I’m concerned about this article I just read: http://www.mortgagefraud.org/journal/2009/10/9/two-connecticut-realtors-indicted-in-short-sale-mortgage-fra.html
We find a distressed homeowner, we put in an offer less than the mortgage amount AND we have a separate company do the negotiation. When it’s assigned to loss mitigation we have the Realtor that has the listing make the property ACTIVE to find an end buyer. THe time it is being negotiated, we have the Realtor put it pending.
We have disclosures for the homeowner that we are FOR profit and in our p&s to the lender it states we are reselling the property for profit.
I’m concerned with this article as this is pretty similar to the way we do things. I’ve also read lately you should NOT be trying to influence the lender to come in at a lower amount or influence the lender’s BPO agent as that’s considered fraud.
How is everyone else handling this? Why does it seem that short sales have suddenly come under such scrutiny? It’s as if we’re not allowed to make a profit here.
If anyone short sale buyers out here can explain to me how they are safeguarding themselves from an legalities that may come up, I’d love to hear ti.