Short Sale Sharks, they are circling and moving in for the kill. I often get calls from people who just want to ask questions about short sales. They are trying to figure out what is best for them. My business partner and my mantra is be educated, be informed, and be engagaed. We never try to push someone into selling their home short.
But there are Short Sale Sharks circling. I hear about these stories but this past week I got actual proof. A person we have been chatting with for over a month about short sales and modifications called and told me this story.
Short Sale Shark contacted the homeowner, probably because he saw a notice of trustee sale coming up soon and the home is in an area hot for investors. Mr. Shark informed the owner, I can buy your house now, which is better than me buying it on the courthouse steps, and then you can turn around and live there. He even mentioned some cash for keys. The owner would love to stay in his home and in fact is in the process of working out a loan modification. The bank had contacted him several weeks ago and the owner was providing paperwork.
Mr Shark sure knows how to say the phrases most anybody would love to hear...stay in my home? cash for keys like $10,000? The part Mr Shark does not realize is, this owner is savvy, savvy enough to call me and rehash the story. He also agreed to get some paperwork from Mr Shark, which he promptly passed on to me.
What a fine line to take.....Mr Shark sent a listing agreement to sell the owners house for 50 cents on the dollar (current market value) and at the same time a purchase agreement from Mr Shark and another Mr Shark for even less than the listing amount, a authorization letter that would allow Mr Shark to contact the owners bank and negotiate on his behalf for the short sale, and a short sale bank application. There were no agency disclosures, no short sale information advisory, nothing, nada, zero, zilch to even explain a short sale, nothing about when considering a short sale, a homeowner should talk with an attorney and your tax professional. Mr and Mr Sharks's fins were all in this deal.
The bank involved specifically has an arms length affidavit which clearly spells out there might be an issue with this situation and the owner CANNOT live in the house. Period. I sent the arms length form to the owner so he could see it himself.
This is one owner who survived the Short Sale Shark Attack. The sad part is how many unsuspecting homeowners are getting this same information? IF it is too good to be true, then there may be something wrong.
Homeowners, be informed, be educated, take it a step at a time and be in control of your future. Don't let a Short Sale Shark Attack happen to you!
Comments(6)