SHORT SALE FLIP - QUESTIONABLE METHODS

By
Real Estate Attorney with THE ZARETSKY LAW GROUP - Board Certified Real Estate Atty and AUTOMATED LAND TITLE COMPANY

SHORT SALE FLIP - QUESTIONABLE METHODS

This article is a follow up to an issue discussed in December titled Short Sales and Title Insurance - Critical Look at Hybrid Closing Schemes.

I am representing an ultimate buyer on a short sale "flip" that raised some eyebrows and got me to looking carefully on how it is put together.  The ultimate buyer came to me to assist in legal representation and I was very surprised on how it was structured to the utter disadvantage to the ultimate buyer.  In this example, the ultimate buyer is my client; the seller is the flipping buyer; and the owner is the regular seller.  Let me point out some interesting and I think important points:

1.  The purchase and sale agreement is the Florida Association of Realtors / Florida Bar form 02/08 "AS IS" form.

2.  The buyer is the ultimate buyer in this situation.  The buyer is just defined as the Buyer in the contract as if it were a typical deal.

3.  The seller (flipping buyer) is a company that we determined is not the current owner.  They say they have a Power of Attorney from the owner, but we have not seen it.  They apparently have some control over the owner since we were able to have a tour of the home, in which the owner is still living.

4.  The contract does not disclose the power of attorney nor the name of the actual owner nor that the seller is not the owner.  But that control may just be that the owner contracted with a realtor involved in the deal as the seller's broker.

5.  The seller insists on their chosen title insurance company both hold the deposit and do the title and closing, even though the buyer is to pay for those costs.

6.  The contract provides for the closing date of 3 weeks from now, but seller can extend for an additional 60 days after that.

7.  The contract says that if the seller can't deliver title by the end of the extended 60 days, the buyer gets their deposit returned.

Here are the unusual issues that concern me:

A.  The contract form assumes that the seller is the owner.  This creates a problem in the enforcement of the contract because if the "seller" cannot deliver marketable title after diligent effort, there is no remedy for specific performance against the seller.  Although there is no short sale addendum to this contract, the end effect is that if the bank does not agree, there can be no sale.  But this is not a condition up front in the contract.  End result is the buyer can tie itself up without the ability to negotiate with the lender and the original owner, and then end up after over 80 days with nothing but its deposit returned.  Remember who the parties are - the real seller is not in privity (ie: direct contract) with the ultimate buyer.

B.  The deal smells of the seller using the buyer's deposit as its own deposit with the owner.  This could tie up the buyer's deposit in a contract dispute with the owner and the flipping buyer.

C.  The deal smells of an undisclosed double contract, which is bank fraud in which the title agency is (unwittingly?) participating.  The buyer is getting a mortgage, but the new lender has no idea of the simultaneous lower priced sale.  The 1st American article reference above says, "Several variations of the short sale frauds we have seen involve multiple sales contracts at different prices - a low one to show the "old" lender when negotiating a discount and a higher one used for negotiating with the "new" lender.   Knowingly making, issuing, delivering, or receiving dual contracts - only one of which shows the true purchase price - is a crime in Florida and a major red flag for fraud.  See §877.10 Fla. Stat". 

D.  There is obviously no disclosure to the owner nor to the owner's lender of the double contract.  Whether this is needed or not is a good question.  See the quote of 1st American in the above referenced article where it states, "While there are no hard and fast rules, the single best guide in evaluating a proposed short-sale (or any other transaction) is to ask yourself  -- "Would the lender take this discount (or make this loan) if they knew all of the facts that I do?"  If the answer is yes, there is no harm in disclosing the facts to the lender(s) in writing and awaiting their written approval.  If the answer is NO, then your hiding the information may sweep you into a mortgage fraud conspiracy. There presently is no bright-line rule as to how much profit is too much or how long the property should be held before making the profit.  As such, it is best to contact underwriting when faced with this scenario""

E.  The contract requires the ultimate buyer pay all the seller's (flipping buyer) expenses including "but not limited to" title, recording and documentary stamps".  This means that buyer could be involved in double everything - including the first closing expenses.

I have been involved in multiple contracts, and the selling lender has even approved of the "assignment" contract if handled in that fashion.  The key seems to be to get the bank to agree first on the initial amount.  Once that is out of the way, assignment of the contract seems not to be a problem.  A fee for the assignment is not a contact that involves anyone other than the contract holder and the new buyer.  The new buyer discloses the underlying assigned contract and the assignment fee to arrive a the "selling price" with its new lender.  No harm no foul, and every one who needs knowledge has knowledge. In one deal we have the new buyer learned of a hole in the foundation that was not filled in with cement after some investigation.  We sent the pix to the shorting lender and got the price lowered.

There are a myriad of "concepts" that are being tried in the short sale arena.  Be careful of what you get involved in as a broker, seller or buyer.  Just because it worked before does not mean it is legal or will work again.

Copyright 2008 Richard P. Zaretsky, Esq.

Be sure to contact your own attorney for your state laws, and always consult your own attorney on any legal decision you need to make.  This article is for information purposes and is not specific advice to any one reader.

Richard Zaretsky, Esq., RICHARD P. ZARETSKY P.A. ATTORNEYS AT LAW, 1655 PALM BEACH LAKES BLVD, SUITE 900, WEST PALM BEACH, FLORIDA 33401, PHONE 561 689 6660  RPZ99@Florida-Counsel.com - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers and Sellers with Short Sales and Modifications and Consult with Brokers and Sellers Nationwide!  Shortsales@Florida-Counsel.com  New Website www.Florida-Counsel.com

See our easy to understand articles at:

TABLE OF CONTENTS - SHORT SALE AND LOAN MODIFICATION ARTICLES

 

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Anonymous
Kevin Kim

Hey All,

This is Kevin Kim, author of SeattleShortSaleBlog.com

While flipping short sales is not "illegal," often times it is not in the best interest of the seller.  The only time flipping short sales is allowable (in my opinion) is when the deficiency is waived and the seller is exempt from the tax obligations. 

The "equity" created in such transaction typically equals a deficiency balance to the seller.  So if the investor eliminates the deficiency balance, I say, take the cake and have your reward.  If not, then know that the seller is paying your spread.

 

 

Nov 22, 2009 09:26 AM #31
Rainer
148,727
Mike Linkenauger
LinkUp Realty - Jacksonville, FL
Short Sale Realtor - Jacksonville FL

Richard, usually where there is smoke, there is fire!  Thank you for exposing these truths!  If you get a minute, I'd love to hear from you on my extremely contfrontational post regarding the $10 short sale option contract.  I've been fighting off the scammers tooth and nail!  There is so much short sale mortgage fruad going on right now its unbelievable!  Check out:

http://activerain.com/blogsview/1291605/the-10-option-contract-short-sale-scam

 

Dec 13, 2009 11:47 AM #32
Anonymous
Alma Kee, Tampa Realtor

Just read the new guidelines for Short Sales in the new program for Non-GSE Mortgages (those other than Fannie, Freddie, etc.)

Home Affordable Foreclosure Alternatives Program

https://www.hmpadmin.com/portal/docs/hamp_servicer/sd0909.pdf

An investor who owns the underlying mortgage cannot allow a Short Sale Buyer to re-sell the property for at least 90 days so the investor buyer can no longer do a same day flip--even if they have an ALL CASH buyer. HOOORAY! 

This is a new program with cash incentives to the underlying mortgage investor and the servicer so hopefully this will put an end to these fraudulent short sales.

Jan 01, 2010 06:58 AM #33
Anonymous
Paul Barrow

I read Mike's extremely confrontational post and noticed the comments had to be turned off!  Wow. 

Can we all agree that in any industry there are good and bad business people?  Unfortunately, it is usually the bad ones (agents, investors, people and news) who get most of the attention and ink. 

I wrote a post on Qualifying Real Estate Investors that explains the difference between "real" investors and what Mike calls "Transaction Coordinators" because one of my business missions is to promote and foster relationships between good agents and real investors. 

I enjoye reading and agree with (most of) Richard's comments about disclosure of "Flips."  As an investor myself, I saw the writing on the wall early with double closing problems and went so far as to start a transactional funding company to help finance flip properties for other ethical investors who want to follow the rules.

As much as either camp would hate to admit it, investors and agents are not all that different in the way(s) we earn a living.  Everyone has to sell something sometime and all of us are "transaction coordinators" in one way or another.  Touche and peace,  -Paul

Jan 04, 2010 10:30 AM #34
Anonymous
Jay

I have to comment about the attitudes of some of the realtors in this thread.  I've been a licensed realtor in CA for 18 years.  I am also an investor who uses the business model mentioned.  Transactional funds are used to purchase the property and re-sell it in a double closing, which is totally legitimate according to FNMA, Freddie Mac and now FHA based on their recent guideline change regarding legitimate property flips.

http://tinyurl.com/4f3bjo

The state of California is extremely protective of consumers and if it can be done here legally, it can be done anywhere.  (These deals in fact are happening around the country, every day) Here in our state the distressed seller has become a protected species and the utmost care must be taken to make sure they are represented and that the listing agent is not involved in any other part of the transaction and owes no fiduciary duty to any other parties involved.

AS someone else has alluded to previously, arbitrage occurs every day in business. Welcome to capitalism. 

"Realtors," in all their wisdom, often ask the question "how can a property have two prices on the same day?"

The answer is that a distressed property has a lower inherent value than a property which has been taken out of the distressed category. Realtors, ask yourself why buyers and their agents will pass up a short sale listing to pay a higher price for a non-short sale listing.  There is your answer.

THe one thing that really irks me about many who call themselves Realtors is that they don't realize that once someone is in default and heading for foreclosure, their fiduciary duty is not to get the highest offer for their property, it is to get them OUT of foreclosure.  The best solution to their problem is a quickcash sale.  The buyer who offers top dollar is often a marginally qualified FHA buyer who may likely fall out of escrow or lose interest in the property mid-escrow. As we all know, the banks usually keep heading towards foreclosure full steam no matter what the status of the short sale and often do sell the property out from under a homeowner despite them being in the middle of negotiations.

(I have seen this happen to so-called "distressed property specialists")

Realtors are really doing their clients a disservice when they stick to the standard "highest offer" mode of thinking while dealing with a client who has an impending foreclosure sale date. 

I'd go so far as to say they are committing malpractice, especially if the home is sold out from under the seller while he is waiting for his realtor to get the "highest offer."

http://getoutofforeclosurenow.com

The best offer is the one that will close.

 

 

Feb 08, 2010 11:40 AM #35
Anonymous
Jay

Sorry, I inadvertently posted the wrong link for the FHA revision.

 

Here's the correct one.

 

http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2010/HUDNo.10-011

Feb 08, 2010 07:48 PM #36
Rainer
148,727
Mike Linkenauger
LinkUp Realty - Jacksonville, FL
Short Sale Realtor - Jacksonville FL

Yikes, you scam artists need to REALLY read this.  The fact that you made those comments further shows that either 1.) you have no clue what you are doing, or 2.) You are a scam artist trying to convince the public that you are not.

This is the ACTUAL WAIVER, not some commentary.

http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf

1.) The entire waiver doesn't mention the word "short sales" that I could find, it was written in regards to REO property sales ONLY.  It specifically mentions the types of property sales that qualify for the waiver, AND SHORT SALES IS NOT ONE OF THEM!

2.) It says in paragraph 1B - "properties must be marketed fairly and OPENLY Via MLS, Auction, For Sale By Owner, or Developer marketing."  Your methods are NOT marketed openly OR fairly.

Don't be a victim of short sale fraud, only work with an agent who will not try to profit off your misfortune as much as possibly.

Feb 15, 2010 09:01 AM #37
Anonymous
Kevin

Mike,

Who has no clue?  It seems you need to brush up on some of the developments of the past 4 months.

Check out the Wells Fargo Policy change on lending on property flips, Freddie Mac Bulletin 2009-24, and the FHA Waiver on 90 Day seasoning that was signed in Jan 2010.

All 3 clearly point to short sales and one day property flips.  Some limitation on % of profit but they all point to one thing they are "legitimate property flips".   

Mar 07, 2010 04:52 PM #38
Anonymous
Jason

I have done a lot of reserach in Texas and flipping short sales is not illegal. I have an attorney in standby that verifies all the information. If a bank is willing to take to less that mortgage amount that is business and sales period. Now we have found the buyers lender does need to know it is a short sale flip so we are not flipping any properties high enough for the buyer to get a loan. It is not much different than an investor that assigns contracts. Lets flip the coin here on a loss mit situation the bank orders and appraisal and come to find out the house with $100000 note on it is only worth $50000. Who gets the short end of the stick here? The bank says well yea well do work out arrangements. Keep in the mind this is all business. The feds coulnt try mortgage fraud cases unless the houses actually got foreclosed on, So the smart investors used their cash out cash as credit and sold the properties the next year. Business is business plain and simple and if you had time to post you have got way too much time on your hands. Go get paid.

Mar 16, 2010 07:10 AM #39
Rainmaker
281,515
Richard Zaretsky
THE ZARETSKY LAW GROUP - Board Certified Real Estate Atty and AUTOMATED LAND TITLE COMPANY - West Palm Beach, FL
Florida Real Estate Attorney

Jason

OMG!

Mar 16, 2010 04:08 PM #40
Anonymous
Lisa Garvin

I guess the Virginia Association of Realtors was wrong when they stated short sale flips ARE legal
http://www.varealtor.com/sites/default/files/SeptCommonwealth_web_0.pdf

Scroll to page 12

Listen, short sale flips are completely legal so long as everything is disclosed.  If there are narrow minded lawyers and Realtors out there that don't want to be involved, then DON'T because your competitors who work with investors are certainly making the money on it.

The lenders allow it if it's disclosed.  Do your research.  I am absolutely sure all of you here who are saying it's NOT legal and IS unethical have NEVER sat with an investor and discussed how it's done. 


Mar 25, 2010 08:07 AM #41
Anonymous
Cindi Dixon

Short Sale flips and the HUD 1 Settlement Statement…Your Key to Fraud Prevention

Recently I was invited to speak at the Palm Beach County Economic Crimes Task Force’s annual conference.  This invitation is truly a thrill given my affinity for working with law enforcement.  For over a decade, I have had the privilege of training and working on inter-agency mortgage fraud cases.  And so began my quest for new and exciting mortgage fraud data to dazzle these white collar crime experts.  I called my colleagues on the front lines to solicit their current mortgage fraud horror stories.  Recognized as an expert in this field for over 15 years, I pride myself on working closely with the handful of industry experts who have spent their illustrious careers in the mortgage fraud trenches.   They soon confirmed my findings that there is not much new in the mortgage fraud game. 

Do not misunderstand me.  According to the FBI, 2009 mortgage fraud Suspicious Activity Reports, SAR, reported an excess of $1.5 billion in losses for last year, a total of 62,190 reports.  Almost half as many, a startling 30,000 cases were reported in 2010 through February month end!  The FBI, and their 77 task forces, still account for only a fraction of actual cases for various reasons.  First, there are specific criteria required for a SAR to be opened.  Non-banking institutions are not required by law to file SAR reports, and this includes mortgage originators and mortgage backed securities investors.  Also, the FBI does not have the resources to investigate every claim they receive.  It is safe to say their numbers exponentiate dramatically when considering all incidence of mortgage fraud.  The other cases never reaching the FBI are estimated to double or triple those volumes.  Actual losses are reported to exceed half a trillion dollars and account for our current foreclosure/liquidity/real estate/subprime crisis. So what now?

An old fraud scheme in a new package is property flipping.  This new wave of fraud very prevalent in depressed markets is the short sale flip.  This is crime has all of the characteristics of the standard property flip but preys on markets that have lost substantial value, specifically Florida, Arizona, Nevada, and California.  Orchestrated rings under appraise, bid on and buy properties in various states of foreclosure in order to flip them for higher values, often times at the same closing.  Modeling flips of old, “investors” are being roped in by get rich quick in real estate artists, as are college students with fresh credit, and we are seeing a preponderance of identity theft victims involved.

Title insurance attorneys and agents are on the front lines of defense against this crime.  Interestingly, I speak regularly with title attorney colleagues who are kicking and screaming about the frequency with which they are seeing this occur.  Frustration is growing because their find their reports to lenders and law enforcement are falling on deaf ears.  Why is this?  Again, the same reasons with shocking regularity as though we have learned nothing from the past five years:  Lack of internal resources, focus on production, complexity of the fraud ring and lack of training to understand and identify the parties, and failure of implementing and enforcing internal policies and procedures, including training and technology, that can lead to mitigating 80% of these crimes.

The HUD 1 and red flags, Attention Title Agents, Underwriters and Closers!

Unusual payouts on the HUD 1 are the first big clue to short sale flips.  As mentioned above, this can immediately identify the tip of the iceberg leading to larger fraud rings.  When itimizations on the final HUD reflect variances from the estimated disclosures, payouts to individuals or questionable LLC’s or large payouts that cannot be sourced and verified, it is worthwhile to investigate further.  Another source of red flags for the closing agent is the Purchase Contract.  Assignees, LLCs, and non-arm’s length parties are clues to potential issues and should be examined.  Public records searches allow parties to be quickly investigated to uncover what businesses and properties they own, and with whom.  Chain of title on the subject and comparables will provide further evidence of collusion amongst parties to the fraud.

At the very least, if you suspect individuals, licensed professionals or other parties such as a loan originator, notary or builder, is a party to questionable transactions, create a record of their names, companies, license information, addresses and dates.  You can do this quickly and use it for future reference because you will come across these parties again.  It will be needed for future reference when making claims or filing police reports.  If you have the means, have an expert assist you in building an internal database to manage this information and run all new files against it.  If you don’t have the capability to create this, there are services available that can help you manage your data and aggregate it for you, along with criminal data from other sources, for your future reference and that of law enforcement.

No longer thought to be victimless crimes, just ask the tens of thousands of mortgage professionals out of work, mortgage fraud impacts banks, homeowners, and neighborhoods.  Cities lose tax dollars and have to cut services.  Banks are losing billions and the availability of capital for mortgage, car and credit card loans is greatly reduced for all consumers and business owner.  The impact of mortgage defaults is being felt worldwide and experts estimate we could be a decade away from a true market correction and rebound.  We all have to work together to stop these fraudsters, but being proactive in examining line item payouts and parties involved in short sale and foreclosure closings is a great place to start.

For more information on creating a mortgage fraud database, in house risk management training or establishing mortgage fraud mitigation procedures, contact Mela Capital Group at 954-675-2319 or Info (at) MelaCapitalGroup.com.

MCG, LLC has audited over $5 Billion dollars of mortgage loan products, has created and enforced underwriting policy for over two decades, and continues to provide expert witness testimony and consumer advocacy training nationwide. 

Mela Capital Group provides forensic securitization and fraud auditing and training for attorneys and law enforcement throughout the U.S.



 

Apr 13, 2010 06:46 AM #42
Anonymous
J Rivera

Just my 2 cents,

Every body know that there are thieves with a Degree, ant the ones without it. Is ther any differience?

Sep 03, 2010 03:43 AM #43
Anonymous
T

I'm trying to determine if the short sale flip is legal. In our situation: we are the end buyer the B to C. I have been waiting 6 months to find out if the bank will approve MY offer. My contract states that the property is not to be shown or marketed until the bank responds to my offer. We even have a short sale addendum signed by the trustee. I have spent six months thinking I was waiting for the lender's bank approval of the short sale and had no idea that someone else's short sale was being negotiated and if approved would then be sold to me at a profit. I would not be so bothered if there was disclosure to us, the end buyer, as to how they were handling the situation - at least then we would have a choice. Who knows, the bank might even have taken our offer of $$$, but I will never know because who knows what the investor is offering and what kind of profit they will make. How is this legal? We were never informed, the listing agent/seller/trustee did not reveal any of this, and nowhere in my contract did it say my sale was dependent on A - B transaction.

Sep 13, 2010 05:42 AM #44
Rainmaker
281,515
Richard Zaretsky
THE ZARETSKY LAW GROUP - Board Certified Real Estate Atty and AUTOMATED LAND TITLE COMPANY - West Palm Beach, FL
Florida Real Estate Attorney

T

This is a matter you should take to the Board of Real Estate in your location.  If you were deceived by the broker it is wrong. In essence, the borrower is not the trustee - it is the grantor of the trust. Although you were negotiating with the "owner" of the property, I would not say the trust could be viewed as a sham and without consideration - and I would definitely say that your offer has NOT been presented to the bank - which is a problem the listing broker has with the deal.

Sep 13, 2010 11:36 AM #45
Rainer
135,845
Linda Humphrey
Humphrey Home Connections Realty, Reno, Nevada - Reno, NV
CRS, Broker/Owner HHC Realty

I was fascinated to find your post on this subject, since I am in the middle of just such a transaction right now (I represent the "C" buyers), and trying like crazy to keep things legal and above board while protecting my clients to the best of my ability. Full disclosure at least at my end! We have two title companies involved in order to protect their earnest money, that alone has been crazy. We just got word that the A->B short sale is closing tomorrow, so will begin our inspections and hope to wrap it up; no double closing on this one. It has been a real educational experience, and I have been writing ongoing blog posts about it. I won't hijack your post with a bunch of links, but anyone interested in commenting is welcome to track them down from my AR profile.

Oct 03, 2010 07:36 AM #46
Rainmaker
281,515
Richard Zaretsky
THE ZARETSKY LAW GROUP - Board Certified Real Estate Atty and AUTOMATED LAND TITLE COMPANY - West Palm Beach, FL
Florida Real Estate Attorney

Linda -

There are two popular theories regarding using one or two title companies. One promotes the single title agent concept for "control" purposes (but this creates disclosure issues for the agent as well) and the other promotes the 2nd title agency, with the concept "don't ask don't tell".

It always just comes down to disclosure and following the closing instructions for the shorted lender. The 2nd title agency concept is designed to avoid those closing instructions that include a prohibition of a new transfer of the property for 30 / 60 / 90 days - if the 2nd title agent does not have the instructions from the shorted lender, the flip can occur.  I think that is short sighted (pun intended) as there is an obligation of common inquiry. 

In my office we use a special warranty deed that has a built in prohibition on immediate transfer so my firm is protected, the seller is protected and any subsequent buyer is protected - and our underwriter appreciates the added protection from a claim by the shorted lender or a subsequent buyer for a title claim.

Oct 04, 2010 03:31 AM #47
Rainer
135,845
Linda Humphrey
Humphrey Home Connections Realty, Reno, Nevada - Reno, NV
CRS, Broker/Owner HHC Realty

Interesting! I appreciate your perspective. Actually, the reason we insisted on our own title company was because theirs is in Ohio (requirement of hard money lender who is funding the purchase for the investors; shorted bank requires 30 day hold), while we are in Nevada, and I have never heard of it, although I believe they have a branch in Florida. Didn't want to have the deal fall apart with a substantial sum of earnest money somewhere I might have trouble getting it back from. Everything about the transaction was disclosed to local escrow officer. Also, it is my understanding that the investor sellers cannot dictate insurance underwriter due to RESPA, so we will be purchasing title insurance locally. If local underwriter isn't willing to insure, we're outta there!

Thanks again for all your informative posts; although we are a deed of trust state and hence our foreclosures are very different, it is always interesting to see what is happening around the country.

Oct 06, 2010 02:16 PM #48
Rainer
47,758
Andrew Lietzow
IaREIA | Iowa Landlord Association - Des Moines, IA
MBA-Exec Dir Iowa Real Estate Investors Association -

Bill: I'm with you in your above statement, though I might state it a little more diplomatically.  No one was holding a gun to the Lender community to make them offer these loans, especially ones that have now become TARP loans, with distressed sellers.   I knew ARM's, Interest-Only, and No Doc/Stated Income loans were a bad deal and never recommend ANY of these types of loans to my Buyer Clients.  They are practically a scam, just so the Loan Originator and Agents could make a commission!  I happen to think Lenders who originated loans with undisclosed yield spread premiums needed to be called out, too, and fortunately, with the recently passed financial reforms, these are now a thing of the past.    

Linda Humphrey writes: "  We just got word that the A->B short sale is closing tomorrow, so will begin our inspections and hope to wrap it up; no double closing on this one.

You'e just now beginning your inspections?   I don't let the C buyer wait that long.  Once you have the deal negotiated with the Bank, what you need is a quick closing, not a Buyer who might now reject the house because they haven't performed a property inspection.  I try to help Buyers understand that what they are buying will become a foreclosure if this deal doesn't go through, and is being purchased with the RIGHT to an inspection, but without any obligation on the Sellers part to repair anything.  Basically, it's being sold in "As-Is" condition, and I'd sure hate to lose the C Buyer at this critical point in the SS process.   Once the offer is received, they have 10 days to do the inspection, regardless of whether we have an approval from the lien holders.   My client is the Borrower/Shorting Seller and this only seems fair to them.   Others mileage, and opinions, may vary.  

Oct 12, 2010 07:43 AM #49
Rainer
29,501
Jen Edwards
RE/MAX Unlimited - Ponte Vedra Beach, FL
Broker Associate

We have lots of these scenarios in Florida and, luckily, lots of inventory.  If it smells like fish, tastes like fish, most likely it's dead fish....run screaming!

Nov 17, 2010 07:27 AM #50
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