Yes short sale scams are in full swing here in Southeastern Michigan. I know of one agent that does some short sales. When the bank does the BPO he tries to influence to a low ball amount. If the bank does a low BPO and then accepts that low number, the property now has a below market price that the real estate agent knows about.
Then the real estate agent has his "partner" put in an offer at the low ball price. Of course the bank accepts it. The partner buys it. Then the agent re-lists it for the "partner" after some repairs. The agent has become part of the transaction by influencing the banks appraiser for a low price and then having somebody he knows buy it at that price.
Gone are the ethics of a real estate agent. We as real estate agents are supposed to work to get the best price for our clients. The banks in short sales are our clients too. Not cheat them by having a friend of ours buy at a low price we influenced the bank to take.
THIS IS UNETHICAL. THIS IS FRAUD. This agent made $30,000 off the first deal and is in the process of making $50,000 plus off his second deal. I'm sure he will continue to do it as he is not breaking any laws. But he sure isn't working in the best interest of his clients. I'm just glad he doesn't represent me.
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Russ Ravary
"helping make your move easier"
your local Metro Detroit Realtor helping clients like you sell and buy homes through out the entire Metro Detroit suburbs. I love showing and selling Oakland County and Livingston County Lake front homes too.
I'm not so sure this agent isn't breaking any laws. We had a couple of agents (and appraisers) in PA go to prison a few years ago for similar scams.
Hmmm.....clean up your market and find out if he has broken laws...we know the ethics are at issue...doesn't your local board want to know ?
I am interested in purchasing a home that is listed as a "Short Sale". My agent called the selling agent and found out that the number we are about to offer is currently better than the other offer they have recieved. But the selling agent advised us that his client is looking for $5000 on the side before they'll submit the offer to the bank. Is this some sort of scam? My agent says they can add an addendum to the offer that says we'll pay $5000 for a piece of furniture that may be left behind or for some appliance to be left by the seller. This way that $5000 won't go to the bank but to the seller. Again, is this fraudulent? It doesn't quite sound right regardless.