This real estate scheme usually happens when the borrower owes more on the property than the current value. The borrower then pretends they have a financial hardship and can not make any more payments. Someone, an accomplice, who is working with the borrower submits a low offer to buy the property. The lender agrees with the short sale not knowing that it was all a set-up. The property is usually resold immediately for the actual value for a profit. If you suspect real estate fraud you can make a report with stopfraud.gov.
photo credit: TheTruthAbout... This real estate scheme usually happens when the borrower owes more on the property than the current value. The borrower then pretends they have a financial hardship and can not make any more payments. Someone, an accomplice, who is working with the borrower submits a low offer to buy the property. The lender agrees with the short sale not knowing that it was all a set-up. The property is usually resold immediately for the actual value for a profit. If you suspect real estate fraud you can make a report with stopfraud.gov.
photo credit: TheTruthAbout... 
