Profile picture for Shotzielou

Shady dealings with Short Sale Agents/Banks

What can be done about short sales where an investor is in the pocket of the real estate agent and is making a counter offer in an effort to "flip" the property to a buyer?  What agency, if any, regulates this kind of thing?  This infuriates me as I'm trying desperately to buy and close a deal on a short sale and I think this may be happening.
  • September 16 2009 - Clearwater
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Answers (6)

Profile picture for agentblu15

most states have a real estate licensing board that is loosely responsible for regulating and sactioning their agents.  If the shadiness is more on the financing/mortgage end of things, such as a straw buyer or certain types of proxy bidding, that would fall under mortgage/bank fraud, and would be federally regulated.

What makes you think/feel that something shady is going on?  These types of deals a very difficult to spot or prove on an individual basis, and usually are only caught once the authorities see a "pattern" of straw buyers, fake money trails, flipped properties, etc.

  • September 16 2009
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If there is an offer then the property should be under deposit.
  • September 16 2009
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Profile picture for MaggyGee
The property was listed at an amount "bank approved"....then I made an offer and was told by my agent (listing agent told him) a much higher offer had almost immediately been made.  Property has been on market over 6 months.  Then, I see the property listed without the "bank approved" notation.  I questioned listing agent, "is there a bank approved amount?"  He would not answer, only "make a higher offer".  When I first made offer, listing agent says house would need to be re-evaluated.  I don't know if it has been and he won't tell me.  Could there be someone else who will buy the property at  lower price then attempt to sell it to me for a higher price, and the agent pockets more commission?  Sorry, I'm not good at explaining what I think is going on, but the sudden changes in the listing seem suspect to me, and also the less than professional handling of my offer.  This is not a grand house and is in a bad location for most, but would be perfect me for family reasons - that is why I will do everything I can to try and get it at the best price I legally can.  
  • September 18 2009
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Profile picture for orangeu
Every state or city has a government listing page, for example,  kansas.gov  (that is not a real site but just an example).


Go to your state's site or city's site, and then put the "real estate" words into the search bar.  Or search for  "licensing"  or for "complaints".

Try that and you might come up with some answers or the site will refer you to where you will get your answers.
  • September 18 2009
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Ah, the Florida short sale "option scam". Maybe that is what it is , maybe not. An investor puts an option on the house and re-lists or holds out for a higher offer and pockets the difference. Agents should steer clear of this. While not illegal, it certainly brings up ethical concerns.

Of special note... Approved short sales are not necessarily really approved and are often based on a past "approved" contract that failed to close.

In your case, I would go to your agents broker, agent in hand and politely insist on some answers. They may be stonewalled a bit, but your agent's broker is also your broker and likely to contact the listing agent's broker and apply some pressure.

Wat you suspect may just be a suspicion and contacting state authorities will mean nothing. Allow the brokers a short window to sort it out and make that determination. If yours is worth their broker's license, they will.

  • September 19 2009
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Profile picture for MaggyGee
Thanks to everyone for their input.  I just found the attorney for the bank and e-mailed her the particulars.  I figure I have nothing to lose.  I'll do everything legally within my power to try and get this house!
  • September 20 2009
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