How to Save on Short Sales

The sad thing is wouldn't it be better for everyone if her lender just lowered her balance to that? Keep the seller and she could afford her own home. But....I don't want to say this too loudly lest it be "deemed" the law soon. :(

Sad, but true.  So unfortunately that good people have become so desperate. 

Anna, don't judge too harshly.  Desperate people will do deperate things.  If only they would use more of the money from the economic stimulus package towards load modifications for those upside down on their mortgages, we might all be better off.

Anna, these are desperate times for some....but fraud is fraud.  Wonder if she actually found a Realtor to do a short sale to her friend so she could buy it back from her friend....WOW, I say that takes nerve to ask someone to do fraud.

Anna ~ I guess sellers do and try desperate things in desperate times.  It never amazes me what people ask of us!

Anna, I had a similar question about the tax credit.  They weren't legally married and she owned it.  He could buyit and get the tax credit.  I won't risk my license either.  People never cease to amaze me.

Anna,

The wording of your response  'do our best to assist them through the choicess they have made and help them get on with their lives with as little damage as possible' speaks volumes about your compassion and desire to help people with life's challenges as well as the more fun things like buying their dream home.

Thanks, Anna

Anna, unfortunately, this tyoe of fraud must be something that has succeeded elsewhere with a variation. The friend buys the house and then rents it back for the mortgage equivalent until the tenant has gotten enough good credit to buy it back. It's too bad so many people have messed up with their purchases to have to resort to this.

Anna ~ Wow, I have heard of some crazy stuff going on but have not had a call like that before.  I hope she does not find anyone willing to do this unethical act.  I did see a similar story on Trulia once like Dan said above. 

I've never heard that one, and sadly it doesn't surprise me.  There are some desparate folks out there.

That was a potentially damaging decision for the potential seller and her friend. You are a true professional Anna and gave her the best advice possible. It's up to her where she goes from here.

It is unfortunate Anna that folks have even considered this. Good response from you though. Take care.

Hence the Arms-Length Addendum that most banks require as part of the docs signed for a short sale. The sad thing is, she may have found someone willing to commit a fraudulent act.

Anna Banana, I guess she had come down to desperate times, desperate actions. Who knows? Hopefully, she will detach herself from the house and move on with something more manageable and less crazy, till she gets back on her feet again. Tough times out there.

Anna Banana,

Doesn't it seem as if we're all back in junior high school, and everybody's cheating on the test?!

Mike in Tucson

Anna,

Wondering how many of these types of short sales have gone through already, despite mortgage lenders generally having an arms-length clause somewhere in the paperwork. Sign of the times.

Anna

This is happening in San Diego with Investors. Some friends of mine told me about this scenario and I laughed out loud....it is so fraudulent, and I couldn't believe they woud get involved with this. I got my own bad attitude towards the Lenders but defrauding the Banks is not the solution!