How do i report short sales fraud? Help

NEW -> Contingent Buyer Assistance Program
I agree with CalGal that karma will get them. I shared this story about one of my co-workers in a past thread but will share again. My co-worker decided to jump into the RE ponzi scheme in 2006 and bought a small junk of a house for $500k+ in San Diego. She had never owned a house by herself and was getting in way over her head. Heck, she took a 1 year ARM with a teaser rate and 0% down. All of us including our manager told her this was a terrible idea and will only cause her stress down the road. Well, after 6 months of living there, she realized her quality of life sucked as every dollar was going to the house and this is before a rate reset. Unfortunately, San Diego prices already started coming down so she just walked away from the house and moved back into the same apt complex that she had lived in for the 10 years prior to the purchase.



No one forced her to buy and everyone explained to her how dumb the decision was. Yet she still went in head strong and then walked away when it didn't turn out to be a good idea leaving the bank with the junk house. Now instead of a house, imagine it was a project she took on and walked away cause it got too hard. Do you think our team or our manager has faith in her ability to complete what she says?



Officially, her personal life shouldn't affect her ability to grow at her career but unofficially it does. People are less likely to trust her ability on large demanding projects which might not end up going the way we planned. To me, thats karma.
 
First of all, before the bank approves the short sale, they will have to look at comps, the property has to be listed on the MLS, the agents, buyers, and sellers can't be related, and they will do an appraisal. They will only sell the property if the price is at market value. At that point, the bank does not care who buys the property as long as someone buys it.
 
[quote author="hs_teacher" date=1210422853]First of all, before the bank approves the short sale, they will have to look at comps, the property has to be listed on the MLS, the agents, buyers, and sellers can't be related, and they will do an appraisal. They will only sell the property if the price is at market value. At that point, the bank does not care who buys the property as long as someone buys it.</blockquote>




Guess what? The agent is a friend of their families...I think that is fraud...What if the agent doesn't tell the bank the other offers they might be getting and instead is only offering the lower price to a family member.



And for those of you who says it ain't fraud...ain't it fraud when you say you can't pay the bank and you hide your money or drive a brand new Mercedes?
 
[quote author="frank69m" date=1210425267][quote author="hs_teacher" date=1210422853]First of all, before the bank approves the short sale, they will have to look at comps, the property has to be listed on the MLS, the agents, buyers, and sellers can't be related, and they will do an appraisal. They will only sell the property if the price is at market value. At that point, the bank does not care who buys the property as long as someone buys it.</blockquote>




Guess what? The agent is a friend of their families...I think that is fraud...What if the agent doesn't tell the bank the other offers they might be getting and instead is only offering the lower price to a family member.



And for those of you who says it ain't fraud...ain't it fraud when you say you can't pay the bank and you hide your money or drive a brand new Mercedes?</blockquote>


this is fraud, the current homeowners will be reducing their loan amount by "selling" to a relative they trust without the same last name. They bought at $500K, homes now worth $300K, they can reduce their payments by having a relative purchase the home for $300K and sending them the payments to pay off. These are facilitated by very dishonest brokers. I hear this is a fairly sizeable niche for some of them
 
[quote author="jcaraway" date=1210460749][quote author="frank69m" date=1210425267][quote author="hs_teacher" date=1210422853]First of all, before the bank approves the short sale, they will have to look at comps, the property has to be listed on the MLS, the agents, buyers, and sellers can't be related, and they will do an appraisal. They will only sell the property if the price is at market value. At that point, the bank does not care who buys the property as long as someone buys it.</blockquote>




Guess what? The agent is a friend of their families...I think that is fraud...What if the agent doesn't tell the bank the other offers they might be getting and instead is only offering the lower price to a family member.



And for those of you who says it ain't fraud...ain't it fraud when you say you can't pay the bank and you hide your money or drive a brand new Mercedes?</blockquote>


this is fraud, the current homeowners will be reducing their loan amount by "selling" to a relative they trust without the same last name. They bought at $500K, homes now worth $300K, they can reduce their payments by having a relative purchase the home for $300K and sending them the payments to pay off. These are facilitated by very dishonest brokers. I hear this is a fairly sizeable niche for some of them</blockquote>




Well, like I said before, how should I report this? I'm pissed because this lowers the price for some friends in the neighborhood that I know want to sell. Plus, this is bogus and hurts honest folks.



How do I find out about their bank? online somewhere? Where can I report this..where else?
 
The funny thing is that no one cries 'fraud' when policies systematically destroy almost half of the value of the dollar in just 6 years.



Everyone can spot a scam when it involves a shiny new car and a business deal inside a family, most can spot it when banks make ridiculously dangerous deals just to keep the cash moving, but, for some reason, no one can spot the mega-scam where each and every person who needs dollars to buy the basics loses a chunk of the value of their savings every day.
 
[quote author="frank69m" date=1210425267][quote author="hs_teacher" date=1210422853]First of all, before the bank approves the short sale, they will have to look at comps, the property has to be listed on the MLS, the agents, buyers, and sellers can't be related, and they will do an appraisal. They will only sell the property if the price is at market value. At that point, the bank does not care who buys the property as long as someone buys it.</blockquote>




Guess what? The agent is a friend of their families...I think that is fraud...What if the agent doesn't tell the bank the other offers they might be getting and instead is only offering the lower price to a family member.



And for those of you who says it ain't fraud...ain't it fraud when you say you can't pay the bank and you hide your money or drive a brand new Mercedes?</blockquote>
 
[quote author="frank69m" date=1210425267][quote author="hs_teacher" date=1210422853]First of all, before the bank approves the short sale, they will have to look at comps, the property has to be listed on the MLS, the agents, buyers, and sellers can't be related, and they will do an appraisal. They will only sell the property if the price is at market value. At that point, the bank does not care who buys the property as long as someone buys it.</blockquote>




Guess what? The agent is a friend of their families...I think that is fraud...What if the agent doesn't tell the bank the other offers they might be getting and instead is only offering the lower price to a family member.



And for those of you who says it ain't fraud...ain't it fraud when you say you can't pay the bank and you hide your money or drive a brand new Mercedes?</blockquote>


Although, I hear your frustration. But when you say they "hide their money". Do you have facts to back this up? Have you seen their personal finance? Or is it just the brand new Mercedes that makes you think they have money?
 
[quote author="frank69m" date=1210474669][quote author="jcaraway" date=1210460749][quote author="frank69m" date=1210425267][quote author="hs_teacher" date=1210422853]First of all, before the bank approves the short sale, they will have to look at comps, the property has to be listed on the MLS, the agents, buyers, and sellers can't be related, and they will do an appraisal. They will only sell the property if the price is at market value. At that point, the bank does not care who buys the property as long as someone buys it.</blockquote>




Guess what? The agent is a friend of their families...I think that is fraud...What if the agent doesn't tell the bank the other offers they might be getting and instead is only offering the lower price to a family member.



And for those of you who says it ain't fraud...ain't it fraud when you say you can't pay the bank and you hide your money or drive a brand new Mercedes?</blockquote>


this is fraud, the current homeowners will be reducing their loan amount by "selling" to a relative they trust without the same last name. They bought at $500K, homes now worth $300K, they can reduce their payments by having a relative purchase the home for $300K and sending them the payments to pay off. These are facilitated by very dishonest brokers. I hear this is a fairly sizeable niche for some of them</blockquote>




Well, like I said before, how should I report this? I'm pissed because this lowers the price for some friends in the neighborhood that I know want to sell. Plus, this is bogus and hurts honest folks.



How do I find out about their bank? online somewhere? Where can I report this..where else?</blockquote>


"How do I find out about their bank?" <---While I don't know the law as it pertains to this. But it sounds illegal to try and find out about someone's bank information without probable cause. Again, so far we have only seen you mentioned the brand new Mercedes and the "possibility" that they hide their money. A brand new Mercedes doesn't always equate to having money and hiding it.



I suppose if you were to walk into the City Attorney's office and share your story. The first thing they might want to know are the "facts". Can you share us the facts surrounding this case? Other than the brand new Mercedes and the assumption that they're hiding money.
 
This is like trying to save a sinking ship... If they can't afford it and their way of staying in the home is to shortsell to a relative, stopping them is going to force a foreclosure. Besides if the relative has a different last name, then its even harder to prove... You don't know how they are paying for the MBZ... Looks like a MBZ on the outside but how much they are paying/how they paid for it is up to everyone to guess. If you play your cards right, you can fool your neighbors with a new MBZ, little do they know, the monthly is not much different than a honda. I don't think your efforts are going to get you anywhere, except to maybe make you feel better because they didn't get away with $200k.
 
Well trust me guys, they have the money. And it isn't just because of the new Mercedes. There are clothes. New baby. You can tell. One realator told me they tried to sell another house they had this way. Just trust me, this is a scam they've pulled off.
 
[quote author="frank69m" date=1210543474]Well trust me guys, they have the money. And it isn't just because of the new Mercedes. There are clothes. New baby. You can tell. One realator told me they tried to sell another house they had this way. Just trust me, this is a scam they've pulled off.</blockquote>






That is one way to get ahead....
 
frank, it might be worth contacting the IRS.



if its true that they tried to sell another house in the same way, and depending on how recent that transaction was and whether they got debt relief from the first short sale, then its possible they may not qualify for debt relief the second time around. they would owe a hefty tax bill on that 200k.



local DA's are probably not enamored with spending their time on investigating this sort of stuff. the IRS on the other hand has no problem doing some snooping around.
 
Frank,



This is a joke!

or

Is this a joke?



Are you kidding me?

It's a good one.



You want to play superhero? because of your friends in the neighborhood, their selling prices are affected?

Is this the extent that it has to do with you? Shouldnt your friends be the ones doing the investigation?



Be careful where you thread or tread, they could track it back to you...
 
i agree with rick. if they find out who you are, you endanger your family and your crusade ends with you. to battle comp killers, you must make yourself more than just a man. if you devote yourself to an ideal, you become something entirely else. are you ready to begin?



shortsellers beware...



























of the <strong>HOUSING CAT </strong>-- Defender of Comps! (tm)



<img src="http://i30.tinypic.com/nn45jn.jpg" alt="" />
 
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