Short Sales are Scams!

Just Kidding.  Made you look though, huh?  But in all seriousness, Core Logic is apparently developing a short sale watch dog technology.

In my opinion, this is an unnecessary product, like paying a company to monitor your credit on your behalf.  An overkill in my eyes, but I’m sure that there will be plenty of takers.

VP of Fraud Solutions at CoreLogic, Frank McKenna said, “the risk of this flopping fraud — giving a low ball offer, closing, then selling again at a higher price — is becoming so pervasive that some lenders are considering putting in place requirements to prevent property resales for 90 days after closing.

Really Frank?!?  You’ve got to be kidding me!  It sounds to me like lenders (or you) are just mad when others profit from information that they have that you don’t.

Where I come from (down South obviously) this practice is called wholesaling a product.

For example, when a department store buys a product to sell in their shop are they told that they can’t sell it for 90 days?  I'm quite certain they are not and that they would laugh this in the face if they were!  I’m pretty sure that they want to sell it as quickly as possible in order to make a Profit.

If they can’t sell, they may even have to dump it for a loss.  It’s called business.  It’s the chance they take when they bought the product.  They bought low Expecting to sell for a higher price.  Duh.

But to give you credit Frank, there was an illustration in the article that you mention and in my opinion it actually does sound quite fraudulent  -- realtor not presenting higher offer, presenting lower offer of investor, and then collaborating (I'm assuming) with investor to sell at higher price.  I will post it here for awareness in your honor.

But, again Frank, I'm gonna speak my mind.  If this transaction was slightly different then it's perfectly fine in my book.  Investor makes offer, gets it accepted, realtor markets, sold at higher price, bank sells, investor sells, end buyer gets product they want, win/win/win ----- it's business, face it.  I say go cry to someone else because you didn't find the person that would pay you the higher price --- don't cry to us.

Because we're probably the person that made you cry...

Now, investors, if you’d like to get crazy on some short sales, there are a few folks that are out there killin’ them right now.   You can view some resources on my resources page on my blog.

To Your Success!