It will be a long time before the abundant number of short sales and foreclosures in this country decreases and becomes a bad memory rather than a crippling reality. I just found this interesting article on CNN Money that talks about how real estate agents are engaging in short sale scams ripping off banks and making a killing on them. The article begins with this excerpt:
"Just as the housing market began to collapse near the end of 2007, a real estate agent in Bridgeport, Conn. asked Regions Bank if it would accept a $102,375 bid on a home that was underwater on its mortgage. Under the impression that this was the best offer on the home, Regions agreed to the short sale and released the mortgage it owned on the home. Later that same day, the new owner -- an investment group owned by another real estate agent -- resold the home to a buyer who had been lined up before the short sale transaction went through. The final sale price: $132,500, netting the seller a cool $30,000 -- a profit that should have gone to Regions." But who cares about the greedy banks and if they sustain losses due to this kind of practice? you may ask.... well the homeowners should and indirectly so should Realtors.... "The impact of short sale fraud goes well beyond the direct losses to banks. These frauds have become so common, it has become more difficult for legitimate short-sale transactions to go through.That hurts sellers because it forces more of them into foreclosure. It hurts banks by adding to their costs and it can make all the parties more cautious." These kind of practices are what end up hurting us in the long run and are in serious need of remedy.
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