How the scam works:
(with video below) What is the short sale fraud? Using a “neutral” middleman, investors make a lowball offer on a house where the debt on the property is larger than its total value. Then they require the transaction to be completed right away. The estimates of home appraisers and price brokers are also fake, in order to convince desperate homeowners into signing the short sale.
As soon as the sale goes through, usually just hours later, the investor resells the property to another person, who has made a higher bid, unbeknownst to the original homeowner. The scammers make an average profit of $40,000 – $50,000, which is obviously what the desperate homeowner lost, not knowing the real estimate.
Watch the video below to see the Short Sale Fraud greatly explained in detail:
How to avoid the Short Sale Fraud:
Ask for many opinions, and look for the most reputable real estate parties in your city. Is not easy, but better safe than sorry.
How to report the Short Sale Fraud:
Make your family and friends aware of this scam by sharing it on social media using the buttons provided. You can also officially report the scammers to the Federal Trade Commission using the link below:
How to protect yourself more:
If you want to be the first to find out the most notorious scams every week, feel free to subscribe to the Scam Detector newsletter here. You'll receive periodical emails and we promise not to spam. Last but not least, use the Comments section below to expose other scammers.
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