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Short sale double closings - good or bad?
So here is the deal. Seller "A" signs up a contract to sell their short sale home to investor "B". Then investor B negotiates with seller A's bank to do a short sale for a low price.  In the meantime during all the weeks and months of negotiating with the short sale lender, investor B finds a buyer "C" to pay a higher amount.  Then when it comes time to close, seller A sells the house to investor B for $X and B immediately re-sells the house (either same day or a few days later) to buyer C for $X+++ .  The spread in values is B's profit.  I have heard some people making a few thousand dollars while other making over 5 figures on the spread.
Although, I have done some of these deals in years past. I have not personally done a short sale flip in a long time (prior to the boom and crash).  But I know quite a few people that do this for a living and make serious bucks at doing it.  There are many gurus out there teaching detailed seminars on how to do just that. 
Almost everytime I hear about short sale double closings (or flipping), the word FRAUD is involved.  Whether it be from lenders, ... more

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