With regard to sdr’s post:
I agree.
I am working my first full blown HAFA now and a buyer is not required for approval.
The bank decides the property’s market value and then what percentage of that value they need to net for it to be acceptable.
Then I have 120 days to get a buyer (which is probably more than needed).
I would very much like to see this program extended to all short sales as a matter of law or with some government incentive.

With regard to CAR’s assertions about what constitutes an open market transaction:
All components of arm’s length that you referenced are present in all my deals.
In the case of the agent who made an unsolicited offer, that buyer had was an unrelated party to the seller.
Any person looking to buy had the same opportunity.
Entry into the MLS and a sign in front are not necessary components of an arm’s length or open market transaction.
Often, they are a requirement of the short sale lender.
However, it would be inaccurate to call an unsolicited offer and “inside deal” much less fraud.

As far as CAR’s definition of fraud:
This is a point I should concede.
Omissions of material facts can constitute fraud.
The issue is defining what constitutes a material fact.

As stated above, I would fully welcome and endorse a uniform blanket set of requirements for short sales.
At present, the banks are totally disorganized and inconsistent.
Often they cause foreclosures through their own inaction and foolishness.
That is good money they are wasting when they do that.