Over and over we counsel agents against “gaming” the system to make extra money. In Houston, we are aware of a “Short Sale Specialist” that works both sides of the transaction to make more money. BEWARE!! As an agent you have a fiduciary responsibility to your homeowner/seller.
DO NOT try to “flip” the property to make extra money. Not only can this be an ethical violation it may be fraud and that can mean jail time. Furthermore, as an agent representing a seller you should ALWAYS seek to secure the highest/best offer possible to increase the odds of the short sale being accepted as well as to lower the risk of the seller needing to sign a promissory note and/or be hit with a deficiency judgment.
On all short sales an agent should seek legal counsel to avoid putting their seller at risk as well as themselves.
Read below to see what happens when you try to get line your pockets unethically.
- The Bank Slayer
Real Estate Agent Admits Short Sale Fraud
Sergio Natera, 35, Bridgeport, Connecticut, a licensed real estate agent, pleaded guilty before United States Magistrate Judge Holly B. Fitzsimmons in Bridgeport to one count of bank fraud stemming from his involvement in a “short sale” mortgage fraud scheme. A short sale transaction involves a mortgage holder or lender entering into an agreement to release its mortgage or lien on real property in exchange for payment of less than the total amount owed on the underlying debt. Many short sale transactions are legitimate.
According to court documents and statements made in court, Natera worked with another real estate agent to defraud Regions Bank, which held two mortgages on a residential property in
Bridgeport, Connecticut. On December 5, 2007, the other real estate agent, who was a listing agent for the property, received an offer to purchase the property for a price of $132,500. However, Natera subsequently communicated to Regions Bank that the highest offer to purchase the property was for $102,375 by BOS Asset Management, LLC, an entity that Natera controlled. The bank agreed to a short sale of the property for the lower price, and released its mortgages on the property. On June 9, 2008, Natera, through BOS Asset Management, sold the property for $132,500 to the original bidder on the property.
Natera is scheduled to be sentenced by United States District Judge Janet C. Hall on April 30, 2010, at which time he faces a maximum term of imprisonment of 30 years, a fine of up to $1 million, and an order of restitution.
Nora R. Dannehy, United States Attorney for the District of Connecticut, announced the guilty plea.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Ann M. Nevins.
In July 2009, the U.S. Attorney’s Office and the Federal Bureau of Investigation announced the formation of the Connecticut Mortgage Fraud Task Force to investigate and prosecute mortgage fraud cases and related financial crimes occurring in Connecticut. In addition to investigating past mortgage fraud schemes, the Task Force will focus on emerging crime trends that are associated with the growing tide of foreclosures, including foreclosure rescue schemes, and short sale schemes. Citizens are encouraged to report any suspected mortgage fraud activity by calling 203-333-3512 and requesting the Connecticut Mortgage Fraud Task Force, or by sending an email to ctmortgagefraud@ic.fbi.gov.
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