My client is mad at me because I did not advise her to commit fraud.

Real Estate Agent with Coldwell Banker (Elk Grove, CA) BRE# 01444710

I can't help but smile at being a Realtor. After 5 years in the business, I thought I had seen almost everything. Between what I read on Active Rain and what is happening in my own business, have been proven wrong time and time again this year.

My latest comes from a client I am working with on the short sale of her home. We got a response/approval from the bank and she ran the offer by her real estate attorney and tax person to make sure it was going to work for her. While running it by her tax guy, he suggested my client talk with his "short sale specialist". Not sure why he would recommend she talk to a Realtor at this point, but that is a different blog.

My seller gave her a call and during their conversation, the "short sale specialist" advised my client that she should have hidden any and all assets from the bank to make it look like she has no money. That way the bank would not ask for any additional funds and let the short sale go forward.

Hearing this, my client called to let me know that I am giving her bad advice.

I have issue with an agent who does not know what is going on to give advice on what my client should be doing. What I really have issue with, is that she would advise my client to commit fraud.

I know the odds of getting caught are very low. What are your thoughts on this topic?

Posted by


Michael Simcock

Coldwell Banker

Cell 916 425-1084

9250 Laguna Springs Dr #100

Elk Grove, CA 95728


Comments (4)

Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Michael, she is not your Client she is a future Cell Mate to someone....There is not enough commission money for me to be partners in Lender Fraud.....

Mar 14, 2011 11:18 AM
Reba Haas
Team Reba of RE/MAX Metro Eastside - Bellevue, WA
Team Reba, CDPE

wow, who is this "short sale specialist"?  Sounds might fishy.

Mar 14, 2011 11:23 AM
Shannon Milligan, Richmond VA Real Estate Agent/Associate Broker
RVA Home Team - Richmond, VA
RVA Home Team - Winning with Integrity.

That's when I would say "sorry you feel that way. Good luck to you!" and then part ways. Not worth it. Some people are just so dishonest.

Mar 14, 2011 11:29 AM
Michael Simcock
Coldwell Banker (Elk Grove, CA) - Elk Grove, CA
Elk Grove, CA Realtor 916 425-1084

@ Endre......I would agree with you that breaking the law is worth it for a check.

@ Reba.......As we see again, anyone can call themself a "short sale specialist".

@ Shannon......Client has had a hard time coming to terms with the situation. Short sales are hard on everyone.

Mar 14, 2011 11:39 AM