A while back I wrote an article here on Short sale scams and mortgage fraud. Last night I got this comment on the blog.
I am interested in purchasing a home that is listed as a "Short Sale". My agent called the selling agent and found out that the number we are about to offer is currently better than the other offer they have received. But the selling agent advised us that his client is looking for $5000 on the side before they'll submit the offer to the bank. Is this some sort of scam? My agent says they can add an addendum to the offer that says we'll pay $5000 for a piece of furniture that may be left behind or for some appliance to be left by the seller. This way that $5000 won't go to the bank but to the seller. Again, is this fraudulent? It doesn't quite sound right regardless.
So are you saying that there is nothing illegal about this? I'm going through this now where I want to put in an offer for a "Short Sale" house and the selling agent told my agent that the seller requires $5000 cash before he'll accept the offer, and then submit it to the bank.
WHAT DO YOU THINK AS REAL ESTATE PROFESSIONALS ABOUT THIS CONDUCT OF THE REALTOR AND SELLER?
This how I replied............
I would call the bank and report this. It will take some digging to get to the right person. Giving the seller $5000 is wrong and unethical. The seller's agent is just as guilty. I might even turn him into his broker, local newspaper, and local real estate board. It's not illegal, it's just unethical!
Go to linked in or the bank website. Find as many names of bank employees as possible and send out a mass email. Somebody will respond. Don't be afraid of emailing the president, ceo, vice president of the bank. They will respond! And you may not or might get the deal. Your agent can't do this because of our code of ethics that says he can't contact the seller. BUT YOU CAN! Use every variety of name combo to get it thru. For example if the bank presidents name is john smith @ charter bank. Then do JohnSmith@thebanks.com or john.smith@thebanks.com or j.smith@thebanks.com or jsmith@thebanks.com Don't tell the other agent or your agent that you are going to do this.
But of course if you really want the house and want to help the seller scam the bank out of money then give the $5000. The $5000 should go to the bank and not to the person who won't pay their bills and honor the contract they signed.
I THINK IT IS A SCAM....WHAT DO YOU THINK AS A REAL ESTATE PROFESSIONAL?
Over the years as a contractor I have done $100,000 on a hand shake when I trusted the person. So I believe in the old adage is that you are only as good as your word.
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