The new foreclosure scam!

Real Estate Agent

There's always someone on the 'take' ~ someone trying to make a fast buck...  to cheat the system!

How's this for a new scam:

REALTOR(R) signs up for REO properties and starts receiving listings.  He targets a really nice, upgraded home with a pool, in a nice area, just freshly REO'd.  Said agent finds a tenant for HIS property at $1250/month and moves ALL his furniture into the REO property.  Firmly settled,  offers start coming in, but he tells buyers agents that their offers have been unsuccessful as he has a higher offer (which he doesn't)! 

This agent has lived rent-free,  whilst his tenant pays his mortgage (and then some) for a year.  Seems like he may have another year of free living before he has to find another REO to move into.

And all the bank cares about is getting an offer in line with their inflated list price!

His excuse?  He is protecting the banks asset from transients and vandalism!

Let's hear your comments?

Althea Garner
Preferred Realty Executives (Florida and California) Your House Of Homes Online
DRE 01516817

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Comments (4)

Karen Crowson
Coldwell Banker Residential Brokerage - Rancho Bernardo, CA
Your Agent for Change

Wow, now I've heard everything.  Our REOs don't stay on the market very long, so I don't know that someone would get by with that too easily around here.

Feb 12, 2011 10:05 AM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Very useful insight into this topic - will go on my "to read in more detail" pile.  Thanks!

Feb 12, 2011 10:18 AM
Althea Garner
Port St Lucie, FL

Well,  Karen,  with this agent, he just keeps diverting those offers and the bank thinks that there is little or no activity but because he is submitting only the lowest offers,  the bank rejects them.

Clever, because this enables him to continue living - secure - for free!


Feb 12, 2011 10:53 AM
Althea Garner
Port St Lucie, FL

Oh, my, Tony and Suzanne.....  don't know about yours, but my "to read in more detail" pile is HUGE!




Feb 12, 2011 10:55 AM