Banks Could be in Hot Water over Short Sale Fraud

I knew this article was coming out and was contacted by one of the parties mentioned in the story, but at the time had not had it happen to me in any of my short sale dealings. Shortly after the fact, I did have JP Morgan Chase ask me to keep something off the HUD involving a second lien holder in a short sale negotiation. Even after I notified them that what they were asking was a RESPA violation, they refused to yield. In the end, the home owner was able to pay off the second lien holder before anything further proceeded, but I wasnt’ too happy with Chase’s attitude that what they were requesting was OK.

Big Banks Accused of Short Sale Fraud

“Just as regulators, lawmakers and all forms of financial oversight boards are talking about new regulations to guard against mortgage fraud and another mortgage meltdown, there appears to be yet a new mortgage fraud out there today, allegedly perpetuated by agents of, yes, the big banks….” (read more)

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