Short Sale Fraud is not a thing of the past. It's alive and well!! Normally the fraud is related to property value. Get the lender to accept way less than the property is worth and BAM! instant profit when you flip it. Sounds good right?
Well it's not. It's illegal to provide a fabricated value to a lender with the intent of thievery. That's right. Thievery. Don't do it.
Here's an example of short Sale Fraud from an article over at loansafe.com.........
- A former Bank of America employee, Kevin Lauricello, of Thousand Oaks CA was sentenced on Monday to 30 months in federal prison for his participation in a fraudulent short sale scheme. As an employee of the Short Sale Department at Bank of America, Lauricello was paid $1.2 million in bribes for his insider access to approve short sales at a much lower price than current market value, which resulted in $5.7 million in losses for the bank. READ THE REST OF THE ARTICLE.
Folks this stuff just makes Orlando Short Sales more difficult for the people that truly need help. Agents and borrowers are required to jump through hoops that exist for no other reason than to help weed out Short Sale fraud.
Lenders want as much money as possible for the Short Sale. Getting as close to market value as possible increase the chances of the Short Sale being approved. A higher price reduces the lender's loss and limits the borrower's tax liability and deficiency.
So folks if you need help with a Florida Short Sale then contact your Orlando Short Sale Specialist. That would be me, Bryant Tutas. Let's talk.