Here in the Palm Springs Valley of California, the past 4 years have seen a pile of Short Sales listed and closed. Unfortunately, there have also been some questionable methods to this short sale madness. This article sums up some of the Short Sale fraudulent practices that are showing up more and more frequently. If you are considering a Short Sale, be sure to use a list Agent that is experienced in your area and bone up on the Short Sale Law in your state.
Short Sales are here to stay for another couple of years. The Deficiency protections afforded to Sellers of Short Sales in California is ecpiring 12/31/2012. Will it be extended? Nobody knows for sure. It would be the smart thing to do in our non-recourse state to avoide a slew of Foreclosures..but Lenders are not know for their “smarts”..rather their bottom lines on their books.
There is alot of Short Sale fraud happening. Be careful about your List Agents and document everything!
. Orange County Register
Short sale fraud “heating up,” expert says A panel of short sale experts presenting at CALIFORNIA REALTOR® EXPO 2012 in Anaheim last week said that “fraud is heating up like a wildfire right now …” and “we’ve got to be aware that this fraud is changing directions, jumping containment lines.”
I will do NOTHING that is not disclosed on the HUD. Sellers and Buyers may not have ANY knowledge of each other. Short Sales must be taken very seriously..