Banks Accused of Short Sale Fraud – Another Reason I Love Doing Deals Without Them
January 25th, 2010 categories: Real Estate News
No wonder I love putting real estate transactions together without ever having to deal with a bank . . .
Jeremy Brandt is the CEO of companies like 1800CashOffer, HomeFlux.com and FastHomeOffer.com . . . all companies that bring lots of distressed sellers, investors and short sale agents together.
Over the past several months he’s been receiving all kinds of questions and complaints from his short sale agents about trouble with second lien holders. Read the full article, written by CNBC Real Estate Reporter, Diana Olick.
Brandt has apparently documented at least 200 agents that have had trouble with Citi Mortgage, JP Morgan Chase, Bank of America and other large banks, and a friend of mine recently told me the same thing.
She works tirelessly to help troubled home owners. She spends countless hours working with the lenders to get short sales approved so people can move on with their lives, and then is asked for most of her commission at the closing table.
A HUD specialist commented that this is clearly illegal and a violation of RESPA. So far, there aren’t any active investigations, though . . .
But why would there be? I mean, big banks are ‘too big to fail,’ so we’re rescuing them with taxpayer dollars anyway . . . why would we care that the poor beggars are grabbing for a little more? Just look the other way, George . . .
If anyone ever asks me to help them with a short sale listing, I hire a professional company who specializes in short sale negotiation so my client has the best possible outcome, and I’m not being asked (at least to my face) for my grocery money by some starving financial behemoth.
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