to them.
I mean who's fault was it that all these people that couldn't afford loans got one in the first place? Oh yeah and didn't we the taxpayer's bail them out for their mistake? And from what I understand about the difference in loss the lender suffers between a shortsale and foreclosure auction to becoming an REO. Wouldn't it benefit the lender to just dump the property in a shortsale?
Now they wonna put a damper on us investor's because we might be able to capitilize on their mistake? It baffles me to no end.
Thanks for opening my eyes to what's going on Artisan!!!
Hey i actually checked out your shortsale software and it totally rocks. Once I get a bit of steam buillt up in my Shortsale endevour Shortsale Artisan will be my go to software for sure.
Thank you. I am just getting into this very situation of ab,bc transactions. Do you know if any prosecutions are at hand? Is this truly fraud or just political posturing from the Freddie/Fanny losers? Do you have any further info? The RE agents seem to think that the ab-bc deal is fraud as well because of this and my initial venture into finding these types of sales are being put on hold.
Thanks for any info
I posted something about this 4 or 5 weeks ago
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