[quote=urbanrealtor]I get that its a flip.
I don’t mean to be dumb but, in all seriousness, how is this fraudulent?
What misrepresentation appears to have taken place?
That is a serious question.[/quote]
The possible fraud was in mis-representing the value and sale in the short sale. If the short sale went for $1mil, but the actual sale price it would have commanded if the sale was ‘open market’ was $2mil, it is a fraudulent short sale.
It would almost be like your broker representing your house on a sale conspiring with another ‘investor/broker’ and stating “I know this guy(you in this case) really doesn’t know what this house is worth so I will tell him it is worth half what we know we can get for it and I’ll get him to sell it to you. We then hold on to the house for a short period of time and then sell it for the real price and split up the difference between us. Your broker (the sellers broker) is supposed to be representing you, the seller, in this transaction.
The fact that it listed exactly 1 day past the ‘watch period’ makes the short sale possibly questionable.
Hard to tell how much was just cleaning up and staging. The initial sale didn’t seem that serious. Only 4 photogs on the listing and no attempt at ‘cleanup’. The flip has 29 photogs. Looks like mostly ‘cleanup’ and ‘declutter’, but it is hard to tell because of the lack of photogs on the first listing. The difference might be worth a few 100K, but not 1.5mil.
