This is a generality but fraud requires that a false statement be made – knowingly – with the intent to induce reliance on it. There is absolutely nothing fraudulent about a homeowner withholding better offers in a short sale situation.
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I believe you are an attorney, so your definition might be technically different from those of us who question the ethical nature of these deals. Here are some other definitions for fraud:
Fraud encompasses an array of irregularities and illegal acts characterized by intentional deception. (280.01.1)
http://www.indiana.edu/~iuaudit/glossary.html
~~~~~~~~~~~~~~~~~~~~~~~ Noun
S: (n) fraud (intentional deception resulting in injury to another person)
S: (n) imposter, impostor, pretender, fake, faker, fraud, sham, shammer, pseudo, pseud, role player (a person who makes deceitful pretenses)
S: (n) fraud, fraudulence, dupery, hoax, humbug, put-on (something intended to deceive; deliberate trickery intended to gain an advantage)
Based on these definitions, the seller/listing agent who does not present the best offers to the lender is committing fraud. There is an implicit assumption on the lender’s part that they are being presented with the best offers.
The lender/TAXPAYER is the one taking the loss, so the seller should have NO say about who gets to buy the house.
If a seller is working with a particular buyer, and seeks to benefit that buyer (also possible kickbacks to the seller and/or agent) by not disclosing ALL the offers to the lender — especially those better than the one agreed to, then that person is committing fraud!!!
If the lender is losing money (that is theft, BTW!!!!) because of such tactics, **AND ESPECIALLY WHEN TAXPAYERS ARE BAILING OUT THE FINANCIAL INDUSTRY** then that seller/agent is committing major fraud!!!
Look, I’m certainly no apologist for the lending industry, but we **taxpayers and innocent citizens who were not over-leveraged** are paying dearly for the actions of speculators and gamblers in the housing market. This needs to stop, and it needs to stop now!
