Hat tip to the reader who sent in this official warning notice from the Commissioner of the DRE regarding buyers being forced to pay the listing agent’s short-sale negotiator.
Unfortunately, Short Sale fraud is growing, and it too often seems that licensees and those counseling licensees may wrongly conclude that unlawful or questionable practices “cannot be bad” because “everyone is doing it.” Licensees must understand that fraudulent and unlawful practices will invite disciplinary action by the DRE an possible civil and criminal liability.
This DRE Short Sales update is written on the growing, questionable, and sometimes unlawful practice of short sale negotiators (“SSN”) requiring Buyers to pay the SSN’s fee.
It also mentions that a SS negotiator must be a licensed broker, which many are not. Click below:
The Commissioner mentions all the types of fraud in this letter to lenders below – let’s hope he can do something to stop it!