What constitutes short sale fraud?I am a prospective buyer for a property that turned into a short sale. I complied with all requests including one to increase in my offer. I was headed to the closing when I got a call from my realtor stating that the settlement was not going to occur at the scheduled time. The settlement agent had sent out a last minute email notifying all parties that Wells Fargo would not accept the HUD1 because the Jr lien holder had not released the seller from the debt owed. Upon further questioning it was revealed that the loan was serviced by Wells Fargo but owned by Fannie Mae and that Fannie Mae clearly stipulates that the seller must be released from the remaining debt if the Jr lien holder accepts the $6000 payment that is offered by Wells Fargo. The Jr lien holder refuses to budge unless they receive $6000 more so I am about to become the loser of the money and time I have already invested as the sale will not close. Shouldn't at least one of the short sale experts involved in this transaction have known that this condition was not allowed? I feel like I have been duped. Does this constitute short sale fraud, negligence or just plain incompetence?May 19 2013 - Alexandria00YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.