Special Report #5 Short Sale Scam Artists




Short Sales are not new; lenders have been accepting short sale offers in lieu of foreclosure since the mid 80’s. They have only recently gained popularity because of the large number of foreclosures taking place in the past few years. As with any industry or business there will always be unscrupulous people who will try and circumvent the legal short sale process for their own personal gain. Often describing themselves as “foreclosure consultants” or “mortgage consultants,” offering “foreclosure prevention” or “foreclosure rescue” services. Many of these scam artists operate on the fringes of the real estate community. The negative press as a result of their actions generate great headlines on the front page. What you seldom hear of is how Short Sales done “Legally” and “Ethically” have helped thousands of homeowners avoid foreclosure, salvage their credit and move on with their lives.

What Our Clients Have to Say!

Thanks so much for the great job you did short selling my house. Even in this terrible market, you managed to get my house sold in a really short time and I didn’t have to do anything. Between you and my realtor, Caryn Baker of Realty Pros & Assoc. everything went really smoothly. I had heard some really horrible stories about short sales but not with you & my sale! I recommend you highly, just tell them to call me!!

 Thanks again, Karen H- Ormond Beach Florida “Freed from Foreclosure”


We work directly with licensed real estate brokers, title companies, attorneys and mortgage brokers everyday and they would never risk their business license doing business with us if they thought we might be committing any kind of fraud or illegal activity. There are a number of state and federal statutes that regulate this type of transaction and we have gone to great expense to make certain that we comply with each.


We are real estate Investors who are proposing to purchase your property in a legal real estate transaction, nothing more and nothing less. This is not a confusing Land Trust where beneficiaries are switched around all the time, any form of equity skimming, or other fraudulent scheme and we have no objection to you getting a legal opinion before you sign the papers, but we do have a time limit.

Our program and the methods we use were created by a team of nationally known real estate attorney’s and further reviewed by a number of locally, well known real estate attorney’s to make certain that we are in compliance with all federal, state and local regulations.

We strongly encourage and recommend that you consult with an attorney before moving forward with any short sale and we have no problem answering any questions they may have about our program. We will gladly provide them with a copy of all of the documents we use along with a detailed explanation of each which is the purpose of today’s message. It is only fair that you choose an attorney who is very familiar with “Real Estate Law” and how short sales work. Please do not ask an attorney who specializes in “Family Law” or “Tax Law” for their opinion regarding our program. You will most likely get an opinion based on the negative publicity of Mortgage Fraud. As we mentioned above we have had our program reviewed by a number of prominent local attorneys and would be happy to provide you with a referral if you like.



What Freddie Mac Says about Investors who
buy and resell short sale properties?

Freddie Mac Bulletin NUMBER: 2009-24 Dated October 9, 2009

“Freddie Mac recognizes the benefits provided by private investors who invest in the housing market by purchasing distressed properties that are legitimately renovated and resold at a fair market value. Thus, while we are strongly committed to preventing improper transactions, including property flips that are predatory, fraudulent or otherwise illegitimate, Freddie Mac encourages continued legitimate and sustainable investment in distressed properties and distressed neighborhoods.

Property flips are not inherently illegal and not all transactions involving a rapid purchase and resale are improper. Legitimate property flips are acceptable transactions in connection with loans purchased by Freddie Mac. Some indications of property flip transactions that may be legitimate include:

  • Sales of properties that the property seller acquired at below market value after purchasing as a result of a distress sale (i.e. REO sale, short sale, tax lien sale, bankruptcy trustee’s sale, etc.), where any increase in the sales price over the property seller’s acquisition cost can be clearly shown to be a result of the difference (if any) in the market’s reaction to distress sales and typical arms-length market sales.
  • Sales of properties that have been substantially improved by bona fide and verified renovations since the property was acquired by the property seller in which any increase in sales price over the seller’s acquisition costs is representative of the market given the improvements to the home.”

Avoiding Mortgage Modification Fraud

and Foreclosure Rescue Scams.

Beware of anyone asking you to sign a quit claim deed into a land trust or anyone asking you for a fee for their services. If someone offers to negotiate a loan modification for you or to stop or delay foreclosure for a fee, carefully check his or her credentials, reputation, and experience, watch out for warning signs of a scam. For more information regarding this issue you can download a Consumer Advisory, issued by the U.S. Department of the Treasury, Office of the Comptroller of the Currency (OCC).


We will never ask you to pay any fees for our services nor will we ever ask you to sign over your property to us. If for any reason we are unable to complete your short sale including the lenders refusal to cooperate. You will still own your home until the foreclosure process has run its course. Furthermore, at anytime during the short sale process you decide you no longer wish to work with us to complete your short sale for any reason, just let us know and we will gladly cancel our agreement and go our separate ways.

Give us a call and we’ll help you get started and answer any questions you may have!

Best Regards,
Douglas Heise
President and Acquisitions Manager
Phone 386-385-8185


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