Colorado Springs Vintage Homes Blog
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Archive for November 24th, 2008
Fradulant Short Sales hurt the Colorado Springs Real Estate Market
Fraudulent short sales ?
Short Sales – Part IV of Short Sale Series
Previous Posts:
- Colorado Springs Homes, 4 things to know about a short sale - Part I of Short Sales Series
- Avoid Foreclosure, Know Your Options - Part II of Short Sales Series
- Colorado Springs Home Foreclosures – 11 benefits of a short sale - Part III of Short Sales Series
Fraud can sadly sometimes come into play in a short sale transaction, which can causes a ripple affect in the Real Estate market and with legitimate sellers who need to do a short-sale. The following is a list of some of the things I’ve heard about in the marketplace. If you are a Seller, I strongly suggest that you stay away from these options.
(1) Submitting “Ghost” offers. I’ve ran into some Realtors who submit “ghost” offers to get lender approval before they have a committed buyer. They have a friend, or someone else they know, write an “ghost” offer; and this person doesn’t have any real intention of purchasing the property. The Short Sale Package gets submitted to the lender with the hope of getting approval from the lender. Once the lender gives approval on the offer, the person who put in the “ghost” offer withdrawls their offer.
I’m not a lawyer nor am I legal expert, but my understanding is that this is considered a fraudulent act if the initial “Buyer” on the offer did not have a true intention to purchase the property. These “fraudulent offers affect the industry as it clogs up the lender pipelines to sort through and review the bonafide offers.
