FRAUD - CAN YOU SPOT IT?!

By
Real Estate Agent with Scottsdale, Phoenix, Cave Creek, Carefree, Fountain Hills SA5376460000

FRAUD - CAN YOU SPOT IT?  Fraud has erupted it's ugly head, just as the economy is at it's ugliest.  Is this a coincidence?  NOT!  Desperate times call for desperate measures.  There are all kinds of fraud cases running rampant in this country. 

I just read a post from Lydia Puller, Mill Valley CA.  In it she discusses 2 incidents of those trying to scam the system.  Those are just the tip of the iceberg.  I've turned down so many short sale listings for those same reasons.  People can be very creative in their ideas of what they are trying to accomplish for the sake of earning money. Even real estate agents.  Some of it is unknowing, naivete.  But there are lots of legitimate scammers out there.  And it is up to us to discern and educate the ignorate. 

I've had 2 real estate agents, one even in my office who holds the same 4 letter designation, come to me and ask me to list their homes and either split the commission or pay them a referral fee. When I explain to them that this is fraud and illegal, they seem ignorant.  Amazing!  I tell them it has to be an arms length transaction, they cannot benefit in any form, never mind that they will not make a dime from it as they are asking the mortgage holder to forgive their debt.  I'm truly amazed! 

If real estate agents and other professionals don't know it, imagine how many homeowners in the general public are simply unaware of all the rules and regulations, much less how difficult it is to process a short sale. 

I specifically liked Lydia's explanation of taking a pass on those listings where the homeowners just didn't get it.  If they aren't listening when you are explaining the details, take a pass.  When someone is so dead set on running their game, regardless of the rules - RUN!  Our license is sacred and should be treated as such.  In no way do I want to be involved. 

Another scam that I've personally been invited into, is the realtor from another state who has a ready buyer for me.  Problem is that I need to list a short sale for the realtor's company and then sell it to an already list of buyers in their inventory - FRAUD!  A realtor cannot already have a buyer prior to listing a short sale.  There are cases of this type currently being prosecuted. 

I checked out a site that someone mentioned - the FBI's site - and came up with this link of a really amazing case:        http://denver.fbi.gov/dojpressrel/pressrel10/dn061010.htm    

Desperate times make for desperate people. Stay wise, stay strong, and don't give into temptation, no matter the pie in the sky $$!

Posted by

Signature

Google plus 1

 

 

         Find me on Google!

 

RE/MAX Excalibur Realty                         Green Realor, Scottsdale, AZ

21803 N Scottsdale Rd., Suite 100                               

Scottsdale, AZ  85255

(602) 620-2699   DIRECT

(480) 355-3480   FAX

www.RelocatingToScottsdale.com

www.GotGreen.info                  facebook   google plus   twitter   youtube   linkedin   pinterest   

 Subscribe to Jan's Green Blog, Scottsdale, AZ! by Email" target="_blank">Subscribe to my Blog! 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Location:
Arizona
Groups:
Active Rain Newbies
Arizona Homes
Dedicated Bloggers
Realtors®
RE/MAX Active Rain Bloggers
Tags:
foreclosure
fbi
fraud
distressed homes
short sales

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the foot to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the flag to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainer
29,311
Frank Beckendorf
Beckendorf Realty Group - Abilene, TX

Here in West Texas, illegal activities are everywhere. I've had agents calll my contracted clients, agents orally extend listings. agents call my clients who are their friends - and relist their property under a new address...

July 05, 2010 01:44 PM #1
Rainer
29,311
Frank Beckendorf
Beckendorf Realty Group - Abilene, TX

...and when I call this to the attention of the investigative bodies - file a complaint against me..

July 05, 2010 01:45 PM #2
Rainmaker
471,255
Jan Green
Scottsdale, Phoenix, Cave Creek, Carefree, Fountain Hills - Scottsdale, AZ
RE/MAX Excalibur Scottsdale REALTOR®, GREEN

Wow!  That'll make your head spin.  Stay strong!  It's sad that all of this is taking place.  Makes you think that there are more corrupt folks out there than we care to believe.

July 05, 2010 01:54 PM #3
Rainmaker
240,583
Marge Draper
Keller Williams Realty Palo Alto - Menlo Park, CA
REALTOR, Keller Williams Realty, Menlo Park CA

We have been getting warnings about possible fraudulent acts by Realtors® and others in our area every day.

July 05, 2010 01:54 PM #4
Rainmaker
471,255
Jan Green
Scottsdale, Phoenix, Cave Creek, Carefree, Fountain Hills - Scottsdale, AZ
RE/MAX Excalibur Scottsdale REALTOR®, GREEN

Marge, so sad.  That's why AR is so valuable.  I try to follow anyone reporting on fraud to stay up to speed on any new scams rearing their ugly heads.  Of course, the bottom line is to simply follow ALL of the rules.  Thanks for your reply!

July 05, 2010 02:08 PM #5
Anonymous
Anonymous
Jan Green, REALTOR, ABR, CDPE, SFR, EcoBroker, RE/MAX Excalibur,

Yes, I guess "legitimate scammer" is not the correct language.  Maybe "real scammer" would have been more appropriate.

My position, why even bother to ask for a commission or referral.  Why jeopardize your license.  There is too much at stake for us to put our license in the path of a decision made by someone else.  I prefer not to be involved with a real estate agent who even asks as they clearly don't understand all the ramifications. 

Of course honesty is the best policy. 

There ARE FBI cases as we speak wherein the listing agent already had a buyer for a short sale and when the short sale went through as a legitimate sale, the agent was charged with fraud.  I've seen the YouTube video and have been trained to never go after a listing when someone approaches me as the buyer first.  It's a gray line and prosecutions are starting.  Have to disagree with you on this one. I've been in RE for 8 years and still attend classes held weekly at our office.  The sales trainer has been in RE for 38 years, my broker for 35, transaction coordinator 30+.  I trust their judgement when all is said and done.

Best of luck to you!

July 06, 2010 12:19 PM #7
Rainmaker
398,210
Kathryn Acciari
RE/MAX Professional Associates, with offices in Sturbridge, Charlton, Auburn, Spencer, and Shrewsbury - Sturbridge, MA
Realtor - CDPE, CIAS, Sturbridge MA Real Estate
Jan, there is something new every day in this business. You are right to proceed with caution - it will save your license and your business. Well said.
July 07, 2010 03:24 PM #8
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the graph to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
471,255

Jan Green

RE/MAX Excalibur Scottsdale REALTOR®, GREEN
Ask me about Homes in Scottsdale!
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the music-note to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information