patrick.net

"burn baby burn"

Another example of lack of transparency in the RE markets.

Wasn't there another thread in here some where where they were calling this equity skimming, and that it's legal?

Though I can see how the defendant could be innocent in this case. The offer of $132k was for a REGULAR sale. The buyer did not want to wait for a bank.

Shortsale value is worth $100k.

"Their crime involved persuading lenders to approve the sale of homes for less than the balance owed --known as a short sale -- without disclosing that there were better offers. They then flipped the houses for a profit."

Vain says

Wasn’t there another thread in here some where where they were calling this equity skimming, and that it’s legal?

I've called it in almost every post I have made about the local RE market.
Someone here called me on it, a few weeks ago and suggested that if I had "proof"(as if the proof that hundreds of short sales are going on every day of the week here in South Florida, for a hell of a lot less than the amount I'm willing to pay. wasn't proof enough) then he'd like to see it.
The Proof should come from the Investigators or Regulators, that are blatantly looking away and turning a blind eye, while illegal compromises are committed on the hour in South Florida.

And the Banks don't care because it's not their money they write off at the end of the year, or exchange for tarp money. More over they can justify it by saying it's safer to scuttle those few properties to safeguard home values where they hold notes on a large amount of properties.
And they get away with it, because of the Schön syndrome.

Put it this way, the State of Florida doesn't give a crap about Real Estate laws.

Well, if it's happening in CT, you can bet it's happening in Florida. They don't call it the fraud capital of the world for nothing.

All that has to happen is the RE agent gets a straw buyer, maybe an in-law or something, willing to buy a property for $100K, when he has a written offer for $200K from someone else. He closes the sale to his in-law then does a second closing with the real buyer. Money changes hands and his in-law pockets $100K profit.

Of course this probably only works if the real buyer uses a different mortgage company than the short-sale... lol... I would love to watch the "stupidest criminals" episode where they try to use the same bank for both transactions.

Wait a minute, isn't a reator's job to get the most money for the seller? Who exacty are the representing in this kind of a move?

Oh that's right, for a few precious hours they are representing THEMSELVES!!!!!

It isn't like the banks don't deserve this treatment, but it has hurt families that want to buy houses from their relatives and preserve the houses for them. That happened in Reno, NV. Maybe if Governor Gibbons would spend more time being governor than chasing skirts and mistreating his wife, he could look into this.

I just met a guy last week that was doing this exact thing in SoCal. Said he recently got his real estate license solely to do this - rack up offers on an REO, hit the bank with his offer, buy the house, then sell it to the high bidder. He said he was successful on his first try - using the "bank delays" as a way to keep the original offer interested.

It sounds illegal, but is it?