Recordsclerk that indeed is fraud. I have never had to that with any clients. I would never advise anybody to go into a deal under such circumstances. I am not saying that what you are talking about did not or does not happen, however that is a line that I would not cross as it would jeopardize my livelihood. As you noted, eventually the home did sell, whether or not the other buyers had to do the same thing as you were saying is an interesting question.
I would also add that short sale lender negotiators are scrutinizing the packages more now including bank deposits. A short sale I am in has requested an explanation for a large deposit just made in my sellers account and she had to send the image of the deposited check.