Big Banks Accused of Short Sale Fraud - gee, who'd a thunk it?
Just as regulators, lawmakers and all forms of financial oversight boards are talking about new 
regulations to guard against mortgage fraud and another mortgage meltdown, there appears to be yet a new mortgage fraud out there today, allegedly perpetuated by agents of, yes, the big banks.
It was only a manor of time when this nonsense would come to light on the 2nd lien holders behavior. I'm glad these guys blew the whistle. Short sale agents, feel free to comment.
Lyn, I caught this yesterday morning before I headed out. They named almost all of the banks that are holding up short sale transactions by not releasing the titles before they get a cash kick back for the second loan. The fall out from this show will be interesting as the banks mentioned were all recipients of TARP money.
Lyn...I also caught this yesterday. I have always thought there was something going on under the table. And like Ed says...they are all getting TARP monies. Shows that these programs are not worht the money thrown at them.
Ed & Bill: I know this for a fact and I had this happen where the 2nd lien holder forced the foreclosure. Let's see how this pans out. I wonder if people actually understand it though. It is basically a kickback for letting the deal go thru.
Every short sale agent needs to keep this article handy to throw at the lien holders when they ask us to partake of this foolishness.
Great idea BB. I'm sure you've had them try & run this past you a few times.
This helps to difuse the "moral" argument that banks like to throw around. They would like to be able to hold the borrower to a higher standard than they use for themselves.
Akron, Ohio
Thomas: Yes, it does. Banks are getting down & dirty and everyone should know.
Thomas: Yes, it does. Banks are getting down & dirty and everyone should know.