- On a property purchase when we represented the buyers, we heard that the owner said he previously purchased the property as a short sale and offered the previous sellers a cash amount outside of escrow. This is a BIG no-no! Short sale lenders have to approve of the terms of sale because the previous sellers owed more than what the property was worth. They did not have the ethical right to receive any money out of that transaction unless under very specific above-board circumstances.
- On a property when we represented the sellers, the buyers who were represented by another agent contacted us after escrow closed asking for a property manager referral. They wanted to rent out the property. The property was purchased with OWNER-OCCUPIED financing! Fraud! Of course, how to prove it? The buyers’ agent never returned my calls or emails when I attempted to confront him about it.
We would love for our questions to be answered when Deputy District Attorney for Alameda County David Lim speaks at our Hispanic Real Estate Group on Friday September 20th. DETAILS HERE on Education, Prevention and Prosecution on real estate fraud issues.
Fellow REALTORS, what shady stuff have you run into in your business lately? Please share your comments here.