Short-sale flopping scams: when will it stop?

[SD Squatter]

Here is another one:

http://www.redfin.com/CA/San-Diego/11189-Avenida-De-Los-Lobos-92127/home/4669447

Just listed a month after purchase with absolutely NO WORK done on improvements for a cool $100k more (ok, ok, it’s “freshly painted”). The agent, who also owns the house, didn’t even bother to change the first picture and is reusing the old one from the short sale. Check out wild price swings during the earlier short sale. Trying to get an offer in for the short sale was an impossible task of course…

The pretend-to-the-bank game continues…

[no_such_reality]

Squatter, the open market is an illusion. Right now, all those offers filling up the voicemail aren’t worth the digital space they take up. Cash offers are being thrown around with virtually no intent to perform. They regularly flake within hours of having their offer accepted. We just bought a place for a rental, of the five offers on it, we were the lowest. Why’d we get it? The two cash offers above us flaked in the first 24 hours. The seller wanted it sold and didn’t want to deal with the FHA buying process, wasn’t worth the 5% price difference.

Don’t waste your emotional energy thinking you got screwed out of this house. It’s not worth it.

As for the listing, a simpler explanation is an RE Agent, just fluffing their MLS stats.

Speedy sale, check!
Above asking price, check!

[SD Squatter]

“Sold prior MLS input.”

http://www.redfin.com/CA/San-Diego/5256-Irwin-Ave-92120/home/6238801/sandicor-120061900

So, what’s the point of this listing???

Now a “stunning remodel”, flipping for $90k more:

http://www.redfin.com/CA/San-Diego/5256-Irwin-Ave-92120/home/6238801/sandicor-130008513

Just showing how twisted this market is.

[SD Realtor]

I know it does suck. So alot fo the scams u see are short sale middlemen and such. One thing that is key for the short sale lender to approve the sale is that they always ask for a printout of the MLS listing. So the listing agent will put it on there simply to prove to the short sale processor that indeed the property was on the MLS.

Pretty much of a joke.

If the short sale lenders wanted to, they could eliminate all of this really easy. They can literally demand that short sale listing agents keep the property listed as active for a minimum of say a week or two. Similarly the short sale lenders can demand from each MLS that agents representing buyers can contact them if they had written a higher offer then what was actually accepted. That way they can bust listing agents that do this stuff.

But… that is not in the cards…. pretty sad.

[Author]

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