Short Sale Fraud Plagues the Housing Market

Post/Author/DateTimePost
#1

calronmoonflower

Jul 18, 2011 1:58:29
Article
#2

The_Silversword

Jul 18, 2011 3:26:59
They bank agreed to that sum of money, they probably could of checked it out a little better, but they didnt, they appreantly thought it was a decent offer and took it. I dont really see it as a scam.
#3

calronmoonflower

Jul 18, 2011 3:47:48
I dont really see it as a scam.

Say that you are selling widgets and need an middle man to sell them. I agree to help and bribe the person testing your widget falsify the testing to show that the quality is lower than it is and tell you that a company will by them at $10 each. After you sell me the widgets I sell the widgets at $15 to another company that I shared the real testing. Would you call that fraud?

That is basically the scam here, the appraisers of the houses are bribed to give out false numbers or are lied to about the quality of the property to artificially lower the price then it is sold at its real value. The fraud lays within the lie that the scam rests upon.

[edit]

Oh I forgot the second part of the fraud, the one offering $10 doesn't really exist. It was another lie.
#4

The_Silversword

Jul 18, 2011 4:37:32
I dont really see it as a scam.

Say that you are selling widgets and need an middle man to sell them. I agree to help and bribe the person testing your widget falsify the testing to show that the quality is lower than it is and tell you that a company will by them at $10 each. After you sell me the widgets I sell the widgets at $15 to another company that I shared the real testing. Would you call that fraud?

That is basically the scam here, the appraisers of the houses are bribed to give out false numbers or are lied to about the quality of the property to artificially lower the price then it is sold at its real value. The fraud lays within the lie that the scam rests upon.

[edit]

Oh I forgot the second part of the fraud, the one offering $10 doesn't really exist. It was another lie.



Well if I agree 10$ is a good price and agree to that, then well....
yes fraud is involved but if im thinking 10 dollars is a good price, well I havnt really been victimized or anything, but yeah I see what youre saying. But any way if I was selling widgets, I wouldnt just accept your word on it, Id be shopping around town to see who had the better offer. But any way its business everyones out to screw the other guy and make some money. Im not saying its right, I just dont think its that horribly wrong.
#5

Maxperson

Jul 18, 2011 9:31:13

Well if I agree 10$ is a good price and agree to that, then well....
yes fraud is involved but if im thinking 10 dollars is a good price, well I havnt really been victimized or anything, but yeah I see what youre saying.



The bold is wrong.  Just because you don't KNOW that you have been victimized, doesn't mean that you are not a victim.  If I break into your house and steal a small box from the back of your attic and you never realize that it is gone, does that mean that nothing has been stolen from you?


#6

zombie_babies

Jul 18, 2011 10:03:12
It's blatant fraud.  'The best offer we could get is $100k'.  The reality is they already have an offer for $150k.  That lie is a big deal legally.  The bank should have checked, yes, but they also shouldn't have needed to.  Business ethics (yeah, yeah.  oxymoron) an' all that.
#7

lokiare

Jul 18, 2011 13:20:19
I've noticed that banks are into it for all kinds of crimes. heck one bank (can't remember which one) was caught laundering drug money for someone and only got fined like 2% of the total money they laundered...

Edit: Example: that'd be like me stealing a car and only having to return the stereo...