Another flopping article on MSN

http://realestate.msn.com/more-short-sales-bring-new-scam-flopping

More assumptions without facts in this article. Looks like the buyers agent that lost out has some sour grapes. Would be nice to hear both sides of the story.

No mention of whether or not the offer that eventually closed was already accepted when this agent brought her offer. No mention of the terms of each offer.

Why does the bank or the investor not have any accountability in this? Don't they hire the BPO agents or appraisers? Doesn't the bank do their due diligence when approving a short sale?

Here is a paragraph from the article..... not surprising, again the lenders problem....

"Glenn Gulley, a real-estate fraud investigator with the district attorney's office in California's Stanislaus County – one of the nation's hot spots for mortgage fraud – recalls calling servicers repeatedly about fraudulent deals and never getting a call back."

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Permalink Reply by P Nicolas Velecico on September 7, 2011 at 3:10pm

What a bogus article , but what do you expect from MSN , makes it sound like $200.00 and a " smelly " property can make you 50K on a flip , sorry I meant " flop" .

I cant wait till one of these cases actually goes to court and lets see if a judge sides with the banks

Bottom line its their asset and they have all the time and resources to decide if they want to sell , the banks have the same or more information as the agents listing the property , if they dont like the BPO or suspect that the property was " staged " to make it look worse than it is why cant they just not accept the offer and sell the home as an REO ?

Sounds like more sour grapes by a bunch of incompetent corporations

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Permalink Reply by Harry Clay on September 7, 2011 at 5:45pm

I suspect many of you are unaware that Bakersfield has been, & continues to be, at the vortex of one of the largest Mortgage Fraud criminal investigations / prosecutions in California history.

http://www.bakersfield.com/news/business/economy/x1260937141/Ten-ar...

The federal prosecution continues to unfold, with court proceedings conducted in Fresno, which is where the closest DRE offices are located, as well...about 110 miles up Highway 99.

Mortgage Fraud has been a big issue, & very sore point here in Bakersfield for a long time...long before I moved here back in 2009.

I wouldn't be so quick to dismiss allegations like this newest one, in an area that has proven to be a hotbed of this exact type of activity, previously.

http://www.bakersfield.com/news/business/economy/x1260937300/How-th...

I'm not coming down in favor of one side or another; I am not privy to the exact facts, only hearsay.

However, I'm of the opinion that where there is smoke, there is often fire.

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Permalink Reply by Smitty on September 7, 2011 at 7:44pm

Harry,

Flopping is a small branch on the BIG mortgage fraud tree. There is TONS of mortgage fraud out there, and very little in the way of short sale fraud convictions. There is most certainly a correlation between the two but I could give you hundreds of scenarios that would qualify for mortgage fraud, probably find tons of articles about different types of mortgage fraud convictions, newspaper reports, etc, but Jeff's original post was about flopping, and if you do the research on flipping/flopping-fraud convictions, you won't find much.

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Permalink Reply by Kimberley Kelly on September 8, 2011 at 9:51am

Hmmm..love to hear you all disagree with such clarity! Educating me and the masses here on SSS..thanks to you all. I run into questionable Short Sale List Agents (home closes for much less than my offer and they've double-ended it), and also negotiaton companies that are shysters, BUT, if the offer is not executed, it is not an offer. I often receive higher offers AFTER submission and the agents get mad. I put them in back up..and point out that it's contingent as of 5 pm tonight or whatever. The Buyer's Agents don't always know the facts on the List Agent side and if we are doing our job, we are trying to get an offer in under the "timeline wire" for that particular deal, for that particular Seller.

One thing for sure..I price my Short Sales RIGHT. Depending on the Sale Date, the Seller, the area, it is priced at FMV less about 10% and the offer submitted is the BEST offer for that situation. Maybe there were other factors involved here?