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December 20, 2014

More Owners Sabotaging Short Sales

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More Owners Sabotaging Short Sales

Distressed home owners who are unhappy about their home being sold in a short sale are trying to sabotage the sale by purposely damaging the home to make it less appealing and valuable, according to officials with CoreLogic.

For example, home owners have reportedly poured cat urine on rugs to make the home less appealing to potential buyers. Such vandalism can be reported to the Financial Crimes Enforcement Network and is considered fraud, Matthias Blume, senior director of analytics for CoreLogic, told HousingWire. 

The rate of suspicious activity surrounding short sales—including financial fraud and vandalism—has been rising for the last three years. Today, 3.7 percent of short sale transactions involve suspicious activity, according to CoreLogic data. The highest rates of such suspicious activity are centered in California, Florida, Arizona, and Nevada, according to CoreLogic. 

Source: “CoreLogic Chat Shows Short Sale Fraud Evolving in Unexpected Ways,” HousingWire (June 13, 2013)

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