Orlando Short Sales becoming a popular target for Scammers
There’s a scam out there for everything and the world of Orlando real estate is no exception. Recently there’s been an outbreak of people trying to pull scams with title companies and short sales, here’s how it works. Scammers are mimicking major lender’s approval letters, including similar language and the bank’s logo. The letters look soo real that they’ve actually gotten away with it several times.
In some cases these scammers or “scumbags” use short sale approval letters that they fabricated to carry out there schemes. The result is that Orlando homebuyers purchase homes that they thought they had clear title to when in reality these properties where not only devalued but had huge liens attached to the property.
In other instances these scammers go so far as to assume the identities of unsuspecting Orlando homeowners or sometimes pretend to represent short sale lenders issuing bogus payoff letters approving short sales for ridiculously low amounts. These scams allegedly have resulted in more than $10,000,000.00 in losses.
In a short sale, a seller has the lender’s permission to unload the home for less than what’s owed on the mortgage.
It seems that luxury Orlando homes are the biggest target for these types of swindlers because they get bigger payoffs… when it actually works.
The reason these scams work is because of a huge lack in communication between title companies and short sale lenders
According to Mortgage Daily.com., Florida tops the nation in mortgage fraud, The Dallas-based trade publication said more than $260 million worth of fraud was being investigated in the Sunshine State at the end of the first quarter of the year.
If you or someone you know are involved in any kind of Orlando real estate transaction, make sure that you’re working with a proven Orlando realtor.
