Are you starting the Short Sale process in Long Beach because your mortgage is underwater? Did you suddenly have an eager buyer approach you with an offer that will solve all of your problems?
Just be cautious. You could be bait for a new real estate scam called Short Sale “flopping.”
What is Short Sale Flopping?
A Short Sale “flopper” works to drive down the price of your home so that your lender will allow you to sell your home for much less than it’s worth. In order to pull it off, the Short Sale flopper must find a home appraiser who agrees to be part of the scam. Without this valuable player, the flopper won’t be successful at undervaluing your property.
It works like this: once the flopper drives down the price of your home and secures your property in Short Sale, he then finds a buyer (or may already have a naive buyer lined up) who will buy the property for thousands of dollars above the Short Sale price. Then your lender, not the flopper, takes the loss.
And, if you’re not protected against being sued by your lender, they can come after you to pay the deficiency left by this “flop.†That means that if your Short Sale agreement doesn’t protect you from being subjected to your lender’s deficiency judgement, you could be responsible for paying thousands of dollars while the buyer walks away with your property. And, believe me, the bank will have the right to chase you for any shortfall.
How Do You Ensure You’re Protected from a Short Sale Deficiency Judgement?
If you start having financial difficulties, contact your lender right away. Make them aware of your situation before you miss your first payment. Our next step is to contact a Short Sale Real Estate Agent who has experience with loan modifications and refinancing programs available to people who have not yet missed a mortgage payment.
Then, work with your Short Sale Real Estate Agent and your real estate lawyer to help you prepare a proper Short Sale contract and assist you in negotiating with our bank. If someone approaches you with a quick deal to get out of your mortgage and they advise you against hiring a Real Estate lawyer or buyer’s agent, be very careful.
How Do You Protect Your Long Beach Property from Being Flopped?
Don’t try to sort through your Short Sale options alone – or take help from a stranger who comes bearing a deal that sounds too good to be true. It always is.
Most distressed homeowners who get caught up in “flopping” scams or other types of real estate fraud usually do so because they don’t seek competent help early enough in the process and are left with no other options.
If you’re considering working out a deal with a buyer, get the help of an experienced – and licensed – Short Sale Real Estate Agent. If you don’t know one, ask your neighbors and take the time to ask a lot of questions. Conducting a little research on licensing a signs of real estate scams will help you determine if your “real estate representative†is qualified, or ethical.
The best thing you can do is seek help from an experienced Short Sale brokerage.
If you have more questions about flopping and Short Sale scams in the Long Beach area, feel free to contact me @ 562-364-9505 or mark@shandrowgroup.com
Sincerely,
Mark Shandrow
Real Estate Broker
office 562-364-9505 ext 100
mark@shandrowgroup.com
Shandrow Group
3970 Atlantic Ave., 210
Long Beach, CAÂ 90807
follow my story at http://markshandrow.com
