Short-Sale Scams
Staged short sale scams are also being noted by the FBI who describes the activity as that which is very much alarming due to increasing number of cases. The scam takes hold when a buyer seemingly takes the cause to purchase with the intent of not making any payments and pockets the lean they filed with the bank to finance the home purchase. He doesn’t pay for the home leaving the homeowner to deal with the foreclosure, the lender then seeks for a pre-foreclosure buyer to help dispose of the home. A second buyer pretending to be a pre-foreclosure buyer then goes to the lender and opts to buy the property for the current loan amount with the previous fraudulent buyer damaging the home to obtain lower rates. This events are real and they do happen, consumers are advised to contact their local FBI offices for more details or if they suspect they are being victimized so justice can be served.
These activities are designed to bring about a condition wherein the consumer may not have any other option but to resort to a short sale that is fabricated and designed to work against the lender and homeowner who are unknowingly being reeled into the scam. Caution is advised to prevent such incidents and dealing only with people who are known to be established and well known. Even well established firms from out of state may not be authorized to do business in your area so check with housing authorities just to be sure.