Wednesday, March 17, 2010

Short Sales: Yet Another Avenue For Loan Fraud

Everyone in the mortgage industry is used to hearing about 'that agent' or 'that office' that is committing fraud. We gasp and point fingers and then go back to our desks, but at the end of the day it's important to ask yourself if you are committing fraud. When a bank issues a short sale agreement, it does so with a specific seller and a specific financial history in mind. If the buyer backs out of the offer, this short sale agreement is out of the picture. It is not valid for any other buyer. As a buyer's agent, if you were to use an old short sale agreement in order to intrigue other buyers, you are breaching your fiduciary duties, confidentiality laws, and laws that the third party bank or lender required when they issued the letter.

Stay tuned for more information on how to avoid loan fraud.

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