Don't Commit Fraud Just To Get Your Short Sale Accepted
We all know Short Sales can be very frustrating. Short Sale Lenders can make decisions that make absolutely no sense to us as agents. There are many times where we are tempted to be overly creative to get a deal through. Folks....being creative is OK. Committing fraud is a crime.
Not all Short Sales are successful. There are Sellers that will be foreclosed on. This is a fact. All we can do is our best. The only 100% way to NOT be foreclosed on is to make the mortgage payments. If the borrower doesn't the payments then the Lender has the right to foreclose on them.
A Short Sale is one of the remedies the Lender has to avoid the cost of foreclosure. But make no mistake about it they do NOT have to choose this option. We can do everything possible to get the Lender to accept a Short Sale but they may still foreclose.
Recently I deleted the comment below from www.ShortSaleSuperStars.com and wrote the writer an email letting him know that we do not in anyway condone this practice. Wendy and I started www.ShortSaleSuperStars.com to help folks in our industry successfully close Short Sales by doing them the right way. Please stay above board. Sellers are facing very difficult times and the last thing they need is an agent suggesting they do things that may come back to haunt them. OK here it is:
- "This is what you do. You negotiate the offer with the buyer and the seller and get all parties to sign. Then... with permission of the parties, you rewrite a new front page of the contract with a lower purchase price and send that amount in to the lender with the offer and hardship package. I would make the purchase price about $20,000 lower because they always seem to come back and want at least $15,000 more than the offer that is submitted. This must be their MO. In any case, it worked like a charm. Then... you tell the BPO agent that the offer price is what you sent into Carrington. I hated to resort to these tactics, but Carrington messed with my sellers for over one year......."
DON'T DO IT! If you need help getting your deals through we offer......
ADVANCED SHORT SALE AGENT TRAINING
This sound familiar? You’ve never had to deal with a short sale in your life – until a few years ago, when foreclosures became so common it was rare that you had a seller without one. Now you can no longer avoid short sales.
So you sign up and get your CDPE and your SFR designations. Maybe you have even closed on dozens of short sales. But still...........
......you're missing something. You are struggling when it comes to dealing with the lenders. You're stressing out over your transactions. And no one seems to be able to tell you how to do it quickly, with no stress.
Well, except us. LEARN MORE ABOUT OUR ADVANCED SHORT SALE TRAINING.
Replies to This Discussion
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Permalink Reply by Jeff Payne on
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Bryant I missed that one!!! WOW! Had a discussion with an agent recently that thought it was a good idea to send in fake offers to get the bank started processing. Short sales have been around for quite some time now and we all need to remember that it is a process and that there is no magic pill or secret sauce that can suddenly change the short sale world. Clean offers, clean and timely packages and some diligence will win most of the time, not every time.
Lately I have been hearing people claim to have closed 100% of their short sales and have to wonder two things:
1. How many have they done? I could believe someone who has done a dozen or so but not someone who claims to have done hundreds...2. Who actually believes them when they say they close 100% of their short sales?
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Permalink Reply by Bryant Tutas on
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Well I know I haven't closed 100%.
It surprises me that agents still think their "tricks" will work. Submitting fake offers is so 2009ish
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Bryant, I have not closed 100% either. Having done several hundred I do know that not all will close for whatever reason.
As far as tricks... If it sounds too good to be true, it usually is.
Will call you later about the webinar tomorrow
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Permalink Reply by Noel Padilla on
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I have 100% approval ratio, however closings are no where near 100%. Some times people give up. I have one now where the home owner refuses to answer my calls or reply to my e-mails until like a week later.
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Tell me about it. I had an approval waiting for it to close when, oopps they foreclosed. That was the worse phone call I had to make in my life.
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Permalink Reply by Joseph Alfe on
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Bryant, the theory here is sound, but the execution is flawed. I ALWAYS have buyer lower their offer down from top dollar, to create negotiation room. This is not the same as fudging a new first page, that's straight up wrong.
Those agents/attorneys/negotiators who claim 100%? I simply tell my clients that they obviously do not have an adequate sample to draw from. I had one lady brag that she closed 100%, then refused to admit how many that 100% represented.
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Permalink Reply by Kimberley Kelly on
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Yikes! Actually made my neck itch and my skin crawl. This is NOT the way to work a Short Sale...or ANY sale for that matter! What is he thinking??? Those Fraud documents we sign are no joke! Thanks for posting..what a stupid thing to do.
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Permalink Reply by Tom Schoenbeck on
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While I am totally new to the SS process, the suggestion of filing a false first page to provide the allusion of negotation room, really leaves me wondering where do agent's ethics fall in this rationale? I don't believe 'get it done at all costs' is appropriate. The lender, in my opinion, has the absolute right to have accurate information up front. If the deal can't be made based on the actual contract offer, then it can't be done. And truthfully, if the agent advises his seller that this is the plan, and the seller concurs, then the agent and seller have conspired to commit fraud. Sorry, in any transaction, I have no dog in the fight, and I will never put my license in jeopardy just to get a deal through.
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