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Short Sale Kickback – A Disgusting Demand for a Short Sale Kickback

By
Mortgage and Lending with Piney Ridge Properties LLC

I’m usually ready for unusual calls from sellers who contact me to do a short sale and I’ve had many, shall we say “lively” conversations with sellers. Most are of the mundane variety but a few turn into rants about their lender or the circumstances leading up to their default. Occasionally I’ll get a call from a seller who is basically testing the water to see what’s in it for them. As sellers become more educated about short sales, they often look for loop-holes to squeeze out as much as they can from a bad situation. While I understand their motivation, there are limits that we as investors must adhere to. When I got a call from a man demanding an absurd $50,000 as a kickback to him, I couldn’t hang up the phone fast enough.

Here's the worst part - THIS GENTLEMAN IS A LICENSED BROKER!

Now, I don’t really think that this man was trying to bait me into an illegal transaction. Most likely he was just desperate to get his perceived equity but I’ll never assume, just because I adhere to strict ethical and legal guidelines, that some governing body won’t test my standards. I market my business and it is easy for anyone to contact me just to hear what I have to say and determine if I’m on the up and up. The answer is – I am.

I actually chuckled when he said that if I wasn’t interested he was going to call the next guy and then the next guy until he found one willing to give him a “cut” as he put it. I told him that I don’t do business that way and I could picture him shrugging as he told me, “your loss,” and hung up the phone.

This man’s demand was as blatant as they come but there are more subtle ways that investors find themselves walking the line of fraud.

As an investor, you owe it to yourself and everyone else involved in the transaction to stay on top of the laws that govern our business. Hold tight to your ethics and make sure to disclose everything to all parties. If you want to learn more about “keeping it between the lines,” you can watch some highly informative videos that we’ve put together or you may visit www.MikeBridges.info/agentvideos

To your success,

Mike Bridges

NextageArchAdvantage.com

Comments (3)

Rebecca Nystrom
RE/MAX Renaissance - Phoenix, AZ

Good for you, Mike!  I hate it when people (especially other agents who give the rest of us a bad name) leave their morals and ethics at the door in exchange for a quick buck. 

Dec 01, 2010 11:39 AM
Katherine Fornale
REMAX REALTY 9 - Howell, NJ
SFR, GRI

Unfoturnately for us, I'm sure there will be someone out there who will do it for hime.

Dec 01, 2010 11:48 AM
Mike Bridges
Piney Ridge Properties LLC - O'Fallon, IL

Ladies, I just edited the post to add that the seller is a Broker. I forgot to say that in the original post. Needless to say, I was shocked to hear what he was saying.

Katherine, I have no doubt someone took him up on his offer.

Dec 01, 2010 11:58 AM