A quick note CA R. I dont disagree with any of your ideas nor do I think you lack one bit of brain power. I just have seen enough to know that although what you propose seems simple and rational it does not mean it would work. I have had approved short sales where the buyer walked and I had to go back and get it reapproved for a higher priceed new offer. How much easier could that be? Just change the name on the approval and get even more than they alreadya greed to. I have seen these requests take over a month just to get an acknowledgement. These wonderful systems to control everything that you propose create incredible barriers to getting things done. I have seen it over and over again. The real problem is not the fraud, its the lenders inability to process these things. If they had turned it around quickly the loss would have decreased. By taking 6 weeks to turn it around they increased the loss.

The other problem is that the seller is still the legal owner. With REO’s the banks own them and could do something like that more realistically. The problem with REO’s is that the big REO agents have buyers lined up with them waiting for good deals. It is very easy for them to insert their own buyer in them which I have seen happen over and over again.