Question:

What is a short sale scam?

Answer:

A short sale scam involves fraudulent activities with a short sale property. There are two popular types of short sale fraud and scams.

  1. The first one occurs when a homeowner in distress pays solid money - several thousand or so - to a real estate agent to save her from foreclosure listing her property as a short sale. The fraudster takes the money and never shows up. To avoid that short sale scam, use a real estate attorney and do not pay money in advance for nothing.
  2. The other popular short sale fraud involves related people who hide their liquid assets, declare foreclosure and use a relative or a friend to buy their own property with short sale or at foreclosure auction with huge discount.

However, though, there are certain people who feel very comfortable lending credit rating and cash and assisting relatives and friends in getting a mortgage, or a short sale property while walking around real estate law. The wondrous fact is that the deal may very well work out; only the person who took the loan doesn't in fact inhabit the house they bought.

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