I have been following this story on Diana Olick's blog from CNBC. My question to all of my realtor buds on here is if they have seen this in any short sales they have worked on? The second lien holder asking for $$ from the transaction, but making it NOT on the HUD-1? Anyone see this in their work?
http://www.cnbc.com/id/34877347/
This came up just last week with one my co-workers. He said that the listing agent said that they do it all the time in their office. Common sense, if not ethics, should tell us that if someone tells us not to let the other side, or one of the lenders know something, it isn't right. "Transparency" is a hip work right now. This is a good scenario to put that concept to work.
I have never seen it. Not on the HUD-1 then we all know it's FRAUD.
I wonder what the 1st lien holder would do if they knew?
Oh yes... I have seen this and other ideas recently... and one of the culprits is named in the story.
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