Special offer
Home > Blogs > Curtis Van Carter > from Yountville, the heart of the Napa Valley
bookmark_border

Doing a short sale, don't do these or you could be committing fraud

By
Real Estate Agent with Better Homes & Gardens Wine Country Group DRE # 00770113

If I can help you find the perfect Napa Valley property, please email me

Curtis@NapaValleyAddress.com

Some tips to help you avoid short sale fraud

  • Short sales involve the selling of a home for less than is owed on its mortgage.
  • Among the most common forms of fraud are: Flopping, non-arm’s length transaction, side agreements, and false information.
  • Flopping: Scammers arrange to buy a home at an artificially deflated price intending to flip it immediately at its actual value.
  • Non-arm’s length transactions: The buyer in a short sale is related to the seller by blood, marriage, or some type of business or personal affiliation.  This istypically arranged by an underwater borrower to regain ownership of the property free from the mortgage debt.
  • Side agreements: In addition to payments included in a lender’s “approval letter,” the buyer and seller have side agreements to pay off junior liens, short sale negotiators’ fees, or other third-party fees.
  • False information: The transaction includes phony details in the closing settlement statement, or HUD-1, to hide buried costs and fees.
Posted by

If I can help you find the perfect Napa Valley property, please contact me

Your Napa Valley Broker Extraordinaire, selling Real Estate here from its heart, Yountville

My website & blog: www.NapaValleyAddress.com

Comments(7)

Subscribe to Comments Comment
Submit
Show All Comments
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

It's never a good idea to lie to a lender when you are applying for a loan or when you are attempting to get out of one.  

Oct 24, 2012 03:40 AM
Laura Allen, Lake Tahoe - Truckee Real Estate for Sale TahoeLauraRealEstate.com
Coldwell Banker Realty, Tahoe City, CA (530) 414-1260 - Tahoe City, CA
Tahoe Real Estate Agent Helping Buyers and Sellers

Curtis - Great do's and don't for those considering a short sale. Excellent information for the public to have!

Oct 24, 2012 03:42 AM
Curtis Van Carter
Better Homes & Gardens Wine Country Group - Yountville, CA
Your Napa Valley Broker Extraordinaire

Hi

Though I can sympathize with the difficulty many are having today, but I believe that in order to get help or relief on any past mortgage, the original loan application needs to be looked at and if a borrower lied on it, then no nothing. Just my 2 cents, cheers cvc

Oct 24, 2012 03:57 AM
Robert Bob Gilbert
Berkshire Hathaway HomeServices Anderson Properties - Katy, TX
Your Katy TX ( West of Houston) Real Estate Expert

Curtis,

Excellent list of items to avoid when doing a short sale. I try with all my ability to stay away from short sales as they are a total pain.

Oct 24, 2012 05:07 AM
John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

Keep it to the truth and only the truth and there won't be problems.  I work with buyers on short sales but Bob's right they are a royal pain.

Oct 24, 2012 10:48 AM
Will Nesbitt
Nesbitt Realty at Condo Alexandria - Alexandria, VA
Nesbitt Realty is a family-run brokerage.

Good Morning Curtis Van Carter,

It sounds like your a expert realtor in CA. Thanks for sharing this informative post on short sale tips. Keep up the good work.

Oct 25, 2012 01:38 AM
Curtis Van Carter
Better Homes & Gardens Wine Country Group - Yountville, CA
Your Napa Valley Broker Extraordinaire

Hi

I can agree with you about SS being a pain. I have done a couple and am quite happy to leave it to the 6-7 agents in my office who have done 100-300 each. I co-list with them and they do all the work except occasional client contact.

Thanks Will

cheers cvc

Oct 25, 2012 04:17 AM
Back to Top

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?