Home > Blogs > Mike Linkenauger > Jacksonville Florida Community and Northeast FL Homes

The $10 Option Contract Short Sale Scam

By Mike Linkenauger

Real Estate Broker/Owner with LinkUp Realty

October 18, 2009 02:08 PM

SHORT SALE SCAMS EXPOSED - "THE $10 OPTION CONTRACT"

Hopefully that title got your attention!

If you are reading this, you fall into three categories:

You are with me - You are likely an agent who values fiduciary duties and ethics over money, or a consumer who does not tolerate rip off artists.

You are against me - You are likely an investor or agent who disagrees with me, who would likely value money over ethics and fiduciary responsibilities.

Or you have no clue what I'm talking about!

If this blog post is angering you already, I definitely know which category you fall into! Those of you who know me, know that I'm not in the business to make friends with the world. I do have great friends and people I'm close to in my life. But, I am not always the most polite person on the face of the Earth, especially when I see injustice going on or the subject is something I feel passionate about. I say it like it is. I am going to state my case, and then I challenge ANY "short sale home buyers", investors, or Realtors(R) who disagree to a debate, right here, right now!!

For those that don't know what I'm talking about, the option contract seems to be the most common instrument that investors use to try to "buy" short sale homes. There are other ways investors purchase short sale homes, I've heard them all. Pretty much all of which I believe to be unlawful and unethical in some way, but the $10 option contract seems to be the most common scheme I run into.

Here is how it works:

In a nutshell - The investor puts signs up around town saying something like "we buy houses" or "stop foreclosure" or "John Buys Homes - CASH". The investor also may start websites claiming to offer solutions to home owners in hardship. Either way, the investor puts himself out there as a "cash home buyer" ready to buy your home TODAY!!. Unsuspecting home owners who are upside down on their homes and in hardship call the investor looking for some kind of solution to avoid foreclosure. The investor then asks the home owner to sign a $10 option contract, giving them the OPTION to purchase the home for an extended period of time. Once the option is recorded, it is basically another lien on the property! The investor considers this to be "ownership interest" to the property. Once the home owner is out of the property or has signed their life away, the goal of the investor is to basically manipulate the situation in ANY way to get the home approved as a short sale by the home owners lenders as cheaply as possible. Once approved, the investor tries to find a REAL buyer to flip the home to PRIOR to purchasing, then ONLY buys the home (using cash/hard money funding) if they can put the deal together and flip it to a REAL buyer by buying and selling at the same time.

Here is why the $10 option contract is not only unethical, but illegal:

1.) These investors do NOT buy homes like they say they do! They are really "transaction coordinators", not a "short sale home buyer", right?? I mean after all, they ONLY buy the house if they can find somebody to flip it to right away. If they can't find a REAL buyer to buy it, the property goes into foreclosure, destroying the borrowers credit (could still be liable for money owed!). The investor is out a whopping $10. These people aren't even worthy of being called "investors", as investors take real capital risks. Scam artist I feel is very appropriate. I have talked to MANY sellers who were under the impression that the investor/con artist was the person actually buying their home!

2.) The law has determined that "token consideration" ($10) doesn't constitute a valid contract, period. This means you can't legally say you own a home, and can't make decisions like an owner could when offering token consideration.

3.) What if the lender asks that the short sale deficiency be repaid by the home owner?? This is a very common occurrence. What if, the investor tries to manipulate the lender and steal a home for $150K, instead of the $180K it may fetch when sold immediately to a REAL buyer? What if, because the home sells for less, the lender asks that the home owner repay $40,000, instead of say $20,000 or nothing if the home had sold for a higher price. How could the risk of this possibilty be in ANY home owners best interests? What about agents who agree to hide offers that come from legitimate buyers from the sellers lender, only to present to an investor who is not the REAL seller? Also what about agents who misrepresent the value of the property? I challenge ANY agent who claims to have ethics or values to tell me why they should be allowed to have a real estate license if they approve of this.

4.) There are title seasoning periods on FHA and VA loans. For the layman, this means that even if a buyer wants to buy one of these short sale flip properties, they can't get financed typically with an FHA or VA loan. Specifically created to keep consumers and lenders from being duped in these exact types of property flips, title seasoning periods keep the property from changing hands in a quick manor. In some areas, these types of loans account for as high as 75% of all mortgage loans!

Agents, our job is get a property exposed and make it available to as many potential buyers as possible, right? How can DRAMATICALLY reducing the pool of potential buyers for a property, by as much as 75%, possibly be in the sellers best interests? Reality is, its only in the scam artists best interests.

I'll save some other reasons for anybody who cares to debate with me!!

Because of my involvement in the short sale industry, I am constantly bombarded by these con artists trying to recruit me into their gangs of schemers. It is people like this in my opinion who are the epitome of "American Greed", and are the reason half the world despises our country. When approached by these people, the first thing they ALWAYS go after with me is, "You'll make 6% on the buying side, and 3% or 6% on the selling side". They come at me very hard, and its always ALL about money with them. Probably heard that statement 100 times. They are an extremely aggressive and manipulative bunch.

I'm not for sale, sorry to disappoint.

Realtors, we must stand for something, or we will fall for anything! Don't let one of these con artists talk you into selling your values.

Sellers!! If you are in financial hardship and considering a short sale on your home, beware of short sale scams and mortgage fraud out there! The $10 option contract is just one method these guys use to tie up properties, rob your lender, and play games with home owners credit and financial future. There are MANY others!

ONLY use an agent who will look out for YOUR best interests, NOT their own! It makes sense to say that it is impossible for anybody to look out for your best interests, while trying to profit from your misfortune as much as possible!

If you are looking for a good short sale specialist in your area who is pre screened, very experienced, and must agree to the strictest ethical standards and practices, above industry standards, visit www.short-sale-specialists.com.

Long blog post! If you want to read some, comments 74-83 are some of my favorite arguments

___________________________________________________________________________________________

UPDATE - December 7th, 2009

Wow! Lots of discussion and argument below about short sale scams! As expected, my post really got under the skin of some of the folks using these methods to rob home owners and their lenders. A big reason why this article was made extremely confrontational in content, was to pull some of these scam artists out into a public forum, and expose them for exactly what they are!! I feel it worked excellent if you read through everything.

If you choose not to read the entire content, here are some other resources and blog articles for sellers to consider that support this one:

Emerging Fraud Trends - NEW from Freddie Mac !!
The New Flipping: Short Sales - Herald Tribune
Two Connecticut Realtors indicted on "Short Sale" Mortgage Fraud
Sellers Beware of Short Sale Scams
Mortgage Fraud 101 - Short Sale Fraud
The Ethical Dilemma with Short Sale Option Contracts
Short Sale Companies - Another Scam? You Bet!
New Short Sale Scam Taking Root

By the way, I just had a conference call last week with a Vice President and the head of the loss mitigation department and distressed property division from one of the largest banks/financial institutions in the country. He stated that they also view these types of transactions as mortgage fraud. They are also constantly taking measures, such as the arms length affidavits discussed below, to avoid these deals at all costs!!

Hopefully this statement, along with one made by the Assistant US States Attorney below is enough to help home owners Watch out for short sale scams and short sale mortgage fraud using the option contract.

Remember, only use an agent who will look out for YOUR best interests in the transaction, not their own!

Mike

__________________________________________________________________________________________________

***BEST COMMENTS TO READ (I'm not the best with words)

PS - I love the points Greg made in comments 74-76 that completely put Bradley Gaskins and the others in their place, and finishing them off in comment 83!

Also Frank Hernandez The Short Sale Dude from Nasheville showing his true dishonest, manipulative, scam artist nature by getting caught red handed on here posting as "Amanda" and also "Tommy T" (see comment #13 then #18 and 22) a few minutes after bragging about his ethics! - some great stuff!

__________________________________________________________________________________________________

Update 6/5/10 - ***Freddie Mac just put out an article about these EXACT types of short sale transactions. They clearly state they see them as fraud as well! Its so funny how these scam artists talk about being compliant with Fannie and Freddie Mac Guidelines, but they just put out an article declaring these exact types of transactions as fraudulent:

http://www.freddiemac.com/singlefamily/news/2010/0412_payoff_fraud.html

Comments(98)

Comment

Show All Comments

Sort:

Mike Linkenauger

LinkUp Realty - Jacksonville, FL

Short Sale Realtor - Jacksonville FL

I like your comments and views Greg! Thanks for getting my back! Get in touch with me sometime, I'd love to talk to you about working together. I also agree Greg, I work with many real investors, who put up real capital, in legitimate real estate transactions. These are not them.

- Alia - also you said "the banks do not get manipulated, they have professionals at all levels to insure their interests." Please note the links posted above that prove otherwise, along with the post from a BPO agent who the bank sends to value properties that shows otherwise as well.

- Bradley - I wouldn't work your short sales if I was starving on the street corner. I don't need or want your business. Your ethics, values, and pratices are the exact reason we avoid schemers such as yourself like the plague. Yet for some reason, people like you still contact us on a daily basis to convince to work with you. Haven't you read any of my other posts?

I'm so glad that all have chosen to participate. I knew if this was discussed in a public forum, and they came out and talked long enough, the truth would come out, and these people would be exposed for exactly what they are!

- Sellers - Avoid Short Sale Scams and choose a local Short Sale Realtor who will look out for YOUR best interests in the transaction, NOT their own!

Dec 08, 2009 07:49 AM

Jonathan Rexford

Jon Buy a Home & Beneduce Realty - Vero Beach, FL

What is the TRUTH?

Investors buy with the intent to resell? Is that TRUTH?

Real Estate Agents List homes WAY more than value with the intent to beat the seller down on value. Is that TRUTH?

Are option agreements now illegal? Is that TRUTH?

I have read this entire blog here and there seems to be half TRUTH'S for people to obtain some type of agreement to promote their business.

So what is the TRUTH?

Dec 08, 2009 08:31 AM

Bradley Gaskins

House Investors LLC - Tulsa, OK

Mike,

Your closed mindedness is amazing. I have read all of the posts and all of your posts. You have said nothing but misrepresented the truth and made false alegations. You really should open your mind, get educated on the subject and come back and have a truthful and HONEST discussion. We could ALL learn from that discourse. I am constantly learning to make myself better and o make sure that I am doing the right thing. I am not pefect but do strive for perfection; a never ending jouney.

You are just like the liberal democrats who have no value to bring to the table so the play the race card, call people names, declare the debate over when there has been NO debate. You do the same thing. You use the word "schemers" because you cannot offer objective statements and facts to support your position. But it does sound good to acll people schemers. I shudder in my boots; NOT!

Based upon what you have said it is clear that you really really don't understand real estate law, contract law, nor do you understand an investors role in the SS process and how and why the option contract works. You have your mind made up. Great. So be it, just don't spew falsehoods and lies that you know nothing about and lead others astray. You don't like the option method. Great, I can respect that but just because you don't like it does not make it a scheme, a bad practice, or unethical.

I would offer you this. I'll do a deal my way and you do a deal your way. I GUARANTEE you that you will have legal problems and I will have none. You have made some statements that just don't hold muster and you are heading for real trouble if you do what you profess above. Please, find out the leagl truth before you get into trouble. Your actions you suggest above really are unethical by the NAR code and a legal mine field with regard to disclosing confidential information to unrelated parties.

Finally, you call me unethical and imply that I have poor values and practices. You have NO IDEA what I do but yet you make these statements. Just more mud slinging because you cannot bring any real arguments to the table to discuss and debate. How about a call from my attorney to discuss your slander and defimantion of my character. Would this help you understand how dangerourous you are being with the statements you are making? Of couse not because you know it all; you are a LICENSED REALTOR.

Are there unethical investors doing this? YES! Do you need to guard against them? YES! Are there unethical Realtors? YES! Are there unethical banls? YES! Just read some of the other posts on AR, especially the one regarding REOs and disclosures. Do you need to watch out for them? YES! Does the fact that there are unethical investors, realtors. and banks make them all unethical. HELL NO! Why do you want to lump all the investors together but ignor the banks and your own? Probably, again, because that which you do not know and understand scares you. When it scares you and you can't explain it you are only left with false acusations and name calling to hide your ignorance of the subject. This is very dangerous to your clients since they are NOT being properly advised.

Why do I bang my head against the wall on this subject? I don't know. I think I will now take the advice given in post #73 above.

Dec 08, 2009 12:58 PM

Mike Linkenauger

LinkUp Realty - Jacksonville, FL

Short Sale Realtor - Jacksonville FL

The vast majority of agents don't list properties more than the value with the intent to beat a seller down (hopefully its not done that way at your brokerage Jonathan).

TRUTH is, My ULTIMATE goal would probably be to get #1 on the search engine when somebody types in "Short Sale Scams", "Short Sale Mortgage Fraud", "Short Sale Option Contracts" or something similar, in order to bring awareness to these types of transactions. The TRUTH is, I also intentionally posted links several times to other agents and writers articles who also see the TRUTH in these types of transactions, so they would also go up on the search engines!

The other intent behind this article is to show that ALL, yes ALL investors who flip short sales in this manor act unethically, and illegally, and there is NO ethical or honest way to do them with an option contract, period.

I feel we've done a good job of showing this, I mean heck, we even proved a couple to be dishonest, decietful and manipulative right here on this board!!

Promoting our business is just something that happens naturally anytime somebody takes the time to write a blog article on activerain about their specific business, right?

Dec 08, 2009 01:25 PM

Mike Linkenauger

LinkUp Realty - Jacksonville, FL

Short Sale Realtor - Jacksonville FL

Brad - The truth has come out in this entire blog post. Both sides have had their opportunity to present the facts, and LAW in regards to these types of transactions, and it should be pretty clear to consumers which type of transactions involve dishonest, unethical, and fraudulent practices. I fully understand exactly how this process works, as do many others who have posted on this board, and it has been easy to show the dishonesty, and deceitfulness of people who use these methods.

Brad, I wasn't trying to prove that all real estate investors are dishonest, manipulative, con artists. I work with many, and invest myself as well. I am however trying to show consumers that ALL investors who use these practices are deceptive scammers that the public should avoid like the plague.

This article has accomplished that.

The reason you are banging your head against the wall, is because there is a voice inside of you softly speaking the truth. This voice is inside all of us. This voice unfortunately can become muffled by such things as American greed and the pursuit of financial security at all costs. This voice of truth may be softly telling you that these practices are unethical and unlawful in many ways.

I don't take you for a fool, I know you are likely very familiar with short sales and option contracts. But I do believe there is no way you can do what you do without knowing what you are doing is illegal and unethical in many ways.

Again, this article certainly proves this.

You have run out of words to defend yourself, because there is no defense.

Dec 09, 2009 04:03 AM

Bradley Gaskins

House Investors LLC - Tulsa, OK

Mike,

I haven't run out of words, just patience for the ignorant. And you are right, there is a voice inside me speaking the tructh but it is not soft. It is screaming to correct the ignorance among some of the posters on this blog. If it were a voice speaking to me softly that I was wrong I would have crawled in my hole like so many of the others on this post who made bold statements against the option contract but cannot answer the questions and responses they get back.

You are right that it should be pretty clear to consumers which type of transactions involve dishonest, unethical, and fraudulent practices. Unfortunately the antioption crowd has also managed to obfuscate this truth by using inflamatory words to intimidate and making statements that are not factual.

What you believe does not make a fact. A fact makes a fact and this blog article doesn't prove anything except that those who are igorant of the truth will stoop to subterfuge and obfuscation to make their point WITHOUT every addressing any of the facts. I know what I do is legal and ethical, otherwise I would not be doing it, I would not be arguing for it, and I would not be signing my name.

Thousands and thousands of transactions have taken place using the option contract. If anyone can show one, just one case where it has been shown to be illegal I will stand corrected.

Lets look at some facts however from a pretty authoritative source who would NOT be putting this information out if going to lead them to trouble and cost them money

From The Fund, Florida's leading title insurance underwriter and title information provider whose mission is to promote, preserve and facilitate the real estate practices of its members in their protection of the public. Underwriting Bulletin dated 9/4/2009. "...it is no longer required that the 'true sales price/value' be disclosed to the original lender as long as the intermediary's 'right to sell' is disclosed in the purchase contract....make sure that the following requirements have been met; ...3. All disbursements must be made exactly as stated on the HUD-1 settlement statement, and only to the parties involved in this specific transaction. 4. Each half of the simultaneous closing must be kept separate and stand on its own. The sale from A to B must be fully funded and disbursed with money coming from and going to all appropriate parties. The sale from B to C must also stand on its own. The money from C's lender must not be used to fund any portion of the A to B transaction...."

This looks exactly like what we are doing in our transactions with the option. We are putting it in our agreement AND recording it for all to see and know, including the existing lender, the title company, the title insurance underwriter, the buyer, and the end lender. Not hiding anything. People who commit fraud and do unethical things don't operate in the light like this. Surprisingly, the existing lenders are stipulating things in their approval letters that make title insurance unenforcable and unisurable unlike what the option does.

If the option was fraud and illegal do you really really believe that there wouldn't be bulletins out from companies in the business of providing title insurance and in the title business advising that this "scheme", as you called it, was fraudulent and illegal? YES! Show one, just one.

One thing to ALWAYS remember is the Third Commanment of Short Sales by Jeff Watson. Investors should never fail to disclose that they may quickly resell the subject property for a profit. Disclosure that is made early and often is vastly superior to the last minute day of closing disclosure. The "oh by the way" method is inconsistent and may be overlooked. Disclosures that are repeated at the time of closing have the credibility of the other earlier disclosures.

So again, I have not run out of words and have continued to provide objective facts, not opinions, on the subject. Where are your objective facts? In all of your blogs you have not yet provided one fact, just beliefs and opinions. I say it is you who have no words to defend your beliefs, but then again, beliefs are just that because they cannot be proven, only believed.

Dec 09, 2009 02:09 PM

Satar Naghshineh

Satar - Amiri Property and Financial Services Corp. - Irvine, CA

"I am however trying to show consumers that ALL investors who use these practices are deceptive scammers that the public should avoid like the plague. This article has accomplished that."

No you haven't done that. You just showed you make blanket ignorant statements.

At this point, you just have to agree to disagree. However, that doesn't make your stance correct.

Dec 09, 2009 02:54 PM

Jonathan Rexford

Jon Buy a Home & Beneduce Realty - Vero Beach, FL

"The vast majority of agents don't list properties more than the value with the intent to beat a seller down (hopefully its not done that way at your brokerage Jonathan)."

Nice jab their Mike. Now I really see the intent of this blog. It is to promote your name.

Dec 09, 2009 09:13 PM

Mike Linkenauger

LinkUp Realty - Jacksonville, FL

Short Sale Realtor - Jacksonville FL

Jonathan, as expected you have made is clear which side you are on. I know when I said "John buys houses" in the original post, it may have offended as it is your actual name! This article is about exposing the TRUTH, and making it clear what type of people perform these deals. Either you are part of the solution, or part of the problem. I'm disgusted and angered when I constantly hear horrible stories about consumers falling victim to scam artists.

And Satar, I do believe that any consumer who reads this entire post can see how fraud is rampant in these types of transactions, and most of the people trying to defend themselves on here who are preforming these transactions are exactly what they were initially accused of being, SCAM ARTISTS.

Bradley, regardless of what some title insurance underwriter says, it is illegal and unethical for a REALTOR to stand by and watch somebody scam a bank, or for anybody to scam the bank or the general public for that matter.

An agent who values the properties for the bank also confirmed on this board (comment #72) that yes, scam artists doing short sales like this are constantly manipulating them to deceive the bank of the REAL value of properties. Not to mention NUMEROUS Realtor ethics violations are in EVERY short sale transaction done with these methods, and any educated agent can't deny this fact.

WHY ARE MOST OF THE LENDERS DEMANDING THAT "ARMS LENGTH AFFIDAVITS" BE SIGNED?? EXPLAIN??

TO AVOID SHORT SALE MORTGAGE FRAUD FROM THE SHORT SALE OPTION CONTRACT!

These affidavits demand SPECIFICALLY that the property is not going to be resold immediately, and that the property is selling for market value in many cases. This FACT alone proves that the major financial institutions believe the people doing this are scam artists, and shows that the major financial institutions are taking measures to avoid these transactions. The same reason FHA and VA demanded title seasoning periods on properties. To avoid scam artist flips.

These FACTS show that FHA, VA, The major banks and financial institutions, and a US states attorney (plus a couple other attorney's posting on here) believe that these types of transactions involve dishonesty, deception, manipulation, and FRAUD.

These facts should be pretty easy for any consumer to see on here.

WHY DO YOU HAVE TO BE RIGHT??

You know these are FACTS that I'm writing in THIS post. Could it be that you, as well as the others just don't want to loose business over this blog exposing the TRUTH. Is THAT the reason you are banging your head against a wall and continue to come back here? Just let it go, and continue doing what you do.

We are sounding like a broken record here. If you like, congratulate yourself on finding a way to manipulate and rob a bank and get even away with it. It doesn't make robbing a bank (or the general public) OK to do.

Dec 11, 2009 05:56 AM

Mike Linkenauger

LinkUp Realty - Jacksonville, FL

Short Sale Realtor - Jacksonville FL

NEW "RULES" TO THIS BLOG!

I don't have time to defend everything!

Thanks again Greg and others for help defend the cons in my absence!

I'm not repeating the same things over and over again much longer, to a bunch of people who KNOW that they are scamming people!

If you are on here to attempt to show the option contract is ethical or honest, you MUST answer this blog post.

IF YOU FAIL TO ANSWER THEM, YOUR POST MAY BE DELETED

Attached is a Chase Arms Length Affidavit. This form on item one demands all parties acknowledge "the sales price is based on fair market value". See - Click Here

Now, investors demand that: "Upon resale agent agrees not to disclose to short sale lender what the property is being sold for at a later date. We are the buyer and do not wish to have our purchase price disclosed. The short sale is not a transaction of which you will be involved."

EVERY one of these websites has this statement at the bottom

shortsaleclienthelp.com/
sellitonday9.com/agent-qualifications/
soshomeowners.com/u6.shtml
shortsalebuyers.org/realtor.html

This is concealment (against Article II of Realtor Code of Ethics), but Brad even threatened legal action if the TRUE sales price was disclosed to the sellers lender.

Now, as a Realtor, if I KNOW the investor manipulated the banks knowledge of the TRUE value of the property (see comment #72), and as an agent I KNOW it is NOT selling for market value. If I signed this affidavit knowing it was selling 30 minutes later for a much higher price (TRUE fair market value),

How is this honest or ethical?

How is this NOT mortgage fraud?

And most importantly, why would a lender (like most of them) have this form with this statement to begin with if THEY don't see fraud in these types of transactions?

If you want to participate in this discussion, first answer these questions.

People who see the truth in these statements are free to post.

Dec 11, 2009 06:40 AM

Mike Linkenauger

LinkUp Realty - Jacksonville, FL

Short Sale Realtor - Jacksonville FL

Another question you must answer below -

More FACTS (not opinions). It is also a FACT that end buyers can't get financing in a short sale option contract flip transaction using FHA or VA loans due to title seasoning periods (invented to avoid scam artist flips). These loans account for over 75% of the transactions in some areas.

How is DRAMATICALLY reducing the pool of potential buyers for a property by as much as 75% is in ANY home owners / sellers best interests?

If you don't already see things in a similar light as myself and the others who shared on here who have decent ethics, values, and integrity, you can participate when you can answer these questions.

Dec 11, 2009 11:42 AM

Mike Linkenauger

LinkUp Realty - Jacksonville, FL

Short Sale Realtor - Jacksonville FL

Not happening Bradley or Jonathan. If you would like to repost without a bunch of links to your sites, you are welcome to.

When will you guys give up?

Dec 12, 2009 03:19 PM

Robert L. Brown

www.mrbrownsellsgr.com - Grand Rapids, MI

Grand Rapids Real Estate Bellabay Realty, West Mic

IMHO i don't like the scam artists as well. And especially if a realtor(in this economy) is hard up enough to put their license in jeopardy. I've started working with this investor and he asked me this sort of question. My answer to him was/is you will close on a property then and only then you can sell it to a new buyer. Now if the seasoning laws apply then you may have to wait. Seller's have to do their due diligence nowadays. So there is responsibility on their part as well.

Dec 14, 2009 02:51 AM

Anonymous

Florida Broker

Guess what: there are honest Realtors and dishonnest Realtors, there are honest Short-Sale flippers and dishonest Short-Sale flippers, shouldn't require any further debate.

Is it any surprise that a Realtor who specializes in listing short-sale properties would want to spread as much negative information about short-sale investors? Guess what, once the seller has signed the agreement with the investor, this "paragon of virtue" can no longer list there home!

Sellers are adults. If they want to get top dollar for their home, and their goal is to repay as much of the loan balance as possible, then they should list it on the MLS and cherrypick the highest net to the bank. If speed is their goal and they are not concerned with the net to the bank only release of the lien (because the bank waives the right to deficiency judgement, there in a non-recourse state, or planning on declaring bankruptcy, etc.) then an investor is a better option. And may I say that in my experience, a transaction with an investor seeking to flip the short sale and isn't going to close otherwise is just as likely to close as a transaction involving a retail buyer contingent upon FHA financing and the like. This blog makes it sound like seller's are ignorant sheep that can't form a rational thought for themselves. Have more respect for your customers!

Also, If you're reason for writing this blog is honestly that you are sick of your tax dollars going to pay for the bank's losses that the investors are exacerbating (I won't even go into how little sense that logic makes) then you should be spending your time writing to your congressman! I couldn't agree more, our tax dollars shouldn't be going to the bank regardless of who was "responsible" fo the loss.

As with all information on the internet, consider the source. Anyone closing 100 transactions a month shouldn't have time to write a page a day on a blog!

Dec 18, 2009 09:28 AM

#98

Anonymous

Mike

You shouldn't use the word SCAM ARTIST. Lets look back at the years 2002 to 2007 I do believe that the REALTORS was the BIGGEST SCAM ARTIST on the planet they got there FREINDLY APPRAISOR to get the highest prices for there listing REMEMBER if it wasn't for the realtors jacking up these prices the homeowner wouldn't be in the situation they are in now thanks to their FRIENDLY REALTOR.

Mike Jackson Optiion Investor

Dec 18, 2009 04:46 PM

#100

Mike Linkenauger

LinkUp Realty - Jacksonville, FL

Short Sale Realtor - Jacksonville FL

Bradley, your post was deleted again because you have posted at least 12-16 times already in this blog. My blog, my rules. You have had the opportunity to answer and defend yourself and these same "facts" time and time again already in this blog. I will not allow you to make extremely long, irrelevant, repetitive postings in an attempt to obscure and bury the truth that has been stated throughout this blog. Posts #74-#76 also show your true character, as well as the others who use these methods to defraud consumers and our financial institutions.

I do lead a very happy life, and have lots of fun and smile all the time!! I'd love to talk about my missions and serving work, my world travels, my kids and family, my six+ weeks off this year, and my hobbies and interests with those that I'm blessed to have as part of my life. But that is not the purpose of this blog.

The purpose of this blog was to pull scam artists out into a public forum, and expose the truth of their actions. This is a topic I am VERY passionate about (and also opinionated). While few would argue the fact that there are obviously "good" and "bad" Realtors, it is my belief (and others on this board) that ALL, yes, ALL short sale option contract scam artists are exactly that and nothing more. There is no such thing as a "good scam artist" or "bad scam artist", unless you are judging them on their experience. There is no way to truly do these transactions with these methods in an honest and ethical manor. Please also read comments 74-76 as to why they really shouldn't even be referred to as "investors". I despise the people who use these methods and believe they deserve to be locked up for life.

They aren't "investors", they aren't "home buyers", and from their proven actions, "Scam artist" is a much more accurate term to describe them!

I'm not an "angry" person, but I can be considered "confrontational". This blog content likely confronted and angered some of those who do these types of deals, drew them into a public forum, and showed them to be exactly what they were originally accused of being!

That reality certainly puts a smile on my face!!!

Dec 19, 2009 07:18 AM

Mike Linkenauger

LinkUp Realty - Jacksonville, FL

Short Sale Realtor - Jacksonville FL

Due to receiving threats from the people using these scams, as well as being spammed, signed up for junk, and prank called for revealing their practices, unfortunately I am disabling comments at this time. Leave me alone. It is ALL one person on here (and two cronies making threats), you have had the opportunity to answer the above questions in comments 93 and 94 when posted earlier in this blog in the original article as well as comment 11, comment 63, and comment 81. EACH one of you has posted 5-15 times, and I don't have time to even read your intentionally drawn out spam comments which are an obvious attempt to bury the truths that have been stated throughout this blog. I shouldn't have had to delete your rant that took up 1/4th the space of this blog 6-8 times over again. Thats spam and obsession, don't you have anything better to do?

Do you HAVE to be right?

My favorite comments have been from Greg in 74-76! He's alot better at putting you people in their place in short terms than I am.

As he also commented in #83 in regards to the people using these practices:
"At best you people are redundant. Realtors find listings, put together short sale docs, negotiate with banks and close sales every day. Sellers don't need you, Realtors don't need you and banks don't need you. The short sale process does not require your involvement. You bring nothing of value to the table.

At worst you are creating more problems for upside down homeowners who already have enough troubles and you are doing great harm to a real estate market that's already worse than it's been in decades."

Keep scamming people and doing what people like you have found a way to do since the dawn of time, and will unfortunately continue to do. I'll keep exposing these scams and the character (or lack thereof) of the people using them.

If ONE person reads this and decides to seek professional assistance, it would have all been worthwhile.

Dec 22, 2009 12:15 PM

Mike Linkenauger

LinkUp Realty - Jacksonville, FL

Short Sale Realtor - Jacksonville FL

Update 6/5/10 - ***Freddie Mac just put out an article about these EXACT types of short sale transactions. They clearly state they see them as fraud as well!

http://www.freddiemac.com/singlefamily/news/2010/0412_payoff_fraud.html

To find a local short sale expert that is screened
against the strictest ethical standards,
visit www.Short-Sale-Specialists.com

Jun 05, 2010 06:27 PM

Mike Linkenauger

LinkUp Realty - Jacksonville, FL

Short Sale Realtor - Jacksonville FL

Just wanted to throw a quick update on this blog post. The Short Sale Mortgage Scam using the option contract in order to flop the property to a REAL buyer has received more media attention in recent months. Lets see what these people come up with next!

About every month or two I get an email from this blog. Usually it is literally a direct complaint or comment about one of the scam artists who posted on this blog from somebody who has directly dealt with them, most of the time local area agents. Here is a concerning but VERY common complaint that a BPO agent is experiencing. Sounds similar to comment #72 on here by BPO agent. I will protect the agents anonymity.

"Mike, I emailed you a while ago about one of your posts about the above topic. I have been doing countless BPOs in the past two years and some of them were for short sales with options contracts. In these cases, all by the same listing agent, I was emailed BPOs by the listing agent along with mostly inflated repair lists and I was kindly asked to make the BPO come out in favor of the offer amount, which was then disclosed to me. Red flags going up everywhere! I have never considered any of the attempts to influence the final value of the BPO and have now been put on this listing agent's black list. I learned today that I'm not allowed to do their BPOs anymore and that they don't want me accessing those homes for BPOs because my BPOs "mess up everything". Go figure what they mean by that. For months now this listing agent has ignored hundreds of phone calls, messages and emails from me asking for a lockbox number, which cannot be obtained through their front desk, only through the listing agent. While I'm still accepting the BPO orders from the BPO company, I'm unable to perform and have to send them back. I realize that much of these transactions hinges on the BPOs done. They must come out in favor of the offer to the short sale lender so the investor buyer can re-sell for a profit to the end buyer later on. I understand you are busy but I would appreciate any information you might have that could help me put an end to this. I do a few short sales (regular ones) myself and have a small collection of email addresses for the big banks but I'm not sure if this is where I should start. I'm able to document most cases with deeds and emails sent to me. If you have done anything yourself to fight these practices, I would appreciate any pointers you can give me.

I understand you have received threats regarding your Active Rain posts about this topic and I fully understand if you do not wish to reply.

Kind regards,

Nov 01, 2010 07:19 AM

Mike Linkenauger

LinkUp Realty - Jacksonville, FL

Short Sale Realtor - Jacksonville FL

Los Angeles Short Sales - Local Los Angeles County Realtors offer short sales help to home owners in hardship at no cost to stop foreclosure.

San Diego Short Sale Realtors - If you are trying to avoid a foreclosure, our short sale expert real estate agents in San Diego offer no cost help.

San Francisco Short Sale Specialists - Foreclosure should never be an option for San Francisco CA home owners in financial hardship. Contact a local short sale realtor for no cost help. We also offer Orange County Short Sale help to are homeowners in order to avoid a foreclosure. Only contact an expert. Riverside Short Sale Realtors - When it comes to your financial future, experience is everything when it comes to choosing an organization to help. The average agent in The Short Sale Specialist Network has closed over 50 short sales!

We also offer Santa Clara Short Sale Help, our agents are here to answer any questions you have and give you information about the short sale process.

Sacramento Short Sale Real Estate Agents - Contact us to speak with a short sale specialist in Sacramento CA to offer short sale help to stop Sacramento CA.