Paper Trails.
When dealing in this market, there is always a paper trail. You may not be caught this time. You may not be in the spotlight on this transaction. However, I assure you, you will be leaving a little breadcrumb Papertrail for the regulators to follow.
SCAM: Investor seeks partnership with Realtor. Realtor has distressed home owner. Investor has Investor B who wants to purchase price at a certain agreed upon value. Realtor tries to Short sell home but refuses all offers. This happens three or more times before they bring their investor in and exhaust the bank into submission at their own price. During the process, the Realtor allows current home owner to try and work out and agreement with the bank but knows they are leaving their home anyway and they then become nothing more than a “squatter”.
A few guys from Orange County came down and approached me with this “idea”. It is amazing to me how much fraud is out there and how many people are preying on foreclosures.
You cannot necessarily deceive a bank and expect to get away with it. Investors beware… this is a scam and will eventually catch up to you.
I have a question, when you said “Realtor tries to Short sell home but refuses all offers.” Do you mean the realtor refuses all offers except for the offer from their partnered investor friend? So, in essence, there are multiple offers on a possible short sale property, however, the realtor is only showing the bank his investor friends offer? IS that what you are saying the scam is?
Over a period of about 12 months of bleeding the bank, in short … yes. During this time, they also try to modify and negotiate new terms thereby building a paper trail of events whereby the property is not foreclosed upon but through deceptive practices the Investor/Realtor team bleed the bank price down to a number whereby the bank has so much paperwork built up and the Investor finally brings in its buyer with an appraiser that low balls the value even more… when the time is right.
Keep in mind, I’m not defending these banks. I believe they should crash and burn. all i am saying is be careful of how you conduct your business because when the smoke clears, there will be a task force of regulators and auditors created at some point and WHEN not IF this happens, well you know… in other words there will be no flipping in reverse.
I am sorry if I am wrong, but I think you sound like you were a victim. I am sorry if that is the case.
It does not make sense to be bleeding one bank on one defaulted account. I think the bank do not care as much as you do because they are doomed on that account already. They want some of that money and they want to close the account.
I can find you something to do. Go after Mortgage Lending fraudsters. You are calling capitalism “preying on foresclosures”. How else do you make money if not from servicing human misfortunes. That’s just Life 101 and not Real Estate 101.
I am proud to tell you that all my clients are very happy whenever will get a title + lien released off their name. That is true service. If I made $50,000 from that as I do from time to time. You should find out how and jump on the opportunity to learn.
To Your Success
John Lee
John,
Yes you are wrong. You should re-read my posts above. I think you are missing something. I am very well informed of what a short sale is. I am also aware of those crafty Realtors that make a mere $50,000 off an unsuspecting homeowner who has very little options left when they are forced to take the option of short selling. You should put up some testimonials of those homeowners who are glad to give up their home. I’d like to see how happy they are. We seem to be on different ends of concerns for the homeowner. My concern is to keep investors, home owners, single family homes and multi units intact within the portfolio of the investor or home owner by negotiating with the bank new terms in order to restructure the American Homeowners Financial Portfolio. I’m not sure what your goal is. I do understand short sales are a sign of the times. My reference above was not towards short sells and those that do them. My reference was about the apparent scam that is becoming a trend whereby the Realtor teams up with some Investors and create a scam against the bank and the homeowner.
HEY
Just my few penneys here on this
Realtors for the most part do what they want and give what offers they want to whom they need to Be it the banks the sellers ect , and really they as in the banks /sellers do not know how many offers there were or not
And really the banks and mortgage compines have all ready screwed the home owner when they gave them a loan they knew they could not afford any way
As well the greed keep up with the jones home buyer went for it and now wants a helping and sorry hand from any one they can
This is the banks as well want this helpping /sorry hand as we were just making money at all and any cost along the way
So they all have there own fault for the whole mess and really if any thing along the way can be done to fix this and get us and the real estate back on track i say do it
And no matter what is done some one is not going to like some plan or way of doing this
And most of the time if the human race is in the dark on something and has no clue how it works or clear on how it is getting done will call it a scam
Just as a look back once sub2 was called a scam and a fraud on the home seller
And just look now it is taught and sold as the top or at least on of the top was to buy real estate