Short Sale Flip Volume 6: Post-Mortum

I bet it's in the process of being foreclosed.  If the bank found out about a fraud on the account, how could they approve the short sale?

Awesome series...and very educational.  Gotta say, the listing agent had enough red flags thrown in her direction, she HAD to suspect - and if she didn't, it was likely because she did not WANT to suspect.  Hey, thanks for finishing this up just for me!  LOL

Great Blog series. Man, is she new! Even her flash cash was not 100% and required a double escrow, which defeats the purpose!

Thank you so much for posting these series!

This has been one helluva series! Thanks for taking the time to post all these Chris Ann. Let me know when it's popcorn time!

Great series and I guess since the property hasn't closed yet the Lorraine's investors must be livid.

Hopefully there will be one more chapter in this series.  The final outcome of the FBI investigation and whether Lorraine's little scheme ends up with an indictment for fraud.

This has been one of the best series of blogs I've ever read.  Thank you so much for taking the time to document and share all of this with us.  Anyone who has read this will know the signs of these undisclosed short sale flips.

Chris Ann - I am left speechless after reading all six volumes and I feel horrible for you and Vince.  I'm curious if anything will happen to Lorraine, she definitely should be used as an example by law enforcement.

I was just involved in a very similar situation for some buyers, who are friends of mine. The deal went south, and I'm glad it did. Unfortunately, my friends are not talking to me presently, since they think they lost a once-in-a-lifetime, fantastic deal because I was asking too many questions. NOTHING on the contract was disclosed, except to say that their funds would be used to close a first transaction. The intermediary did not want to talk with me, in fact, didn't return my phone calls until after the deal went south. On the contract that HE presented to the buyers, (after spending a considerable amount of time on the phone with them noting why he does not like working with realtors,) the ability to purchase extended coverage for title insurance was not allowed. As well, no appraisal was allowed, and no survey was allowed. (Even though this was to be a cash deal, at the very least, that verbiage should be allowed in the contract, whether it's needed or not.)

The investor would not allow us to close at any other title company, either. The title company he uses was doing a simultaneous close. When I called them, they said they do simultaneous closings ALL the time, and they got very guarded when I noted that most title companies no longer do simultaneous closings. They would not entertain contacting the investor to do a back to back closing, so that at the very least, each transaction could stand alone. They were also guarded about the short sale approval letter, when I pressed them about it. They said they had it, and that's all I needed to know. The investor even went ballistic on my buyer when she started asking about the short sale approval letter. And finally, no one at the title company wanted to answer my questions when I mentioned that a realtor was noted as the listing agent on the Closing Instructions, as we were never told, and his name was not disclosed. The amount that the property was selling for was so ridiculously low, I couldn't imagine how any bank would agree to sell at that amount, particularly since the comps even for foreclosed homes in the area don't support that price. Yet, this guy is making a KILLING in the particular area he works for doing this kind of thing.

Really, the situation regarding this house needs to be investigated. Along with all the other NUMEROUS deals he has going on. Unfortunately, I wouldn't be surprised if my friends buy a house directly from this guy, and get themselves into trouble down the road.