Excellent post, honest_abe. It seems as if no one gives a rat’s about having fair markets anymore. Everyone’s all about ‘how can I get mine?’
I would definitely encourage you to pursue this. I think SDR had a good suggestion above. If that doesn’t get you anywhere, you can try the FBI or even local law enforcement. Here’s the FBI’s contact in San Diego:
Unfortunately, it will probably be tough for you to get law enforcement to pursue a case like this. However, if the listing/RE agent committed fraud against the bank, and the bank wasn’t in on it, the bank might be able to get law enforcement involved.
I say pursue this thing to the hilt. I’m sick of seeing fraudulent transactions like this. My solution has been to just stay the heck away from the RE market since it seems to be the most crooked thing ever. However, if you really want to buy a house, you’re probably going to have to fight to get any kind of even moderately fair transaction. Our own government is going to be working against you getting a fair price pretty much every step of the way, so I wish you luck.
