With the rise of short sale, so to is the risk of fraud. Freddie Mac is sending out a warning to Realtor's & the public of the top four short sale fraud schemes.
Rigging sales & illegal flipping. In essence, a Realtor rigs the transaction to a low price & hides the better offer from the distress homeowner & from Freddie Mac. Once the home sells, the fraudster flips the home for a better price. By this concealment the distressed homeowner & tax payer loses.
Freddie Mac has a unit dedicated to short sale fraud. If you are a distress homeowner or a buyer of a short sale property, insist on signing an Arm's Length Affidavit. This affidavit is signed by all parties in the real estate transaction and states there are no hidden terms nor special agreements among the buyers, sellers and/or agents.
No comments:
Post a Comment