7 Short Sale Scam To Know

7 Short Sale Scam To Know

When looking into solutions for dealing with foreclosure, the seller is usually in a very emotional state. The mindset they have often accepts the easiest and most effortless solution instead of the most rational. Moreover, they are usually approached with a set of documentation and laws that they are not familiar with. Because of this, sellers facing foreclosure are prey for savvy con artist looking to take advantage of the less knowledgeable. Here, let’s discuss 7 common short sale scams being introduces so you can recognize them.

Undisclosed Payments

How It Works

This scam happens when there is any money transferred to any party not disclosed on the closing disclosure(formerly the HUD).

How It Affects you

You may be liable for the funds exchanged and no way to know how or how much.

Fake Buyer

How It Works

When the buyer is a fake entity or the agent conducting the sale without any disclosures.

How It Affects You

Usually is used to defraud the bank, but once again, the bank can hold you liable for the outcome.

Fraudulent Short Sale Negotiators

How It Works

A con artist suggesting they will negotiate a short sale and nothing else.

How It Affects You

You are usually asked to pay a fee and nothing is done.

Leasebacks

How It Works

An investor suggests purchasing your short sale and allow you to rent it from them

How It Affects You

Seller typically pays rent either before or after the sale and the seller is usually removed anyway.

Straw Buyer

How It Works

Having someone buy the house with the intention of selling it back to you

How It Affects You

If the banks find out you can be prosecuted. Additionally, there’s no guarantee you’ll get the house back

Reverse Staging

How It Works

Destroying most or part of the house to lower the value

How It Affects You

You may not be able to regain the value.

Additional Help

How It Works

Agent hires a team member that is completely unnecessary to request additional funds from bank

How It Affects you

Agent fees may take away from the benefits you receive from the bank


John Lewis Headshot
Author:
Phone: 201-855-9377
Dated: February 25th 2019
Views: 387
About John: Specializing in Distressed Properties and Foreclosures, I have been regarded as "the angel realtor."...

Property Search









RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

The Right Way To Invest In Real Estate - Buying real estate -- either
36 Of 40 Things To Avoid When Investing - #36 Transaction Fees In the
37 Of 40 Things To Avoid When Investing - #37 Insurance So when you're
What Is An Opportunity Zone - Anyone that has been investing

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

Culture Estate
1833 Front St.
Scotch Plains, NJ
908-266-6178
908-444-0021