{"id":12840,"date":"2014-08-06T14:30:05","date_gmt":"2014-08-06T18:30:05","guid":{"rendered":"https:\/\/orlandorealtyconsultants.com\/?p=12840"},"modified":"2022-05-10T17:43:52","modified_gmt":"2022-05-10T17:43:52","slug":"emerging-fraud-trends-short-payoff-fraud","status":"publish","type":"post","link":"https:\/\/orlandorealtyconsultants.com\/es\/emerging-fraud-trends-short-payoff-fraud\/","title":{"rendered":"Avoid Orlando Short Sale Fraud"},"content":{"rendered":"

Avoid Short Sale Fraud!<\/span><\/h1>\n

The mortgage industry is once again experiencing an increase in short sales. Since 2012 the number of short sales with Freddie Mac<\/a> has gone up substantially. This rising trend will leave the Orlando real estate market a target for short sale fraud.<\/span>
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What’s A Short Sale<\/h2>\n

A short sale can happen when a homeowner can longer pay the mortgage on their property and the lender allows them to sell the home for a discount of the principal balance owed to the bank or investor. Banks are willing to do this because they can avoid taking the property through a costly foreclosure process. <\/span><\/p>\n

Homeowners benefit by avoiding a foreclosure on their credit which can last up to 7 years as opposed to a short sale which stays on your credit for an average of two years. Many times homeowners are eligible for relocation costs from the lender. This amount is usually around $3,000.00.
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What’s Short Sale Fraud?<\/span><\/h2>\n

Without trying to sound like an attorney, short sale fraud can basically be described as deceitfulness or trickery when directly related to a short sale transaction. Fraud can appear in many different ways during a short sale and on both sides of the transaction.<\/span><\/p>\n

It’s deliberate misrepresentation or omission of a fact or circumstance that would convince the lender to go through with a transaction that a lender would not approve if they were aware of all the facts.<\/span><\/p>\n

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Some Examples Of Short Sale Fraud<\/h3>\n

1-The buyer of the short sale property selling or “flipping” the property immediately after the closing. This type of transaction can also be referred to as a “double” or “simultaneous” closing and can sometimes involve the use of two separate title companies. <\/span><\/p>\n

An example would be if the seller or borrower owed $150,000 on a home that is only worth $100,000. The short sale lender accepts an offer of $75,000 from the realtor or facilitator. The buyer will then have a buyer lined up for $95,000 and both transactions close on the same day and the facilitator pockets the difference thus increasing the lender’s net losses.
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2-The borrower’s hardship was fabricated for the purpose of getting the short payoff approved.<\/span><\/p>\n

3- The short sale facilitator purposely damages the property in order for the BPO [brokers price opinion] to come in lower than it would if the property hadn’t been damaged.<\/span><\/p>\n

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Preventing Short Sale Fraud<\/span><\/h3>\n

The best way to avoid any type of fraudulent situation when it comes to a short sale transaction is to research thoroughly research the short sale realtor <\/strong><\/a>before listing your house with them. Ask for references, Google<\/a> them, and check out any reviews that may have been posted. These days it’s even recommended to check out someone’s Facebook page to get some insight into what kind of person they are. <\/span><\/p>\n

It’s also a good idea to avoid getting involved with facilitators that are unlicensed or if they want you to use a realtor that is controlled by them.<\/span><\/p>\n

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Avoid Short Sale Fraud! The mortgage industry is once again experiencing an increase in short sales. Since 2012 the number of short sales with Freddie Mac has gone up substantially. This rising trend will leave the Orlando real estate market a target for short sale fraud. What’s A Short Sale A short sale can happen […]<\/p>\n","protected":false},"author":4,"featured_media":23310,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[7,4,6,17],"tags":[885,215,886,887,261,888,157,82,57],"class_list":["post-12840","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","category-news-and-information","category-orlando-realtors","category-orlando-short-sales-2","tag-avoid-short-sale-fraud","tag-john-conde-realtor","tag-orlando-short-sale-fraud","tag-prevent-short-sale-fraud","tag-short-sale-experts","tag-short-sale-fraud","tag-short-sale-negotiators","tag-short-sale-realtor","tag-top-orlando-realtors"],"acf":[],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t