‘Flipping’ Your Property
If you find out that your home is being place into a Trust of some kind while they position a buyer at a higher price than they get it for, they’re flipping your property. The Trust is used to prevent a technical closing, yet it will be positioned to you as ‘protecting your home to prevent other liens being placed on your property’. ‘Flipping’ the property increases your deficiency, and is clearly not in your best interest. As of April 2010, it is now FRADULENT, according to Freddie Mac.
‘We work with investors who make offers’
This usually just means they’re going to submit low-ball, all-cash offers to try to get your home for as cheap as possible. Once they do, there are many ways for them to the flip it at a higher price, assign the contract to a buyer for a fee, sell it to the highest bidder, or more. This then creates an increased deficiency responsibility for you, which you will then be paying for!
Charge ANY type of short sale fee
Some companies charge an upfront short sale fee, then try to play it off as ‘overhead costs’. Don’t believe it. A solid and effective short sale operation gets paid just like any other professional RE Agent – when the deal closes. Some companies even try to add it in at the end of the transaction, hoping it goes unnoticed. Good rule of thumb: if they charge you anything at any point, walk away. This is not only unethical, it shows that they probably don’t know what they’re doing when it comes to closing short sales – hence the reason they have to collect money up front.
Can guarantee to sell your home
There are no guarantees in real estate, and particularly in short sales. If you hear this, walk away.
Encourage you to pay them instead of your mortgage
This one is not as popular any more, but there are always unscrupulous people preying on distressed homeowners. If they ask you to pay them instead of your mortgage, walk away. A good rule of thumb is that if they ask for any money up front, they do not have your best interest in mind.